USAA Bank review 2024: A one-stop shop for military banking, but falls short on rates
Though you can find a wide range of bank accounts, USAA interest rates are generally non competitive compared to other online banks and credit unions.
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Jake Safane is a finance and sustainability writer who has worked for organizations such as The Economist Group and a division of The Financial Times. He specializes in topics such as insurance, budgeting, and retirement.
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Editor
Hanna Horvath is a CERTIFIED FINANCIAL PLANNER™ and Bankrate's senior editor of content partnerships.
Updated August 7, 2024, 2:42 PM EDT
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USAA Bank caters exclusively to the military community — offering a wide range of financial products and services to active duty members, veterans, and their families.
As a United Services Automobile Association (USAA) subsidiary, the bank aims to be a one-stop shop for its members' financial needs, providing checking and savings accounts, certificates of deposit (CDs), credit cards, loans, and insurance products.
Fox Money rating: 7.6/10
USAA Bank is one of the best banks for military members, offering a wide range of products and low fees. But, the bank's interest rates are generally uncompetitive, especially for savings accounts and some CD terms.
About USAA Bank
USAA Bank is the banking arm of the United Services Automobile Association (USAA), a financial services organization founded in 1922. The bank's primary focus is on serving the financial needs of the military community, including active duty members, veterans, and their families.
Membership is open to current and former U.S. military members and pre-commissioned officers. Spouses and children of eligible members can also join USAA, and membership can be passed down to future generations, meaning that the grandchildren of military veterans can become members through their parents' eligibility.
As an FDIC-insured financial institution, USAA Bank offers a wide array of products and services, including, checking and savings accounts, certificates of deposit (CDs), credit cards, auto loans, mortgages, personal loans, insurance products, and investment services.
Pros
- No monthly maintenance fees on most accounts
- Wide range of financial products and services (banking, insurance, investments)
- Up to $10 in ATM fee reimbursements per statement cycle
- Large network of over 100,000 ATMs
- Low minimum deposit requirements for basic checking and savings accounts
- Highly rated mobile app
- Some CD terms offer competitive rates
- Specialized products for military members and their families
Cons
- Generally low interest rates on checking and savings accounts
- High minimum deposit requirements for Performance First Savings account ($10,000) and CDs ($1,000)
- Limited physical branch presence
- Complex tiered interest rate structure for Performance First savings account
- Wide variety in CD rates across different terms
USAA Bank bank accounts
USAA Bank offers several different types of personal bank accounts, including checking, savings, CDs, and more.
Checking accounts
The USAA Classic Checking account is a no-frills checking account with minimal fees. Key features include:
- APY: 0.01% on balances of $1,000 or more
- Minimum initial deposit: $25
- Monthly fees: $0
One of the main advantages of this account is the absence of monthly maintenance fees. Additionally, USAA provides access to a nationwide network of over 100,000 ATMs and refunds up to $10 per monthly statement cycle in out-of-network ATM fees — something you won’t find at most online banks.
While this account does offer some interest (if you maintain a certain balance), it’s pretty minimal. You’d need a balance of $10,000 to earn just $1 in annual interest.
Savings accounts
USAA Bank offers two main savings account options: USAA Savings and USAA Performance First Savings. While both accounts have no monthly fees, they differ in terms of initial deposit requirements, interest rates, and features.
USAA Savings Account
The USAA Savings account is a simple option for someone just starting to save or who maintains a relatively low balance.
- APY: 0.01%
- Minimum initial deposit: $25
- Monthly fees: $0
While this account offers a low initial deposit requirement and no monthly fees, its main drawback is the extremely low interest rate. With an APY of just 0.01%, this account isn’t the best for long-term savings growth.
However, USAA does offer some innovative savings tools that can help you boost your savings. For example, you can set up automatic transfers of ATM fee rebates from your USAA Checking account to your savings account, making it easier to save without even thinking about it.
USAA Performance First Savings
The USAA Performance First Savings account is meant for those with larger balances who want to earn more interest on their savings.
- APY: Up to 1.50%, depending on the balance
- Minimum initial deposit: $10,000
- Monthly fees: $0
You’ll need at least $10,000 to open an account, and interest rates are tiered depending on your balance:
- Balances below $10,000: 0.05%
- Balances between $10,000-$49,999: 0.10%
- Balances between $50,000-$99,999: 0.90%
- Balances between $99,999-$249,999: 1.00%
- Balances between $250,000-$499,999: 1.10%
- Balances over $500,000: 1.50%
While this account offers higher interest rates than the standard USAA Savings account, rates are still relatively low compared to many high-yield savings accounts. You'll need to maintain a daily balance of at least $500,000 to earn the highest APY.
However, if you already have a significant amount to deposit and want to keep your savings within the USAA ecosystem, this account could be a better choice than the standard USAA Savings account.
CDs
USAA Bank offers a diverse selection of certificates of deposit (CDs), including fixed-rate, adjustable-rate, and variable-rate options.
