Tuesday, 24 November 2020

USAA Bank Review: Checking, Savings, CD and IRA Accounts

USAA Bank Review: Checking, Savings, CD and IRA Accounts
26 Oct
10:48

USAA Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.46%

CD Rates

USAA Bank 1 Year CD – Variable Rate

2.55%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

0.91%

CD Rates

USAA Bank 3 Year CD – Standard Adjustable Rate

2.85%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

Member FDIC

1.49%

CD Rates

USAA Bank 5 Year CD – Standard Adjustable Rate

3.10%

Barclays 60 Month Online CD

on Barclays’s secure website

Member FDIC

USAA Bank checking account options

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How USAA Bank’s checking accounts compare

USAA Bank does a nice job keeping fees low on its checking accounts. We also like that you can open an account for only $25, and that ATM refunds are on offer for two of its accounts (Classic Checking and Youth Spending). If you frequently spend money using your debit card, being able to earn some cash back with Cashback Rewards is a nice feature that’s otherwise become much harder to find — most banks only offer rewards for credit cards and not debit cards.

Still, despite these positive features, we are reluctant to endorse the USAA Bank’s checking accounts because of their low interest rates. Cashback Rewards doesn’t pay interest, while the other two accounts pay so little that the rate may as well be nothing.

If you want a low-fee checking account that actually earns interest, these top online checking accounts could be a better alternative than USAA Bank ’s accounts.

USAA savings account options

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How USAA Bank’s savings accounts compare

USAA Bank’s savings accounts have the same problem as its checking accounts — that they do not earn enough interest. While the savings rates are a step up over the checking rates, they are still low compared to the best online savings accounts on the market today.

The USAA savings accounts do have some nice features. None of them charge a monthly fee or have a minimum balance requirement to earn interest. They also refund fees from out-of-network ATMs, which gives you more convenient access to your money than the average savings account. Still, these benefits are not enough to make up for the low interest rates.

USAA CD rates

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How USAA Bank’s CD rates compare

USAA Bank’s CDs are better than its typical large bank competitors. Its fixed rate CDs come in a wide variety of terms and pay an OK rate, especially for CD terms of at least 2 years.

While its adjustable and variable CDs do not earn as much, they offer other additional benefits. The Adjustable Rate CD could be a good choice if you are worried about interest rates going up in the future while the Variable Rate CD can be opened for just $250, which is low compared to the typical CD.

Still, while USAA Bank offers better CDs than the typical bank, there are better rates out there. If you want to earn the best return on your savings, check out these top CDs instead.

USAA IRA options

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How USAA Bank’s IRA CD rates compare

USAA Bank’s IRA CDs are not a bad choice if you want to open a small retirement account. You can open these accounts for a deposit of just $250, and there are no setup or annual maintenance fees — and these IRA CD rates are better than average.

However, if you can deposit more than $250 in your IRA CD, there are better options available. These top IRA CDs require a larger contribution — some as high as $5,000 — but if you can deposit this much, your retirement savings will earn a better return.

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David Rodeck

David Rodeck |

David Rodeck is a writer at MagnifyMoney. You can email David here

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Source: https://www.magnifymoney.com/blog/reviews/usaa-bank/

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