"Credit unions, which Navy Federal is, are borrower-friendly credit unions more than saver-friendly credit unions. If you're sitting with a pile of cash, you want that in a high-yield savings account with an online bank."
"Navy Federal's standard savings account currently pays 0.25% APY, while online banks are offering rates that dwarf that figure, in some cases approaching or exceeding rates more than fifteen times higher."
"The difference translates into hundreds or even thousands of dollars in foregone interest each year for members sitting on meaningful cash reserves."
"Navy Federal has built its competitive advantage on the lending side, with vastly better rates on loans, vehicle loans, mortgages, home equity lines of credit, and credit cards."
Navy Federal Credit Union offers lower savings rates, currently at 0.25% APY, compared to online banks that provide significantly higher rates. This disparity is due to the credit union's focus on lending rather than attracting savers. As a member-owned nonprofit, Navy Federal returns surplus to members primarily through better loan rates. For individuals with substantial cash reserves, the difference in interest earned can amount to hundreds or thousands of dollars annually, highlighting a structural disadvantage for savers.
Read at 24/7 Wall St.
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