The United Services Automobile Association or USAA got its start as an insurance company but it’s since branched out into other financial services, including banking.
Headquartered in San Antonio, USAA has physical branches but it's also an online bank.
The USAA Savings Account is just one of many savings account options to choose from.
In this review, learn more about the account’s finer points, who’s eligible to open one, and how it compares to other online savings accounts.
USAA Savings Account Pros & Cons
Pros
Cons
Free ATM card
No monthly fee or minimum balance
Mobile apps available
Must meet credit union membership requirements
Interest rate is much lower compared to online savings accounts
Get Tiered Rates When You Save
The USAA Savings Account has a tiered annual percentage yield structure. That means the more you save, the higher the APY you can earn on deposits.
The more you save, the more interest you can earn on your deposits.
If you’re a super saver, you might prefer the USAA Performance First savings account instead. This account also has tiered rates but they’re slightly higher than the regular savings account.
Overall, online banks will help you accelerate your savings. Online banks don’t have the same operational costs as traditional banks.
The upside for savers is that fewer costs mean fewer fees and higher yields on savings. Keep reading to learn more about some of USAA’s online competitors a little later on.
The USAA Savings Account is Fee-Friendly
Fees can be a saver’s worst enemy. Earning a high APY on your savings won’t benefit you much if you’re paying the bank all that interest back and then some in fees each month.
USAA curbs the fees. There’s no minimum balance and no monthly maintenance fee.
You won’t get hit with a fee for closing your account and USAA doesn’t charge fees for other services, like direct deposit or mobile banking access.
There is a fee for excess withdrawals from your savings. Federal Regulation D limits you to six withdrawals or transfers from a savings account each month.
The first time you go over that limit, you get a free pass. The second and third times you exceed the limit in a 12-month period, you’re charged a $5 excess withdrawal fee per transaction over the limit.
After that, your savings account may convert into a checking account, or be closed down altogether.
It’s free to make withdrawals from your savings at one of the 60,000+ USAA ATMs. There’s no fee for the first 10 withdrawals made at non-USAA ATMs.
After that, USAA tacks on a $2 fee per withdrawal. You can get a refund for up to $15 in non-USAA ATM surcharges each month.
If you use your ATM card to make a withdrawal outside the U.S., a separate 1% foreign transaction fee applies.
USAA Savings Account Fees
Type
Fee
Monthly Maintenance Fee
$0
Minimum Balance Fee
$0
Returned withdrawal fee
$29
Returned deposit fee
$5
Overdraft fee
$25
Outgoing domestic wire transfer fee
$20
Outgoing international wire transfer fee
25
Statement copy fee
$10
Research fee
$15
Who Can Open a USAA Savings Account?
USAA membership isn’t open to everyone. To qualify for a USAA Savings Account, you have to meet certain criteria.
Generally, you must be:
An active member of the Armed Forces
An individual who has retired or separated from the military via an honorable discharge
A widow, widower or un-remarried former spouse of a USAA member who joined USAA before or during the marriage
A cadet or midshipman at a U.S. service academy
An adult child of a USAA member who has or has had a USAA auto or home insurance policy
You’ll have to provide USAA with documentation to verify your eligibility. Therefore, it can be difficult for many people to apply for an account.
Why Other Online Savings Accounts Are Better
The USAA Savings Account isn’t going to be right for everyone and in fact, there are some good reasons why you might fare better with an online savings account from a different bank.
For starters, the membership requirements might be tough for the average person to meet.
If you’ve never served in the military or you’re not married or related to a USAA member, banking here is going to be a no-go right out of the gate.
You do get some extra benefits for being a USAA member, such as discounted loan rates, but again, not everyone’s going to qualify.
The account's APY is another reason to think about taking your savings elsewhere.
At the current rates USAA that is offering, it would take a long time to see any added value to your savings, from the interest at least.
Online banks can help you pump your savings faster in less time because of their higher rates.
Tip: Use the APY calculator to see how fast your money can grow with a higher rate.
Consider These Online Savings Alternatives
If you don't meet the requirements to become a USAA member, or you simply want to get a better rate on your savings, you’re in luck.
These online bank savings alternatives offer a great combination of higher APYs on savings and minimal fees:
Ally Online Savings Account
Ally’s Online Savings Account is one of the most popular options for people who prefer online banks to brick-and-mortar ones.
