Navy Federal Credit Union CD Special: 2% APY for 17 Months + $150 IRA Bonus

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Navy Federal Credit Union announced a Special 17-month Certificate at 2% APY for a limited-time. That is a very competitive rate for that term length. Valid on regular taxable accounts, IRAs, and ESAs. Here are the highlights:

  • Open with as little as $50.
  • Make additional deposits anytime.
  • $50,000 maximum balance.

You probably won’t want to break this early, as certificates with a term greater than one year have an early withdrawal penalty of 180 days of interest (or all the interest earned so far, whichever is less). At least you can break it if it’s a true emergency. You may also notice their Special EasyStart Certificate at 3% APY, but there is a $3,000 maximum balance and it also requires direct deposit and checking.

Thanks to reader Chris for the tip. Note that it’s still not too late to get in on the 3% APY 84-month CD from Andrews FCU (must fund by 12/31/16). I would still consider this is NavyFed CD a good deal if you want a shorter term or don’t want the small risk of potential hassles from early withdrawals.

Additional IRA Bonuses up to $150. If you’re looking for very conservative investment for part of your retirement portfolio, you can open this certificate in an IRA. For a limited time, NavyFed is offering $50 when you open your first IRA with Navy Federal, plus you can earn another $100 when you setup a recurring automatic transfer of at least $50 per month to your new IRA. If, for example, you put in $5,000 towards a new IRA and got $150 + 2% APY of $100, that would work out to effectively 5% annualized interest for the first year.

Membership. The official eligibility options for NavyFed are primarily restricted to Marine Corps, Navy, Air Force, and Coast Guard regular Active Duty and reservists, and Army and Air National Guard personnel, but also includes family and household members of existing NavyFed members and some civilian employees in the Department of Defense. If you are looking for other ways to qualify, you might research this discussion on the Navy Federal Facebook page.

Navy Federal Credit Union has solid bank and loan products, including checking accounts with ATM rebates, competitive mortgage rates, and limited-time 0% balance transfer promotions. Readers have commented on their excellent customer service and the fact that they often keep and service the mortgages and other loans they originate.

Comments

  1. Do you need to be military. FFRDC or contractors to qualify?

  2. I Savings bonds current rate is 2.76 % through April 30,2017 and you pay only 3 months interest if you withdraw after one year. Ofcourse, there is $10000 limit per SSN

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