Navy Federal Add-On CD

[jazz4cash]

I went into the local NFCU branch to transfer proceeds from an IRA CD that matured at another credit union into NFCU's 5 yr CD@2.2%. When I turned in the paperwork authorizing the transfer, they asked if I wanted a "new" CD or did I want to add to my existing CD. My existing CD has 3 years left @ 4%. She made a phone call to confirm the add-on would be accepted and was told it had to be completed by 4/15. I don't see why the date would make a difference since this is NOT a contribution and NON-deductible anyway, but I am contacting the other credit union to make sure they don't drag their feet on the transfer. I will be skeptical until the whole transaction completes.

This happened at NFCU before, but I thought it was a temporary promotion, not an ongoing policy.
http://www.early-retirement.org/forums/f28/navy-federal-add-on-cd-60731.html

 

[obgyn65]

Last week I bought a 10-year $10,000 CD at 3.3%. Happy with that choice.

 

[jazz4cash]

Last week I bought a 10-year $10,000 CD at 3.3%. Happy with that choice.

Glad you are happy with your choice. Is that a brokered CD I read about in another thread?

My transaction is still pending but nearly complete. I was actually expecting a call from the credit union to advise "we can't do that", but I spoke with them today and all is well. I made a second deposit (rollover) from my 401k Stable Value allocation that was earning .15%.

I expected more response to this thread! There was so much discussion about the Penfed 7 (?) yr CD @ 3% "deal" and I rushed out to transfer funds before it expired even though I had a much better "deal" right under my nose.

Was I mistaken all along in thinking that a CD rate is locked in for the entire term with no additonal deposits allowed?

 

[Free To Canoe]

I do not bank at Navy Federal. I wonder if others do this add on CD thing?

OBGYN 3.3% sounds like a good deal.

 

[obgyn65]

The rates of the CDs I buy are locked in for the entire duration, yes. No additional deposits to the CD are allowed.

Was I mistaken all along in thinking that a CD rate is locked in for the entire term with no additonal deposits allowed?