Savings FAQs (2024)

What’s the difference between a Membership Share Savings account and a Share Savings account?

The Membership Share Savings account is required to join Navy Federal Credit Union and opens the door to our suite of savings products. A $5.00 minimum balance is required to open this account. A Share Savings Account is an additional account a member may open and is also available as an ESA or IRA.

Can I have more than one savings account?

Yes, there’s no limit to the number of savings accounts you can have.

How do I open another savings account?

You can open another savings account either through our mobile app* or online.

Mobile Banking

• Sign in to mobile banking.
• Tap the “More” button in the lower right of the screen.
• On the “More Features” screen, tap “Products & Rates” and select “Checking and Savings”, then tap “Savings”.
• Under “Apply for a Savings Account”, tap “Share Savings” and follow the prompt.

Does Navy Federal offer accounts for members under the age of 18? If so, what are they?

Navy Federal offers several account options for members under the age of 18, including minor and custodial accounts.

• A minor account is a standard savings and/or checking account.
• A custodial savings account is a savings account that administers gift money to a minor with potential tax savings. The minor cannot withdraw money until reaching the age determined by the member (usually 18 or 21), when the account is then converted to a regular savings account.

To open one of these accounts, the user must be eligible for membership and have at least one adult joint owner.

What’s a Payable on Death (POD) Account?

A POD account allows the proceeds in the account to be paid directly to the designated beneficiary(ies) on the account at the time of the account holder’s death. Generally, the proceeds are paid without passing through probate, and no legal trust documents are required. To establish or make changes to a POD account, complete and submit the Payable on Death (POD) Designation (NFCU 250) form.

What’s the difference between a standard Savings Account and a Money Market Savings Account (MMSA)?

An MMSA is an account that offers the potential for higher earnings than a standard Savings Account in addition to tiered rates that may change weekly based on the money market environment.

What’s the minimum balance for a MMSA?

MMSAs don’t have a minimum or opening balance; however, a balance of at least $2,500 is required to earn dividends.

What’s the minimum balance for a Jumbo MMSA?

Jumbo MMSAs don’t have a minimum or opening balance; however, a balance of at least $100,000 is required to earn the Jumbo rate dividend.

What happens if my balance falls below the $2,500 dividend minimum for my MMSA?

If your balance is below $2,500 in your MMSA, you won’t earn dividends for each day it’s below the minimum.

What happens if my balance falls below the $100,000 dividend minimum for my Jumbo MMSA?

If your balance is below $100,000 in your Jumbo MMSA, you’ll earn the Share Savings Account dividend rate for each day it’s below the minimum.

How do I open an MMSA or Jumbo MMSA?

You can open an MMSA or Jumbo MMSA either through our mobile app* or online.

Mobile Banking

1. Sign in to mobile banking.
2. Tap the “More” button in the lower right of the screen.
3. On the “More Features” screen, tap “Products & Rates” and select “Checking and Savings”.
4. Tap “Savings”.
5. Under “Apply for a Savings Account”, tap “Money Market Savings” and follow the prompt to select your product.

You can also open an MMSA or Jumbo MMSA account by visiting a branch or calling 1-888-842-6328.

How can I access my MMSA or Jumbo MMSA account?

You can access your MMSA or Jumbo MMSA account by signing in to online or mobile banking, using an ATM or calling 1-888-842-6328.

Can I convert my regular MMSA to a Jumbo MMSA?

You can’t convert from an MMSA to a Jumbo MMSA and instead must open a new Jumbo MMSA and transfer the funds from your existing MMSA. Earned dividends begin the day the Jumbo MMSA is opened.

Does my MMSA or Jumbo MMSA have checks that I can use?

Yes, when you open an MMSA or Jumbo MMSA, we’ll mail one free box of 40 MMSA checks to your address on file.

What happens if I write a check for an amount that exceeds my account balance?

The check will be returned, and an insufficient funds fee in the amount shown in the current Schedule of Fees and Charges would apply. Funds won’t be transferred from your accounts or Checking Line of Credit to pay for the overdraft.

What’s a certificate?

A certificate account is a type of savings account that requires you to lock in your money for a predetermined length of time, or maturity period, and earns dividends at a higher rate than a standard savings account for that time period.

How do I open a certificate?

You can open a certificate either through our mobile app* or online.

