USAA Federal Savings Bank Review

What Does USAA Federal Savings Bank Offer?

When you look objectively at the financial products that USAA offers, you’ll see that they aren’t necessarily the best at anything. But it’s the package as a whole that keeps customer satisfied. Below, we break down their various account options.

Checking Accounts

One of USAA’s standout financial products are their checking accounts. All of them have no monthly maintenance fees and no minimum balance. You need just $25 to open up the account. Here's a quick look at their three checking account options.

• Classic Checking: Get up to $15 in fees charged by third-party ATM providers refunded each month and earn 0.01% APY on balances above $1,000.
• Rewards Checking: Earn 10¢ for each qualified debit card purchase. This account does not reimburse ATM fees that are charged by providers that are outside of their preferred network and it doesn't earn interest.
• Youth Spending: Teach your kids (under age 18) about money by giving them access to a debit card with spending limits that are set by you, the parent.

USAA helps you get access to your money for free. You can withdraw your money from one of USAA’s network of 60,000 Nationwide ATMs. Members get 10 free withdrawals per month.  After that, USAA charges $2 per withdrawal, even for ATMs that are part of its preferred network.

Savings Accounts

The USAA savings accounts aren’t exciting. Here's what their three options are earning right now:

• USAA Savings: 0.01% APY on all balances
• USAA Performance First Savings: 
  • Below $10,000: 0.01% APY
  • $10,000 to $49,9999: 0.05% APY
  • $50,000 to $99,999.99: 0.06 APY
  • $100,000 to $249,999.99: 0.08% APY
  • $250,000 to $499,999.99: 0.11% APY
  • 500,000 and above: 0.20% APY
• USAA Youth Savings: 0.01% APY on all balances

Whie the rates are low to mediocre, the savings accounts do have a few helpful features. Most obviously, USAA members can keep their checking and savings account at the same bank.

USAA also has a cool technology that helps members create savings goals and track their progress towards the goal. Not seeing the type of traction you want? USAA’s online platform will also help you analyze and set your budget.

If you struggle to stay motivated with a savings goal, the goals feature could help you move in the right direction.

See our list of the best online savings accounts here to find the best places to park your cash.

CDs

CD ladders can help you prepare for ongoing cash flow needs. Unfortunately, the CDs at USAA offer lame interest rates as well that top out a measly 0.04% APY. USAA also offers adjustable rate and variable rate CDs with even lower interest rates.

Right now, other banks offer CDs with rates up to 0.55% APY. It doesn’t make sense to settle for USAA’s extremely low interest rates.

Check out the best bank CD rates here.

Other Services

In addition to Checking, Savings and CDs, USAA offers a bevy other financial services for their members. USAA is known for having some of the best Auto and term life insurance rates in the business.

On top of that, USAA members can expect reasonable interest rates on mortgages, auto loans, personal loans and credit cards.

If you’re a military investor, you can also choose to house your investments at USAA. Their expense ratios tend to run higher than the industry standard though, so investing through USAA isn’t always the right choice.

Still, anyone who values having all their financial services under one roof can rest easy that USAA will bend over backwards to offer them what they need. Since it’s a membership association, most of the fees are reasonable, even if they aren’t world-class.

Are There Any Fees?

This is one of USAA's strength. The bank doesn't charge monthly maintenance fees on any of its accounts. It also doesn't charge any fees for overdrafts, although it will charge a $29 non-sufficient funds (NSF) if it declines a transaction or it is returned unpaid.

The one area where USAA checking accounts fall short is in their capabilities abroad, which is a bit surprising for a bank that caters to the military community. USAA charges a 1% foreign transaction fee and they don’t have ATMs abroad. That said, for Classic Checking customer, USAA will still refund up to $15 in ATM fees if you use an ATM in a foreign country.

How Does USAA Federal Saving Bank Compare?

USAA is really best for members of the military community who want the simplicity and convenience of having all of their financial accounts under the same roof. It could also be solid youth banking option.

But if you're looking for the highest yield on your savings or the best rewards on your debit card transactions, you'll want to look at one of the best online banks instead. Here's a quick look at how USAA's banking compares.

How Do I Join?

USAA membership is generally only open to active and retired military veterans. However, certain family members are eligible to open an account as well, including spouses, kids, widows, widowers and un-remarried former spouses of USAA members.

To join as the child of a military member, your parent must be living. Siblings of military members are not eligible for membership, however. If you meet these requirements, you join USAA online in minutes by starting here.

Is My Money Safe?

Yes, USAA Federal Savings Bank is a member FDIC bank which means that all of its accounts receive up to $250,00 of FDIC insurance per depositor. The bank's site is encrypted and customers can further protect their accounts by setting up multi-factor authentication. 

How Do I Contact USAA?

Customers can access USAA support at 210-531-USAA (8722). Operating hours are Monday through Friday from 8 AM to 5 PM (CT) . 

USAA's customer service has historically enjoyed a good reputation. However, the bank has recently received a rash of bad reviews on Trustpilot and is currently rated just 1.3/5. It still has an A+ rating on Better Business Bureau (BBB) though.

Is It Worth It?

For military members and their families, USAA offers a decent financial experience. Their members can expect great customer service and fair pricing on all their products. For young military members, the checking account and easy access to a savings account make a lot of sense.

However, in recent years, USAA has faced a myriad of complaints around both it's banking - rates on savings are low - and it's insurance. In fact, it's been mired in some controversies around both it's life and auto policy practices. As such, it does make you want to think twice.

If you’ve got a straightforward financial life, it can make sense to buy all your financial products through USAA. Once you start getting into investing and buying more insurance products, it pays to shop around. When it comes to banking, loyalty only makes sense for so long. Eventually, you need to find the best deals.

USAA Federal Savings Bank FAQs

Here are some of the most common questions that people ask about USAA Federal Savings Bank:

Are USAA Bank's financial centers open?

No, USAA's financial centers have been closed since March 16, 2020 to protect employees and customers during the COVID-19 pandemic. However, customers who live near USAA's San Antonio location can still access drive-thru teller services.

Is USAA a credit union?

No, USAA is a group of financial service companies that can only be utilized by its members. It's banking products are provided through USAA Savings Bank or USAA Federal Savings Bank, both of which are FDIC-insured.

What does USAA stand for?

"USAA" is an acronym for United Services Automobile Association. The association began in the 1920s as a mutual self-insurance alliance for military members who often struggled to obtain auto insurance from traditional insurers.

Does USAA have business bank accounts?

No, USAA doesn't currently have any business checking or savings account options for its members.

USAA Federal Savings Bank Features