A membership share savings account is Navy Federal's basic savings account, and it works like a regular savings account at any bank

When you open a membership share savings account at Navy Federal, you are opening a savings account that earns interest. The word "share" comes from credit union language — when you deposit money, you own a small share of the credit union itself. In practice, this means your money sits in an account, grows a little bit each month through interest, and you can withdraw it when you need it. It is not a checking account (you cannot write checks from it), and it is not an investment account (the interest rate is modest and may provide).

Navy Federal calls it a "membership share" account because membership in the credit union is tied to having at least one account there. You cannot join Navy Federal without opening an account, and this is the simplest one to open.

Key Takeaways

  • A membership share savings account earns interest on the money you deposit, though the rate changes based on how much you keep in the account and current market conditions.
  • You need this account to be a Navy Federal member — you cannot use Navy Federal's other services without one.
  • You can withdraw your money at any time without penalty, though Navy Federal limits how many withdrawals you can make per month.
  • The account has a minimum opening deposit, which varies depending on which type of membership account you choose.

How interest works on a membership share account

Navy Federal pays you interest on the balance in your account. The amount of interest depends on two things: how much money you keep in the account and what Navy Federal's current interest rate is. The more you keep in the account, the higher the interest rate you earn — Navy Federal has different rate tiers based on your balance. If you keep $500, you earn one rate; if you keep $25,000, you earn a higher rate.

The interest rate itself changes over time based on what the Federal Reserve does with national interest rates. When the Fed raises rates, Navy Federal usually raises what it pays you. When the Fed lowers rates, Navy Federal lowers what it pays you. You can check Navy Federal's website to see the current rates for each balance tier.

Interest is added to your account monthly. If you have $1,000 in the account and Navy Federal is paying 0.50% annual interest, you would earn about $0.42 that month (the interest compounds, meaning you earn interest on your interest the next month).

Withdrawal limits and how to access your money

You can withdraw money from your membership share account whenever you need it, and there is no penalty for withdrawing. However, Navy Federal limits you to six withdrawals per month. This is a federal rule that applies to all savings accounts at all banks and credit unions, not a Navy Federal rule alone. If you need to withdraw more than six times in a month, Navy Federal may charge you a fee or convert your account to a checking account.

You can withdraw money by visiting a Navy Federal branch in person, using an ATM, transferring money to another account online, or requesting a check. If you need to withdraw money frequently, a checking account might be a better fit than a savings account.

Minimum deposit and account opening

Navy Federal requires a minimum opening deposit to start a membership share account. The amount depends on which membership type you choose — Navy Federal offers different membership categories based on whether you are active military, a veteran, a family member of someone may be able to access, or a Department of Defense civilian. Each membership type may have a different minimum deposit requirement.

You can open an account online, by phone, or in person at a Navy Federal branch. You will need to provide identification and proof that you meet the membership requirements (military ID, discharge papers, or a letter from your employer, depending on your category). Once your account is open, you can deposit money when ready.

How a membership share account differs from a checking account

A membership share account is designed for saving, not for everyday spending. You cannot write checks from it, and you cannot use a debit card to spend directly from it. A checking account, by contrast, is designed for frequent transactions — you get a debit card and checks, and you can make unlimited withdrawals.

Many Navy Federal members open both accounts: a membership share account to save money and earn interest, and a checking account for daily expenses. Some people keep a small balance in the membership share account (just enough to maintain membership) and do most of their banking through checking.

Fees and account maintenance

Navy Federal does not charge a monthly maintenance fee on a membership share account. There are no hidden fees for having the account open. However, you may be charged a fee if you exceed the six monthly withdrawals, and you may be charged a fee if your account balance drops below the minimum (which varies by membership type).

If you do not use your account for a long time, Navy Federal may charge an inactivity fee, though this is uncommon. Check Navy Federal's current fee schedule on their website or ask at a branch to confirm what fees might explore to your specific account.

When a membership share account makes sense for you

A membership share account is the right choice if you want a straightforward savings account that earns interest and you do not need to withdraw money frequently. It is also the right choice if you are new to Navy Federal and need to open an account to become a member — you can always open a checking account later if you need one.

If you withdraw money more than six times a month, or if you want to earn a higher interest rate, you might want to explore Navy Federal's other savings products, such as money market accounts or certificates of deposit (CDs). A money market account works similarly to a savings account but sometimes offers a higher interest rate. A CD locks your money away for a set period (like six months or one year) in exchange for a may provide higher interest rate.

Frequently Asked Questions

Can I have more than one membership share account?

Navy Federal allows you to open multiple membership share accounts if you want to organize your savings — for example, one for an emergency fund and one for a vacation fund. Each account earns interest separately based on its own balance.

What happens if my balance drops below the minimum?

If your account balance falls below the minimum required for your membership type, Navy Federal may charge a monthly fee. The exact fee and minimum vary by membership category, so check with Navy Federal directly about your specific account.

Can I transfer money from my membership share account to my checking account?

Yes. You can transfer money online, by phone, or in person at a branch. Transfers between your own Navy Federal accounts are usually free and happen when ready or within one business day.

Is my money safe in a membership share account?

Yes. Navy Federal is insured by the National Credit Union Administration (NCUA), which means your deposits are protected up to $250,000 per account type. If Navy Federal failed, the NCUA would return your money.

How do I know what interest rate I am earning?

Navy Federal publishes current rates on their website and at branches. Rates are listed by balance tier — you can see exactly what rate applies to your account balance. You can also call Navy Federal or log into your online account to see your current rate.