Mobile Banking

1. Sign in to mobile banking.
2. Tap the “More” button in the lower right of the screen.
3. On the “More Features” screen, tap “Products & Rates” and select “Certificates and IRAs”.
4. Under “Certificates and IRAs”, tap “Certificates” and select your certificate product.
5. Follow the on-screen instructions to complete your purchase.

You can also open a certificate by visiting a branch, sending us a secure message or calling us at 1-888-842-6328.

How do I open a certificate if I don’t have online banking?

You can open a certificate by completing and submitting application 646E found within the 602E packet.

Can I purchase a share certificate for my child or grandchild?

A Navy Federal Share Certificate may be purchased for a minor using the Combined Certificate Application (excluding SaveFirst). You’ll need to enter the minor’s Access Number and personal details, followed by your joint owner information. Your certificate request will take 24-48 hours for completion, and a Confirmation Notice will be mailed to the address on file for the minor.

What’s the penalty to close or withdraw from the certificate before its maturity?

If the term to maturity is 1 year (or less) for certificates and all SaveFirst Accounts, the amount forfeited is equal to the lesser of:

• all dividends for 90 days on the amount withdrawn, or
• all dividends on the amount withdrawn since the date of issuance or renewal.

If the term to maturity is greater than 1 year, the amount forfeited is equal to the lesser of:

• all dividends for 180 days on the amount withdrawn, or
• all dividends on the amount withdrawn since the date of issuance or renewal.

If the term to maturity is 5 years or greater, the amount forfeited is equal to the lesser of:

• all dividends for 365 days on the amount withdrawn, or
• all dividends on the amount withdrawn since the date of issuance or renewal.

In the case of an early withdrawal that brings the remaining certificate balance lower than the minimum balance requirement, the certificate will be closed, and the above penalties will be imposed on the entire principal amount.

In accordance with Federal Reserve Regulation D, withdrawals made within the first 6 days of a new certificate purchase (not renewed) are subject to a 7-day, early-withdrawal dividend penalty.

Can I add additional funds to a certificate once it’s been opened?

Depending on what type of certificate you open, you may be able to add additional funds. Navy Federal’s EasyStart℠Certificate, Special EasyStart Certificate and SaveFirst Account feature the ability to make additional contributions. Explore all our certificate options.

How do I add additional funds to my certificate?

You can add funds either through our mobile app* or online.

Mobile Banking

1. Sign in to mobile banking.
2. Tap “Transfers” from the bottom navigation bar.
3. Select “Make Transfer” at the top of the screen.
4. On the “Make Transfer” screen, tap “Select Account” (in the “From” field) and choose which account you’d like to transfer money from to your certificate.
5. Tap “Select Account” (in the “To” field) and choose your certificate account.
6. Enter the amount you'd like to transfer and set the date of the transfer. If you want to enable automatic transfers, select “Recurring Transfers” (located above the calendar showing your selected transfer date) and pick the Frequency you’d like the transfers to occur, then select “Continue”.
7. Once completed, tap the “Make Transfer” button, then “Done”.

You can also transfer money to your certificate by visiting a branch, sending us a secure message or calling us at 1-888-842-6328.

Are certificate dividends taxed?

Yes. Certificate dividends are reported to the IRS in the year they’re earned. You’ll receive a 1099-INT issued by Jan. 31 if your earnings are at least $10 in dividends for all your primary accounts.

Will I be alerted when my certificate is about to mature?

Yes, certificate maturity notices are sent at least 20 days prior to the maturity date of your certificate. If no response is received, the certificate will be renewed at the current available rate.

What happens when my certificate matures?

At least 20 days prior to each certificate maturity, Navy Federal will provide a notice specifying the terms under which the Credit Union proposes to renew the certificate. Each certificate will be automatically renewed as specified in the maturity notice unless the owner notifies Navy Federal to the contrary on or before the maturity date. SaveFirst Accounts won’t receive a maturity notice because at maturity, funds from the SaveFirst Account will be transferred to your savings unless you specify otherwise.

How long do I have to renew or close my account when my certificate matures?

Once your certificate has reached maturity, you have a 21-day grace period in which adjustments may be made without penalty.

Can I find my certificate maturity date online?

The maturity date can be viewed on mobile and online under the account summary view.

What does ‘renew’ mean?

