USAA Savings Rates: Interest, Benefits, and Alternatives

Business Insider's personal finance team compared USAA savings accounts to the best high-yield savings accounts and found them to be in need of improvement. Its accounts don't charge monthly service fees, but they also give low rates compared to other savings accounts.

USAA Bank has three main savings accounts. The most basic is the USAA Savings Account, and its premium option is the USAA Performance First Savings Account. It also has a savings account for kids, the USAA Youth Savings Account.

Compare USAA's Savings Rates

• USAA Savings Account: 0.01% APY
• USAA Performance First Savings Account: 0.01% to 0.93% APY
• USAA Youth Savings Account: 0.01% APY

Current USAA Savings Rates

All USAA interest-earning bank accounts compound interest monthly. You can use a compound interest calculator to estimate how much interest you'll make over time.

USAA Savings Account

The USAA Savings Account pays 0.01% APY, regardless of what your balance is. You'll prefer a different savings account if you want to get a competitive interest rate. The USAA Savings Account is the bank's everyday savings option. This account is a decent choice since it has a low minimum opening deposit and no monthly service fee.

USAA Performance First Savings Account

The USAA Performance First Savings Account pays a higher interest rate than the USAA Savings Account, with rates that range from 0.01% to 0.93% APY, but you'll need to open the account with a high minimum opening deposit of $1,000.

Furthermore, this account is most suitable for people who maintain high account balances. You'll earn the highest APY with an account balance of $500,000 or more.

The USAA Performance First Savings Account has a tiered interest rate system. You don't start to earn a decent rate until you have tens of thousands of dollars in your account, and even then, the rate you'll earn isn't high. Here's how the tiered interest rate works:

USAA Youth Savings Account

USAA also has a kid's savings account, which pays 0.01% APY. Many of the best savings accounts for kids offer higher interest rates.

The USAA Youth Savings Account is an option for children under 18, with access and parental control tools for parents. Parents can set withdrawal limits as well as create alerts for low balances and high withdrawals. This account also comes with an ATM card, so if you want a debit card for kids, this could be a good choice.

Overview of USAA Savings Accounts

How USAA Savings Accounts Work

USAA is one of the best banks for the military, but savings rates aren't its strong suit. USAA serves the armed forces. To qualify as a bank member, you must be an active or former military member. Spouses and children of military members are also eligible for membership.

The USAA Savings Account offers a less competitive APY than the average savings account. Meanwhile, the USAA Performance First Savings Account offers better rates, you'll need to maintain $100,000 or more to start earning more than the average savings rate of 0.42% APY. Ultimately, you could earn a much higher interest rate with an online bank that allows a smaller opening deposit.

USAA is a good option if your primary concern is opening a low-fee savings account. The bank doesn't charge monthly bank maintenance fees on its savings accounts.

The USAA Savings Account requires a minimum of $25 to open an account. With the USAA Performance First Savings Account, you'll need at least $1,000 to get started.

USAA does not charge monthly service fees, non-sufficient funds fees, incoming wire transfer fees, or overdraft protection transfer fees. The bank does charge overdraft fees, stop payment fees, and outgoing wire transfer fees.

USAA Savings User Experience and Accessibility

The bank's mobile banking app is rated 4.7 out of 5 stars in the Google Play Store and 4.8 out of 5 stars in the Apple Store.

You can use mobile check deposit to deposit your checks through the USAA mobile app without having to go into a bank.

USAA does not have 24/7 customer service. USAA has locations in Colorado, Maryland, New York, and Texas. Financial centers are open from 9 a.m. to 5 p.m. CT on weekdays. Customer support is also available by phone. You can call the bank from 6 a.m. to 10 p.m. CT on weekdays, or 8 a.m. to 8 p.m. CT on Saturdays.

USAA Savings Security

USAA is a long-running financial institution that's federally insured. USAA is FDIC-insured, which means your money will be insured for up to $250,000 for a single account and $500,000 for a joint bank account.

USAA has a good credit score from Moody's and a middling score from Bauer Financial.

USAA Savings Account Pros and Cons

USAA Savings Rates Pros

• Decent rates on USAA Performance First Savings Account if you maintain $100,000 or more in your account
• Low minimum opening deposit to open the USAA Savings Account
• No monthly service fees

USAA Savings Rates Cons

• USAA Savings Account pays a lower interest rate than the average savings account
• Lower interest rates than online banks
• High minimum deposit required to open USAA Performance First Savings Account

USAA Savings Account Alternatives

USAA Savings vs. Navy Federal Savings

Navy Federal Credit Union is the more appealing option for savings accounts with low balances. The Navy Federal Credit Union Share Savings Account pays 0.25% APY, which is higher than USAA's standard savings account.

Furthermore, Navy Federal Credit Union might be a good choice if you want a money market account. The Navy Federal Credit Union Money Market Accounthas a lower minimum opening deposit than the USAA Performance First Savings Account, and pays 0.00% to 1.50% APY depending on your account balance.

Navy Federal Credit Union Review

USAA Savings vs. PenFed Savings

If you're looking for a competitive savings account, Pentagon Federal Credit Union is a better option than USAA. The Pentagon Federal Credit Union Premium Online Savings Account pays 2.80% APY, which is much higher than USAA's savings accounts.

However, keep in mind that PenFed is a credit union, while USAA is a bank. This means all members need to open a savings account with $5 first before opening another type of bank account.

Pentagon Federal Credit Union Review

Opening a USAA Savings Account

USAA savings accounts can be opened online. Existing customers must log into online banking to get a new savings account. If you're a new customer, you'll have to qualify for USAA first.

To determine if you're eligible for membership, you'll need to provide information on your military ties along with the essential requirements for opening a bank account. You must provide your date of birth, Social Security number, and details about your or your family member's military service. You'll also need documents that verify your identity, like a passport or driver's license.

To open a savings account online, you must also be at least 18 years old.

USAA Savings vs. USAA CDs

To maximize your savings, carefully review each USAA savings account or CD to see which one fits your savings goals best.

USAA has several types of savings options. In terms of savings accounts, you can apply for one that has a set interest rate for all balances or one that offers a tiered interest rate that benefits customers with high account balances. For CDs, you can choose between fixed-rate, jumbo, super jumbo, variable-rate, and adjustable-rate CDs.

Many USAA Fixed Rate CDs offer higher rates than you can get from USAA savings accounts, offering interest from up to 2.25% APY. However, the best CD rates from online banks and credit unions offer far higher rates. If you want to bank with USAA and don't mind losing access to your money for a while, you might like USAA CDs; otherwise, you'll want to go with another option.

Is a USAA Savings Account Right For You?

USAA, which is known for strong VA mortgages and personal loans for military families, pays low interest rates on savings accounts. You might like USAA if you're using its other products and want to keep things simple.

However, if your priority is getting a competitive savings rate, the best high-yield savings accounts will likely be more appealing — you can find high-yield savings accounts paying up to 6.17% APY right now.

Why You Should Trust Us: How We Reviewed USAA Savings Accounts

We rate bank accounts on a scale from one to five stars. For our USAA saving rates review, we used our bank account methodology, which looks at interest rates, minimum opening deposits, monthly service fees, miscellaneous features, customer support availability, mobile app ratings, and the ethics and security of the company to rate savings accounts.

We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.

FAQs