Navy Federal has three main checking accounts, and the right one depends on whether you want rewards, low fees, or both
Navy Federal Credit Union offers the Checking, Checking Plus, and eChecking accounts. Checking and Checking Plus both charge a monthly fee unless you meet a balance or deposit requirement. eChecking has no monthly fee and no minimum balance, but it also has no rewards. If you get paid by direct deposit and carry a balance, Checking Plus usually costs less over a year. If you want zero fees and don't care about rewards, eChecking is the straightforward choice.
The difference between them matters because Navy Federal's fee structure can add up—or disappear entirely depending on which account you pick and how you use it. This guide walks you through what each account costs, what you get in return, and which scenario makes each one the better deal.
Key Takeaways
- Checking and Checking Plus both have a $5 monthly fee that waives if you maintain a $500 minimum balance or receive a direct deposit of $250 or more per month.
- Checking Plus earns 0.01% APY on balances and offers a small cash-back rate on debit card purchases, while regular Checking earns no interest and offers no rewards.
- eChecking has no monthly fee, no minimum balance requirement, and no interest or rewards—it is the lowest-cost option if you do not want to meet balance thresholds.
- Navy Federal's fee waivers reset monthly, so a single direct deposit or maintained balance in one month does not protect you the next month.
- All three accounts include the same core features: online banking, mobile app, debit card, and access to Navy Federal's ATM network and shared branching.
Checking: The standard account with optional rewards
Navy Federal's Checking account charges $5 per month unless you meet one of two conditions: maintain a $500 minimum daily balance or receive a direct deposit of $250 or more in that calendar month. If either condition is met, the fee waives for that month.
This account earns no interest on your balance and offers no cash-back or rewards on debit card purchases. It is the middle ground—not free, but not loaded with perks either. You would choose this account if you consistently maintain a $500 balance or receive regular direct deposits and want the simplest option without paying extra.
The catch is that the fee waiver resets each month. If you receive a direct deposit in January, that does not waive the February fee. You have to meet the requirement again in February. Many people find this rhythm manageable if they get paid biweekly or monthly, but it requires attention.
Checking Plus: Interest and cash-back if you can meet the threshold
Navy Federal's Checking Plus account also charges $5 per month, with the same fee waiver conditions: a $500 minimum balance or a $250+ direct deposit per month. The difference is what you earn in return.
Checking Plus pays 0.01% annual percentage yield (APY) on your balance. On a $5,000 balance, that works out to about $0.50 per year—not substantial, but it is more than zero. The account also offers 0.25% cash-back on all debit card purchases made through Navy Federal's network, up to a maximum of $25 per month. That means you would need to spend $10,000 in a month to hit the cap, which most people do not.
Whether Checking Plus makes sense depends on your spending and balance. If you carry $5,000 or more and spend $2,000 or more per month on your debit card, the rewards might offset the $5 fee. If you spend less or keep a smaller balance, the fee will likely exceed what you earn back. The math only works if you are already meeting the fee waiver condition anyway.
eChecking: No fees, no minimums, no rewards
Navy Federal's eChecking account has no monthly fee, no minimum balance requirement, and no maximum balance cap. It is the simplest account to maintain because you cannot accidentally trigger a fee.
The trade-off is that eChecking earns no interest and offers no cash-back or rewards on purchases. You get online banking, a debit card, and access to Navy Federal's ATM and branch network—the same core services as the other two accounts—but nothing extra. This account is designed for people who want to avoid fees entirely and do not expect to earn money through rewards.
eChecking makes the most sense if you do not receive regular direct deposits, cannot maintain a $500 balance consistently, or simply do not want to track a monthly threshold. It is also a good choice if you plan to use the account for bill pay and transfers but do most of your spending elsewhere.
How the monthly fee waiver actually works
Both Checking and Checking Plus waive their $5 monthly fee if you meet either condition in that calendar month. A direct deposit of $250 or more counts—it does not have to be your paycheck, though that is the most common source. A transfer from another account, a tax refund, or a government payment can all count as a direct deposit if it comes through the ACH network.
The $500 minimum balance is measured as your daily balance. If your balance dips below $500 on even one day of the month, you do not meet the threshold. This matters if you pay bills on a specific day and your balance temporarily drops. Some people keep a separate $500 buffer in their Navy Federal account just to protect against this.
The fee waiver resets on the first day of each calendar month. If you receive a direct deposit on January 31, it waives the January fee but does nothing for February. You have to meet the requirement again in February to avoid that month's fee. This is a common source of surprise fees—people assume one direct deposit covers them for longer than it actually does.
Comparing the annual cost
| Account | Monthly Fee | Fee Waiver Condition | Annual Cost (if no waiver) | Interest or Rewards |
|---|---|---|---|---|
| Checking | $5 | $500 balance or $250+ direct deposit | $60 | None |
| Checking Plus | $5 | $500 balance or $250+ direct deposit | $60 | 0.01% APY + 0.25% cash-back (max $25/month) |
| eChecking | $0 | None | $0 | None |
If you consistently meet the fee waiver condition, Checking Plus costs the same as Checking ($0 per month) but gives you interest and cash-back. The rewards are small, but they are assistance programs if you are already avoiding the fee.
If you do not meet the waiver condition, Checking and Checking Plus both cost $60 per year. eChecking costs nothing. Over five years, that is a $300 difference—enough to matter if you are on a tight budget.
Which account to choose based on your situation
Choose Checking Plus if: You receive regular direct deposits (biweekly paychecks, for example) or consistently maintain a $500+ balance, and you spend at least $1,000 per month on your debit card. The rewards will not make you rich, but they offset the fee structure you are already meeting.
Choose Checking if: You receive regular direct deposits or maintain a $500+ balance, but you do not spend much on your debit card or do not want to track rewards. You get the fee waiver without paying for features you will not use.
Choose eChecking if: You do not receive regular direct deposits, cannot reliably maintain a $500 balance, or want to avoid any risk of a surprise fee. You also might choose this if you plan to keep most of your money elsewhere and only use Navy Federal for specific transactions.
Frequently Asked Questions
Can I switch between accounts after I open one?
Yes. Navy Federal allows you to change accounts online or by calling their member services line. There is no penalty for switching. Many people open eChecking first and upgrade to Checking Plus later if their situation changes, or vice versa.
Does a transfer from another bank count as a direct deposit for the fee waiver?
Only if it comes through the ACH network as a direct deposit. A wire transfer or a check deposit does not count. Ask the sending bank whether they can send it as an ACH transfer if you need to meet the $250 threshold.
What happens if my balance drops below $500 for one day?
You lose the fee waiver for that month, and the $5 fee will be charged. The balance requirement is measured daily, so even a temporary dip counts. If you are close to the threshold, keep a small buffer to avoid accidental fees.
Is the 0.25% cash-back on Checking Plus worth it?
Only if you spend enough to earn more than $5 per month in rewards. You would need to spend $2,000 per month on your debit card to earn $5 in cash-back. If you spend less, the fee waiver is what matters, not the rewards.
Can I have more than one checking account at Navy Federal?
Yes. Some members open both a Checking Plus account for regular spending and an eChecking account for savings or bill pay. There is no limit on the number of accounts you can hold, though each account has its own monthly fee if applicable.