USAA and Navy Federal Credit Union (NFCU) both offer products and services for members of the armed forces and their families. We researched both financial institutions to compare their product offerings, rates, fees, and more. Read on to find out how these two financial institutions compare.
USAA (short for United Services Automobile Association) is a federal bank that serves military members, veterans and their families. It offers banking, insurance, retirement and investment services, as well as VA and conventional mortgage lending.
To bank with USAA, you must become a member. Only U.S. military members and veterans, pre-commissioned officers, and their spouses and children are eligible to participate.
Navy Federal Credit Union, commonly referred to as Navy Fed, was founded in 1933 and has since grown to serve 14 million members belonging to the Department of Defense, Army, Marine Corps, Space Force and Coast Guard, as well as veterans and their families. Navy Fed offers personal and business products and services, including checking and savings accounts, credit cards, loans and more.
Read more: Credit union versus bank: which suits you?
USAA and Navy Federal Credit Union both offer simple, no-fee checking accounts that earn 0.01% APY (Navy Fed also offers several checking account options that earn up to 0.45% APY, depending on the specific account).
While USAA requires a minimum opening deposit of $25 and a minimum balance of $1,000 to earn interest, Navy Federal Credit Union’s checking account is free to open and there are no minimum balance requirements to earn interest or avoid fees. Neither account charges monthly maintenance fees, but both accounts do charge overdraft fees.
With 100,000 ATMs, USAA offers a much larger network size compared to the Navy Fed’s 30,000 ATMs.
Read more: The 10 Best Free Checking Accounts Available Today
When comparing their savings account options, Navy Federal Credit Union’s basic savings account offers higher returns and a lower minimum opening deposit/minimum balance requirement than USAA’s basic offering. Neither account charges a monthly maintenance fee to keep your account open.
However, USAA also offers a high-yield savings account that earns up to 1.10% APY. The catch: You must deposit at least $1,000 to open a performance savings account, and only balances of $500,000 and more earn the highest rate.
Read more: The 10 Best High Yield Savings Accounts Available Today
USAA and Navy Fed offer a variety of CD accounts for different terms.
USAA offers a maximum rate of 2.25% APY on its standard CDs, with the opportunity to earn more on its jumbo accounts. The minimum opening deposit for standard CDs is $1,000.
On the other hand, Navy Federal Credit Union offers as much as 4.15% APY on its standard stock certificates, and even higher rates on its promotional accounts. The minimum opening deposit ranges from just $5 to $1,000 depending on the account you choose.
Read more: What is a share certificate?
USAA does not currently offer a money market account.
The Navy Federal Credit Union money market account offers rates between 0.25% and 2.25% APY, depending on your balance. There is no minimum opening deposit requirement, but you must deposit at least $2,500 to earn interest.
Read more: The 10 Best High Yield Money Market Accounts
Overall, Navy Fed offers higher maximum APYs for its accounts. However, this depends on how much money you have in your account. For savers with smaller balances, it’s worth considering both financial institutions.
Neither institution charges monthly service fees for its accounts, and has similar early withdrawal penalties for CDs. The Navy Fed charges a lower overdraft fee than USAA ($20 versus $29, respectively).
USAA offers similar products and services as Navy Fed. However, it does not offer a money market account, which could be a drawback depending on your banking needs. However, it does offer a larger ATM network.
Navy Federal Credit Union stands out for its wide range of account options, 24-hour customer support and competitive APYs. The minimum opening deposit requirements, for those accounts that have one, are on the lower end compared to other financial institutions, which can be a valuable benefit.
