The USAA Federal Savings Bank was created in 1922 by the United Services automobile association and started out as an auto insurance company but expanded to provide banking and other financial services. Today, it is a bank only for members of the active military, veterans, and those with close family ties to the military.
From the very beginning of its existence, USAA has been meeting all the needs of its clients at the highest level and has consistently ranked high in the ratings. Bank customers can use the following popular services: analysis and saving currency in the account, credit cards and loans for cars, houses, children’s studies and personal expenses.
The company provides access to the management of personal financial assets using CDs that have a fixed rate and flexible terms. In this USAA review, we will introduce you closer to the bank, tell you about its features.
USAA Bank Rate
In all our reviews, we evaluate banking systems. This bank has the following ratings:
- Reputation: 4
- Savings: 3,8
- Checking: 4,5
- Rewards checking: 4
- CD rates: 3
- Overdraft fees: 4
- Speed of service: 3,6
- Price of services: 4,5
- Quality of mobile app: 4,5
- Quality of service support: 4,5
- Overall: 4,2
Best for
The bank is best suited to military personnel and their families who are looking for a banking system that caters to all their financial transaction needs. After all, most often they want to manage their banking operations through a mobile application or online, which USAA does an excellent job of. It is also eligible for the military, who require free checking and savings accounts. A USAA’s magnificent addition is up to 10 free cash withdrawals from ATMs per month.
Company Overview
The bank stands for the automobile association United Services. The whole concept of providing services to military personnel was born out of the fact that in the early 20th century they were considered more risky and took huge sums from them for insurance.
So in 1922, twenty-five officers launched the USAA with the goal of providing servicemen and their families with an affordable insurance option. William Harrison was elected as the company’s first president. The first branch outside of America was opened in Frankfurt in 1952, the London branch opened in 1962. The San Antonio campus, which opened in the mid-1970s, is USAA’s headquarters.
Since then, the company has evolved into a financial institution offering insurance (personal property, auto, life, and annuity), banking, investment and other opportunities to nearly 13 million military personnel and their families across the country. Today, USAA Bank offers members a variety of account types, such as checking, savings, and CDs, as well as auto, boat, and home loans.
USAA Bank Highlights
The standard offer from USAA looks like this: 0% starting annual interest rate for 15 months on balance transfers and convenience checks that are posted on the account within 90 days of opening the account. After this time, the Variable Regular APR of 12.15% to 28.15% will apply to these introductory balances.
The bank also provides three checking accounts: USAA Classic Checking, Cashback Rewards Checking and Youth Spending.
USAA Classic Checking
The minimum initial deposit when opening an account is $25. The bank charges no fee for the first 10 ATM withdrawals in a monthly statement cycle. But if later the money was withdrawn from ATMs that do not belong to USAA Bank, the commission is $2 for each one. The bank refunds up to $15 per month for third-party off-network ATMs. Clients can earn interest with this account, but only 0.01% per annum.
USAA Cashback Rewards Checking
With the help of Cashback Rewards Checking, the client receives cash rewards for purchases with a debit card. The amount of cashback is not limited if the account has a good reputation. Unfortunately, common verification, this account is only available in 28 states.
USAA Youth Spending
This is a program for members with children ages 13 to 18. As with common verification, there is no monthly maintenance fee and only a $25 minimum deposit is required to open an account. Parents can grant their children limited access to their online and mobile account, as well as control their transactions. Youth Spending also adds overdraft protection without additional fees. Like Classic Checking, you can earn interest – 0.01% per annum.
Pros of USAA Bank
- Extensive ATM network with off-network ATM discounts for qualifying transactions.
- Bank accounts do not have a monthly maintenance fee.
- Automatic saving tools.
- No monthly fees on any account, no minimum balance requirements, no overdraft transfer fees (subject to protection against its).
- Affordable mobile app with a rating of 4.5 on Google Play and 4.8 on the App Store.
- Car loan rates are only 2.89%.
- Classic Checking account holders can earn interest on balances of $1,000 or more.
Cons of USAA Bank
- USAA membership is limited to active and former US military officers, spouses, and children.
- Few branches in the country. Clients who need advice usually have to get it online or on the phone.
- Although USAA offers competitive terms and an annualized percentage yield (APY), customers looking for the best bang for their buck can find higher rates elsewhere.
USAA Bank Offerings
Auto insurance is still available from USAA, but the range of insurance coverage offered has also expanded significantly. Here are some of the insurance options:
- Car
- Nutrition
- Health: Medicare, basic medicine, dentistry, vision
- Homeowners
- Life
- Mobile House
- Motorcycle, motorhome and boat
- Personal property
- Tenants and rental properties
- Small business
- Umbrella
Let’s talk about some of them in more detail.
Savings accounts
The USAA Basic Savings Account has an annual interest rate of 0.01% and a minimum initial deposit of $25. There is no charge for this account. This option is well suited for overdraft protection. Holding a savings or checking account gives you access to Savings Booster banking tools designed to help clients reach their savings goals.
