Our verdict
Navy Federal Credit Union (NFCU) is a top choice for active-duty service members, veterans and their families, serving over 14 million members. With competitive rates, a robust ATM network and tailored financial products like checking accounts, savings options, loans and credit cards that offer dividends, NFCU effectively meets the unique needs of the military community. However, its membership restrictions, limited branch access and lower savings rates may pose challenges for some potential members.
Best for: Military members and their families.
Pros
- Offers dividends on checking, savings, certificates and money market accounts
- No monthly fees on most checking and savings accounts
- Variety of products, including VA loans, checking accounts and more
Cons
- Only available to service members, veterans and immediate family members
- Not many branch locations
- Low APY on savings accounts
Navy Federal Credit Union in the news
Navy Federal Credit Union has recently been involved in two class-action lawsuits.
The first, beginning in December 2023, involves allegations of mortgage discrimination, where a lawsuit claims that NFCU engaged in lending practices that disproportionately affected minority borrowers, potentially violating fair lending laws. This lawsuit raises concerns about potential violations of fair lending laws and has brought scrutiny to the credit union’s mortgage approval processes.(1)
Additionally, NFCU is facing a class-action lawsuit over its use of artificial intelligence (AI) to record and analyze phone calls without obtaining customer consent. This lawsuit, filed in May 2024, centers on potential privacy violations related to unauthorized call monitoring, raising questions about the legality of using AI technology in this capacity.
These cases underscore the importance of ongoing transparency and compliance as the institution navigates these legal issues while continuing to serve its large member base.
Is Navy Federal Credit Union right for you?
Navy Federal Credit Union (NFCU) can be an excellent choice for active-duty service members, veterans and their families, as well as Department of Defense employees. Membership eligibility is tied to military service or affiliation, and it’s designed to cater to the unique financial needs of the military community.(2)
In the realm of credit unions, it offers competitive rates on savings accounts, checking accounts, loans and credit cards, along with a wide array of services like 24/7 customer support and access to over 30,000 free ATMs nationwide.
If you’re looking for personalized service, low fees and military-focused benefits, Navy Federal is ideal. However, membership is restricted to those with military ties, so it may not be the right fit for civilians outside this community.
How Navy Federal Credit Union stacks up
Navy Federal Credit Union is one of the largest credit unions in the United States, serving over 14 million members with a focus on the military community and their families.
Where it shines
- Variety of services: The credit union provides a comprehensive range of financial products, including checking and savings accounts, loans, mortgages and investment services.
- Robust ATM network: Members can access over 30,000 ATMs nationwide, with many offering fee rebates, making it convenient to withdraw cash without incurring additional charges.
- Strong customer service: NFCU offers 24/7 assistance and offers a variety of auxiliary aids and services to better communicate with members who may require them.
- Financial Education: NFCU provides expert guidance and tools to help members boost financial literacy and make smarter financial decisions.
Where it falls short
- Membership requirements: NFCU membership is primarily limited to military personnel, veterans and their families, which may exclude potential members outside this community.
- Small branch availability: While NFCU offers extensive online and mobile banking services, its physical branches are limited compared to traditional banks.
- Limited high-yield options: Navy Federal’s high-yield savings options aren’t as competitive as those offered by other banks or credit unions, especially online-only banks.
Navy Federal Credit Union’s checking accounts
With five checking accounts to choose from, NFCU has some decent variety.
- Free Active Duty Checking: This account is tailored for active-duty and retired military members, allowing up to one day early access to military pay with qualifying direct deposit. It also features ATM fee rebates up to $240 a year ($20 per month), no monthly service fees and no minimum balance requirements. It also earns 0.05% APY on your balance. A qualifying military direct deposit must be posted to the account within 180 days of opening. If you don’t meet this requirement, the account converts into the Free EveryDay Checking account.
- Free EveryDay Checking: The Free EveryDay Checking account offers a straightforward banking experience with no monthly service fee or opening deposit requirement. While it earns a lower APY of 0.01% compared to the other accounts, it includes all standard benefits of NFCU’s checking accounts. This account is suitable for members seeking a hassle-free option without stringent requirements.
- Free Easy Checking: Designed for everyday banking needs, the Free Easy Checking account has no monthly service fees or minimum balance requirements. It offers features like ATM fee rebates of up to $10 per month, earns 0.05% APY credited monthly, and provides a simple and efficient way to manage finances without extra costs. To keep this account open, you must either set up direct deposit or make at least 20 debit card transactions per statement period.
