A share savings account is Navy Federal's basic savings account, where you deposit money and earn interest on the balance you keep there

At Navy Federal, a share savings account is a deposit account that works like a savings account at a bank. You put money in, the credit union pays you interest on that money, and you can withdraw it when you need it. The word "share" comes from credit union language — when you open an account, you own a small share of the credit union itself, which is why credit unions call their accounts "shares" instead of "accounts."

The main purpose of a share savings account is to hold money safely while earning a small return. It is not meant for daily spending — that is what a share draft account (Navy Federal's checking account) does. A share savings account is where you keep money you want to protect and grow, even if the growth is modest.

Key Takeaways

  • A share savings account at Navy Federal is a savings account where you earn interest on your balance, and the account is insured up to $250,000 by the National Credit Union Administration.
  • You can deposit money and withdraw it whenever you need it, though some withdrawals may have limits depending on the account type.
  • Navy Federal offers several types of share savings accounts with different features, such as higher interest rates for larger balances or longer commitment periods.
  • Interest rates and minimum balance requirements change over time, so you should check Navy Federal's current rates before opening an account.

How interest works on your share savings account

When you keep money in a share savings account, Navy Federal pays you interest — a percentage of your balance that the credit union gives you as payment for letting them use your money. The interest rate varies depending on which type of share savings account you choose and how much money you keep in it.

Interest is usually paid monthly or quarterly, meaning the credit union adds the earnings to your account on a set schedule. The more money you keep in the account and the longer you keep it there, the more interest you earn. However, interest rates change over time based on what the Federal Reserve does with national interest rates, so the rate you see today may not be the same rate next year.

Types of share savings accounts Navy Federal offers

Navy Federal has more than one type of share savings account, each designed for different goals. A regular share savings account is the most basic option — you can deposit and withdraw money without penalty, though there may be limits on how many withdrawals you can make per month. This account typically has a lower interest rate but gives you flexibility.

Navy Federal also offers share certificates, sometimes called CDs or certificates of deposit. With a share certificate, you agree to leave your money untouched for a set period — usually three months, six months, one year, or longer. In exchange, Navy Federal pays you a higher interest rate than a regular savings account. If you withdraw the money before the time period ends, you pay a penalty, so share certificates work best if you know you will not need the money for a while.

Some Navy Federal members also use a money market share account, which sits between a regular savings account and a share certificate. It typically offers a higher interest rate than a regular savings account, but you keep the ability to withdraw money without penalty. The tradeoff is usually a higher minimum balance requirement.

Minimum balance and account fees

Most Navy Federal share savings accounts require you to keep a minimum balance — a smallest amount of money that must stay in the account at all times. If your balance drops below that minimum, Navy Federal may charge you a monthly fee or close the account. The minimum balance varies by account type and changes over time, so you should check Navy Federal's current requirements before opening an account.

Navy Federal share savings accounts typically do not charge monthly maintenance fees if you meet the minimum balance requirement. However, if you fall below the minimum or if you exceed the number of withdrawals allowed per month, fees may explore. Some accounts also charge a fee if you close the account within a certain time period.

How to access your money

You can withdraw money from a share savings account in several ways. You can visit a Navy Federal branch in person, call their customer service line, use their mobile app, or go online through their website. You can also set up automatic transfers to move money from your share savings account to another account, such as a share draft account for spending.

Federal law limits how many withdrawals you can make from a savings account per month — the exact number depends on the account type and Navy Federal's current rules. If you need to withdraw money more often, a share draft account (checking account) is a better choice because it has no withdrawal limits. You can always move money between your accounts without penalty.

Protection for your money

Money in a Navy Federal share savings account is protected by the National Credit Union Administration, or NCUA. This is a federal agency that insures deposits at credit unions the same way the FDIC insures deposits at banks. Your account is insured up to $250,000, which means if Navy Federal ever fails, the NCUA will return your money up to that amount.

This protection applies to each account type separately, so if you have both a share savings account and a share certificate at Navy Federal, each one is insured up to $250,000. If you have multiple savings accounts at the same credit union, they are added together for insurance purposes, so the total coverage across all your savings accounts is $250,000.

When a share savings account makes sense for you

A share savings account works well if you want to set money aside for a goal — an emergency fund, a down payment on a car, or money for a vacation a year from now. It keeps your money separate from your spending account so you are less likely to use it on everyday purchases. The interest you earn is modest, but it is better than keeping cash in a drawer.

If you know you will not need money for a specific period and want a higher interest rate, a share certificate is a better choice. If you want to access your money frequently without limits, a share draft account is what you need. Many Navy Federal members use more than one account type at the same time — a share draft for spending, a share savings for emergencies, and a share certificate for a specific goal.

Frequently Asked Questions

Do I need to be military to open a share savings account at Navy Federal?

Navy Federal membership requirements vary. Some accounts are open to active-duty military, veterans, and their families, while others have broader membership rules. You can check Navy Federal's website or call them to find out which accounts you are may be able to access to open based on your military status or family connection.

Can I have more than one share savings account?

Yes, you can open multiple share savings accounts at Navy Federal. However, the NCUA insurance limit of $250,000 covers all your savings accounts combined at the same credit union, not each account separately. If you have two savings accounts with $150,000 in each, only $250,000 total is insured.

What happens if I withdraw money from a share certificate early?

If you withdraw money from a share certificate before the maturity date, Navy Federal charges you a penalty. The penalty amount depends on the length of the certificate and Navy Federal's current rules — it is usually a certain number of months of interest. You should ask Navy Federal what the penalty is before you open a share certificate.

How often does the interest rate change?

Navy Federal can change interest rates at any time, though they usually change when the Federal Reserve adjusts national rates. Rates on existing accounts may go up or down. You can check Navy Federal's website or call them to see current rates on different account types.

Is my money accessible if Navy Federal closes?

Yes. If Navy Federal ever closes, the NCUA takes over and returns your insured deposits — up to $250,000 — to you. This process usually takes a few weeks. Your money is protected even if the credit union fails, as long as your balance is within the insurance limit.