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USAA and Navy Federal Credit Union offer a full range of financial products and services geared toward the needs of military members and their families. Either one could be a good fit if you’re affiliated with the military and looking for a new place to keep your money.
While USAA and Navy Federal have some things in common, they’re not identical. Comparing the benefits and features can help you decide which one might be right for you.
This review focuses on each bank’s checking and savings products. All account details and annual percentage rates (APYs) are accurate as of September 11, 2024.
Featured Partner Offer
USAA Preferred Cash Rewards Credit Card
On USAA's Website
3.1
Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.
On USAA's Website
1.5% Reward Rate
Earn 1.5% cash back on every purchase
Welcome Bonus
$200 reward bonus
Annual Fee
$0
Regular APR
17.15% to 29.15% variable
Credit Score
Good, Excellent
Editorial Review
Simple rewards and a well-rounded suite of travel protections make this an essential everyday card and handy travel companion. No annual fees or foreign transaction fees make it that much better.
Pros & Cons
- High rewards rate on every purchase
- Travel protections
- No foreign transaction fees
- No balance transfer promotion
- Exclusive to USAA® members
Card Details
- Must be a USAA® member, or become a member, to apply. USAA proudly offers membership to current and former military, as well as their spouses and dependents.
- Earn unlimited 1.5% cash back on purchases, no category restrictions, no caps on cash back.
- Intro Offer: Earn a $200 reward bonus when you spend $1,000 on qualifying purchases within 90 days of account opening.
- Auto Deductible Reimbursem*nt (up to $200).
- A fee of 5% of the amount of each balance transfer, cash advance and convenience check applies.
- No annual fee.
- Cash back rewards never expire.
- Redeem cash back your way, on your schedule.
- No foreign transaction fees.
- 17.15% to 29.15% variable regular APR.
- Terms and Restrictions apply. See the Reward Terms and Conditions and the ADR Benefit Guide on USAA’s website for details.
- See Rates and Fees for details.
Earn a $200 reward bonus when you spend $1,000 on qualifying purchases within 90 days of account opening.
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Which Bank Is Better: USAA or Navy Federal?
| USAA | Navy Federal | |
|---|---|---|
Products and Services | Checking Savings Youth accounts CDs | Checking Savings CDs Money market account (MMA) Retirement and education savings |
Branches | 4 | 350 |
ATMs | 100,000 | 30,000 |
APYs | Savings: 0.01% on the USAA Savings and between 0.05% to 1.50% on the USAA Performance First® Savings Account CDs: 0.05% to 4.55% (fixed) | Savings: 0.25% CDs: APYs vary by CD type and term MMA: 0.00% to 1.50% |
Monthly Maintenance Fee | None | $10 if the average daily balance is less than $1,500 for Flagship Checking |
Distinguishing Features | Large ATM network No monthly fees Banking, insurance and investing all in one place | Hundreds of branches High APYs Fee-free accounts |
While both institutions have your banking and credit needs covered, USAA and its partners offer more when it comes to insurance, retirement and investing services. Navy Federal Credit Union, however, offers business banking while USAA does not.
Navy Federal is better for in-person banking, with 350 branches worldwide compared to just four financial centers operated by USAA. That said, USAA’s network of over 100,000 preferred ATMs with up to $10 in refund per statement cycle for non-preferred network ATMs is larger than Navy Federal’s 30,000+ fee-free ATMs.
Both institutions offer free checking and savings accounts with low minimum opening deposits. Navy Federal’s savings rates are higher than USAA’s, but CD rates are comparable across the two.
USAA vs. Navy Federal: Checking Accounts
USAA offers one checking account option, while Navy Federal has multiple checking accounts, each with different features, benefits and fees. USAA and Navy Federal pay interest on checking account balances, although both pay a negligible amount.
Both the USAA Classic Checking and Navy Federal Credit Union Free EveryDay Checking accounts made our list of the best checking accounts at military banks and credit unions. Here’s how the two compare.
| USAA Classic Checking | Navy Federal Credit Union Free EveryDay Checking | |
|---|---|---|
Initial deposit | $25 | $0 |
Monthly fee | $0 | $0 |
Min. balance to avoid monthly service fees | $0 | $0 |
Notable features | Get paid up to two days early with direct deposit, depending on when USAA receives notice from payer | Get free personalized checks |
Navy Federal vs. USAA: Savings Accounts
Both Navy Federal and USAA offer free savings accounts and certificates of deposits (CDs). Navy Federal also offers a money market account with better rates on higher balances, and USAA similarly offers a premium savings account—USAA Performance First® Savings Account—that pays increased rates on higher balances.
Here’s how the basic savings accounts from USAA (USAA Savings) and the Navy Federal Credit Union Basic Savings Account compare.
| USAA Savings | Navy Federal Credit Union Basic Savings Account | |
|---|---|---|
APY | 0.01% | 0.25% |
Minimum opening balance | $25 | $0 |
Monthly fee | $0 | $0 |
Min. balance to avoid fee | $0 | $0 |
Both USAA and Navy Federal’s certificate accounts compete with the best CD rates on the market—the USAA Standard Certificates of Deposit offer rates from 0.05% to 4.55% and the Navy Federal Credit Union Standard Certificate offer rates from 2.75% to 4.85% APY. Choosing between the two will depend on your preferred term and deposit amount. You’ll need $1,000 to open a USAA CD or one of Navy Federal’s standard certificates, but Navy Federal also offers the Navy Federal Credit Union EasyStart℠ Certificate with a $50 minimum opening deposit.
