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Navy Federal Credit Union (federally insured by the NCUA) is one of the best institutions for the military. It pays competitive rates on most share certificates — what credit unions call CDs.
Learn more about Navy Federal Credit Union share certificates, below.
Who is Eligible for Navy Federal CDs?
To open Navy Federal Credit Union bank accounts, you must meet certain membership requirements. To qualify for membership, you must be part of one of the following groups:
- Active-duty, retired, or veteran military members. You're eligible if you're an active-duty member of the Air Force, Army, Coast Guard, Marine Corps, National Guard, Navy, and SpaceForce; joined the Delayed Entry Program; are a Department of Defense officer candidate or in the ROTC; are a Department of Defense reservist; or a veteran, retiree, and annuitant.
- Department of Defense civilians. You're eligible if you are a civilian employee, a U.S. government employee who does DoD installations, a DoD contractor who does U.S. government installations, or a retiree and annuitant.
- Family members. You can join if you are a family member of an eligible military member. This includes parents, grandparents, spouses, siblings, children (including stepchildren and adopted children), grandchildren, and household members.
Types of CDs offered by Navy Federal
Navy Federal Credit Union has three types of CDs: Standard, EasyStart, and SaveFirst. Your CD rate and minimum deposit will depend on which type of CD you open.
The Navy Federal Credit Union Standard Certificate is the bank's traditional share certificate. It pays a fixed interest rate and has a $1,000 to $100,000 minimum opening deposit.
The Navy Federal Credit Union EasyStart℠ Certificate lets you make additional deposits during the term. You only need $50 to open an account.
If you have a checking account that receives qualifying direct deposits, you qualify for the 1-year special EasyStart Certificate. This certificate offers the best CD rate at the credit union, but you'll only be able to deposit up to $3,000.
Lastly, Navy Federal Credit Union also has a Navy Federal Credit Union SaveFirst Account. You can open this CD with only $5, and make additional deposits anytime during the term.
Navy Federal CD Rates Today
The Navy Federal Credit Union Standard Certificate pays 2.75% to 4.85% APY (Annual Percentage Yield). It has a tiered interest rate system so you'll earn more with higher deposits. Right now, you won't earn the best rate unless you have at least $100,000.
| CD Term | $1k Minimum APY | $20k Minimum APY | $100k Minimum APY |
| 3 months | 2.75% | 2.75% | 2.80% |
| 1 year | 4.80% | 4.80% | 4.85% |
| 18 months | 4.50% | 4.50% | 4.55% |
| 2 years | 4.20% | 4.20% | 4.25% |
| 3 years | 4.00% | 4.00% | 4.05% |
| 5 years | 3.80% | 3.80% | 3.85% |
| 7 years | 3.80% | 3.80% | 3.85% |
Navy Federal EasyStart Certificate Rates
The Navy Federal Credit Union EasyStart℠ Certificate pays 4.15% to 5.30% APY. Here are the interest rates for each term:
| EasyStart CD term | APY |
| 1 year | 4.75% |
| 1-year special EasyStart certificate | 5.30% |
| 18 months | 4.70% |
| 2 years | 4.15% |
Navy Federal SaveFirst Account Rates
The Navy Federal Credit Union SaveFirst Account has most lenient minimum opening deposit requirements. It pays 0.40% APY, so the rate isn't great — but you get to choose your own term length between three and 60 months, and unlike with most CDs, you can contribute more money after opening the account.
What Influences Navy Federal CD Earnings
Navy Federal Credit Union can adjust CD rates at any time. To get a competitive interest rate on a Navy Federal Credit Union, be mindful of upcoming Fed meetings since the Fed's decisions can impact CD rate trends. You can maximize your CD earnings by avoiding early withdrawal penalties and selecting your CD term carefully.
Role of Federal Reserve
At Fed meetings, the Federal Open Market Committee makes decisions about monetary policy. It can adjust the federal funds rate, which can influence whether a bank provides more competitive CD offerings. Generally, banks offer higher CD rates when the Fed has rate hikes and lower rates when the Fed announces rate cuts.
