Navy Federal offers a high-yield savings account, but the rate depends on your balance

Navy Federal Credit Union has a Money Market Savings Account that pays higher interest than a standard savings account, but the rate you receive is tiered based on how much you keep in the account. As of now, rates range from around 4.00% to 5.00% APY depending on your balance level, though these rates change and you should check Navy Federal's website or call 1-888-842-6328 for the current rates. The highest tier typically requires a $100,000 minimum balance.

Navy Federal also offers a regular Savings Account with a lower rate, usually under 1% APY. The difference between the two accounts matters: if you have money sitting idle, the Money Market account will earn significantly more, but you need to meet the balance threshold to access the better rate.

Navy Federal members can also earn higher rates through Certificate of Deposit (CD) accounts, which lock your money away for a set term (3 months to 5 years) in exchange for a may provide rate. CD rates are typically higher than savings account rates, but you cannot withdraw the money early without a penalty.

Key Takeaways

  • Navy Federal's Money Market Savings Account offers tiered rates, with the highest rates reserved for balances of $100,000 or more.
  • Current rates on the Money Market account range around 4.00% to 5.00% APY, but rates change frequently and vary by tier.
  • A regular Savings Account at Navy Federal earns less than 1% APY and is better for money you need to access quickly.
  • CDs at Navy Federal lock your money for a set period but typically offer higher may provide rates than savings accounts.
  • You must be a Navy Federal member to open any account, and membership is limited to military, veterans, and their families.

How Navy Federal's tiered rates work

The Money Market Savings Account uses a tiered rate structure, meaning the interest rate you earn depends on your account balance. Navy Federal typically has four or five tiers, with each tier offering a higher rate as your balance increases. For example, a balance under $10,000 might earn 4.00% APY, while a balance of $100,000 or more might earn 5.00% APY.

The tier you fall into is determined by your daily balance. If your balance drops below a tier threshold during the month, you earn the lower rate for that period. This means if you have $105,000 in the account and withdraw $10,000, you move down to a lower tier and earn a lower rate on the remaining balance going forward.

Navy Federal publishes the exact tier thresholds and rates on their website, and rates are updated periodically. You should verify the current tiers before opening an account, because the structure can change.

Comparing Navy Federal's Money Market account to other options

Navy Federal's Money Market account competes with high-yield savings accounts offered by online banks like Marcus, Ally, and American Express Personal Savings. Online banks often advertise rates that match or exceed Navy Federal's top tier, sometimes without a balance requirement. However, Navy Federal's advantage is that members can access their money through physical branches and ATMs, plus they may already have other accounts or loans with Navy Federal.

The trade-off is access versus rate. If you need the absolute highest rate and do not mind banking entirely online, an online bank may offer a better deal. If you value the ability to walk into a branch or use Navy Federal's ATM network, the Money Market account is competitive, especially if you can meet the higher balance tiers.

CDs at Navy Federal typically offer rates 0.25% to 0.50% higher than the Money Market account, but your money is locked away. A 5-year CD might offer 5.25% APY, for example, but you cannot touch that money without paying an early withdrawal penalty.

What you need to know about Navy Federal membership

You cannot open a Navy Federal account unless you meet their membership requirements. Navy Federal is a credit union for military members, veterans, retirees, and their families. Active-duty service members, National Guard, Reserve, and retired military can join directly. Veterans can join if they have received a discharge other than dishonorable. Family members of may be able to access members can also join.

If you are not sure whether you may have access to, Navy Federal's website has a membership checker tool, or you can call their membership line. Membership is free, and once you are a member, you can open any account they offer, including the Money Market Savings Account.

How to open a Money Market account at Navy Federal

If you are already a Navy Federal member, you can open a Money Market Savings Account online through their website, by phone at 1-888-842-6328, or at a branch. You will need to provide your Social Security number and basic identifying information. The account typically opens within one business day.

If you are not yet a member, you will need to complete the membership process first. This involves verifying your military status or family relationship to an may be able to access member. Once your membership is approved, you can then open the Money Market account.

There is no monthly fee for the Money Market account, and there is no minimum balance requirement to keep the account open, though you need to meet the balance tier to earn the advertised rate for that tier.

Interest rates and how they change

Navy Federal adjusts its rates periodically in response to changes in the broader economy and the Federal Reserve's actions. When the Fed raises or lowers its benchmark rate, credit unions and banks typically adjust their savings rates within days or weeks. Navy Federal publishes rate changes on their website and notifies members by email or through their online banking portal.

The rates listed here are examples based on recent information, but they are not may provide to remain the same. You should check Navy Federal's current rates before making a decision, because rates may have changed since this article was written. The best way to stay informed is to log into your Navy Federal account online or call their customer service line.

Frequently Asked Questions

What is the minimum balance to earn the highest rate on Navy Federal's Money Market account?

Navy Federal typically requires a $100,000 balance to earn the highest tier rate on their Money Market Savings Account. Lower balances earn lower rates according to the tiered structure. Check Navy Federal's website for the exact current tiers, as these can change.

Can I move money between my Navy Federal savings account and Money Market account?

Yes. If you have both accounts, you can transfer money between them online, by phone, or at a branch. Transfers between your own accounts are free and usually process the same day or next business day.

What happens if my balance drops below a tier threshold?

You will earn the lower rate for the tier your balance falls into. For example, if your balance drops from $100,000 to $50,000, you move from the highest tier to a lower tier and earn a lower rate on the remaining balance going forward.

Is the Money Market account FDIC insured?

No, Navy Federal is a credit union, so deposits are insured by the National Credit Union Administration (NCUA), not the FDIC. NCUA insurance covers up to $250,000 per account holder per institution, so your Money Market account is protected up to that limit.

Can I withdraw money from my Money Market account anytime?

Yes, the Money Market Savings Account is a savings account, not a CD, so you can withdraw money anytime without penalty. However, federal regulations limit you to six withdrawals per month from a savings account. Excess withdrawals may result in fees or account closure.