What a Navy Federal Certificate of Deposit Is

A Certificate of Deposit (CD) at Navy Federal Credit Union is a savings product where you deposit a fixed amount of money for a set period of time — typically three months to five years — and receive a fixed interest rate in return. You agree not to withdraw the money until the term ends. In exchange, Navy Federal pays you more interest than you would earn in a regular savings account.

Navy Federal is a federal credit union that serves active-duty military, veterans, retirees, and their families. CDs are one of several ways members can save money with the credit union. The interest rate you receive depends on the CD term you choose, the amount you deposit, and the current rates Navy Federal is offering at the time you open the account.

Unlike a regular savings account where you can withdraw money whenever you want, a CD locks your money away. If you withdraw before the term ends, Navy Federal charges an early withdrawal penalty, which reduces the interest you earn or comes out of your principal deposit.

Key Takeaways

  • Navy Federal CDs require you to keep money deposited for a fixed term, ranging from three months to five years, in exchange for a may provide interest rate.
  • The interest rate and early withdrawal penalty vary depending on the CD term length and the current rates Navy Federal offers.
  • You can open a Navy Federal CD online, by phone, or in person at a branch if you are a member of the credit union.
  • Navy Federal CDs are insured by the National Credit Union Administration (NCUA) up to $250,000, so your deposit is protected even if the credit union fails.
  • When your CD term ends, you have a grace period — usually seven to ten days — to decide whether to withdraw the money, renew the CD, or move it to another account.

Who Can Open a Navy Federal CD

To open a CD at Navy Federal, you must first be a member of the credit union. Navy Federal membership is open to active-duty military members, retirees, veterans, and their families. Family members of may be able to access members can also join. If you are not yet a member, you will need to open a membership account before you can open a CD.

There is no minimum age requirement stated by Navy Federal for opening a CD, but minors typically need a parent or guardian to open a joint account or custodial account. Contact Navy Federal directly to confirm the process for opening an account as a minor.

Once you are a member, there are no other restrictions on opening a CD. You can open multiple CDs at the same time if you want to spread your money across different term lengths or amounts.

CD Terms and Interest Rates at Navy Federal

Navy Federal offers CDs in several term lengths. The most common terms are three months, six months, one year, two years, three years, and five years. Longer terms typically pay higher interest rates than shorter terms, though this is not may provide and rates change based on market conditions.

The interest rate you receive is fixed for the entire term, meaning it does not change even if Navy Federal raises or lowers its rates after you open the CD. The rate depends on when you open the account and which term you choose. Navy Federal publishes current CD rates on its website and updates them regularly.

There is usually a minimum deposit amount to open a CD, though this varies. Check Navy Federal's current terms or contact the credit union directly to learn the minimum for each term length. Some credit unions offer lower minimums for shorter terms and higher minimums for longer terms.

How to Open a Navy Federal CD

If you are already a Navy Federal member, you can open a CD through several channels. You can apply online through Navy Federal's website, call the credit union's member service line, or visit a branch in person. The online process is usually the fastest — you can complete it in a few minutes if you have your account information ready.

To open a CD, you will need to decide on the term length and the amount you want to deposit. You will also choose whether to set up automatic renewal, which means Navy Federal will automatically renew your CD for another term when it matures, or whether you want to be notified when the term ends so you can decide what to do with the money.

Once you submit your application, Navy Federal will transfer the funds from your checking or savings account to the new CD. The CD begins earning interest immediately. You will receive confirmation of the CD details, including the interest rate, maturity date, and early withdrawal penalty.

Early Withdrawal Penalties and What Happens When Your CD Matures

If you need to withdraw money from your CD before the term ends, Navy Federal charges an early withdrawal penalty. The penalty amount depends on the CD term — longer-term CDs typically have larger penalties than shorter-term CDs. For example, a five-year CD might have a penalty of six months' interest, while a one-year CD might have a penalty of one month's interest. Navy Federal publishes the specific penalty for each term on its website or in the CD disclosure documents.

When your CD reaches its maturity date, you enter a grace period, usually seven to ten days. During this time, you can decide what to do with your money. You can withdraw it, renew the CD for another term at the current rate Navy Federal is offering, or transfer it to another account. If you do nothing during the grace period and have automatic renewal turned on, Navy Federal will automatically renew the CD for the same term length at the current rate.

If you do not have automatic renewal set up and you do not take action during the grace period, the CD will mature and the funds will typically be moved to your savings account or checking account, depending on what you selected when you opened the CD.

How Navy Federal CDs Compare to Other Savings Options

Navy Federal offers several ways to save money beyond CDs. A regular savings account earns interest but allows you to withdraw money anytime without penalty. The interest rate on a savings account is usually lower than a CD rate because you have more flexibility. A money market account is similar to a savings account but may offer higher interest rates in exchange for maintaining a higher minimum balance.

A CD is best if you have money you do not plan to use for a specific period of time and want to lock in a may provide interest rate. If you might need the money sooner, a savings account is more flexible even though it pays less interest. If you are saving for a specific goal with a known timeline — such as a down payment on a home in two years — a CD with a matching term can be a good fit.

Navy Federal also offers Individual Retirement Accounts (IRAs), which have tax advantages for retirement savings. IRAs are different from CDs and have their own rules about when you can withdraw money. If you are saving for retirement, an IRA may be worth exploring alongside or instead of a regular CD.

NCUA Insurance and Safety of Your Deposits

Navy Federal is insured by the National Credit Union Administration (NCUA), a federal agency that protects credit union members' deposits. Your CD deposits are insured up to $250,000 per account ownership category. This means if Navy Federal fails, the NCUA will return your money up to the $250,000 limit.

If you have multiple CDs at Navy Federal, each CD is counted separately toward the $250,000 limit as long as they are in the same account ownership category. For example, if you have a CD in your individual name and another CD in a joint account with your spouse, each is insured separately up to $250,000.

This insurance protection means your CD is a safe place to store money. You are not taking on investment risk the way you would with stocks or bonds. Your principal and interest are may provide as long as Navy Federal remains solvent and your balance stays within the NCUA insurance limit.

Frequently Asked Questions

Can I withdraw money from my Navy Federal CD before it matures?

Yes, but you will pay an early withdrawal penalty. The penalty amount depends on the CD term length and is stated in your CD agreement. The penalty is deducted from your interest earnings or from your principal if the penalty is larger than the interest earned. Contact Navy Federal to learn the specific penalty for your CD term before you withdraw.

What happens to my CD when it reaches the maturity date?

You enter a grace period, usually seven to ten days, during which you can withdraw the money, renew the CD at the current rate, or transfer it elsewhere. If you have automatic renewal turned on and do nothing, Navy Federal will renew the CD for another term. If you do not have automatic renewal and do not act, the funds move to your savings or checking account.

Is my Navy Federal CD insured if the credit union fails?

Yes. The NCUA insures Navy Federal deposits up to $250,000 per account ownership category. Your CD principal and earned interest are protected by this insurance, so your money is safe even if Navy Federal becomes insolvent.

How do Navy Federal CD rates compare to other banks?

Navy Federal CD rates vary based on market conditions and term length. Rates at other banks and credit unions change constantly, so the best way to compare is to check current rates on Navy Federal's website and compare them to rates at other institutions. Some online banks offer higher CD rates than traditional credit unions, while others offer lower rates.

Can I open a CD if I am not yet a Navy Federal member?

No. You must be a Navy Federal member before you can open a CD. If you are may be able to access for membership — as active-duty military, a veteran, a retiree, or a family member of an may be able to access person — you can join the credit union first, then open a CD. The membership process usually takes a few minutes online or by phone.