Navy Federal Credit Union Share Savings Account

Navy Federal Credit Union is offering a Share Savings Account that currently has a savings rate of 0.40 percent and an annual percentage yield of 0.40 percent. The savings rate isn't the highest savings rate around but it's competitive with the national average savings rate.

To join Navy Federal Credit Union you have to open a Share Savings account. The minimum deposit is only $5.00 and there are no monthly fees with the savings account. In addition to their basic share account, the credit union also offers a Custodial Savings Account, a Custom Club Savings Account and an Education Savings Account (ESA).

Custodial Savings Account

This is a savings account that administers your gift money to a minor with potential tax savings. You save on taxes because a portion of the savings account dividends are taxed at the minor’s lower rate.

The minor cannot withdraw this money until reaching the age you determine (usually 18 or 21). Then, if the minor is eligible for Navy Federal membership, the account can be converted to a regular savings account in the Minor's name.

For more information on Navy Federal Credit Union's savings accounts visit: Navy Federal.

To start a custodial savings account, call 1-888-842-NFCU (6328)

Custom Club Savings Account

With a Custom Club Savings Account you can save money specifically for a vacation, new car or for holiday gifts at the end of the year for Christmas or any other holiday.

You choose when to start the club savings account and when it ends as long as the account is open between 3 months and 5 years. The minimum opening deposit is only $5. Dividends are compounded daily giving the account a higher annual percentage rate.

Education Savings Account (ESA)

An ESA is just like a  share savings account and there is no minimum or maximum deposit required. There are no early withdrawal penalties and you can add funds into the account at anytime. There is a maximum allowed amount of $2,000 per year.
Author: Brian McKay
March 8th, 2010