Paycheck Chronicles

Navy Federal Special 3% APY Certificate of Deposit

Navy Federal Credit Union (NFCU) has just announced a limited time, promotional Certificate of Deposit (CD) with a great interest rate:  3.00% APY.

CDs are a great tool for earning a little extra interest on money that you don't need right now, such as emergency funds or savings for a future purchase.  With other CDs paying between 0.50% and 1.50%, this promotional CD is a great way to earn a little extra interest on your money.

Here are the details:

Must be a NFCU member.  NFCU membership is open to military members, veterans, retirees, and DoD civilians, plus their family members.

Minimum balance of $50, maximum balance of $10,000.  Additional deposits are allowed at any time, so you can start your account with just $50 and add to it over the course of the term.

Five month term.  It's not a long term, but it's better than having the money sitting in your regular savings account earning nearly nothing.

Share Certificate only. Not available for IRAs or ESAs.

Penalty applies for early withdrawal from certificate.  Generally, NFCU terms state that the penalty is forfeiting the interest earned in a certain period.  Verify this if it is important to you.

NFCU is not publishing a date when this promotion will end, so it could end at any time.

If you have money that isn't planned to be used in the next 5 months, I encourage you to take advantage of this offer.  3.00% interest is huge, especially if that money is just sitting in your savings account earning 0.25%, or worse, in your checking account earning 0.05%.  Just $1,000 saved at 3.00% over 5 months would earn you a little over $12 in interest, vs. the $2 in interest that you're making in your savings account.  Sure, $10 isn't a ton of money, but would you tear one up and flush it down the toilet?  Of course not!

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