About Navy Federal Credit Union
Navy Federal Credit Union was founded in 1933, is currently the world’s largest credit union, and consistently ranks as one of the best in the United States. Headquartered in Vienna, Virginia, the company has locations in fourteen countries and on 159 military bases worldwide. As of December 2024, the company was managing $63.7 billion dollars in assets, providing retail accounts, mortgage loans, and credit cards. Navy Federal membership is available to employees of the Department of Defense (DoD), both military and civilian, and their families.
Checking Accounts
Navy Federal offers five different checking accounts: Active Duty Checking, Flagship Checking, EveryDay Checking, Campus Checking, and E-Checking. While DoD employment or family member status is required to open any account with Navy Federal Credit Union, additional requirements may apply. To open an Active Duty Checking account, customers are required to have qualifying military direct deposit to their account for as long as the account is open. Campus Checking accountholders must be a full-time students, aged 14 to 24.
Features
All five Navy Federal checking accounts have a zero dollar minimum balance requirement, and offer free checks and overdraft protection. Navy Federal offers ATM fee rebates of up to $20 for the Active Duty Checking account and up to $10 for the Flagship Checking, Campus Checking, and E-Checking accounts, but offers no rebates for the EveryDay Checking account. These features are typical of many banks and credit unions in the U.S. and are becoming increasingly prevalent.
Navy Federal currently offers an annual percentage yield (APY) of 0.05 percent for all of its accounts, except for the Flagship Checking. The Flagship Checking Account requires a $1500 minimum average daily account balance to earn dividends, but offers a tiered APY structure ranging from 0.35 to 0.45 percent, depending on account balance. Many competitors offer dividend rates that far exceed those offered by Navy Federal. Capital One 360, Ally Bank, and FBNO Direct offer APYs starting at 0.20, 0.10, and 0.65 percent, respectively. But many other major banks such as Bank of America, Wells Fargo and Chase lag behind.
Navy Federal has an agreement with the Defense Finance and Accounting Service (DFAS) which allows the company to deposit paychecks of Active Duty Checking accountholders one day early. This is a coveted feature among DoD employees.
Fees
There is no Monthly Service Fee for the Active Duty Checking, EveryDay Checking, and Campus Checking accounts. Flagship Checking accountholders are charged a $10 Monthly Service Fee, unless the average daily account balance is $1,500 or greater. The E-Checking account charges a $5 fee, unless the accountholder is enrolled in direct deposit or makes 20 or more Visa Check Card transactions per statement period. Many of the most competitive banks offer zero dollar Monthly Service Fees including Everbank, Ally Bank, Capital One 360, and USAA.
Navy Federal charges an Overdraft Fee of $29 and a $15 Returned Check Fee for all five of its checking accounts. After 365 days of inactivity, if account balance is below $50, Navy Federal charges $3 to accountholders, except Campus Checking accountholders. Ally Bank’s Overdraft Fee is $9, and Returned Check Fee is $7.50.
Many competitors offer checking accounts with features similar or superior to Navy Federal’s with competitive fee structures. Ally Bank for example, offers no Monthly Maintenance Fee, minimum balance, or ATM Fees, and an APY beginning at 0.20 percent. In comparison to USAA, arguably Navy Federal’s biggest competitor, Navy Federal fares pretty well. While USAA offers free Overdraft Protection, ATM Fee Rebates, and the exact same Overdraft Fee, USAA has a $25 minimum account balance and an APY of only 0.01 percent. USAA’s Returned Check Fee is just $5, however.
Online and Mobile Access
Navy Federal Credit Union offers its customers fully automated and online services. The website is intuitive and easy to navigate, displaying all accounts and associated balances on a single screen. Navy Federal does not offer a budgeting or money management tool within their website or mobile application, a major shortcoming amongst competitors.
Navy Federal’s mobile application allows customers to access all accounts and products through a single well-designed application. The app is equipped with a “quick log-in” option which makes subsequent uses quick and easy. The automatic transfers and mobile deposits that can be performed via the app are amongst the best features.
Customer Service
Navy Federal can be reached via traditional means: phone, email, and in-person, but the company also offers an instant messaging service, and the option to contact customer service via social media. For most people qualified for membership, branches are extremely easy to locate, always in close proximity to DoD facilities. In addition, Navy Federal offers both a U.S. and international customer service phone number.
Recommendation
Banking with Navy Federal is limited to members of the DoD and their families, so for anyone outside of this, the option does not exist. Navy Federal is a strong competitor amongst military members because of convenient access and early pay for Active Duty Checking accountholders. For the average person, Navy Federal offers all of the standard checking account features one has come to expect, and extremely low fees to boot. If a high interest checking account is what you’re looking for, you may want to search elsewhere.
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