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Written by Sophia Acevedo, CEPF; edited by Laura Grace Tarpley; reviewed by Evelyn He
Updated
2023-12-22T19:23:19Z
- USAA Pros and Cons
- Navy Federal Pros and Cons
- Checking Account Comparisons
- Savings Account Comparisons
- CD Comparisons
- Money market comparisons
- Which Bank is More Trustworthy?
Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
USAA and Navy Federal are excellent options if you're searching for a financial institution specifically geared toward military members. (See Insider's full list of the best banks for the military.)
We've compared the institutions' bank accounts to see which products stand out the most. We're also evaluating each bank's trustworthiness so you can know more about their history.
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USAA Pros and Cons
| Pros | Cons |
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Navy Federal Pros and Cons
| Pros | Cons |
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USAA vs. Navy Federal Checking Account Comparisons
USAA and Navy Federal both have a plethora of checking accounts. We've compared each institution's free checking account.
| USAA Classic Checking | Navy Federal Free Active Duty Checking™ Account | |
| APY | 0.01% on balances of $1,000 or more | 0.05% |
| Minimum opening deposit | $25 | $0 |
| Monthly service fee | None | None |
| Perks |
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| Caveats |
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USAA Classic Checking
USAA Federal Savings Bank, Member FDIC. You must be or become a USAA member to apply.
Insider’s Rating
4.25/5
Perks To qualify, open a new USAA Classic Checking account between Oct. 11, 2023 and March 14, 2024, and receive an electronic deposit of $100 or more within 180 calendar days after account opening. Primary account holder on the new account must not have had primary ownership of a checking account in the 12 months prior to new account opening. Certain fiduciary ownership types not eligible. Account has $25 minimum deposit. One bonus per member; one bonus per account. Account must be open and in good standing. Bonus deposited within 60 days of first qualifying direct deposit. Offer may be discontinued or changed at any time. See full terms and conditions at usaa.com/bonusoffer
Get $200 when you apply and open your first USAA Classic Checking account with qualifying direct deposit of $100 or more within the first 180 days (offer ends 03/14/2024). See full terms and conditions at usaa.com/bonusoffer.
Fees
no monthly service fees
Annual Percentage Yield (APY)
Variable APYs are current as of 12/28/2023. Rates are subject to change. Fees may reduce earnings.
0.01% on balances of $1,000 or more
Minimum Deposit Amount
$25
Bonus
To qualify, open a new USAA Classic Checking account between Oct. 11, 2023 and March 14, 2024, and receive an electronic deposit of $100 or more within 180 calendar days after account opening. Primary account holder on the new account must not have had primary ownership of a checking account in the 12 months prior to new account opening. Certain fiduciary ownership types not eligible. Account has $25 minimum deposit. One bonus per member; one bonus per account. Account must be open and in good standing. Bonus deposited within 60 days of first qualifying direct deposit. Offer may be discontinued or changed at any time. See full terms and conditions at usaa.com/bonusoffer
$200
Pros
- Reimburses up to $10 per monthly statement cycle in out-of-network ATM fees
- No Non-Sufficient Funds fees
- Overdraft protection is available
- Early pay day when you set up direct deposit (limitations apply)
- Access to over 100,000 no surcharge-fee ATMs
Cons
- Other banks may reimburse more in out-of-network ATM fees monthly
Insider’s Take
USAA has one of the best banks for the military. Most notably, it has a strong checking account with a large ATM network, and it will also reimburse up to $10 per monthly statement cycle in monthly out-of-network ATM fees.
Product Details
- Membership is open to active duty, National Guard, reserves, veterans who served honorably, Cadets or Midshipmen; and spouses and children of USAA members
- Financial centers in Colorado, Maryland, New York, and Texas
- 100,000 USAA-preferred ATMs nationwide
- Interest compounded and credited monthly
- Member FDIC
USAA vs. Navy Federal Savings Account Comparisons
We've compared savings accounts with low minimum opening deposits and minimal service fees.
| USAA Savings Account | Navy Federal Credit Union Share Savings Account | |
| APY | 0.01% | 0.25% |
| Minimum opening deposit | $25 | $5 |
| Service fee | None | $3 quarterly service fee (Only if you have no other Navy Federal accounts, AND your balance is under $50, AND your account has been inactive for 12 months) |
| Perks |
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| Caveats |
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USAA vs. Navy Federal CD Comparisons
| USAA Fixed Rate CD | Navy Federal Credit Union Standard Certificate | |
| Term lengths | 30 days to 7 years | 3 months to 7 years |
| Minimum opening deposit | $1,000 to $175,000 | $1,000 to $100,000 |
| APY | 0.05% to 5.25% | 4.00% to 5.05% |
| Early withdrawal penalties | 30 days to 1 year of interest | 90 days to 1 year of interest |
| Types of CDs | Standard CDs, Jumbo CDs | Standard share certificates, Jumbo share certificates, EasyStart certificates, SaveFirst accounts |
Navy Federal Credit Union Standard Certificate
NFCU, NCUA Insured
Insider’s Rating
4/5
Annual Percentage Yield (APY)
4.00% to 5.05%
Minimum Deposit Amount
$1,000 to $100,000
Pros
- Competitive APY, even for lower balances
- Terms up to 7 years
Cons
- $1,000 opening deposit
- Minimum $100k to earn highest APY with some terms
- Standard-to-high early withdrawal penalties
Insider’s Take
Navy Federal CD rates are high overall, with the exception of its 6-month terms — you'll find the best 6-month CD rates elsewhere. The SaveFirst Account rates are only so-so, but they're some of the few CDs out there that allow you to add more money to your account during the term.
