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USAA offers two adult savings account options: USAA Savings and USAA Performance First. Like all USAA banking products, they are available to military personnel, veterans, and eligible family members.
The annual percentage yield (APY) for either account starts at just 0.01%. But you might earn a little higher interest with a USAA Performance First account if you maintain a larger savings balance. Both accounts provide access to over 60,000 ATMs free of charge.
Wondering if a USAA Bank savings account is worth having? Here is an overview of how the interest rate of a USAA savings account would increase your money.
Annual percentage returns (APY) and account details are accurate as of August 23, 2022.
USAA savings rate
Pricing is tiered for USAA Performance First Account. Here’s how they break down by account balance.
Overview of USAA Savings Accounts
USAA Savings and USAA Performance First accounts differ in terms of minimum deposit requirements and the APY you could earn. If you’re considering one of these accounts, it helps to know the basic requirements.
Minimum deposit
The USAA savings account has a low minimum deposit requirement of $25. If you prefer to open a USAA Performance First® Savings Account, you will need at least $10,000.
You can make your minimum deposit from an existing USAA bank account or an account at another bank.
Minimum daily balance
USAA does not set a minimum daily balance requirement for any of its major savings accounts. But you will need to meet 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%. This is the highest rate you will earn with the USAA Basic Savings Account. If you have $10,000 or more to deposit in savings, you might want to consider the Performance First account instead, which offers the chance to earn an APY of 0.01% to 0.40%.
Monthly fee
USAA does not charge monthly maintenance fees for any of its savings account options. But you may face other fees, including excess withdrawal fees if you have more than six withdrawal transactions on your account in a month.
Dialing schedule
USAA compounds interest on its savings accounts monthly and pays interest to savers each month. Your daily balance will determine the amount of interest you earn on savings deposits.
How much can you earn?
If you earn the lowest APY of 0.01% with a USAA savings account, the total amount of interest earned won’t amount to much. You might earn a bit more interest with Performance First Savings if you have at least $10,000 in your account.
Here’s a comparison of the interest you could earn on a $10,000 deposit in either account, assuming a 10-year savings period.
You can use our savings calculator to see how much you could save with one of the higher Performance First account rates.
USAA vs other banks
Are USAA savings rates low compared to other banks? The rates you might earn with a USAA savings account are typical of what you might expect from traditional banks, although they are lower than the national average savings account rate of 0.13%. according to the FDIC.
Traditional banks tend to offer lower rates overall. The best online banks, meanwhile, can offer APYs that easily exceed USAA savings rates.
Other USAA Savings Options
There is also the USAA Youth Savings account for savers under 18. There is a $25 minimum deposit to open the account, and all balances earn 0.01% APY. Parents retain control of the account until their child turns 18, at which time the account converts to a regular USAA savings account.
You can also open Certificate of Deposit (CD) accounts with USAA. It offers 13 standard CD terms ranging from 30 days to seven years, and in most cases the APYs are higher than what USAA savings accounts pay. A minimum deposit of $1,000 is required to open a standard CD with USAA Bank.
Find the best online savings accounts of 2022
Conclusion
USAA offers a basic savings account option as well as a tiered rate account for savers who tend to maintain higher balances. Although USAA savings rates are comparable to those you’ll find at other traditional banks, you could earn a lot more by opening one of the best online savings accounts instead.
Remember that to open a USAA savings account, you will need to meet membership requirements based on your military affiliation.
Frequently Asked Questions (FAQ)
Why Are USAA Savings Rates So Low?
USAA savings rates are comparable to what you might expect to find at major physical banks. Traditional banks generally offer savers lower rates than those paid by online banks. At USAA, the highest savings rates are reserved for those who maintain $500,000 or more in savings.
Is a CD better than a savings account?
CD accounts can sometimes earn 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 usually can’t withdraw money without 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 children under 18. Parents can open a savings account for their child with as little as $25.