It includes a text-based savings tool that analyses the savings account to determine the amount that can be transferred to the personal account. As well as a tax refund tool that automatically transfers a specified portion of the annual tax refund to a savings account.
Checking accounts
You can open a classic checking account for as little as $25. If you select the overdraft protection option, which will be linked to a credit card or other explicit account, you will be able to transfer money free of charge to cover your overdraft in increments of $100. Otherwise, you can expect an overdraft fee or a $29 shortfall fee.
There are two types of checking accounts: USAA Cashback Rewards Checking and USAA Classic Checking. Whether you spend $1.00 or $1,000, you’ll get a dime back every time. By contrast, the USAA Classic Checking account will waive $15 per month. When the balance exceeds $1,000, your checking account will begin to accrue interest of 0.01% APY.
Car loans
The bank simplifies interactions with the insurer. The term of a car loan can range from 12 to 84 months, although there are a few caveats. If you borrow at least $15,000, you can extend the loan term up to 72 months.
An 84-month loan term is also available if you buy a 2020 or newer model and borrow $25,000 or more. In addition, the bank provides a discount of 0.25 percentage points when subscribing to automatic payments. And if you’re on a business trip, moving house, or travelling overseas, USAA car loans let you take your car with you.
Personal loans
You can use personal loans for almost any purpose. Program participants can borrow from $2,500 to $100,000. The repayment period varies from one to seven years, depending on the amount of the loan.
If you choose a loan for 12 to 36 months, you must apply for a loan of $2,500 or more. To qualify for the 48-month term, you must apply for a loan of $5,000 or more. For financing for a period of 60, 72 and 84 months, a loan amount of at least 10,000, 15,000 or 20,000 US dollars is required, respectively.
Purchase mortgages
To apply for a mortgage at this banking institution, you will need to provide a credit score, debt-to-income ratio, and a down payment. Your credit score must be 640 or higher. Fortunately, a mortgage loan does not require a down payment.
However, in order to receive a purchase loan, you need to deposit between 1% and 5% of the closing amount. For a VA purchase loan, only the VA funding fee may be included on the loan. Other closing costs must be paid at closing.
Refinance mortgages
The bank offers a program that benefits from no creation fees, no appraisal fees, no ownership fees, and no VA funding fees. This saves the lender over $2,600 in closing the deal.
As with most VA loans, those who buy a new home through this program will be required to pay a VA financing fee, which varies depending on the amount of the loan and other factors. With the VA Interest Rate Reduction Refinancing Loan (IRRRL or Simplified Refinancing), USAA covers a number of closing costs. All mortgages of $129,500 or more have a flat rate of $1,295. For amounts less than $129,500: 1 percent of the total loan amount.
Certificates of Deposit (CDs)
The USAA Federal Savings Bank offers standard certificates of deposit (CD) for 13 terms ranging from 91 days to seven years. The Standard Fixed Rate CD requires a minimum deposit of $1,000 to open. The bank also offers Jumbo CDs ($95,000 minimum) and Super Jumbo CDs ($175,000 minimum), as well as adjustable and variable rate CDs.
Interest is credited monthly to your account regardless of CD’s type. Early withdrawal penalties vary depending on the expiration date of your CD. For up to 30 days, you lose interest for 30 days. With a term of 31 days to one year inclusive, you lose interest for 90 days. For a period of more than one year or more, a commission is charged in the amount of 180 to 365 days.
Credit cards
It offers a wide range of credit cards with different benefits to meet all customer needs. The most popular are American Express and Visa cards. The bank also offers bonus cards offering points (plus bonuses), cash back cards or cards with an annual percentage rate (APR) of only 8.40%.
The USAA Rate Advantage Visa Platinum Card offers a low annual interest rate and $0 annual fee and provides retail and travel benefits and special rates for select military personnel. With the Cashback Rewards Plus American Express Card, you can get bonus cashback on gas, military base purchases, and groceries. The card has an annual fee of $0. The card returns 5% cash for the first $3,000.
USAA Customer Service
This banking system is distinguished by high-quality customer service. Consultation with the account manager is carried out six days a week. Hours of operation vary depending on which USAA department you need to contact.
The virtual agent on the official site provides advice 24/7. The bank was one of the first to introduce a mobile checking deposit, allowing customers to deposit checks via their iPhone.
You can call at 210-531-8722 or 800-531-8722 for consultation. The company’s mailing address is 9800 Fredericksburg Road, San Antonio, TX 78288.
Methodology
We strive to provide our clients with unbiased reviews of banking systems. It is important for us to study the availability of banking products, interest rates, fees, the availability, and quality of checking, savings, deposit, or credit union stock certificates, banking experience and overdraft fees.
As well as access to ATMs and branches, account features and restrictions, user-centric technologies, strength, customer service and innovation. All of these criteria must be at the right level so that we can guarantee that you can make an informed decision when choosing a particular banking institution.