Navy Federal Credit Union Review
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Fast Facts
Serves:
Military members
Products:
Complete suite of financial products
Cost:
No cost for becoming a member
Savings account APY:
0.25%
Personal loan amount:
Upto $50,000
Access to physical branches:
Yes
Finding the right bank in today’s ever-evolving digital personal finance landscape is tricky. You want a bank that’s easy to access from anywhere, with decent savings rates and low interest rates on other financing tools you might need — from buying a car to funding your college education to purchasing your very first home.
The real problem is many banks check these boxes — with a few hang-ups. Digital-only banks often tout higher-than-average savings rates and no fees, while traditional brick-and-mortar banks like Chase and Wells Fargo tend to offer lackluster savings and may charge monthly fees.
Navy Federal Credit Union offers a compromise that many may find appealing — access to various branches nationwide, a small-town credit union feel, decent savings rates, access to 30,000 free ATMs, online banking and mobile app, and high customer service. The catch? You must be a military member or related to one to sign up.
If you or one of your loved ones are in the armed forces, Navy Federal Credit Union may offer all the financial services you need under one roof. If you’re deciding on the right bank, here’s everything you need to know about Navy Federal Credit Union and whether this bank is worth switching to.
In this article
What is Navy Federal Credit Union?
NFCU is the largest credit union serving military members in the world, with over 12 million members across the globe. Founded towards the end of the Great Depression, Navy Federal Credit Union was formed to help Navy employees access more affordable financing to meet their money goals.
This credit union started with just seven members to expand to its current global entity. NFCU is member-owned and operated, meaning profits are returned to members through dividends, lower financing rates, higher savings rates, and better products and services.
Like all US banks, Navy Federal Credit Union is FDIC insured for up to $250,000, so you don’t have to worry about anything happening to your money. Its since expanded to include all members of the armed forces, coast guard, and even employees of the Department of Defense.
It is a full-service financial institution with all the financial services most people need — banking, investing, financing, and more.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
What products and services does Navy Federal Credit Union offer?
NFCU offers its members various services, from checking and savings to specialized savings and investing products. It also provides credit cards, loans, mortgages, and more. Here are the main products you should know about.
Navy Federal Credit Union checking accounts
There are five NFCU checking accounts you can choose from. All accounts come with debit cards, digital account access, and online Bill Pay. These accounts include:
- Free Active Duty Checking Account. This account is best for active duty or retired military members still receiving military direct deposits or paychecks. It’s free, offers a 0.05% annual percentage yield (APY) (some banks offer no interest on checking), gives you early access to your paycheck, has no monthly fee or balance requirements, and offers rebates on ATMs with fees (up to $240 per year).
- Free Easy Checking Account. Best for military spouses or those no longer receiving monthly military paychecks, this account offers 0.05% APY, has no monthly fee, and reimburses ATM fees (up to $120 per year).
- Free Campus Checking Account. Like Free Easy Checking, this account is ideal for high school or college kids. This account also earns 0.05% APY, has no service fees, and offers ATM rebates (up to $120 per year).
- Free EveryDay Checking Account. With no eligibility requirements, this is the most versatile account offered. It includes 0.01% APY, no opening deposits, and no monthly service fees.
- Flagship Checking Account. If you want to earn more interest on your money, this account can yield 0.35% to 0.45% APY, based on your account balance. It costs $10 per month, but this fee is waived if you have at least $1,500 in your account daily. ATM fees are also rebated (up to $120).
NFCU also offers business checking options.
Related: Best Online Banks
Navy Federal savings accounts
There are also a variety of savings account options to choose from.
- Basic Savings Account. This account earns 0.25% APY, a bit lackluster but higher than traditional banks like Chase. You need to deposit at least $5 to start earning dividends.
- Education Savings Account. This account lets you earn dividends up to 0.25% APY with no minimum deposit. Plus, you can withdraw your money as needed.
While its general savings account won’t earn much interest, its certificates of deposit (CDs) and money market savings accounts will earn you higher interest. CDs can earn you as much as 5.30% (a fairly competitive rate), while money market accounts can earn you 0.25% to 2.25% (which ranges from decent to competitive).
