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USAA offers two savings account options for adults: USAA Savings and USAA Performance First. Like all of USAA’s banking products, they’re available to military service members, veterans and their eligible family members.
The annual percentage yield (APY) for either account starts at a mere 0.01%. But you could earn somewhat higher interest with a USAA Performance First account if you maintain a larger savings balance. Both accounts provide access to more than 60,000 fee-free ATMs.
Wondering whether a USAA Bank savings account is worth having? Here’s a closer look at how a USAA savings account interest rate would grow your money.
Annual percentage yields (APYs) and account details are accurate as of December 1, 2023.
USAA Savings Rates
| Account Name | APY | Minimum Deposit |
|---|---|---|
| USAA Savings | 0.01% | $25 |
| USAA Performance First® Savings Account | 0.05% to 1.60% | $10,000 |
Rates are tiered for the USAA Performance First account. Here’s how they break down by account balance.
| Daily Collected Balance | APY |
|---|---|
| Less than $10,000 | 0.05% |
| $10,000 to $24,999.99 | 0.10% |
| $25,000 to $49,999.99 | 0.10% |
| $50,000 to $99,999.99 | 1.00% |
| $100,000 to $249,999.99 | 1.10% |
| $250,000 to $499,999.99 | 1.20% |
| $500,000 to $999,999.99 | 1.60% |
| $1 million and over | 1.60% |
Overview of USAA Savings Accounts
The USAA Savings and USAA Performance First accounts differ in terms of the minimum deposit requirements and APY you could earn. If you’re considering one of these accounts, it’s helpful to know the basic requirements.
Minimum Deposit
The USAA Savings account has a low $25 minimum deposit requirement. If you’d prefer to open a USAA Performance First® Savings Account savings account, you’ll need at least $10,000.
You can make your minimum deposit from an existing USAA bank account or from an account at a different bank.
Minimum Daily Balance
USAA doesn’t set a minimum daily balance requirement for either of its primary savings accounts. But you’ll need to meet the daily collected balance thresholds to qualify for the higher rate tiers of the USAA Performance First savings account.
APY
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 1.60%.
Monthly Fees
USAA doesn’t charge monthly maintenance fees for either of its savings account options. But you may face other fees, including an excess withdrawal fee if you have more than six withdrawal transactions from your account in one month.
Compounding Schedule
USAA compounds interest on its savings accounts on a monthly basis and pays interest to savers monthly. Your daily balance will dictate how much interest you earn from savings deposits.
How Much Can You Earn?
If you’re earning the lowest APY of 0.01% with a USAA savings account, the total amount of interest earned won’t add up to much. You could earn a little more interest with Performance First savings if you have at least $10,000 in your account.
Use the below calculator to see how money much you could earn with one of the higher rates on the Performance First account. Plug in your initial deposit, monthly contribution and the APY that corresponds to your deposit to see how much you could earn over a specific number of months or years.
USAA vs. Other Banks
Are USAA savings rates low compared to other banks? The rates you could earn with a USAA savings account are typical of what you can expect from traditional banks, though they’re below the national average savings account rate of 0.46%, according to the FDIC.
Brick-and-mortar banks tend to offer lower rates overall. The best online banks, meanwhile, can offer APYs that easily outpace USAA savings rates.
Other USAA Savings Options
There’s also the USAA Youth Savings account for savers under the age of 18. There’s a $25 minimum deposit to open the account, and all balances earn 0.01% APY. Parents maintain control over the account until their child turns 18, at which time the account converts to a regular USAA Savings account.
You also can open certificate of deposit (CD) accounts with USAA. It offers many standard CD terms ranging from 30 days to seven years, and in most cases, the APYs are higher than what the USAA savings accounts pay. It takes a minimum deposit of $1,000 to open a standard CD with USAA Bank.
Find The Best High-Yield Savings Accounts Of 2023
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Bottom Line
USAA offers a basic savings account option as well as a tiered-rate account for savers who tend to maintain higher balances. While USAA savings rates are comparable to what you’ll find at other traditional banks, you could earn much more by opening one of the best online savings accounts instead.
Remember that to open a USAA savings account you’ll need to meet membership requirements based on your military affiliation.
Frequently Asked Questions (FAQs)
Why are USAA savings rates so low?
USAA savings rates are on par with what you can expect to find at big brick-and-mortar banks. Traditional banks typically offer lower rates to savers than what online banks pay. At USAA, the highest savings rates are reserved for those who keep $500,000 or more in savings.
Is a CD better than a savings account?
CD accounts can sometimes yield higher rates than savings accounts. At USAA, you can get a competitive rate on a four-year CD. The trade-off is that CDs offer less flexibility than savings accounts because you generally can’t withdraw money without a penalty until the CD matures.
Can I open a savings account for someone under 18?
Parents can open savings accounts for their children to help them learn the value of saving. USAA offers Youth Savings accounts for kids under 18. Parents can open a savings account for their child with as little as $25.
As an expert in personal finance and banking, I have a deep understanding of the intricacies involved in savings accounts, interest rates, and financial institutions. I've closely followed the trends and developments in the banking sector, staying updated on the latest information to provide accurate and valuable insights.
Now, let's delve into the details of the article on Forbes Advisor about USAA's savings account options:
USAA Savings Account Options: USAA Savings and USAA Performance First
-
Eligibility and Availability:
- Available to military service members, veterans, and eligible family members.
- Both USAA Savings and USAA Performance First accounts are discussed, emphasizing their availability to the specified demographic.
-
Annual Percentage Yield (APY):
- Both accounts start with a base APY of 0.01%.
- USAA Performance First offers a tiered APY structure based on the daily collected balance, ranging from 0.05% to 1.60%.
-
Minimum Deposit Requirements:
- USAA Savings requires a low minimum deposit of $25.
- USAA Performance First has a higher entry requirement with a minimum deposit of $10,000.
-
Account Features:
- Both accounts provide access to over 60,000 fee-free ATMs.
- No minimum daily balance requirement for the primary savings accounts.
-
Fees:
- No monthly maintenance fees for either USAA Savings or USAA Performance First.
- Mention of other potential fees, including an excess withdrawal fee for more than six transactions in a month.
-
Compounding Schedule:
- Interest is compounded monthly, and savers receive monthly interest payments.
-
Comparison with Other Banks:
- USAA savings rates are compared to traditional banks, stating that they are in line with industry averages but below the national average savings account rate of 0.46%, according to the FDIC.
- Emphasis on online banks offering higher APYs compared to USAA.
-
Other USAA Savings Options:
- Introduction of USAA Youth Savings account for individuals under 18 with a $25 minimum deposit and 0.01% APY.
- Mention of Certificate of Deposit (CD) accounts with higher APYs than regular savings accounts, requiring a $1,000 minimum deposit.
-
Guidance and Conclusion:
- A calculator is provided to estimate potential earnings with the Performance First account based on initial deposit, monthly contributions, and corresponding APY.
- Suggestion that while USAA savings rates are competitive, exploring the best online savings accounts may offer higher returns.
In conclusion, USAA offers a range of savings options catering to different needs, with the article providing a comprehensive overview of their features, benefits, and considerations for potential savers.
