Navy Federal CD: Everything You Need to Know About Benefits, Rates, and How to Open
7 MIN READ
Published April 26, 2024 | Updated April 10, 2025
Expert Verified
Written by Priyanka Trivedi
Edited by Wes Silver
Reviewed by Teresa Dodson
TurboDebt Takeaways
Navy Federal’s Certificate of Deposits (CDs) offer far better returns than basic savings accounts, making them an excellent way to grow your savings. As a trusted credit union with high-interest rates and low minimum deposit requirements, they stand out among financial institutions.
Like many credit unions, Navy Federal Credit Union (NFCU) has “share certificates.” However, they function the same way: you’ll deposit cash in the certificate for a fixed period, earning a guaranteed interest rate.
Membership available to individuals with ties to the armed forces, National Guard, or Department of Defense. The credit union also offers several other financial products, including Navy Federal student loans, credit cards, and checking and savings accounts.
Whether you’re new to CDs or looking to maximize your financial strategy, this guide covers everything you need to get started. Learn how Navy Federal’s CDs can help grow your savings, explore their benefits and rates, and discover how to open one.
Navy Federal CDs are share certificates that are available for three months to seven years terms. The minimum deposit is $1,000, but the Share Certificate CD requires a minimum deposit of only $50.
With any of its CDs, you’ll be able to get better benefits through a CD ladder, where you can open multiple CDs with different terms. This allows you penalty-free access to the amount you deposit, along with interest at different time periods.
Benefits of Navy Federal CDs
Whether you’re saving for a house or a short-term goal, there are numerous advantages to choosing Navy Federal CDs:
- High interest rates, especially for long-term deposits, make it easier to reach financial goals faster.
- Daily compounding dividends maximize earnings over time, offering superior growth compared to basic savings accounts.
- Flexible terms to suit different savings plans, ranging from short-term goals to long-term financial strategies.
- Low minimum deposit requirements
- Three types of CDs to choose from
Navy Federal CD rates are significantly higher than the national average and what’s offered by most major banks. The rates for different Navy Federal CDs are given below.
Short-Term Certificate Rates
| Term | $1k Minimum APY | $20k Minimum APY | $100k Minimum APY |
|---|---|---|---|
| 3 Months | 1.50% | 1.50% | 1.55% |
| 12 Months | 4.00% | 4.00% | 4.05% |
| 18 Months | 3.80% | 3.80% | 3.85% |
| 24 Months | 3.60% | 3.60% | 3.66% |
Long-Term Certificate Rates
| Term | $1k Minimum APY | $20k Minimum APY | $100k Minimum APY |
| 3 Years | 3.70% | 3.70% | 3.75% |
| 5 Years | 3.50% | 3.50% | 3.55% |
| 7 Years | 3.50% | 3.50% | 3.55% |
EasyStart Certificate Rates
| Term | Minimum Deposit | APY |
| 12 Months | $50 | 3.95% |
| 18 Months | $50 | 3.75% |
| 24 Months | $50 | 3.55% |
Navy Federal Credit Union offers three main types of CDs that provide guaranteed returns so you can plan your savings.
Standard Certificate
- APY: 4.05%
- Term: Three months to seven years
- Minimum Deposit: $1,000
Standard certificates are best for those who don’t need access to their savings for a longer time but want to earn a higher dividend rate.
EasyStart Certificate
- APY: 3.95%
- Term: 12 to 24 months
- Minimum Deposit: $50
EasyStart Certificates are ideal for those who want to start building good savings habits or want to save for a short-term goal.
Special EasyStart Certificate
- APY: 4.30%
- Term: 12 months
- Minimum Deposit: $50
If you have a checking account and direct deposit at Navy Federal, this certificate allows you to access a special rate with the flexibility of adding money to the CD at any time.
Navy Federal CD rates are significantly higher compared to the national average. As of March 2025, the average return on 12-month CDs is 1.78%. In comparison, Navy Federal offers a 3.95% APY for the same term.
