NFCU Special CD Advice

[Anonymous]

NFCU is offering a 17 month special CD at 3.25. I want to nab this deal, and they say they can end the offer at any time. From watching their site, it appears these offers stay for a while, but...

I have a current CD with them that matures in June. Should I start the new 17 month now with other funds, then roll my existing CD into it when it matures? Or, should I just wait?

Does anyone have any advice/experience with how risky it is to wait, in case they end it?

[credit_endurance]

I currently have a CD with them @2.35% from last year that will expire in May and I’m considering the 3.25 as well but, just with the history of Navy freezing assests in all accounts if they get spooked out with something gives me the pause.

I think even as good as the offer is I personally would pass and consider another option maybe with another institution.

[Anonymous]

Thanks @credit_endurance. I hadn't heard about the asset freezing. I'll have to do a little research on that.

[credit_endurance]

Not a problem. I have just seen a few threads over the years of assets freezing and that’s one of the worst things to happen if you have ALL your funds parked in one institution like that. I think I will be pulling my funds out and parking some into a 2.50% Apy or better. Just research Doctor of credit for some real nice options out threre. Not 3.0% but at least it’s some decent earnings toward your savings and a little better peace of mind 😃

[CreditInspired]

Hi @bella

100% agree with your idea of opening the 3.25% account now and then rollover your CD funds when they mature. I didn’t realize one could have two of these specials so I’ll have to look into that. I know when I opened my 3% CD 2 years ago, it was a special for 1st time CD Holders.

FYI. NFCU was sued and fined in 2016 for freezing/denying members access to their accounts (link below) until a payment was made. I doubt that will ever happen again. So go for it!

https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-navy-federal-credit-union-pay-285-mill...

[Anonymous]

Thanks @CreditInspired

The fine print makes it sound luke you can have one 17 month special CD:

"1Limit one Special 17-Month Share Certificate per member. This offer, including the stated Annual Percentage Yield (APY), is effective January 7, 2019. Navy Federal reserves the right to end or modify this offer at any time. The Special 17-Month Share Certificate has a $50 minimum and a $50,000 maximum balance. Only available for Share Certificates. Additional deposits are allowed at any time, subject to the maximum balance. Penalties apply for early withdrawals from certificates. Other restrictions may apply."

Also, great info on the asset freezing. Even if they still did that, I pay my bills on time.🙂

I do want to lock in a good rate, but I read in another thread that rates might keep going up. But I think I'm going to nab this one!

[Anonymous]

Thanks for sharing Bella, I’ll have to look into this! 

[Guyatthebeach]

Bella,

You can only get 1 special rate CD at a time.  I have been lucky to a special rate CD for regular CD savings and a special rate IRA CD, so I never complain at all. 

Also NFCU May have stopped freezing assets for debt collection, but I think they still do it for verification issues. I kept a copy of everything from Navy League when I joined Navy Federal.  

NFCU has been great to me and they still will be. 

Guyatthebeach

[credit_endurance]

I do know from own personal experience as of last year they put a freeze on all my accounts for presenting a scanned check for deposit. I followed their very own procedures to process the check. I called into them and it was eventually cleared up right after that. Just saying that they STILL can and will put the freeze on accounts if they please and that’s my issue I take with them. Other than that, great CU with some of the best cd rates around.

[Anonymous]

I went ahead and took advantage of this! 😃