In this instance, ‘renew’ refers to a reinvestment of your certificate funds in a new certificate. All certificates automatically renew as the most comparable certificate offered within our standard product lineup unless alternative instructions are given. If the certificate is a special offer certificate and no maturity instructions are received, the certificate will automatically renew to the default product type.

Will I receive a confirmation when my certificate automatically renews?

Yes, you’ll receive a renewal notice when your certificate renews. If you’ve signed up for paperless statements, your notice will be delivered via email. If not, you’ll receive your notice by mail.

Does Navy Federal match competitors’ rates?

Navy Federal’s philosophy is to remain in the top portion of rate offerings nationwide. While we’re competitive, we don’t match rates. Our rates are monitored monthly and determined by our Board of Directors based on a variety of factors, including market conditions and national averages.

What’s an IRA?

An IRA is an individual retirement arrangement that may provide tax advantages for you to save for retirement. Navy Federal offers 3 different types of IRA plans: Traditional IRA, Roth IRA and SEP IRA (Simplified Employee Pension).

What’s the difference between a Traditional IRA and a Roth IRA?

A Traditional IRA is a potentially tax-deferred plan. Depending on your income, a Traditional IRA may allow you to make tax-free contributions now and pay taxes on your withdrawals when you retire. A Roth IRA is a plan that allows you to pay taxes now and make tax-free withdrawals later. While almost anyone with earned income can contribute to a traditional IRA, there are income limits for contributing to a Roth IRA.

Can I convert a Traditional IRA to a Roth IRA?

Yes, but when you convert a traditional IRA to a Roth, you'll owe taxes on any money in the traditional IRA that would have been taxed when you withdrew it. That includes the tax-deductible contributions you made to the account as well as the tax-deferred earnings that have built up over the years. That money will be taxed as income for the year you make the conversion. Please consult a tax professional to see if this option is right for you.

What’s an SEP (Simplified Employee Pension) IRA?

An SEP IRA is an IRA that allows participating businesses and self-employed individuals to contribute to their retirements for themselves and on behalf of their employee.

If I contribute to a 401(k), 403(b) or other employer-sponsored plan, can I also contribute to an IRA?

Yes, if you’re currently investing in a 401(k) or other employer-sponsored plan, you’re still eligible to open and contribute to an IRA.

When can I withdraw money from my IRA account?

You can take money out of an IRA whenever you want, but if you’re under the age of 59½, there may be some penalties. If you withdraw money from a Traditional IRA, you may be faced with a 10% penalty on the amount you withdraw. If you withdraw from a Roth IRA, you have some flexibility. You may withdraw your contributions to a Roth penalty-free at any time for any reason, as long as you don’t withdraw any earnings on your investments (as opposed to the amount you put in) or dollars converted from a traditional IRA before age 59½. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.

How much can I contribute to an IRA?

That varies. IRA contributions limits are dependent on a lot of factors, including age.

How do I open my first IRA if I don’t have online banking?

If this is your first IRA with us and you don’t have online banking, you can complete and submit the application found within Form 602 for a Traditional IRA, Form 602A for a Roth IRA, or Form 602C for a SEP IRA. Please note for SEP IRAs, you'll also need to submit the SEP IRA Contribution Agreement Form contained in the 602C packet.

How do I open an additional product if I already have an IRA?

You can add additional products to your existing IRA plan by completing and submitting the Additional Product Under Plan Form 605.

How do I add or change the beneficiary(ies) on my IRA?

You can add or change your beneficiaries by completing and submitting the Designation of Beneficiaries for IRA Plan Form 584.

How do I make a contribution to my IRA?

You can make a contribution to your IRA by completing and submitting the IRA Contribution Request Form 530.

How do I submit maturity instructions for my IRA?

You can submit maturity instructions for your IRA by completing and submitting the IRA Certificate Maturity Form 447A.

How do I roll over or transfer my existing IRA to Navy Federal?

You can roll over or transfer an existing IRA by completing and submitting the IRA Transfer or Direct Rollover application 624 within Form 602.

What’s APY?

APY stands for Annual Percentage Yield and refers to the rate you’ll be paid when the dividends are compounded for the year.

What’s the difference between dividend rate and APY?

The dividend rate is the percentage of dividends guaranteed if a member makes no withdrawals against the principle. This rate is compounded dividends and posts as a credit at the end of the month. APY is basically redeposited dividends earning dividends. The dividends compound each month on the new funds in the account.

How do I make a deposit to my account?