Navy Federal credit cards
A Navy Federal credit card could help you reach your goals if you want to boost your credit score. NCFU offers six main credit cards, each tailored to different money goals. These include:
- cashRewards. This card has no annual fee and earns you 1.75% cash back on every purchase, a fairly competitive rate (though some flat cash-back cards can earn you 2% back). It also offers a low intro APY (1.99%) for six months, then goes up to 14.90% to 18%. You can earn a $300 welcome bonus when you spend $3,000 in the first 90 days of account membership.
- Platinum. If you’re trying to lower your credit card debt, this card functions as a balance transfer card with a low 0.99% APR for the first 12 months. This can help you save on interest while paying down debt. After that, its APR jumps from 11.24% to 18%, and you won’t earn rewards with this option.
- Go Rewards. For anyone on the go, this credit card can help you maximize purchases you’re already making. This card also has no annual fee and earns you 3x points at restaurants, 2x on gas, and 1x on everything else.
- Visa Signature Flagship Rewards. With a $49 annual fee, this credit card is tailored to those who travel frequently. You earn 3x points on travel and 2x on everything else. You can earn 40,000 bonus points (worth $400) when you spend $3,500 in the first 90 days of account opening. You’ll also get Amazon Prime free for one year.
- More Rewards American Express Card. To get the most out of everyday purchases, this card offers 3x points on grocery store purchases, gas and transit, and restaurants. You’ll earn 1x points on everything else. There’s also no annual fee.
- nRewards. This card has no annual fee or frills but is easier to get approved for if you have less-than-perfect credit. It can help you rebuild your credit while earning 1x points on every dollar you spend.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Navy Federal Credit Union Loans
NCFU is a lender that offers a variety of loans, including personal loans, auto loans, student loans, mortgages, and more. Here are a few of its most popular offerings.
- Personal Expense Loan. Borrow $250 to $50,000 for personal expenses at 8.99% - 18% APR, depending on your loan term (up to 5 years) and credit score.
- Home Improvement Loan. Borrow $25,000 to $30,000 (minimum depending on loan term) for home improvement projects at 8.99% to 18% APR, depending on your loan term (up to 15 years) and credit score.
- Debt Consolidation Loan. Help consolidate debt up to $50,000 at a lower interest rate (8.99% to 18% APR).
- Student Loans. Borrow up to the school-certified amount of your costs, starting at 7.79% variable APR and 4.75% fixed APR (with autopay).
- Auto Loan. Finance a new car with competitive rates starting at 4.09% APR or a used car starting at 4.49% APR, depending on your loan terms (3 to 8 years) and credit score.
NFCU offers a variety of mortgage programs, including VA loans (flexible terms for military members) and conventional fixed-rate mortgage loans. It also offers jumbo loans.
You can also refinance loans through NFCU or apply for a line of credit for personal or business use.
How much does Navy Federal Credit Union cost?
There’s no cost to becoming a Navy Federal Credit Union member. This financial institution offers many free products and services, but some of its accounts, features, and financing options may come with a service fee or minimum balance requirements.
Who is Navy Federal Credit Union best for?
Military members and their family members
To open an account, you must have an eligible job (or be related to someone who served in the military).
Eligible applicants looking for low financing rates
Navy Federal Credit Union offers competitive rates on many loans, mortgages, and other financing services. If you’re looking to buy a home or secure financing for a project or renovation, it's one of the best options on the market.
Who shouldn’t use Navy Federal Credit Union?
Non-military members
Unfortunately, you cannot sign up for account services at this bank without a military connection.
Those looking for great savings rates
NFCU has decent savings rates on its money market accounts and CDs — but everything else is lackluster. It can’t compete with digital-only banks with much higher APYs on savings accounts, most well above 1% APY.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Pros and cons
Pros
- It’s free. Finding a bank with brick-and-mortar locations and decent rates is a tough feat. The fact that this credit union is free is really hard to beat.
