Navy Federal Credit Union
From Wikipedia, the free encyclopedia
| Navy Federal Credit Union | |
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| Type | Credit Union |
| Founded | 1933 |
| Headquarters | Vienna, Virginia, USA |
| Area served | Department of Defense personnel and their families |
| Key people | Cutler Dawson, President/CEO VADM John A. Lockard, Chairman |
| Industry | Financial Services |
| Products | Savings; Checking; Consumer loans; Mortgages; Credit cards; Investments |
| Net income | ▲ $401.5M USD (2006) |
| Subsidiaries | Navy Federal Financial Group (CUSO) |
| Website | http://www.navyfederal.org/ |
Navy Federal Credit Union (or Navy Federal) is a Federal credit union headquartered in Vienna, Virginia, chartered and regulated under the authority of the National Credit Union Administration (NCUA). Navy Federal is the largest natural member (or retail) credit union in the world, both in asset size and in membership. As of April 2008, Navy Federal had over $35 Billion USD in assets, and over 3 million members[1].
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.
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[edit] History
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.
[edit] Membership
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: Eligibility Checklist Navy Federal's field of membership is determined by the National Credit Union Administration. If you are in any of these categories, you are eligible to join:
All Department of Defense (DoD) uniformed personnel—Army, Navy, Air Force and Marine Corps, retirees and annuitants
All Department of Defense Reservists—Army, Navy, Air Force and Marine Corps—regardless of drill status—retirees and annuitants
All Army and Air National Guard Personnel—regardless of drill status—civilian employees, retirees and annuitants
All DoD Officer Candidate programs: Midshipmen and cadets at the United States Naval Academy, United States Military Academy, United States Air Force Academy, United States Coast Guard Academy and the United States Merchant Marine Academy; Personnel in Officer Candidate programs
All DoD civilian employees
U.S. Government employees assigned to DoD installations
DoD contractors assigned to U.S. Government installations
Family Members, including grandparents, parents, spouses, siblings, grandchildren, children (including adopted, foster and stepchildren) and household members
[edit] Organization
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. 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.
[edit] Services
Navy Federal offers the typical suite of account services offered by most financial institutions, including savings accounts, checking accounts, IRA accounts, and certificates of deposit. 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, insurance, and real estate settlement services.
As of the end of 2007, Navy Federal had 148 branches and over 300 ATMs, located both inside the United States and abroad. In addition, Navy Federal offers extensive online services via its corporate website, Navy Federal Online. 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, VA, Winchester, VA and its largest call center, located in Pensacola, FL[1] and via its online services.
[edit] Competition
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, as well as with some large banks including Bank Of America-Military Bank and USAA.
[edit] References
- ^ Navy Federal official web site. Retrieved on June 30, 2007.
