(5 Reasons) Why Navy Federal closed my account [Fix]

Are you having trouble with your NFCU account lately?

Has your Navy Federal account been closed?

Well, if your Navy Federal account is closed and you are clueless, we will try our best to help you. Here, in this post, you will learn why Navy Federal might have closed your account.

Let’s start without further ado.

Reasons: Navy Federal closed my account

Short Answer: Navy Federal closed your account to save it from scam or fraud, or because your account was found to be involved in illegal activity, you have zero balance in your account or overdrafted for a long period.

Want to know more about the reasons? We will be including answers in detail now.

1. Security reasons

There can be many reasons your account access has been taken away from NFCU, and one of the common reasons could be account security.

Navy Federal does everything to keep your account and hard-earned money safe, even if it means closing the account and limiting the accessibility. This generally happens when the security system of Navy Federal suspects you to be a victim of a scam or fraud.

That doesn’t mean you have done something wrong. Navy Federal is just saving your account from any possible financial exploitation. You should be concerned about your account accessibility, but there are no issues as far as the security of the account is concerned.

According to the official statement by NFCU, the account can be closed even if the user authorized that transaction appropriately.

Consider the second part of this post to find out the steps to fix the issue.

2. Transaction associated with illegal acitivity

Navy Federal, like other financial institutions, makes sure the safety of other accounts on the platform. That’s why the Navy Federal security system keeps track of the transaction the account holders make using their platform.

And if you used your NFCU-associated account for making transactions to any untrusted platform that involves buying or selling some illegal products or services, you will indeed get flagged by the system. And this could be the reason why your account is closed by NFCU.

Sometimes, the account gets flagged for buying products from untrusted sources, even if the product or service involved is not considered illegal.

Accounts buying products like drugs for medical use and arms ammunition from untrusted sources will be considered to be involved in illegal activity.

3. Account holder violated NFCU Terms

NFCU obtains consumer report of an account in order to consider it for offers related to Navy Federal products. Where this report can get you many advantages, it is also considered to check any conflicting information or instructions regarding account ownership, control, or activity.

If the user’s account is found to be involved in activity that voilates company’s terms of use, there is a high possibility that the account will be closed by Navy Federal’s systems.

4. Zero account balance

As we mentioned earlier in this list, Navy Federal might have closed your account because of some security issues, or your account was found to be involved in some unethical activity. But, if that’s not the case and you are pretty sure about that, there is one more possibility why your account is closed.

If you know how financial institutions work, you must already know that the companies want users to maintain a particular minimum balance in the account. And if you cannot do so, your account will be fined, flagged, or closed.

And if you are wondering why Navy Federal closed your account, there is a possibility that your account has been closed because you failed to maintain the balance, and your account balance was zero for a long time.

According to the official statement by NFCU, the checking accounts and saving accounts that have zero balance for 180 consecutive days will be closed.

For other types of accounts like IRA (Individual Retirement Arrangement), Savings Accounts, and IRA MMSAs, this time period is 90 consecutive days. So, if users fail to have a positive account balance before the time period ends, their associated account will be closed.

5. Issues associated with Overdraft

Like many financial institutions, Navy Federal provides overdraft protection services to its users. Navy Federal’s Optional Overdraft Protection Service (OOPS) lets users overdraft their account balance without paying any charges.

As you may already know, even if the user avails of the benefits of NFCU’s OOPS, they will be required to pay back the amount by maintaining the positive account balance with a minimum amount equal to the overdraft amount.

But, if the user fails to maintain the balance and the account remains overdrawn for more than 45 days, NFCU may revoke the overdraft protection service and its privilege. And in some cases, Navy Federal may close the account as well.


1. Why did Navy Federal close my checking account for suspicious activity?

Navy Federal closed your account for suspicious activity because the system either found your account to be involved in an unethical activity or suspected it to be a victim of fraud or scam.


And that’s pretty much all ladies and gents. In this post you got to learn the reasons why Navy Federal closed your account. We have tried mentioning all the possible reasons, but if you know any other reasons, let us know in the comments section below.

Check out the entire post for extra details and insights.