What a Navy Federal savings account does
A Navy Federal savings account is a deposit account where you store money and earn interest on your balance. You can deposit funds, withdraw them when you need to, and the credit union pays you a small percentage of your balance each month or quarter. The account is separate from a checking account — it's designed to hold money you're not spending right away, not to process daily transactions.
Navy Federal offers several types of savings accounts, each with different interest rates and rules about how often you can withdraw. The most common is the Regular Savings Account, which has no minimum balance requirement and lets you make up to six withdrawals per month before fees apply. There's also the Money Market Savings Account, which typically pays a higher interest rate but requires a larger opening deposit and has stricter withdrawal limits.
Your deposits are insured by the National Credit Union Administration (NCUA), which means balances up to $250,000 are protected if Navy Federal fails. This protection works the same way as FDIC insurance at banks.
Key Takeaways
- Navy Federal savings accounts earn interest on your balance, paid monthly or quarterly depending on the account type.
- Regular Savings Accounts have no minimum balance and allow six free withdrawals per month; additional withdrawals trigger a fee.
- Money Market Savings Accounts pay higher interest rates but require a larger opening deposit and limit withdrawals more strictly.
- Your deposits are protected up to $250,000 by the NCUA, the credit union equivalent of FDIC insurance.
- Interest rates vary based on your account type and change over time, so you should check Navy Federal's current rates before opening.
Interest rates and how they're calculated
Navy Federal publishes its current savings rates on its website, and these rates change based on the broader interest rate environment set by the Federal Reserve. The rate you earn depends on which account type you choose — Regular Savings accounts typically earn less than Money Market accounts. Rates also vary based on your balance; some accounts pay higher rates once you reach a certain threshold, such as $25,000 or $100,000.
Interest is calculated daily on your account balance and paid out monthly or quarterly. This means if you deposit $5,000 on the first of the month, you earn interest on that full amount for the entire month, even if you withdraw part of it later. The exact payout schedule depends on your account type — check your account disclosure or call Navy Federal to confirm whether you receive interest monthly or quarterly.
Because interest rates change frequently, the rate you lock in when you open an account is not may provide to stay the same. Navy Federal can lower rates at any time, though they typically notify members before making changes. If rates drop significantly, you may want to compare Navy Federal's rates to other credit unions or banks to see if moving your money makes sense.
Withdrawal limits and fees
Regular Savings Accounts allow six free withdrawals or transfers per month. This limit includes ATM withdrawals, online transfers, phone transfers, and in-person withdrawals at a Navy Federal branch. Once you exceed six withdrawals in a month, Navy Federal charges a fee for each additional withdrawal — typically $5 to $10 per transaction, though the exact amount may vary.
Money Market Savings Accounts have stricter limits, often allowing only three to six withdrawals per month before fees kick in. Some Money Market accounts also require you to maintain a minimum balance, such as $2,500 or $10,000, or you'll be charged a monthly maintenance fee.
These withdrawal limits exist because federal law historically capped savings account withdrawals at six per month. While that rule changed in 2020, many credit unions and banks kept the limits in place to manage their operations. If you need to withdraw money frequently, a checking account is a better choice than a savings account.
How to open and manage your account
You can open a Navy Federal savings account online, by phone, or in person at a branch if you're may be able to access for membership. may be able to access depends on your military affiliation — you must be active duty, retired, a veteran, a family member of an may be able to access person, or work for the Department of Defense. Once you confirm your may be able to access, you'll provide basic information like your name, address, Social Security number, and initial deposit amount.
After your account opens, you can manage it through Navy Federal's mobile app, website, or by calling their member services line. You can set up automatic transfers from your checking account to your savings account, which helps you build savings without thinking about it. You can also link your savings account to external accounts at other banks, though transfers between institutions typically take one to three business days.
Navy Federal sends statements monthly or you can view your activity online anytime. Keep track of your withdrawal count each month so you don't accidentally trigger fees. If you're close to six withdrawals, consider waiting until the next month or using your checking account instead.
Regular Savings vs. Money Market Savings
| Feature | Regular Savings | Money Market Savings |
|---|---|---|
| Minimum opening deposit | None | Typically $2,500 to $10,000 |
| Interest rate | Lower | Higher |
| Free withdrawals per month | Six | Three to six |
| Minimum balance requirement | None | Often $2,500 or more |
| Monthly maintenance fee | None | Possible if balance drops below minimum |
Choose a Regular Savings Account if you're starting out, have a small balance, or want flexibility without worrying about minimum balance requirements. Choose a Money Market account if you have at least $2,500 to $10,000 to deposit, plan to leave it there for a while, and want to earn a higher interest rate.
What happens if you close your account
You can close your Navy Federal savings account at any time without penalty. Visit a branch, call member services, or use the mobile app to request closure. Navy Federal will send any remaining balance to you by check or transfer it to another account you specify. There's no waiting period and no fee for closing.
If your account has been inactive for a long period — typically one to three years depending on Navy Federal's policy — the credit union may close it automatically and send your balance to you. Check your mail and email for notices if you haven't used your account in a while.
Frequently Asked Questions
Can I have multiple savings accounts at Navy Federal?
Yes. You can open more than one savings account if you want to separate your money for different goals — one for emergency funds, one for a vacation, and so on. Each account earns interest independently, and the NCUA insurance covers each account separately up to $250,000.
What happens if I go over six withdrawals in a month?
Navy Federal charges a fee for each withdrawal beyond six, typically $5 to $10 per transaction. The fee is deducted from your account balance. If you regularly need more than six withdrawals per month, consider using a checking account instead, which usually has unlimited withdrawals.
Can I transfer money from my Navy Federal checking account to savings?
Yes. You can set up transfers online, through the mobile app, or by calling member services. Transfers between your own Navy Federal accounts are instant and don't count against your six-withdrawal limit if you're transferring from checking to savings. Transfers from savings to checking do count as a withdrawal.
Do I earn interest on money in my checking account?
Navy Federal checking accounts typically earn little to no interest. If you want to earn interest on your money, keep it in a savings or Money Market account. You can transfer funds to your checking account when you need to spend them.
What if Navy Federal changes the interest rate on my account?
Navy Federal can change rates at any time, and you have no control over this. They typically notify members before lowering rates. If rates drop and you find better rates elsewhere, you can close your Navy Federal account and move your money to another credit union or bank.