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USAA Rate Advantage Credit Card
On USAA's Website
3.4
Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.
On USAA's Website
No Rewards
This card does not offer rewards on purchases.
Welcome Bonus
None
Annual Fee
$0
Regular APR
12.15% to 26.15% variable
Credit Score
Good, Excellent
Editorial Review
If you think you’ll carry a balance, the USAA Rate Advantage has one of the lowest ongoing APRs around. There’s also no penalty APR if you have a late payment and no annual fee to worry about.
Pros & Cons
- 0% intro APR for 15 months on balance transfers, then 12.15% to 26.15% variable regular APR
- $0 annual fee
- No foreign transaction fees
- No rewards
- Must be a USAA® member or have a family member who is to qualify
Card Details
- Must be a USAA® member, or become a member, to apply. USAA proudly offers membership to current and former military, as well as their spouses and dependents.
- Intro Offer: Get a 0% intro APR for 15 months on balance transfers and convenience checks that post within 90 days of account opening. After this time, the variable regular APR of 12.15% to 26.15% will apply to introductory balances.
- A fee of 5% of the amount of each balance transfer, cash advance and convenience check applies. If you transfer a balance or write a convenience check to take advantage of the introductory rate offer, you will immediately incur interest on purchases until you pay your balance in full, including any transferred balances.
- No annual fee.
- No foreign transaction fees.
- See Rates and Fees for details.
None
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Pros and Cons of USAA
No bank is perfect, and while USAA offers some advantages, it may not be right for everyone.
Pros
- Wide range of financial products and services
- Free checking and savings accounts
- Competitive CD rates
- Expansive ATM network
Cons
- Limited branch banking options
- No MMA or business checking
- Low savings account rates
- Must qualify to become a member
Pros and Cons of Navy Federal
As you compare Navy Federal vs. USAA, keep in mind that credit unions often have fewer fees and offer lower interest rates on loans.
Pros
- Hundreds of branch locations
- More checking and savings account options, including MMAs and business checking
- Free checking and savings accounts with no or low minimums
- Competitive CD rates
Cons
- Comparatively smaller ATM network
- Somewhat low savings rates
- Membership is limited
- Limited investing and insurance products
Can anyone join USAA or Navy Federal?
No, both USAA and Navy Federal Credit Union limit membership to military members and their families. Accounts are offered to active-duty service members, retired military members and veterans, although Navy Federal also includes Department of Defense (DoD) civilians. If you don’t have any military affiliation and aren’t a DoD civilian, you won’t be able to join either credit union.
Instead, you can join a federal credit union like PenFed. The second-largest credit union in the country, PenFed also services members of the military, but you don’t have to be a servicemember to join. NASA Federal Credit Union is another option to consider. While it’s designed for employees of NASA and their families, anyone with a National Space Society membership can join. Fortunately, if you don’t have that, NASA Federal Credit Union will provide you with a complimentary membership for a year.
USAA vs. Navy Federal Membership Requirements
As mentioned, you must be eligible to join USAA or Navy Federal in order to open accounts with either one. Membership requirements with each institution center on military status, but Navy Federal’s are slightly looser. The credit union welcomes Department of Defense (DoD) civilians and a wider scope of military family members.
USAA membership is open to:
- Current U.S. military members and veterans
- Precommissioned officers
- Spouses and children of eligible military members or officers
You can apply online to open an account. You’ll need to provide some basic personal information, along with details about your military affiliation.
Navy Federal membership is open to:
- Active-duty and retired military members
- Veterans
- Family members of eligible military members, including spouses, children, siblings, parents, grandparents, grandchildren and other household members
- Department of Defense (DoD) civilians
You can apply for an account online or visit a Navy Federal branch to get started. You’ll need a Social Security number, a driver’s license and $5 to open an account. (There’s a $5 minimum deposit requirement to establish and maintain membership.) This money is deposited into a Membership Savings Account.
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Bottom Line
Both USAA and Navy Federal Credit Union can help military members and their families manage their financial lives. Whether it makes sense to choose one over the other can depend largely on the types of banking products and services you’d like to have access to and your preference for banking in person or online.
Banking reviewer and writer Amanda Claypool contributed to this article.
Frequently Asked Questions (FAQs)
Is USAA or Navy Federal FDIC-insured?
USAA is an FDIC-insured bank. Deposits are insured up to $250,000 per depositor, per account ownership type and per financial institution. Navy Federal Credit Union accounts are insured by the National Credit Union Administration (NCUA).
Is a bank or credit union better?
Banks and credit unions can offer the same range of products and services. The differences between them usually lie in the types of fees you’ll pay and how much interest you can earn on deposits. Credit unions also have membership requirements to join, which sets them apart from banks.
Does USAA or Navy Federal offer insurance?
USAA offers members access to a variety of insurance products, including car insurance, RV and boat insurance and homeowners insurance. Members may qualify for special discounts or reduced rates when purchasing insurance through USAA or a partner provider. Navy Federal works with partners to provide discounts on selected types of insurance coverage, but its offerings are more limited.
