| Type | Credit union |
|---|---|
| Industry | Financial services |
| Founded | 1933 |
| Headquarters | Vienna, Virginia, United States |
| Number of locations | 217[1] |
| Area served | Department of Defense personnel and their families |
| Key people | Cutler Dawson, President/CEO VADM John A. Lockard, Chairman |
| Products | Savings; checking; consumer loans; mortgages; credit cards; investments; online banking |
| Total assets | $46.0B USD (2011) |
| Subsidiaries | Navy Federal Financial Group (CUSO) |
| Website | navyfederal.org |
Navy Federal Credit Union (or Navy Federal) is a credit union headquartered in Vienna, Virginia, chartered and regulated under the authority of the National Credit Union Administration (NCUA) of the U.S. federal government. Navy Federal is the largest natural member (or retail) credit union in the world, both in asset size and in membership. As of June 2011, Navy Federal had over $46.0 billion USD in assets, and over 3.7 million members.[2]
Navy Federal was ranked number 78 on the 2008 Fortune's 100 Best Companies to Work For list, which is produced by the Great Place to Work Institute.[3]
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Navy Federal was originally incorporated on January 17, 1933 as the Navy Department Employees' Credit Union of the District of Columbia (NDCU). Only Navy employees who were members of the Federal Employees' Union were eligible to join. The next year, President Roosevelt signed into law the Federal Credit Union Act, which would eventually become the basis of business for the credit union. In 1947, the credit union was officially dissolved and rechartered as a federal credit union, named Navy Department Employees Federal Credit Union (NDEFCU). It also expanded membership to include all Navy personnel in the Washington, DC area, both military and civilian. It was not until 1951 that the day to day operations of the credit union were officially turned over to professional management; until that time, the Board of Directors were personally involved in each major financial decision and loan approval that the credit union made.
In 1954, the credit union changed its charter again to open membership to all Navy employees, regardless of geographic location, and changed its name to Navy Federal Credit Union. At first, only officers were eligible, but eventually membership was opened to enlisted personnel as well. By 1962, the credit union reached a milestone, becoming the biggest credit union in the world, a distinction which it still holds today. In 1977, the credit union moved into its current headquarters in Vienna, Virginia, eventually undergoing several major expansions of its facility there.
In 2003, the credit union opened its membership further, to include Navy contractors. There have also been several times in the credit union's history that NCUA has asked Navy Federal to merge with or absorb other credit unions that were experiencing financial or other difficulties. Members of these prior credit unions remained members of Navy Federal after the merger (following NCUA's policy of "once a member, always a member"). One of these instances included absorbing the credit union which served the U.S. Coast Guard Academy in Connecticut, with the result that to this day, students at the Academy are eligible to join Navy Federal, and to remain members for life, while actively serving members of the Coast Guard are not. (Although Navy Federal now serves the entire Department of Defense, the Coast Guard is not a part of that department in peacetime; it is instead under the Department of Homeland Security.) On September 22, 2010, Navy Federal Credit Union announced plans to absorb/merge with USA Fed, stating that joint operations would begin October 4, 2010 under the Navy Federal banner.[4]
In May 2008, the Navy Federal Credit Union widened its membership to include the entire Department of Defense. Their new field of membership includes all active duty, retired, and reserve Army, Navy, Marine Corps, and Air Force personnel, as well as civilian personnel within the Department of Defense.
Navy Federal's field of membership is set by the National Credit Union Administration (NCUA). As with all credit unions, membership in Navy Federal is limited to individuals sharing the common bond defined in its credit union charter. Membership in Navy Federal is limited to:
Navy Federal is chartered with NCUA as a single-sponsor credit union, with its sponsor being the Department of Defense. Like all credit unions, Navy Federal is governed by a board of volunteers, elected by and from its membership. Navy Federal also has a separate subsidiary, named Navy Federal Financial Group, which operates as a Credit Union Service Organization (CUSO). CUSOs were established by NCUA as a way for credit unions to pursue product offerings that would normally be outside of the purview of a credit union.
Navy Federal offers the typical suite of account services offered by most financial institutions, including savings accounts, checking accounts, IRA accounts, and certificates. The savings product is named "Share Savings" to reflect the fact that a member's initial savings deposit ($5) literally represents their share of ownership in the credit union. Navy Federal also offers members consumer loans, credit cards, mortgages and home equity lines of credit, as well as some small business services. Navy Federal's CUSO, Navy Federal Financial Group, offers more extensive investment services, online brokerage services, and insurance.
As of January 2011, Navy Federal has over 200 branches and over 450 ATMs, located both inside the United States and abroad. Navy Federal offers extensive online services via its corporate website, Navy Federal Online. In addition, members can make ATM transactions through the CO-OP network at 5,500 7-eleven locations (and other Credit Unions) in the U.S. and Canada without any surcharge fees.
Due to the nature of its membership (which includes actively deployed military personnel in every time zone), Navy Federal maintains 24-by-7 operations in its three call centers located in Vienna and Herndon, Virginia, and in Pensacola, Florida (its largest call center), as well as round-the-clock online services.
Navy Federal is not the only financial services company which specializes in serving the military. The credit union competes with other military credit unions, like Pentagon Federal Credit Union and NavyArmy Federal Credit Union as well as with some large banks including Bank Of America-Military Bank and USAA.