Navy Federal Credit Union has just one basic savings account option. Members of the Navy Federal Credit Union start their membership by depositing $5 into a member share savings account. The Navy Federal savings rate is 0.25 percent APY and compounded monthly. The $5 deposit is refunded when membership is canceled.
Aside from this basic savings account, NFCU offers two types of money market savings accounts that earn interest based on the amount that you’ve put into the account.
Overall, Navy Federal Credit Union earned 3.7 out of 5 stars from Bankrate.
Navy Federal Credit Union savings rates
Here’s a breakdown of Navy Federal’s savings rates as of July 30, 2020.
|Account name||APY||Minimum deposit|
|Member share savings account||0.25%||$5|
Navy Federal also offers a money market savings account and jumbo money market savings account with tiered APYs.
|Account name||APY||Minimum daily deposit|
|Money market savings account||0.50%||$0 to $9,999*|
|Money market savings account||0.55%||$10,000 to $24,999|
|Money market savings account||0.60%||$25,000 to $49,999|
|Money market savings account||0.65%||$50,000 and over|
|Jumbo money market savings account||0.25%||$0 to $99,999|
|Jumbo money market savings account||0.80%||$100,000 to $249,999|
|Jumbo money market savings account||0.90%||$250,000 and over|
*Minimum daily balance of $2,500 required to earn dividends.
How Navy Federal Credit Union compares to top-yielding banks
Navy Federal Credit Union’s savings account pays more than than the national average of 0.1 percent. However, it’s considerably less than top-yielding online banks such as Vio bank which pays 1.11 percent APY. Even in the highest tier of Navy Federal’s money market jumbo account, members only earn 0.9 percent APY on balances of more than $250,000.
One benefit of Navy Federal’s savings account: It charges no fees, unlike some banks. The main drawback for would-be members is that they aren’t eligible to join, even with the generous membership policy that includes grandparents, siblings and grandchildren of veterans or active-duty military members.
How to become a member of Navy Federal Credit Union
To take advantage of Navy Federal savings accounts, you must be a member. Membership is given only to those who have served in the United States Armed Forces and their relatives, plus Department of Defense civilians.
This membership policy has allowed the credit union to grow from just seven members in 1933 to more than 9 million today. Members can access their accounts online or over the phone with 24/7 stateside customer service. NFCU’s website offers a variety of educational content related to savings, as well as a savings calculator to help you plan for future financial goals.
Other savings options at Navy Federal Credit Union
In addition to a basic savings account and the higher-interest money market accounts, Navy Federal Credit Union offers certificates of deposit (CDs) for short-term and mid-term savings. For saving up for smaller-ticket items like a down payment on a new car, you can put your money in CD with a duration of as short as three months. Navy Federal also offers variable-rate CDs that give you better interest rates as the market changes.
Finally, Navy Federal offers education savings accounts and retirement savings accounts to meet your long-term financial goals.
Featured image by Gary John Norman of Getty Images.