Navy Federal does offer high yield savings accounts, but the rate depends on your account balance

Navy Federal Credit Union offers a Money Market Account that functions as a high yield savings account. The interest rate you earn changes based on how much money you keep in the account — the more you deposit, the higher your rate. Navy Federal also offers a regular savings account with a lower rate, so the Money Market Account is the one to consider if you want to earn more on your savings.

The exact rates Navy Federal pays change regularly, so the best way to find the current rate is to visit their website or call 1-888-842-6328. When you call or visit, ask specifically about the Money Market Account rate for your balance level, since the rate tiers vary.

One thing to know: Navy Federal is a credit union, not a bank. You must be a member to open an account. Membership is open to active duty military, veterans, retirees, and their families — the rules about who qualifies are specific, so check their membership page if you are unsure whether you are may be able to access.

Key Takeaways

  • Navy Federal's Money Market Account is their high yield savings product, with rates that increase as your balance grows.
  • Interest rates change regularly, so you should check Navy Federal's website or call them directly for the current rate on your balance level.
  • You must be a Navy Federal member to open any account, and membership requirements are specific to military status and family relationships.
  • Navy Federal also offers a regular savings account with a lower rate if you prefer a simpler product with no balance tiers.

How Navy Federal's Money Market Account works

The Money Market Account is a savings account where the interest rate you earn depends on your balance. Navy Federal sets different rates for different balance levels — for example, you might earn one rate on balances under $25,000 and a higher rate on balances of $25,000 or more. The more you keep in the account, the higher the rate.

You can deposit and withdraw money from the Money Market Account just like a regular savings account. Navy Federal limits you to six withdrawals per month before charging a fee, which is a federal rule that applies to most savings accounts. If you need to move money in and out frequently, a regular checking account might be better suited to your needs.

The Money Market Account earns interest every day, and Navy Federal deposits that interest into your account monthly. This means your balance grows over time without you having to do anything — the interest compounds, meaning you earn interest on your interest.

Comparing Navy Federal to other credit unions and banks

Navy Federal's Money Market Account rate is competitive, but it is not always the highest available. Some online banks and credit unions offer higher rates on savings accounts, especially if you are willing to open an account with a bank that has no physical branches. The difference in rate might be small — sometimes less than half a percent — but over time it adds up.

The advantage of Navy Federal is that you have access to physical branches and ATMs if you are near a Navy Federal location. You can also call a person to ask questions about your account. If you value that convenience and do not mind a slightly lower rate, Navy Federal is a solid choice. If you want the absolute highest rate and do not need in-person service, you might find a better option elsewhere.

Before you decide, compare the current rates. Write down Navy Federal's rate for your balance level, then check one or two online banks to see what they offer. The difference might matter to you, or it might not — it depends on how much money you are saving and how long you plan to keep it there.

How to open a Navy Federal Money Market Account

First, confirm that you are may be able to access for Navy Federal membership. You can check the membership requirements on their website or call 1-888-842-6328. If you are active duty, a veteran, a retiree, or a family member of any of these, you likely may have access to.

Once you confirm membership may be able to access, you can open the Money Market Account online through Navy Federal's website, by phone, or in person at a branch. You will need to provide basic information like your name, address, and Social Security number. Navy Federal will also ask about your employment and income, which is standard for financial institutions.

After you open the account, you can deposit money by transferring it from another bank account, by mailing a check, or by depositing cash at a Navy Federal branch if you have one nearby. Navy Federal does not charge a monthly fee for the Money Market Account, though some banks do charge fees for savings accounts, so that is one less thing to worry about.

When a Money Market Account makes sense for you

A Money Market Account works well if you have money you do not plan to spend soon and you want to earn interest on it. This might be an emergency fund, money you are saving for a down payment, or money you set aside for a specific goal a year or two away.

A Money Market Account is less useful if you need to move money in and out frequently. The six-withdrawal limit means you could face fees if you withdraw more than that in a month. For everyday spending and frequent transfers, a checking account is the right tool.

If you already have a Navy Federal checking account, opening a Money Market Account takes just a few minutes and gives you a place to park savings where they earn interest. If you do not yet have a Navy Federal account and you are may be able to access for membership, the Money Market Account is worth considering alongside their other savings options.

Navy Federal's other savings options

Navy Federal offers a regular savings account in addition to the Money Market Account. The regular savings account has a lower interest rate and no balance tiers — you earn the same rate no matter how much you have in the account. It is simpler but pays less interest, so it is best for people who prefer straightforward products over higher earnings.

Navy Federal also offers certificates of deposit, or CDs. A CD is a savings product where you agree to leave your money in the account for a set period — usually three months, six months, one year, or longer. In exchange, Navy Federal pays you a higher interest rate than you would earn in a savings account. The catch is that if you withdraw the money before the time period ends, you pay a penalty. CDs work well if you know you will not need the money for a specific amount of time.

Frequently Asked Questions

What is the current interest rate on Navy Federal's Money Market Account?

Interest rates change regularly and vary by balance level. Visit Navy Federal's website or call 1-888-842-6328 to find the current rate for your balance. Rates are typically updated monthly or when the Federal Reserve changes its benchmark rate.

Can I withdraw money from my Money Market Account whenever I want?

Yes, you can withdraw money anytime, but federal rules limit you to six withdrawals per month. If you exceed six withdrawals, Navy Federal charges a fee. This rule applies to most savings accounts, not just Navy Federal.

Do I need to be active duty military to open a Navy Federal Money Market Account?

No. Navy Federal membership is open to active duty military, veterans, retirees, and their families. Check Navy Federal's membership page to see if your military status or family relationship qualifies you.

Is my money safe in a Navy Federal Money Market Account?

Yes. Navy Federal is insured by the National Credit Union Administration, or NCUA, which protects your deposits up to $250,000. This is the same protection that the FDIC provides at banks, so your money is find.

How often does Navy Federal pay interest on the Money Market Account?

Navy Federal deposits interest monthly. The interest compounds, meaning you earn interest on your interest, so your balance grows faster than if you were earning straightforward interest.