The Offer
- Navy Federal CU is offering a special 3.75% APY 40-month CD rate for IRA accounts.
- First-time IRA plan holders get $100 who open an IRA with $100 or more.
The Fine Print
3.75% Offer
- Limit one Special 40-Month IRA certificate per member.
- This offer, including the stated Annual Percentage Yield (APY), is effective December 3, 2018. Navy Federal reserves the right to end or modify this offer at any time.
- The Special 40-Month IRA Certificate has a $50 minimum and a $150,000 maximum balance.
- Only available for IRAs or ESAs.
- Additional deposits are allowed at any time, subject to the maximum balance and IRS contribution limits.
- Penalties apply for early withdrawals from certificates.
- Other restrictions may apply.
$100 Offer
- This offer is effective December 3, 2018 and can end or be modified at any time.
- Offer only available to members who open their first IRA plan and deposit a minimum of $100 in the new IRA account no later than 45 days after account opening.
- Limit one IRA $100 bonus per member.
- Once funds have been deposited to the IRA, Navy Federal will credit the bonus directly into your new IRA account within 30 days.
- The IRA $100 bonus will be credited to your IRA in the form of a dividend and will not be reportable as a contribution.
- Penalties apply for early withdrawals from the certificate, including any earned dividends. Members should consult a tax consultant or obtain legal advice regarding any tax implications related to the dividend.
- Taxes related to the IRA $100 bonus are the member’s responsibility. Navy Federal does not provide tax advice.
- Other restrictions may apply.
Our Verdict
I imagine setting up an IRA is a hassle people would avoid just for the bonus, but if you’re in the market for an IRA and qualify for Navy Federal membership (military families), 3.75% is a nice rate for a 4o-month CD, and the added $100 bonus for first-time IRA plan holders sweetens it further.
Thanks to reader David for sending this in and to others who have mentioned this as well. There was a similar offer earlier in 2018 for $100 bonus.
There’s a new 6-month CD at 3%. Not huge, but pretty reasonable term. $1,000 minimum.
https://www.navyfederal.org/products-services/checking-savings/certificates-rates.php
there is a $25.00 signup bonus just for joining Navy Federal…..https://www.navyfederal.org/membership-benefits/join.php?cmpid=PPC%7CGOOGLE%7Cjoin2019%7Cmbrsp%7Crfl%7Cfederal%20navy%20credit%20union%7C%7C%7C%7C&&cmpid=PPC%7CGOOGLE%7C%7C%7C%7Cfederal%20navy%20credit%20union%7C%7C%7C%7C&gclsrc=aw.ds&gclid=EAIaIQobChMImM7lxsWT4AIV3rbACh0L8QuOEAAYASABEgKOo_D_BwE&gclsrc=aw.ds
Use code DIGITAL 19
No space. DIGITAL19 not DIGITAL 19.
Also offered:
SPECIAL 17-MONTH SHARE CERTIFICATE
Open a new Special 17-Month Share certificate, and you’ll earn 3.25% APY on your money.
Start with just $50
Earn guaranteed returns
Make additional deposits anytime for 17 months (up to $50,000)
https://www.navyfederal.org/savings-season-2019/save-money.php?intcmp=hp|cont|3|cdira|cdira|savingsseason|01/07/2018|||
Still alive as of today, link: https://www.navyfederal.org/savings-season-2019/save-money.php?intcmp=hp|cont|3|cdira|cdira|savingsseason|01/07/2018|||
Updated, thanks
Thanks, I got the $100 bonus on December 31. Opened it with $200.
Hard pull? That kills it.
If I open a Roth IRA to get this bonus, will the $100 be taxable? I’m guessing not if it’s reported as a dividend.
Beware there are a lot of complaints and bad reviews about Vanguard services which have been going from bad to worse. Google “Vanguards reviews complaints” and you’ll see. I’m planning to move my 401K to another broker at the beginning of next year. Fidelity is one of my options due their zero-fee funds, trading support, and local offices. Please share other brokers if you have great experience with them.
Some people have kind of a negative impression with it being an IRA account, which I understand but with the Roth you can withdraw your principal and roll over the interest to your brokerage IRA if you so choose. That’s my plan: Put in $5,500 before the end of the year, another $6,000 at the start of next year, when the CD matures I’ll pull out my $11,500 contribution and decide if I want to move my roughly $1,500 in interest into another account or just do another CD with NFCU (depending on their specials when that time comes).
You shouldn’t have to withdraw, you should be able to roll over to Fidelity or Vanguard or whoever when the CD matures.
Yeah, personally I’ll keep the contribution in a Roth IRA. I like NFCU certificate specials as a place for my “fixed income” portion of my portfolio. Just trying to give some options for anyone who may want to get the 3.75% return without having all of their money tied up until retirement. Even if I didn’t plan to leave the principal in a Roth IRA, I’d still jump on these to squeeze some extra interest out of my money and then consolidate those accounts at a later date.