Ally offers one of the market-leading interest rates. There are no tiers, so you always get the same great rate no matter how much or how little you save. There’s no minimum balance to get started saving, so you can open an account now for free.
Synchrony Bank High Yield Savings
Synchrony Bank offers a high-yield savings account with an interest rate that is among the best.
In addition to no monthly fees or minimum balances, you have the option of getting an ATM card for those rare instances when you need cash immediately.
Goldman Sachs Bank USA Online Savings
Goldman Sachs Bank USA really shines with an online savings account that carries the top savings rate available nationwide.
It doesn't charge any monthly fees or any transaction fees. Just focus on saving and earning interest.
Should You Open a USAA Savings Account?
If you're already a USAA member, or you're thinking of becoming one, a USAA Savings Account might be a logical choice for your savings from a convenience perspective.
You can link your savings to your checking account for overdraft protection and USAA membership offers some valuable benefits that other banks don't provide.
The tradeoff, however, is that you're exchanging convenience for a much lower yield on your savings.
In the long run, that convenience could actually cost you money if you’re missing out on a better interest rate elsewhere.
The tradeoff, however, is that you're exchanging convenience for a much lower yield on your savings.
In the long run, that convenience could actually cost you money if you’re missing out on a better interest rate elsewhere.
We'd suggest looking at other savings accounts if you want to get the highest APY possible on your savings, or you don't qualify to join USAA.
Online banks are designed to meet the same needs as traditional banks and the ones profiled earlier offer better yields on savings to boot.
Plus, you don’t have to jump through as many hoops to open an account with one of the alternatives suggested.
The more interest you can earn on your savings, the better when it comes to reaching your short- and long-term financial goals.
On the banking side, USAA offers a number of products to help military families manage their money. One of them is a high-yield savings account. The USAA Savings Account is just one of many savings account options to choose from.
The base APY for both USAA savings accounts is 0.01%. That's the highest rate you'll earn with the basic USAA Savings account. If you have $10,000 or more to deposit in savings, you may consider the Performance First account instead, which offers the opportunity to earn an APY from 0.05% to 1.04%.
In its 2021 annual report, USAA said membership increased slightly, still serving more than 13 million members, and that revenue climbed 3%, including in insurance premiums and real estate operations, though it fell for the sale of loans. Net income was $3.3 billion, down from $3.9 billion in 2020.
While you can grow your money daily and take on zero risk with high-yield savings, they are not the best way to grow your wealth long-term. The rate of inflation can be higher than the yield you earn over time, so it's better to not keep piling cash into your savings and instead invest your money.
Poor options for long-term goals: Although high-yield savings accounts have high yields compared with standard savings accounts, they don't pay enough interest to hit long-term savings goals or even keep up with inflation.
You'll earn a higher interest rate through the Navy Federal Credit Union Share Savings Account than with the USAA Savings Account. It also lets you create individual savings goals, which may be ideal if you are looking for budgeting tools. On Navy Federal Credit Union's secure site.
Most financial experts end up suggesting you need a cash stash equal to six months of expenses: If you need $5,000 to survive every month, save $30,000.
Does Opening a Savings Account Affect Your Credit? Opening a savings account typically won't affect your credit score because savings accounts don't report to credit bureaus. Most banks will pull your ChexSystems report to verify your identity and banking history when you apply for a new account with the bank.
A common guideline for emergency savings is to set aside enough for three to six months' worth of expenses. But you might choose to save nine to 12 months' worth of expenses if you're worried about a prolonged emergency draining your savings.
A++ financial stability rating: AM Best gives USAA an A++ rating, which is its highest rating, and means the company has a superior ability to meet its ongoing insurance obligations (in other words, it's likely to be able to pay insurance claims).
USAA Bank followed up with an even bigger loss in 2021: $386.5 million. So what's behind all the red ink flowing at the largest financial institution based in San Antonio? “A number of issues drove USAA Bank to experience the net-income losses,” Senior Financial Officer Michael Moran said.
Do Banks Offer 7% Interest On Savings Accounts? 7% interest isn't something banks offer in the US, but one credit union, Landmark CU, pays 7.50% interest, though there are major requirements and stipulations.
With a money market or high-yield savings account, a 3.00% to 3.75% interest rate on $10,000 will earn you about $25 to $30 monthly until you withdraw your money.
A high-yield savings account is a type of federally insured savings product that earns rates that are much better than the national average. They can earn around around 3% APY. By comparison, the national savings average is 0.35% APY.