- Full suite of products. If you want to meet all your financial needs in one spot, you might enjoy the wide array of services Navy Federal Credit Union offers. This institution makes it easy to bank, save, invest, grow your credit score, borrow, and access lines of credit, all in one place.
- Convenience without the fees. If you like going to a physical bank, you might like how convenient it is to access NFCU or one of its ATMs nationwide.
- Great credit card options. There are many credit card options, but NFCU makes it easy to find one best suited to your spending, with no annual fees and fairly competitive rewards, APRs, sign-up bonuses, and other terms.
- Excellent VA loans. VA loans are already considered some of the best mortgages on the market, but Navy Federal offers even better rates and incentives for new home buyers. Of course, every homebuyer’s interest rate will vary, but we recommend shopping this loan type if you’re eligible and comparing it to other offers.
Cons
- Lackluster savings products. If savings is your main goal, you should look elsewhere to earn more interest with savings accounts, CDs, money market accounts, and other investment options. Many digital banks offer better rates than NFCU.
- You must have military connections. There’s no way to sign up for an account if you’re not in the military, haven’t previously served, or aren’t related to someone in the service.
Navy Federal Credit Union vs. USAA
Navy Federal Credit Union and USAA offer exclusive banking and financing benefits and features to military members and their families. While these two financial institutions may seem similar — they run the gambit and offer checking, savings, credit cards, loans, mortgages, and more — there are some key differences.
NFCU operates primarily as a physical bank with digital services, while USAA is mostly digital. Navy Federal may win out if an in-person experience is important to you. Next, though Navy Federal’s savings rates aren’t as high as those of other banks, they are higher than those of USAA.
Navy Federal Credit Union also offers additional perks, such as redeemable ATM fees and no obligation to sign up for a product or service to become a member. With USAA, you must sign up for a savings account to activate your membership.
Lastly, NFCU is also available 24/7 by phone if you ever have a question.
FAQs
Does Navy Federal Credit Union have daily limits?
Yes, the purchase limit for a Navy Federal Credit Union banking account is $5,000. Your daily cash withdrawal limit is $1,000.
How many transfers do you get a month with Navy Federal Credit Union?
Some banks limit the times you can transfer your money between accounts. Navy Federal Credit Union has no limits, which means you can transfer funds as frequently as you need to.
How many credit cards can you have with Navy Federal Credit Union?
Account holders can have up to three credit cards at Navy Federal Credit Union. Having more than one card can help boost your credit score. However, while the bank offers more, opening too many could increase your risk of overspending.
Does Navy Federal Credit Union use Zelle?
Yes, you can send money through your Navy Federal Credit Union account to friends and family members with Zelle. When you’re logged into your online banking account, just go to “Send Money,” and you can add the recipient’s phone number or email address to send funds.
What is the minimum score for a Navy Federal Credit Union loan?
For a home loan, you’ll typically need a 620 credit score or better for approval. However, you may qualify for a VA home loan with a lower score. Personal, auto and other loans each have their own criteria by product with minimum credit scores as low as 550 (possibly lower in special circumstances).
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
The bottom line
Navy Federal Credit Union is a financial institution that offers benefits and various banking and lending services to military members, veterans, and their family members. This credit union boasts an impressive amount of checking, savings, money market, and CD accounts. It also offers investing options, credit cards, a variety of loans, mortgages, and more.
This financial institution is well known for its lower-than-average interest rates on its financing products, like personal, auto, student, and new home loans. Its VA loan option, in particular, boasts impressive rates and features.
You might consider Navy Federal if you’re interested in finding one bank to provide all of your financial needs. It’s an easy one-stop shop that offers above-average perks in many categories. However, its savings rates are not as impressive as those of other banks. So, if you want to grow your money through high-yield savings accounts or CDs, looking elsewhere may help you earn more interest.
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Writer
Courtney Johnston is a freelance writer, specializing in finance, travel, and health. She has written for The Chicago Tribune, Benzinga, BestReviews, Mashvisor, Fundera, MoneyGeek, and The Culture Trip. She also teaches writing instruction at the University of Indianapolis. Courtney currently resides in Indianapolis.
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