USAA is a members’ association, and many of its products — including USAA savings accounts — are only open to those with military ties.
Known for its excellent customer service, USAA offers a modest APY on its savings account, and it’s much less than what you can find at top-yielding banks. The account doesn’t charge monthly fees or require a minimum balance, but you will earn a higher rate on larger balances. USAA earned a 3.3 out of 5 in Bankrate’s review.
USAA savings rates
Here’s a breakdown of USAA’s savings account rates as of July 30, 2020.
|Account name||APY||Minimum deposit|
Here are the tiered savings account interest rates for USAA Performance First.
|Account name||APY||Minimum daily deposit to earn APY|
|USAA Performance First||0.05%||$10,000 – $24,999|
|USAA Performance First||0.10%||$25,000 – $49,999|
|USAA Performance First||0.15%||$50,000 – $99,999|
|USAA Performance First||0.20%||$100,000 – $249,999|
|USAA Performance First||0.25%||$250,000 – $499,999|
|USAA Performance First||0.55%||$500,000 – $999,999|
|USAA Performance First||0.58%||$1,000,000 or more|
How USAA compares to top-yielding banks
The USAA savings account pays less interest than the national average of 0.1 percent but requires only $25 to open. Savings account interest rates for USAA Performance First are tiered, but balances up to $24,999 will earn an APY of only 0.05 percent. The maximum rate you can expect is 0.58 percent for balances of $1 million or more. You’ll need at least $10,000 to open an account — a big requirement for a yield that isn’t top of market.
Compare APYs and other savings terms before choosing your product. Vio Bank, for example, pays an APY of 1.11 percent on its high-yield savings account and requires only $100 minimum balance to open. Like USAA, Vio Bank doesn’t charge monthly account fees, but you’ll have to watch out for the $5 dormant account fee.
Citibank also offers a competitive 1.1 percent on its high-yield savings account with no minimum balance needed to earn the APY. If you’re a Citi customer already, your monthly fee of $4.50 will be waived.
You can get an ATM card with USAA savings accounts and use it at more than 60,000 preferred ATMs nationwide for free. Mobile check deposits and automatic transfers are also available.
Other savings options at USAA
USAA also offers CDs that will make your money work harder. Interest is fixed, so you’ll know in advance exactly how much to expect when the deposit agreement period ends.
However, you have to commit to leaving your money untouched until the deposit matures to earn maximum interest. USAA charges an early withdrawal penalty if you need your money back before maturity.
For example, putting $1,000 into a one-year fixed CD will earn an APY of 0.35 percent, as opposed to 0.05 percent for the standard USAA savings account. If you can agree to a longer term, depositing $1,000 into a seven-year fixed CD will give you an APY of 0.49 percent.
Be sure to compare CD rates to make sure you’re earning a competitive APY.
USAA CD terms range from 30 days to seven years. There are three types of CDs available: standard, jumbo and super jumbo. The minimum deposit required for a standard CD is $1,000. Interest is paid monthly. If you deposit your monthly interest into the same account, then it will earn further interest.
Featured image by Roberto Westbrook of Getty Images.