CD Review Bank: Navy Federal Credit Union Insurance: NCUA to $250K Last updated: 2026-06-27

Navy Federal 5-Year CD Rate (2026)

Quick take: Navy Federal Credit Union 5-Year Standard Certificate pays ~4.10% APY — above all major online banks at the same term. NCUA-insured to $250K. Membership restricted to military, DoD civilian, and family members. 365 days of dividends as early withdrawal penalty.

Hero stats · Navy Federal 5-Year CD

APY

4.10%

Insurance

NCUA

Min Deposit

$1,000

EWP

365 days dividends

As of

2026-06-27

Navy Federal CD rates — full term ladder

The 5-year CD highlighted on this page is one of several terms Navy Federal offers. Here's the full ladder so you can compare:

Term	APY
3-Month	1.05%
6-Month	4.00%
1-Year	4.55%
18-Month	4.40%
2-Year	4.30%
3-Year	4.20%
5-Year (this page)	4.10%
7-Year	4.00%

Rates as of 2026-06-27. Navy Federal repricing tends to follow Fed funds moves within 1-3 weeks. Confirm current rate on the Navy Federal site before funding.

Pros and cons

Pros

5-Year APY (4.10%) beats all major online banks
NCUA insurance ($250K) functionally identical to FDIC
Member-owned — historically passes more yield to depositors
Easy ladder structuring inside one credit union
EasyStart Certificate for small balances ($50 min)

Cons

Membership restricted to military, DoD civilian, and family
5-Year APY (4.10%) still trails 5-year MYGAs (~5.50%) by ~140bps
365 days of dividends early withdrawal penalty is heavy
Mobile app rated mid-pack vs. fintech peers
No ATM card on certificate accounts

How the Navy Federal 5-Year CD compares to peers

At the 5-year term, here's how this CD stacks up against the most-shopped competitors:

Bank	5-Year APY
Navy Federal	4.10%
PenFed	4.05%
Marcus	4.00%
Ally	4.00%

For a broader view of top 5-year rates across 30+ banks and credit unions, see Best 5-Year CD Rates 2026.

When a MYGA beats this CD

A Multi-Year Guaranteed Annuity (MYGA) is the insurance-industry equivalent of a CD: lock a fixed rate for a fixed term, principal-protected. Right now at the 5-year term, A-rated carriers are paying ~5.50% — versus Navy Federal's 4.10%.

Math at $250,000 over 5 years (using simple annual compounding):

Navy Federal 5-Year CD @ 4.10%: $305,628 ending balance
5-year MYGA @ 5.50%: $326,740 ending balance
Difference: $21,112 in favor of the MYGA

MYGAs also defer tax on interest until withdrawal — CDs are taxed annually as ordinary income whether you touch the interest or not. The trade-off: MYGAs have a fixed surrender schedule (usually with 10%/yr free withdrawal); CDs have shorter penalty periods. For taxable retirement money you don't plan to touch, the MYGA almost always wins. See CD vs MYGA Comparison for the full breakdown.

Lock in now or wait?

Short answer: lock in at least a portion now. The 2026 rate curve is inverted at the long end — short-term CDs pay more than long-term ones, which historically signals the Fed is near a cutting cycle. If you wait for "better" rates, you risk reinvesting at lower rates 6-12 months from now.

Practical move: ladder. Put 1/3 in a 1-year CD or MYGA, 1/3 in a 3-year, and 1/3 in a 5-year. You capture today's still-elevated rates on the long end while keeping liquidity rolling.

FAQ — Navy Federal 5-Year CD

What is the current Navy Federal 5-Year CD rate?

As of 2026-06-27, the Navy Federal Credit Union 5-Year CD pays approximately 4.10% APY. Rates change frequently — confirm on the Navy Federal website before opening.

Is the Navy Federal 5-Year CD FDIC-insured?

Yes. Navy Federal Credit Union is NCUA-insured up to $250,000 per depositor, per ownership category. Couples with joint accounts get $500,000 of coverage.

What is the minimum deposit for the Navy Federal 5-Year CD?

$1,000. If you have more to deposit, FDIC coverage caps at $250,000 per depositor per bank — split large balances across multiple institutions if needed.

What is the early withdrawal penalty?

365 days dividends. Withdraw before maturity and the penalty is deducted from your interest (or principal if interest isn't enough). Plan your maturity date carefully.

Can I add money to my Navy Federal CD after opening?

No — like most traditional CDs, this is a single-deposit account. To add funds, you must open a new CD at the rate available at that time.

What happens at maturity?

Navy Federal typically gives you a 10-day grace period to withdraw, change terms, or accept auto-renewal at the current posted rate. Set a calendar reminder — auto-renewal often locks you in at a worse rate.

Should I pick a CD or a MYGA at this term?

At the 5-year term, a MYGA from an A-rated insurance carrier currently pays around 5.50% — meaningfully above this CD. MYGA interest is tax-deferred (CDs are taxed annually). Trade-off: MYGAs have surrender schedules; CDs have shorter penalty periods. For taxable retirement money, the MYGA usually wins. See CD vs MYGA Comparison.

Before you lock in — get the MYGA comparison

Hans Goldstein, independent licensed insurance producer.

If you're considering the Navy Federal 5-Year CD, you should see what a 5-year MYGA from an A-rated carrier pays at the same risk level. Often it's 50-150 basis points higher, with tax deferral.

Drop your info and you'll get a written side-by-side: this CD vs. the top 3 MYGAs at the same term, with end-of-term math at your actual deposit amount. No pitch, no follow-up calls unless you ask.

Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers

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Disclosure

This review reflects publicly posted bank rates and approximate APYs as of 2026-06-27. CD rates change frequently — confirm current rates directly with Navy Federal Credit Union before opening an account. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific banking or insurance product. Navy Federal Credit Union is FDIC- or NCUA-insured to the limits stated; coverage is per depositor, per ownership category. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he is NOT a bank employee, broker-dealer, or registered representative, and is not paid by Navy Federal Credit Union for this review. No compensation has been received from Navy Federal Credit Union in connection with this content. MYGA comparisons reference rates from A-rated carriers as of the date stated; carrier rates change monthly. Always read the actual CD disclosure or annuity contract before purchasing.