- Free Campus Checking: Catering to students aged 14 to 24, the Free Campus Checking provides convenient banking with ATM fee rebates and no monthly service fees. There’s also no minimum balance requirement. It’s an ideal option for students or young members looking to manage their money easily while avoiding fees.
- Flagship Checking: The Flagship Checking account allows members to earn tiered dividends based on their balance, with APYs ranging from 0.35% to 0.45%. It features ATM fee rebates up to $120 a year and has no monthly service fee if the average daily balance is $1,500 or more. This account is perfect for members looking to maximize their savings while enjoying additional rewards for higher balances.
Navy Federal Credit Union savings accounts
NFCU offers two savings options: a traditional account and one designed for education expenses.
- Basic Savings Account: Included with NFCU membership, it’s ideal for building an emergency fund or saving for everyday expenses. It offers an APY of 0.25% with a minimum balance of just $5 required to earn interest. Members can name multiple accounts for easier management while accessing funds at any time.
- Education Savings Account (ESA): NFCU’s Coverdell Education Savings Account allows families to save for educational expenses tax-free, making it a valuable long-term savings tool with an APY of up to 0.25%. There’s no minimum deposit required, and contributions can reach up to $2,000 per child annually, providing flexibility to access funds when needed. This account is ideal for parents and guardians planning for their children’s education, offering both tax benefits and contribution flexibility.
Navy Federal Credit Union money market savings accounts
Not all credit unions offer money market accounts, and NFCU has three options with above-average rates.
- Money Market Savings Account: Ideal for members who can consistently maintain a balance of $2,500. This account earns an APY as high as 1.5% and requires a minimum balance of $2,500 to earn dividends. Access funds anytime through checks, ATMs and digital banking — this account allows you to build savings effectively while keeping your money readily available.
- Jumbo Money Market Savings Account: For those with a balance of $100,000 or more, this account offers an even higher dividend rate on the entire balance, up to 2.25% APY. If the balance falls below $100,000, the account reverts to the standard Savings Account rate.
- Education Money Market Savings Account: Combines the benefits of a basic savings account with higher rates. With an APY as high as 1.5%, this account allows members to access funds whenever needed while earning high dividend rates. There’s no minimum deposit required.
Navy Federal Credit Union CDs
Navy Federal Credit Union offers a range of certificate products, including SaveFirst, Standard Certificates, EasyStart Certificates and Special EasyStart Certificates.
With competitive rates and flexible terms, its CDs can cater to various financial needs, requiring flexible and low minimum deposits between $5 to $1,000, depending on the CD type. Most banks require at least $1,000, so NFCU’s CD can be significantly more accessible than many banks.
Rates are pretty good, such as the Special EasyStart Certificate featuring a 4.25% APY for a 12-month term and a low minimum deposit of $50. The average rate on a 12-month CD is 1.81%, so NFCU blows that rate out of the water.(3)
The Save First CDs have the lowest opening deposit requirement, only requiring $5 to open. However, rates are significantly lower than other options, only offering rates up to 0.40%.
Other Navy Federal Credit Union products
- Mortgages: Offers a variety of mortgage options, including no PMI, rate match guarantees and VA loan expertise.
- Auto loans: Competitive rates for new, used or refinancing. Preapprovals are good for 90 days.
- Home equity loans: No closing costs and easy access to home equity.
- Personal loans: Fixed rates, no origination fees and same-day funding.
- Credit cards: A range of options, many with rewards programs, low introductory APRs and no annual fees.
Compare Navy Federal with leading bank accounts
Customer reviews
BBB accredited | Yes |
---|---|
Trustpilot score | 4.5 out of 5 stars, based on 37,221 customer reviews |
Apple App Store Score | 4.9 out of 5 stars, based on 809,400 customer reviews |
Google Play Score | 4.3 out of 5 stars, based on 100,000 customer reviews |
Customer reviews verified as of | 04 December 2024 |
Navy Federal’s customer reviews are mixed across customer review platforms.
Trustpilot reviews are mostly positive, with many customers highlighting the ease of managing accounts online, ease of loan applications, great customer support and good rates.
NFCU also takes time to respond to Trustpilot reviews, which isn’t the norm. On the flip side, some mention issues with mortgage services and unexpected fees.
On the Better Business Bureau (BBB), customer complaints mostly revolve around delays in resolving disputes and poor communication — rather typical for a financial institution.
On Reddit, many members praise the credit union’s competitive rates on loans and credit cards and its focus on serving military personnel. However, some users express frustrations with customer service wait times, especially over the phone, and technical glitches with the mobile app.
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