When comparing CD rates across financial institutions, Navy Federal offers a clear advantage. As of March 2025, its rates are significantly higher, giving savers a competitive edge.
| Term | NFCU | USAA | Chase Bank |
| 12 Months | 4.00% APY with $1,000 minimum deposit | 1.80% APY with $1,000 minimum deposit | 3.00% APY with $1,000 minimum deposit |
| 24 Months | 3.60% APY with $1,000 minimum deposit | 1.40% APY with $1,000 minimum deposit | 2.00% APY with $1,000 minimum deposit |
If you’d like to understand how much you can earn, use Navy Federal’s certificate calculator. Since CD rates can vary greatly between banks and credit unions, it's also best to compare your options.
If you’d like to open a Navy Federal CD, you’ll need to be a member of the credit union. Here’s a detailed look at the eligibility requirements for membership and the process of opening a CD account.
Eligibility Requirements
Navy Federal Credit Union serves military members and their families. You can qualify for membership if you’re in one of these categories.
- Active-duty member of the Army, Navy, Air Force, Marine Corps, Coast Guard, National Guard, or Space Force
- DoD Officer Candidate/ROTC
- DoD Reservists
- DoD civilian annuitants and retirees
- DoD civilian employee
- DoD contractors and government employees
- Retirees, annuitants, and veterans
- Immediate family members of the above
Opening Process and Required Documentation
If you’re already a member, the application process is quite simple and can be done online.
- Make sure you have a Membership Savings Account
- Ensure there’s a minimum $5 balance in your account
- Get your documents ready, including your home address, Social Security number, government ID, and a bank account or credit card to fund the account
- Choose the type of certificate, deposit amount, and term length to open the CD account
If you already have a Navy Federal CD that’s near its maturity date, it's important to know what to do next.
What Happens as Your CD Term Ends
You can get penalty-free access to your deposit money and interest once the CD term ends. You’ll get a notification from Navy Federal, during which you must instruct them what you’d like to do with the money.
You can renew the certificate within 21 days from the maturity date. If you don’t notify Navy Federal what you want to do within that timeframe, the money may roll over to a new CD at your current interest rate and the term you chose in your CD.
Your Options When the CD Matures
Once your CD matures, there are two main options available to you:
- Cash out: You can cash out and have the funds deposited in your checking account if you want to use the money for a specific purpose, such as paying off credit card debt. You can also move the money to a savings account if you’d like to keep saving or to an IRA if you want to save for retirement.
- Renew to a new certificate account: If you don’t need the funds, you can renew it with a new CD. You may renew the entire amount or renew a portion of the money and withdraw the rest.
Can You Withdraw Money Before the Maturity Date?
If you need to withdraw your funds before the maturity date, Navy Federal CDs impose penalties based on the length of your term. For example, withdrawing before 1 year could cost you up to 90 days of interest, which can significantly reduce your returns. It's important to consider your savings goals and ensure you can lock in your money for the full term.
Here’s what you can expect to pay for different terms:
| Term | Early Withdrawal Penalty |
|---|---|
| 1 year or less | Lose up to 90 days of dividends earned on the withdrawal amount or all dividends earned since opening the CD, whichever is less. |
| 1 year to 5 years | Lose up to 180 days of dividends earned on the withdrawal amount or all dividends earned since opening the CD, whichever is less. |
| 5 years or more | Lose up to 365 days of dividends earned on the withdrawal amount or all dividends earned since opening the CD, whichever is less. |
If you’re planning to open a new certificate account, Navy Federal is a good choice. The credit union offers higher rates, low minimum balances, and terms ranging from three months to seven years. The deposits are insured by the National Credit Union Administration (NCUA).
If you’re comfortable putting away money for at least a year, Navy Federal CDs annual percentage yield (APY) is quite high for one-year or longer terms. Another perk is that the dividends compound daily.
When planning your savings with a Navy Federal CD, it's also helpful to stay updated on Navy Federal pay dates to better manage your deposits and financial timeline.
Plus, Navy Federal also provides credit card options to help those with bad credit, so you can get back on track while you grow your savings.
If you’re looking to not only grow your savings but also manage debt effectively, TurboDebt® can guide you in finding solutions that align with your financial goals. Combining Navy Federal’s high-earning CDs with expert debt relief options can give you a comprehensive approach to improving your financial situation.
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