With 14 million members, Navy Federal Credit Union is the largest credit union in the U.S. It serves active-duty military, veterans, Department of Defense personnel, and their families. It offers a full range of banking services, including checking and savings accounts, loans, credit cards, and mortgages.
As a member-owned credit union, Navy Federal returns profits to members through lower loan rates, minimal fees, and competitive financial products.
While its fee-free structure and customer service are major advantages, its interest rates on savings and certificates may not always be the best available. Before opening an account, it’s worth comparing Navy Federal’s offerings to online banks and other financial institutions to ensure you’re getting the best deal.
Navy Federal Credit Union Overview
Navy Federal Credit Union was founded to serve those connected to the military, providing financial services designed for active-duty personnel, veterans, and their families. Membership is exclusive, but those who qualify gain access to specialized banking benefits tailored to their needs.
Membership Eligibility
To become a member, you must meet one of the following criteria:
- Active-duty, retired, or veteran status in any branch of the military
- Employment with the Department of Defense, including civilian personnel and contractors
- Immediate family or household member of an existing Navy Federal member
Once approved, membership remains for life, even if your military status or job changes.
How Navy Federal Compares to Banks and Other Credit Unions
Navy Federal operates differently from traditional banks by focusing on the financial needs of military families.
Savings rates may fall short – While Navy Federal offers solid financial products, some online banks provide higher returns on savings and certificates.
Exclusive membership – Unlike national banks, its services are only available to those with military ties, allowing for specialized benefits.
Lower fees – Most accounts avoid the maintenance fees commonly found at large banks.
Competitive loan rates – Borrowers often find lower interest rates, especially for mortgages and auto loans.
Account Options at Navy Federal Credit Union
Navy Federal Credit Union offers different types of accounts designed to meet its members’ financial needs. From everyday checking to long-term savings options, each account provides unique benefits.
Checking Accounts
Features and Benefits
- No monthly service fees on most accounts
- No minimum balance requirement for standard accounts
- Dividend earnings on select accounts
- ATM fee rebates available on certain accounts
- Full access to online and mobile banking
Comparison of Account Types
- Free EveryDay Checking – A simple, fee-free account with no minimum balance requirements.
- Flagship Checking – Offers tiered dividend rates based on balance:
- $0–$9,999: 0.35% APY
- $10,000–$24,999: 0.40% APY
- $25,000 & over: 0.45% APY
- A $10 monthly fee applies if the balance falls below $1,500.
- Free Active Duty Checking® – Designed for active-duty military, with up to $20 in ATM fee rebates per statement period. A qualifying military direct deposit is required.
- Free Easy Checking – Provides up to $10 in ATM fee rebates per statement period.
- Free Campus Checking – For students aged 14–24, with the same ATM rebate benefits as Easy Checking.
Savings Accounts
Interest Rates and Key Features
- Share Savings Account – The basic savings account required for membership, offering a 0.25% APY with a minimum balance of $5 to earn dividends.
Special Savings Options
- Individual Retirement Accounts (IRAs) – Includes Traditional, Roth, and SEP IRAs, all earning a 0.25% APY.
- Education Savings Accounts (ESAs) – Designed to help save for future education expenses, also earning a 0.25% APY.
Money Market Accounts
Navy Federal’s money market accounts offer the following interest rates:
- $2,500–$9,999: 0.95% APY
- $10,000–$24,999: 1.06% APY
- $25,000–$49,999: 1.10% APY
- $50,000 and over: 1.50% APY
For larger deposits, jumbo money market accounts offer higher returns:
- $100,000–$249,999: 1.65% APY
- $250,000–$499,999: 1.85% APY
- $500,000–$999,999: 2.05% APY
- $1,000,000 and over: 2.25% APY
Minimum Deposit Requirements
- A minimum balance of $2,500 is required to earn dividends on a standard money market account.
- Jumbo money market accounts require a $100,000 minimum balance.
Share Certificates (CDs)
Navy Federal offers fixed-rate share certificates with the following terms and interest rates:
- Short-Term Certificates
- 3 Months: 1.50% APY
- 12 Months: 4.00% APY
- 18 Months: 3.80% APY
- 24 Months: 3.60% APY
- Long-Term Certificates
- 3 Years: 3.70% APY
- 5 Years: 3.50% APY
- 7 Years: 3.50% APY
A minimum deposit of $1,000 is required for all share certificates.
While Navy Federal’s share certificates offer solid returns, some online banks provide higher APYs, especially for shorter-term CDs. For example, some institutions currently offer 12-month CDs with rates above 4.50% APY. Comparing rates across multiple banks can help ensure the best return on savings.
Loan and Credit Products
Navy Federal Credit Union offers a range of loan and credit products to meet the diverse needs of its members. Here’s an overview of their offerings:
Credit Cards
Navy Federal provides several credit card options, each tailored to different spending habits and financial goals:
- cashRewards Card: Earn 1.5% cash back on all purchases, with potential for higher rewards for qualifying members.
- More Rewards American Express® Card: Offers 3x points at supermarkets, gas stations, and on transit, plus 1x points on other purchases.
- Visa Signature® Flagship Rewards Card: Provides 3x points on travel and 2x points on everything else.
- GO REWARDS® Card: Earn 3x points at restaurants, 2x on gas, and 1x on all other purchases.
- Platinum Card: Features low interest rates, ideal for those seeking to minimize interest payments.