Product Details
- Join Navy Federal Credit Union as an active military member, military veteran, Department of Defense employee/retiree, or family member of any of the aforementioned groups
- 354 branches worldwide, including on select military bases
- Terms ranging from 3 months to 7 years
- Earn higher APY with a higher balance
- Early withdrawal penalty of 90 days dividends for terms of 3 months to 1 year; 180 days dividends for terms of 1 year to 5 years; 365 days interest for terms of 6 and 7 years
- Interest compounded daily, paid monthly
- Federally insured by the NCUA
USAA Fixed Rate CD
USAA, FDIC Insured
Insider’s Rating
3.75/5
Annual Percentage Yield (APY)
0.05% to 5.25%
Minimum Deposit Amount
$1,000
Pros
- Variety of term lengths
- Standard early withdrawal penalties
Cons
- Low interest rate
- $1,000 minimum opening deposit
Insider’s Take
You may like USAA's CDs if you're looking to explore a variety of term lengths — terms range from 30 days to 7 years.
Product Details
- Available to active military, veterans, and military families
- Financial centers in Colorado, Maryland, New York, and Texas.
- 1,200 USAA ATMs; 100,000 USAA-preferred ATMs nationwide
- Terms range from 30 days to 7 years
- Interest compounded and deposited monthly
- Early withdrawal penalties: 30 days of interest on 30-day terms; 90 days of interest on terms between 30 days and 1 year; 180 days of interest on terms between 1 year and 5 years; 1 year of interest on terms 5 years or longer
- FDIC insured
USAA vs. Navy Federal Money Market Account
USAA doesn't offer a money market account, but Navy Federal does. The Navy Federal Credit Union Money Market Account makes it easy to access money in your account with paper checks and an ATM card. It also has a $0 minimum opening deposit — most financial institutions require at least $1,000 for money market accounts.
Navy Federal Credit Union Money Market Account
Insider’s Rating
4.25/5
Fees
no monthly service fee
Annual Percentage Yield (APY)
0.00% to 1.50%
Minimum Deposit Amount
$0
Pros
- No minimum opening deposit
- No monthly service fee
- Competitive APY
- Includes paper checks
- Includes ATM card
Cons
- No interest earned when your balance is under $2,500
- Interest compounds monthly, not daily
- $1 out-of-network ATM fee
Product Details
- Join Navy Federal Credit Union as an active military member, military veteran, Department of Defense employee/retiree, or family member of any of the aforementioned groups
- 354 branches worldwide, including on select military bases
- 30,000 free ATMs
- Tiered interest rate system; earn higher rates with higher balances
- Interest compounded monthly, paid monthly
- Federally insured by the NCUA
USAA vs. Navy Federal Trustworthiness and BBB Ratings
The Better Business Bureau rates businesses based on responses to customer complaints, honesty in advertising, and transparency about business practices.
USAA has an NR ("No Rating") grade from the BBB, and Navy Federal received NR ("No Rating") because both are currently responding to previously closed complaints.
A good BBB rating won't guarantee a smooth relationship with a financial institution. You'll want to talk to current customers or read online customer reviews to see if a bank might be right for you.
Both USAA and Navy Federal have been involved in recent public controversies.
USAA has been involved in the following public settlements:
- In 2020, the Office of the Comptroller of the Currency required USAA to pay $85 million in a settlement that accused the bank of failing to establish and carry out an efficient compliance risk management program and IT risk governance program.
Navy Federal has been involved in the following scandal:
- In 2020, a Navy Federal employee filed a lawsuit claiming the lender pressured mortgage underwriters to approve loans even if they thought an applicant wouldn't be able to pay off the loan. She dropped the case in late 2020 but said Navy Federal retaliated against her whistleblowing by changing her job duties.
Sophia Acevedo, CEPF
Banking Reporter
Sophia Acevedo is a banking reporter at Business Insider. Sophia joined Insider in July 2021. She writes bank reviews, banking guides, and banking and savings articles for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).Sophia is an alumna of California State University Fullerton where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@insider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:
Evelyn He
Compliance Associate
Evelyn He is a compliance associate at Business Insider who supports the Personal Finance Insider team. Personal Finance Insider is Business Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Business Insider readers already know and love.The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.Before joining Business Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst.Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.
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