Just in time for Military Saves Week, Navy Federal Credit Union (NFCU) is offering a special rate of 2.0% on their Custom Club Account. What is a Custom Club Account? It is a variation on the old Christmas Club style account, but instead of being tied into a January to December timeline, you can customize the details to fit your savings goals. The terms include:
- Maximum term of 12 months
- Minimum deposit of $5
- Maximum total deposit of $5,000
- New deposits can be added at any time
- One special Custom Club account per member
- There does not appear to be a required automatic transfer
I just opened one, to get started and report on the process. It was quick and easy, with only a few things that I found noteworthy. First, when you get the drop down menu to select the type of certificate you want to open, it doesn’t not list a separate special Custom Club Account. You just select the regular Custom Club account type. Second, though the promotional materials stated that this is good for up to 12 months, it appears that you can actually set up a Custom Club account for up to five years and continue to get this promotional rate. I was worried, so I only set mine up for 12 months.
This is a great way to save for a longer term goal, such as a new car, money for an upcoming PCS move, or even a down payment. Even though there is a maximum of $5,000 in the account, you can open one for each family member to maximize your earnings. You can also use this account as a great way to teach your kids about compounding interest!
Don’t forget that Pacific Marine Credit Union (PMCU) is also offering a great 4.0% Military Saves promotional certificate, and Navy Federal has a special 3.0% Easy Start certificate as well.