- nRewards® Secured Card: Designed to help build or rebuild credit, with rewards on every purchase.
Comparison to Other Credit Unions and Banks
Navy Federal’s credit cards are known for:
- Competitive Rates: Their average credit card APR is 6.81% lower than the industry average, currently capped at 18%.
- No Annual Fees: Most cards come without annual fees, making them cost-effective.
- Member-Focused Benefits: Exclusive offers like balance transfer promotions and rewards tailored to member spending patterns.
Compared to other institutions, Navy Federal emphasizes member benefits and often provides lower fees and rates.
Personal Loans
Navy Federal offers personal loans with:
- Rates: Starting as low as 8.99% APR, depending on creditworthiness.
- Terms: Flexible repayment periods up to 60 months.
- Loan Amounts: Borrow as little as $250 up to $50,000, catering to various financial needs.
Ideal Candidates for These Loans
Personal loans from Navy Federal are suitable for members looking to:
- Consolidate high-interest debt.
- Finance home improvements.
- Cover unexpected expenses without tapping into savings.
Mortgages and Home Loans
Navy Federal specializes in:
- VA Loans: Offering competitive rates for veterans and active-duty military members, with options for no down payment.
- Conventional Mortgages: Fixed and adjustable-rate options for homebuyers.
- Home Equity Loans and Lines of Credit (HELOCs): Access up to 100% of your home’s equity for renovations, debt consolidation, or other needs.
Special Mortgage Features
- Rate Match Guarantee: Navy Federal will match a competitor’s rate or give you $1,000 if they can’t.
- No Private Mortgage Insurance (PMI): Save on monthly payments with options that don’t require PMI.
Student Loans and Refinancing
For students and parents, Navy Federal offers:
- Private Student Loans: Cover up to the full cost of attendance with fixed rates as low as 4.75% APR and variable rates starting at 7.24% APR. Choose from 5- or 10-year repayment terms.
- Student Loan Refinancing: Consolidate existing loans with fixed rates beginning at 4.85% APR and variable rates from 5.58% APR. Terms range from 5 to 15 years.
Eligibility and Benefits of Refinancing
- Eligibility: Available to members with existing student loans seeking better rates or terms.
- Benefits: Potential to lower monthly payments, reduce interest rates, and release co-signers after consistent, timely payments.
Fees and Interest Rates
Navy Federal Credit Union keeps most fees low, making it a cost-effective option for members.
- Checking Accounts – No monthly fees on most accounts. The Flagship Checking account requires a $1,500 daily balance to waive a $10 fee.
- Savings Accounts – No monthly fees, with a $5 minimum balance required to earn dividends.
- ATM Fees – Free at NFCU ATMs. A $1 fee applies at non-NFCU ATMs, though some accounts offer rebates.
- Credit Cards – No annual fees except for the Visa Signature® Flagship Rewards card ($49). Cash advances at NFCU ATMs and branches are free, but fees may apply at external ATMs.
How NFCU’s Interest Rates Compare
- Savings Accounts – 0.25% APY, competitive with credit unions but lower than some online banks.
- Certificates (CDs) – 1.50% to 4.35% APY, depending on term length and deposit amount.
- Credit Cards – APRs range from 10.99% to 18.00%, often lower than the national average.
- Personal Loans – Rates start at 8.99% APR with terms up to 60 months.
- Mortgages and Auto Loans – NFCU consistently offers lower rates than many traditional banks.
Online and Mobile Banking Experience
Navy Federal’s digital banking platform gives members full control over their finances.
- Account Management – Check balances, view transaction history, and access statements.
- Transfers and Payments – Send money between NFCU and external accounts, set up bill payments, and transfer funds to other members.
- Mobile Check Deposit – Deposit checks using a smartphone camera.
- Card Controls – Report lost or stolen cards, activate new cards, and set travel notifications.
- Budgeting Tools – Features like My Money help track spending and set financial goals.
ATM Access and Availability Outside of Military Bases
- Navy Federal ATMs – Located at branches and military installations, NFCU ATMs are free for members.
- CO-OP Network – NFCU members have access to over 30,000 fee-free ATMs nationwide, making it easier to withdraw cash without extra charges.
Is Navy Federal Credit Union right for you?
Navy Federal is a strong choice for:
- Military Service Members and Veterans – NFCU’s products are designed with the unique financial needs of the military in mind.
- Department of Defense Employees – Civilian employees and contractors can take advantage of the same benefits as military members.
- Borrowers Looking for Competitive Loan Rates – NFCU’s rates on personal, auto, and home loans are often lower than those at traditional banks.
When It Makes Sense to Consider Other Options
- Savers Looking for Higher APYs – While NFCU offers solid interest rates, online banks may provide better returns on their high-yield savings accounts and CDs.
- Non-Military Individuals – Those without military ties or DoD employment are not eligible for membership.
Bottom Line
Navy Federal Credit Union stands out for its commitment to serving military members, veterans, and their families. With low fees, competitive loan rates, and a strong digital banking experience, it provides a reliable option for those who qualify. Its checking and loan products are some of the best among credit unions, especially for service members who need flexible financial solutions.
That said, Navy Federal’s savings and money market rates may not always be the highest, especially compared to top online banks. Membership is also limited to those with military ties, which means it’s not an option for the general public.
For those who are eligible, Navy Federal remains one of the best choices for banking, offering a mix of convenience, affordability, and specialized benefits that cater to the financial needs of military families.
