I recently came across a great deal that I wanted to share with everyone, a CD that account that will actually make you more than 1% and you don’t have to lock your money up for five years! Navy Federal Credit Union is offering a Celebration Certificate that offers 5.00% APY that only requires a 12-month term. This is an amazing deal in the current market, as my bank is currently offering a 1% CD for 1-year term, and according to Bankrate.com the highest interest rates on a 1-year CD are just a little bit over 1%, at 1.10% and 1.12% meaning that you will probably lose money to inflation putting your money in these accounts.
If you’re currently trying to save for something, but know you won’t need the money for over a year from now I would highly recommend opening an account with Navy Federal Credit Union if you are able to. You will need some military or Department of Defense connection, whether it is through your job, active duty, or retired. Someone in your family or household can also help you qualify, or an existing member of Navy Federal Credit Union can also help you qualify.
The maximum amount you can put into this account is $5,000 and there is a limit of one account per customer. Nothing else is required to open this account, no direct deposit or anything which makes it even better. It was very simple to create an account with them and fairly simple ACH transaction $5,000 into a new account. Then I opened the Navy Federal Credit Union celebration certificate which only took a few minutes out of my time.
Here’s a comparison what you would earn in standard CD, versus the one being offered by NFCU:
$5,000 * 1.1% = $55 Earned in a “standard rate” 1-year CD
$5,000 * 5% = $250 Earned in the Navy Federal Credit Union 1-year CD
Obviously this may differ slightly depending on how often interest is compounded, but even if the 1.1% CD compounds monthly that would only net you a few extra dollars. With this CD you will earn almost $200 on top of what you would have made. While this isn’t a huge amount in the grand scheme of things, it requires very little effort and if you were going to be stashing the money anyways, why not make some extra money from doing “nothing”?
Just a warning that after the year is up, this money will get transferred into a 3% CD that does require you to have a checking account with them and direct deposit set up. I plan on transferring the money back to my own bank after the year is up if I don’t feel it’s worth the effort. I also want to note I’m not receiving anything from this or any sort of referral kickback, I just think it’s an easy way to make some extra money if you are able to join them and have the funds available and wanted to share this find with others!