Navy FCU new 5% 15 Month CD

wrigley said:
I pulled a rather large chunk of $$$$$$ out of an NFCU MM account that was still at 0.6% when on-line saving accounts were climbing into the 2.5% and up range. I even contacted NFCU and they didn't seem to care. I know they are a very large financial institution so maybe they are feeling some pain from me and others like me.

Mike
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I suffer from a feeling of 'loyalty' towards my credit union. I have $70K there in Roth and Traditional IRAs. Their 5 year rate is now 3.55% for those. Way lower than the 4.2% I could get at Andrews. But my fear of them screwing up the transfer to Andrews had me deciding to leave it all at my current CU and take the small penalty to break them and bump them all up to 3.55 % just to have a warm and fuzzy feeling about not having it all fubarred. But then the IRA guy at my credit union called me up and suggested I wait til Jan 23 of 2023, when the new and 'almost certainly higher' rates would emerge for my CU. So that's what I'm doing. At least for now. The good news is that rates on my existing IRA CDs there are so low, like 0.5 %, that the penalties are very low.
 
Curious to see what the (early w/draw) penalty will be on the NFCU 5% for 15 mo CD. 2 months interest maybe? We'll see. DW has about 10k in their MM. I'm going to try and get her to put at least half in that CD.
 
jazz4cash said:
Anyone know of an expiration date for this promo? It feels to me that they are trying to limit participation.
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Someone on another website said through April 30th but they can cancel it early. Navy deals usually run for a while though. We'll know the particulars in 3 days and I also hope there are other offers as well.
 
Does NFCU offer the choice for monthly dividends deposited to a savings or checking account? I’d like to have a relative consider this but she needs the dividends to live on.
 
Yes and even if you have the interest reinvested in the CD you can contact them at a later time and tell them you need access to all the interest earned and they'll give it to you. They are great, they've even let me break a CD early and roll it over into a new one with a better rate and didn't charge me an EWP.
 
RetiredAndLovingIt said:
They are great, they've even let me break a CD early and roll it over into a new one with a better rate and didn't charge me an EWP.
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Same here. They explained there would be no penalty as there was no early withdrawal as long as I moved all the funds to the new CD and it had a term equal to or longer than the CD I was breaking.
 
Just got off the phone with my Navy Fed rep. The 5% CD is wildly popular -- there's about a 2 hour hold time to speak to a 'Certificate Dept' person.

This CD offer is said to run until April, after which their Board of Directors will have had a chance to review FOMC actions, and perhaps 'up their offer' to NFCU Members.

I may drive over to our local Brick & Mortar Navy office to get this transfer done in a more efficient manner.
 
FiveDriver said:
Just got off the phone with my Navy Fed rep. The 5% CD is wildly popular -- there's about a 2 hour hold time to speak to a 'Certificate Dept' person.

This CD offer is said to run until April, after which their Board of Directors will have had a chance to review FOMC actions, and perhaps 'up their offer' to NFCU Members.

I may drive over to our local Brick & Mortar Navy office to get this transfer done in a more efficient manner.
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YUP, on hold waiting my turn....
 
jazz4cash said:
Does NFCU offer the choice for monthly dividends deposited to a savings or checking account? I’d like to have a relative consider this but she needs the dividends to live on.
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I may be wrong, but I think if you elect to have the interest sent to your bank account, you won't get the 5% APY because it doesn't compound


The site says 4.8% dividend rate
 
After being on hold for about an hour and a half this morning, I rolled 3 certificates with rates of 3.44%, 3.2% and 2.96% and maturities from April-Aug 2024 into the new 15 month/5% cert. Maturity is April 2024 for the new consolidated cert. Also did the same for two of my wife’s certificates.

These are “add-on” certificates with an upper limit of $250K each. Toward the end of this month we each have Certificates maturing at a local CU. We will add these funds to the NFCU certificates.

BTW, once I got a customer service person, NFCU was very efficient about effecting the change. The EWP on the older certs was waived.

I have been an NFCU member since 1967 and continue to be more than satisfied with them.
 
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Well, that makes my decision easier. My wife has a 3% Roth IRA CD that matures in April.

I had pretty much decided NOT renew it for the 5% for 15 months as I'd like to simplify our accounts and consolidate them at Schwab and I can buy a 2 year GSE bond that will yield 5% which to me is close enough to a 5% 15 month CD.
 
RetiredAndLovingIt said:
Yes and even if you have the interest reinvested in the CD you can contact them at a later time and tell them you need access to all the interest earned and they'll give it to you..
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Yes, Ive done this also. I’m not surprised how popular this CD is. I wouldn’t be surprised if the offer is terminated early. I have had very good experience using the secure message feature to fund Certificates with interest from other NFCU accounts. That cuts down time spent waiting on hold. They also have added ability to buy certificates from their mobile app but some details are missing.
 
REWahoo said:
I purchased this CD online earlier today. Took about five minutes.
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Did you use money that was already at NFCU? I just tried to buy this CD with money transferred from an external account that was already registered to my account. The normal transfer page shows the account, but the CD page dropdown doesn't and its link for external accounts gives a page not found sort of error. Then I decided to try to move the money to the SAV account and the transfer page let me choose my external account for the "FROM" but wouldn't let me choose the SAV account for the "TO". I gave up.
 
Well that was easy talking with Lavinia.... She was great. Tried to roll over with the certificate app, but they didn't have the 5% 15month in there. Called, stayed on for about 10 minutes, then voice came on, would you like a call back, will be about 50 minutes and almost on the 50 minute mark. Much better the the 12 month .6% that was maturing on 19th ;-)))))))))))))))))))))))))))))))))
 
I ended up on a callback and found out that, even though it doesn't show on the website, NFCU freezes accounts when you don't do something for a year. So, the reason I couldn't buy the CD is because my savings account was deactivated, and you cannot set up a new account with external money. The callback person said my account could not be activated and the only way she could help me get a CD was to use something called "Speedpay". I asked her if that was a third-party service. She said she did not know but did not think so. I imagine everyone here wouldn't have batted an eye, but I had never heard of or used (to my knowledge) "Speedpay". While we were talking, I did a quick search and it landed on an enterprise called ACI Worldwide which appears to be of Asian origin. I told her I would hold off for now until I determined the security of "Speedpay". I decided to forgo this opportunity.
 
Does the CD let the EU make auto-contributions from paychecks?*

*to build a CD emergency fund
 
REWahoo said:
Same here. They explained there would be no penalty as there was no early withdrawal as long as I moved all the funds to the new CD and it had a term equal to or longer than the CD I was breaking.
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Thanks for saying this ... I just called NFCU and moved all my non-IRA CDs to the new 5% rate. And I moved my IRA CDs to a 4.35% 1 year rate. No early withdrawal penalty on anything. The person on the phone (Ann) was easy to talk with and handled everything quickly and easily. NFCU is awesome.
 
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