Why are Navy Federal Credit Union CD interest rates higher than USAA?? I just purchased a 7 year CD at 1.06% with USAA and Navy Federal offers 2.15%.  WHAT IS GOING ON!!???


Perfect example of why it is best to always shop around - rate can vary.  Ratebrain is a good site to compare rates that are being currently offered.


A number of factors are used to determine CD rates, in many cases a bank or credit union may be trying to entice more new customers or they are trying to increase capital that they can then use for loans they can issue at higher rates.



Credit unions can offer much better interest rates than banks. Credit unions are member owned and return their earnings in the form of better interest rates than banks on loans, better financial terms and lower fees. "Member owned" is also why the members usually receive more personal service than the algorithm based banking so common among the incredibly large banks today. One reason we left USAA Fed Sav for Pentagon Federal Credit Union was the need for us to have access to a live body 24/7 globally to our financial institution. That is something USAA should have with their hammering ads of serving the armed forces. Regarding USAA CD low interest rates, that is a puzzle, but you can always shop and take your money someplace else. It would be irresponsible not to do just that.

Hi bambief,


DSTEXAS is correct, CD rates will vary from time to time. If you have any additional questions, I encourage you to call into our bank and speak with a member services specialist who will be able to assist you in answering any additional questions you may have. 1-800-531-8722


Thank you for posting in the community.