CD Early Withdrawal Penalties and Term Selection
Navy Federal Credit Union CDs have an early withdrawal charge if you take money out before the account term ends. Here is an overview of Navy Federal Credit Union's early withdrawal charges:
- For certificates under a year, the penalty is up to 90 days of dividends
- For certificates between one year and under five years, the penalty is up to 180 days of dividends
- For certificates of five years or more, the penalty is up to 365 days of dividends
Since the credit union's early withdrawal penalties detract from your overall CD earnings, you'll want to avoid taking out money from a CD before it matures.
Choosing a CD based on your financial goals can help you set a timeline and figure out a suitable term that will allow you to keep money until CD maturity.
Navy Federal CD Pros and Cons
Navy Federal CD Pros
- High interest rates on most terms
- Compounds dividends daily
- Three types of CDs to choose from
- Terms as long as seven years
- Relatively low minimum opening deposits
Navy Federal CD Cons
- You must qualify for membership with Navy Federal before opening a CD
- Pays low rates on 3-month terms and SaveFirst accounts
- Standard-to-high early withdrawal penalties
Should You Get a Navy Federal CD?
Navy Federal CD rates are high overall, with the exception of its 3-month terms — you'll find the best 3-month CD rates elsewhere. The SaveFirst Account rates are only so-so, but they're some of the few CDs out there that allow you to add more money to your account during the term.
Navy Federal CD Alternatives
Navy Federal CDs vs. USAA CDs
USAA Fixed Rate CD are competitive on certain terms. The bank pays up to 4.65% APY, and the best rate between the two institutions may depend on which term you choose.
USAA does have some specialty CDs that let you adjust the interest rate during your term and make additional deposits — but the rates aren't nearly as high as what Navy Federal offers.
USAA Bank Review
Navy Federal CDs vs. PenFed CDs
Pentagon Federal Credit Union is another credit union for military families. It has certificates with rates up to seven years that pay 3.00% to 4.00% APY. Both credit unions pay strong CD rates overall, but the best rate between the two will depend on which term you choose.
PenFed doesn't have any specialty CDs like Navy Federal does. It's also worth noting that although PenFed CD rates are high overall and compound interest daily on most terms, its 6-month CD doesn't compound interest at all.
PenFed Review
Why You Should Trust Us: How We Reviewed Navy Federal CDs
To review Navy Federal Credit Union certificates, we used Business Insider's certificate of deposit methodology.
We evaluate the company's ethics, mobile app, and customer service. Then we look at certificates' interest rates, minimum deposits, variety of terms, and early withdrawal penalties. We give each category a rating between 0 and 5. Then we average their scores together and assign each CD a score from 0 to 5.
Navy Federal Credit Union CD FAQs
Are Navy Federal CD rates typically competitive?
Navy Federal Credit Union CD rates are typically more competitive than average CD rates for most terms. The credit union also offers add-on CDs, but the rates vary significantly between the type of account and term you choose.
Do Navy Federal CD rates change often?
The credit union can adjust CD rates at any time. It may have more competitive CD rates when the Federal Reserve raises the federal fund rate. If the Fed lowers the federal funds rate, CD rates may be lower.
What's the difference between Navy Federal's Share Certificates?
The Navy Federal Credit Union Standard Certificate is the traditional CD offering, while the Navy Federal Credit Union EasyStart℠ Certificate and Navy Federal Credit Union SaveFirst Account are add-on CDs. Each type of CD has different minimum opening deposit requirements and term options.
Are Navy Federal CDs safe?
Navy Federal Credit Union is federally insured by the NCUA. Up to $250,000 per depositor, per account ownership category is safe in a Navy Federal CD.
How do I become eligible to open a Navy Federal CD?
To open a Navy Federal CD, you must qualify for membership at the credit union. Navy Federal is specifically for military members and their families. You also must open the Navy Federal Credit Union Share Savings Account to establish membership at the financial institution.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
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