The Navy Federal Credit Union’s top CD rates showed significant changes within the month but remained competitive among other CD rates in the market. From 5.10% just last January, the 84-month CD dropped to 4.50% APY.

On the other hand, instead of offering its short term special easy starts 6-month CD (available last month), the bank now offers 4.00% for 1-year starter CD.

Just the same, both CD rates remain among the top CD rates offered this banking season. The full details of all their CD rates can be seen in the bank’s rate table .

The long term 84-month or 7-year CD requires a minimum deposit of $20K, while the short term 12-month CD only requires $100 minimum to open. Take note that the 84-month CD goes beyond the usual 5-year terms offered by most banks. This means that aside from higher APYs, you should expect bigger early withdrawal penalty fees from this 7-year CD.

As a matter of fact, this 7-year CD comes with a 365-day penalty for premature withdrawals. As in most banks, the Navy Federal Credit Union puts 180-day penalties to all of its CDs with terms ranging from 1-5 years.

However, the 84-month CD already falls under the “very long term” bracket. To protect the bank’s interests, they naturally doubled the penalty for premature withdrawal in this CD.

If you’re thinking of taking advantage of the 1-year high yielding (4.00%) CD, you should also know that the maximum deposit for this account is only 10K. Each member of the credit union is also only allowed to hold one “special starter” account. This means that you can only take advantage of the banks special promo one at a time.

Ideally, these promos are designed to attract new depositors, anyway. Make sure that you check their website every so often because the CD rates change almost weekly.

Based on my weekly monitoring, there seems to be a drop trend among CD rates. It’s advised for you to open a CD account as early this year as possible to enjoy higher APYs. Yields are projected to continue dropping as we near the middle of this year. A CD account should help you keep the value of your stagnant funds inflation-proof just in case the economic climate turns for the worst.

The Navy Federal Credit Union is not a commercial bank. Recently, it has opened its doors not only to members of the Navy, but the Army, Marine Corps, and Airforce too. Take note, though, that they’re generally tighter when it comes to membership compared to the Pentagon Federal Credit Union.

For the full details of membership eligibility, refer to the union’s eligibility checklist. You should also find special instructions about opening and closing Navy Federal certificates in the credit union’s website. As in all CDs, keep close watch of your funds’ maturation dates to avoid unnecessary penalties.

The Navy Federal Credit Union has branches all over the US and the world. It is an insured federal member of the NCUA under Charter #5536. The credit union is one of the largest credit institutions in the US, with $35.8 billion worth of assets and 3,142,637 members.