- APY: up to 4.90%
- Term ranges: 30 days to 7 years
- Minimum initial deposits: $1,000 ($250 for variable rate CDs)
While USAA offers a wide variety of CD options, not all of them are equally attractive. Some CD terms offer competitive rates, such as the 182-day term with a 4.90% APY, while others, like the 7-month term, offer a much lower 0.05% APY.
USAA’s adjustable-rate and variable-rate CDs offer just 0.01% APY. The bank also offers jumbo and super-jumbo CDs, with higher minimum deposits ($95,000 and $175,000, respectively).
There’s no difference in interest rates between USAA's standard, jumbo, and super jumbo CDs. The only difference is the minimum deposit requirement.
Other products and services USAA Bank offers
In addition to its core bank accounts, USAA Bank offers a range of other financial products, including:
- Youth accounts (USAA Youth Spending and USAA Youth Savings)
- Mortgages and other loans (auto loans, personal loans)
- Credit cards
- Insurance products (auto, homeowners, renters, life insurance, business insurance, and more
USAA Bank fees
One of the most appealing aspects of banking with USAA is its minimal fee structure:
- Monthly maintenance fees: $0
- Overdraft fee: $29 (if overdraft protection is not set up or does not apply)
- Non-sufficient funds (NSF) fee: $0
- Out-of-network ATM fee: Up to $10 in reimbursements per monthly statement cycle for ATM surcharges or usage fees
- Foreign transaction fees: 1% of the transaction total, including debit card purchases and cash withdrawals
- Incoming wire transfer fees: $0
- Outgoing wire transfer fees: $20-$45
USAA Bank banking experience
USAA Bank takes pride in serving the military community and their families, but it doesn't always have the best reviews nor stand out when it comes to overall customer experience.
Online and mobile banking platform
USAA Bank offers a range of online and mobile banking features designed to make managing your accounts as convenient as possible. Some of the key features include:
- Mobile check deposit
- Bill payments
- Unique saving and budgeting tools
USAA Bank's online budgeting tool allows you to track your balances and activity for USAA and non-USAA accounts. The bank also automatically categorizes your transactions, making tracking your spending easier and identifying areas where you can save.
USAA Bank also offers automated technology that encourages savings. For example, the bank analyzes your checking account every few days to see if you can transfer between $1 and $9 to your savings account.
The USAA mobile app has a high rating of 4.8 out of 5 on the Apple App Store and a moderate 4.0 out of 5 on Google Play.
Customer service
USAA Bank enables customers to manage common banking needs online, but if you need personalized assistance, you can reach the banking department by phone.
USAA Bank allows customers to manage most of their common banking needs online, but if you require personalized assistance, you can reach the banking department by phone.
Phone support is available from 6:30 a.m. until 8 p.m. Monday through Friday, 6:30 a.m. to 7 p.m. Saturday, and 9 a.m. to 7 p.m. Sunday.
One potential red flag is that USAA, as a whole, has received poor customer service reviews. While not all of these reviews are specific to banking products, they raise concerns about the overall quality of customer support. On Trustpilot, USAA has a rating of 1.3 out of 5, and on the Better Business Bureau (BBB) website, it has a 1.21 out of 5.
Account Security
In addition to FDIC insurance, USAA Bank employs several security features to protect your accounts from unauthorized access and fraud. These include:
- Biometric login options for the mobile app
- Multi-factor authentication
- 24/7 account monitoring for unusual activity
- Zero liability policy for unauthorized debit card purchases
How USAA Bank stacks up
USAA Bank appeals to the military community, but it's not the only option. Another popular financial institution is the Navy Federal Credit Union, which is also open to servicemembers and veterans of any branch of the military.
Both institutions offer checking and savings accounts with no monthly fees, though some Navy Federal Credit Union's accounts have balance requirements to avoid fees.
USAA Bank has the largest ATM network, while Navy Federal Credit Union has the most physical branches.
Is USAA Bank right for you?
Deciding whether USAA Bank is the best fit for your banking needs depends on your unique financial situation, goals, and priorities.
USAA Bank might be a good choice if:
If you're an active-duty military member, a veteran, or a family member, USAA Bank's products and services are tailored to your specific needs and challenges.
USAA Bank provides a diverse lineup of financial products, including bank accounts, loans, credit cards, and insurance, making it a holistic solution for your financial needs.
Plus, with over 100,000 ATMs nationwide and up to $10 in monthly ATM fee reimbursements, USAA Bank makes it easy to access your cash without incurring extra charges.
USAA Bank might not be the best choice if:
If high interest rates are at the top of your list, USAA may not be right for you. While some of USAA Bank's CD rates are competitive, its checking and savings account rates are generally lower than those online banks offer.
Plus, USAA Bank has limited physical branches, so if you value face-to-face interactions and easy access to a local branch, you may want to consider other options.
How we rated this bank
Every bank review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity. Learn more about our methodology here.
Here are some of the factors that influenced this bank’s overall score:
The bottom line
USAA Bank offers a wide range of financial products with minimal fees, which benefits customers. The bank also provides some unique digital tools for budgeting and saving. The bank’s main weakness is its low interest rates on many products.
USAA Bank might be a good option for military members who value a varied product range and low fees. However, those who want high interest rates on their deposits or top-tier customer service may want to consider other options.
Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.