Navy Federal does not charge a monthly maintenance fee on most savings accounts
Navy Federal Credit Union does not charge a monthly fee to keep a savings account open, and there are no minimum balance requirements to avoid fees. This applies to their standard savings account and their Money Market savings account. You can open an account with any amount and keep it open without paying a monthly charge, regardless of how much money sits in it.
The main costs you may encounter are not monthly fees but rather the interest rate you earn. Navy Federal's savings rates change based on how much money you deposit and how long you keep it there. Rates also shift when the Federal Reserve changes its benchmark interest rate, which affects all banks and credit unions. You can check the current rates on Navy Federal's website or by calling their member services line.
Key Takeaways
- Navy Federal savings accounts have no monthly maintenance fee and no minimum balance requirement.
- You will not be charged for keeping the account open, even if your balance stays at zero.
- The interest rate Navy Federal pays on savings varies by account type and changes periodically based on market conditions.
- Fees may explore if you exceed the number of withdrawals allowed per month or if you use out-of-network ATMs.
What happens if you make too many withdrawals
Federal rules once limited savings account withdrawals to six per month, though this rule was suspended during the pandemic and has not been fully reinstated. Navy Federal's current withdrawal limits depend on your specific account and the type of withdrawal. You should check your account agreement or contact Navy Federal directly to learn the current limits on your account.
If you exceed the withdrawal limit, Navy Federal may charge a fee per excess withdrawal or may convert your account to a checking account. The exact consequence varies, so it is worth asking before you open the account if frequent withdrawals are part of your plan.
ATM fees and out-of-network charges
Navy Federal operates its own ATM network, and using those machines is free. If you use an ATM that does not belong to Navy Federal, you may be charged a fee by the other bank or ATM operator. Navy Federal itself does not charge you for using an out-of-network ATM, but the ATM owner will, and that fee typically ranges from $1 to $3 per transaction.
To avoid these charges, use Navy Federal's ATM network or withdraw cash when you visit a Navy Federal branch in person. You can find ATM locations on their website or mobile app.
Overdraft and insufficient funds charges
If you try to withdraw more money than you have in your savings account, Navy Federal may decline the transaction or charge an overdraft fee. Savings accounts typically do not allow overdrafts the way checking accounts do, so most transactions will straightforward be declined. However, if Navy Federal does allow an overdraft on your account, they will charge a fee for each overdraft occurrence.
The best way to avoid this is to check your balance before you withdraw and set up balance alerts through Navy Federal's mobile app or online banking. These alerts notify you when your balance drops below a level you choose.
How Navy Federal savings accounts earn interest
Navy Federal pays interest on savings account balances, meaning your money grows over time without you adding more. The interest rate is expressed as an annual percentage yield, or APY. The higher the APY, the more interest you earn on the same balance.
Navy Federal's APY varies depending on the account type and the amount you deposit. Some accounts offer higher rates if you maintain a larger balance. Interest is usually credited to your account monthly, and you can watch your balance grow in your online account or mobile app. Because rates change, check Navy Federal's website periodically to see if your rate has shifted.
Comparing Navy Federal savings to other options
Navy Federal savings accounts have no monthly fee, which matches most credit unions and many banks. However, the interest rate Navy Federal pays may be lower or higher than other institutions depending on current market conditions and the specific account type. Online banks sometimes offer higher APY on savings accounts because they have lower operating costs than brick-and-mortar institutions.
If earning the highest possible interest is your priority, compare Navy Federal's current rates to rates at other credit unions, banks, and online savings platforms. If you value having a physical branch location and in-person service, Navy Federal's fee-free structure and branch network may outweigh a slightly lower rate. The difference in interest earned depends on how much you save and for how long.
How to open a Navy Federal savings account
To open a Navy Federal savings account, you must first be a member of Navy Federal Credit Union. Membership is open to active duty military, retirees, veterans, and their families. You can open an account online, by phone, or in person at a Navy Federal branch.
When you open an account, you will need to provide your Social Security number, a government-issued ID, and proof of address. Navy Federal will run a background check through ChexSystems, which is a banking history database. If you have had problems with a previous bank account, this check may affect whether you can open an account. You can open an account with as little as $0 and begin using it when ready.
Frequently Asked Questions
Can I have multiple savings accounts at Navy Federal?
Yes, you can open more than one savings account at Navy Federal. Each account is separate and earns interest independently. This can be useful if you want to save for different goals, such as an emergency fund and a vacation fund.
What is the difference between Navy Federal's savings account and their Money Market account?
The Money Market account typically offers a higher interest rate than the standard savings account, but it may require a larger minimum balance to earn that rate. Both accounts have no monthly fee. Check Navy Federal's current rates to see which account makes sense for your situation.
Does Navy Federal charge to transfer money from savings to checking?
No, transfers between your own Navy Federal accounts are free. You can move money between savings and checking as often as you need without being charged a fee.
What happens if I close my Navy Federal savings account?
You can close your account at any time by visiting a branch, calling member services, or using online banking. Navy Federal will not charge you a fee to close the account. If your account has a balance, Navy Federal will send you a check or transfer the funds to another account you specify.
Does Navy Federal charge for online banking or the mobile app?
No, Navy Federal's online banking platform and mobile app are free to use. You can check your balance, transfer money, pay bills, and deposit checks through the app without paying any fees.