To deposit funds into your Navy Federal account, you have several different options, including:

• using your mobile device to deposit checks through the Mobile Deposit* feature
• taking the deposit to any Navy Federal branch
• using a Navy Federal ATM
• mailing your deposit to Navy Federal CU, P.O. Box 3100, Merrifield, VA 22119-3100
• using direct deposit or wire transfer by providing the paying agency or financial institution with your entire account number and Navy Federal’s routing/transit number, 2560-7497-4

What’s an ACH debit?

An ACH debit is an electronic withdrawal made directly from an account, which is processed through the Automated Clearing House (ACH). It’s commonly used by merchants to process monthly debits (withdrawals) for routine payments for a product or service—where you preauthorize them to debit money from your checking or savings account. Payment moves directly from your bank or credit union to their financial institution.

It begins when you authorize an ACH transfer of funds to pay the merchant/company. This debit agreement is between you and that business. We only begin processing the transaction when we receive an electronic request from them for payment.

Note: If you want to place a stop payment on an ACH debit, you can contact us 24/7 at 1-888-842-6328. You can also send us an online message or visit a nearby branch office. The stop payment won’t cancel your obligation with the company, and they may continue to attempt to debit your account. To ensure that future debits will be stopped, we recommend you also contact the company directly.

How do I add a joint owner to my account?

If you’re opening your membership with a joint owner or co-applicant, they must be present during the enrollment process in order to validate their identity. If they’re not available, you can initially open your account as an individual and then request an application to add them later.

How many joint owners can I have on a savings account?

You can have up to 3 joint owners on a savings account.

Are joint owners considered members of Navy Federal?

No. A joint owner shares access to your account but isn’t necessarily a member of Navy Federal. To become a member, you or one of your family or household members must have ties to the armed forces, DoD or National Guard.

How do I remove a joint owner from my account?

Written consent is legally required from the joint owner to remove them from an account. The joint owner can complete and send us the Voluntary Removal of Joint Owner Request form, send a signed letter or send an eMessage requesting to be removed from the account(s). Once the form has been completed, you can submit it one of the following ways:

• Mail to Navy Federal, P.O. Box 3002, Merrifield, VA 22119-3000
• In person at a Navy Federal branch
• Fax the form, “ATTN: Membership” to 703-206-4600
• eMessage with the form attached

If a joint owner is unwilling to be removed from an account, you may close the account and open a new one, as long as the account is not overdrawn. To begin this process, contact us at 1-888-842-6328 or visit a branch.

What does joint ownership with survivorship mean?

If one of the owners of the account dies, the remaining owner will inherit the deceased party’s share. Without survivorship, if the primary owner of the account dies, their share passes to their estate or heirs. If the joint owner dies, their share will pass back to the primary owner.

What’s an ESA?

An ESA is an Education Savings Account that allows you to save for qualified K-12 and/or college expenses, while growing your savings tax free. ESAs can be supplemented with a 529 plan.

What’s the difference between an ESA and a 529 plan?

The contribution limit for an ESA is $2,000 per child per year, while 529 plan contribution limits are higher and vary by state. Additionally, ESAs can be used for many types of K-12 education-related expenses, while 529 plans can be used for K-12 tuition only.Visit MakingCents for more information about ESAs and 529 plans.

How do I open an ESA?

You can open an ESA by completing and submitting Form 602B.

How do I open an additional product if I already have an ESA?

You can add products to your existing ESA plan by completing and submitting the Additional Product Under Plan Form 605A.

How much can I contribute to an ESA?

You can contribute up to $2,000 a year, per child.

When can I withdraw money from an ESA?

You can take money out of an ESA whenever you want, as long as the funds are used for qualified educational expenses, before the beneficiary reaches age 30. Qualified expenses include: tuition, fees, books, room and board, and educational computer technology expenses just like with the 529 plan, but also include academic tutoring, special needs services, uniforms and transportation.

How do I make a contribution to my ESA?

You can make a contribution to your ESA by completing and submitting the Coverdell ESA Contribution Request Form 530A.

How do I submit maturity instructions for my ESA?

You can submit maturity instructions for your ESA by completing and submitting the Education Savings Account Certificate Maturity Form 449L.

How do I roll over or transfer my existing ESA to Navy Federal?

You can roll over or transfer an existing ESA by completing and submitting application 48 within Form 602B.