In reality, you have easy access to your funds at an online bank. You can withdraw or transfer cash as often as six times per month, as that's the maximum number of withdrawals the FDIC allows.
(See some of the best interest rates you may get on a savings account now here.) While, as of February 2023, the average APY for savings accounts, as a whole, is 0.33%, according to the FDIC, many high-yield accounts are paying far more.
Currently, no savings account offers a guaranteed interest rate of five percent. However, you may be able to get close by investing in a fixed annuity. As of March 2023, annuities are guaranteeing up to 5.67% APY.
USAA has the lowest car insurance rates for most drivers. With an average overall rate of $1,000 a year, USAA takes the No. 1 spot in our Cheapest Car Insurance Companies of 2023 rating. It also offers the lowest average rates for nearly every driver category we reviewed, with the exception of drivers with a DUI.
With monthly fee-free checking and savings accounts, generous ATM fee policies, an APY coming standard with every checking account, and many tools and programs created to help customers avoid overdrafts and meet their financial goals, USAA offers a complete package of good banking practices.
The San Antonio-based insurance and financial services company was ranked No. 26 with an overall score of 6.94 among over 300 companies ranging from Amazon and Microsoft. Within the insurance industry list, USAA ranked No. 2.
There are high-yield checking accounts that offer better interest rates than savings accounts. Some of these checking accounts offer up to a 2% annual percentage yield, in contrast to lower savings account rates.
Is $20,000 a Good Amount of Savings? Having $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund. When the occasional rainy day comes along, you'll be financially prepared for it. Of course, $20,000 may only go so far if you find yourself in an extreme situation.
In the long run, your cash loses its value and purchasing power. Another red flag that you have too much cash in your savings account is if you exceed the $250,000 limit set by the Federal Deposit Insurance Corporation (FDIC) — obviously not a concern for the average saver.
For example, experts at Fidelity Investments recommend that you save: At least one times your salary by your 30th birthday. Three times your salary by your 40th birthday. Six times your salary by your 50th birthday.
Opening a bank account is easier than applying for a credit card, but consumers should be aware that they can still be denied — likely because of negative actions found on their ChexSystems or Early Warning Services report.
For a sizable loan like a home mortgage or business loan, lenders will take a closer look at a borrower's assets. These assets can include your cash, such as your checking accounts, savings accounts and CDs. They can also include investment assets, like your retirement accounts, stocks and bonds.
Saving $1,500 a month is an excellent goal to have. It can help you build up your savings and put you in a better financial position for the future. Having this amount of money saved each month can give you more flexibility when it comes to making decisions about spending or investing.
While the median bank account balance is $5,300, according to the latest SCF data, the average — or mean — balance is actually much higher, at $41,600. ... How much does the average household have in savings?
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts. CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
Stampf recommends keeping six to 12 months' worth of expenses in a high-yield savings account for easy access to cash in case of an emergency and saving for larger expenses that are are coming in the short term, like buying a home.
Equitas Small Finance Banks offers interest rates between 3.50% and 7% on various amounts. The interest rates with the Equitas Small Finance Bank are provided below, effective as of November 9, 2022. Jana Small Finance Bank offers interest rates between 4.50% to 7% on various amounts.
Do Banks Offer 7% Interest On Savings Accounts? 7% interest isn't something banks offer in the US, but one credit union, Landmark CU, pays 7.50% interest, though there are major requirements and stipulations.
The economy is likely to slow over the coming months, and as a result, mortgage rates will still end up lower than what they currently are by the end of 2023, Channel said. They aren't likely to plummet, but Channel said he expects they'll land somewhere closer to 5.5% than 6.5%.
Where to safely keep cash at home. Just like any other piece of paper, cash can get lost, wet or burned. Consider buying a fireproof and waterproof safe for your home. It's also useful for storing other valuables in your home such as jewelry and important personal documents.
While the median bank account balance is $5,300, according to the latest SCF data, the average — or mean — balance is actually much higher, at $41,600. ... How much does the average household have in savings?
The average amount of personal savings in the U.S.
According to the Northwestern Mutual Planning and Progress Survey for 2022, the average amount of personal savings in 2022 came in at $62,000. This is a considerable decrease from the $73,000 average amount of personal savings reported on the same survey in 2021.
Introduction: My name is The Hon. Margery Christiansen, I am a bright, adorable, precious, inexpensive, gorgeous, comfortable, happy person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
