The USAA (United Services Automobile Association) got its start back in 1922 as a mechanism for self-insurance by and for military officers.
Oddly enough the perception of military officers during this time was that they were a “high risk” group and were thus unable to secure auto insurance.
The USAA was initially created to solve this unique problem, but over time they outgrew their original mission.
They have evolved into a diverse set of companies all in the financial services sector with a range of products that includes property, casualty and life insurance, banking, investing and financial planning. They service over 12.4 million members and just shy of $130 billion in assets under management (AUM).
In our review below we will be focusing on the CD (certificate of deposit) rates offered by the banking division of USAA.
USAA offers their CD accounts to consumers in all 50 states plus Washington D.C. To see if they are right for you, continue reading our review below.
USAA Bank CD Rates + Account Details
USAA Bank CDs are federally insured by the FDIC up to $250,000 per depositor or $500,000 on joint accounts.
USAA offers 3 types of CDs (certificates of deposit). These are:
- Fixed rate CDs with terms ranging from 30 days to 7 years.
- Variable Rate CDs with terms of 182 days or 1 year.
- Adjustable Rate CDs with terms from 3 to 7 years.
All USAA Bank CDs require a minimum deposit of $1,000 to open them. They offer Jumbo CDs with deposits of $95,000 or more and Super Jumbo CDs with deposits of $175,000 or more. All of their CDs currently come with the same APY (annual percentage yield) per the time of this writing.
|Term||Standard APY||Jumbo APY|
To put these offers in perspective, the current national average for a 12 month CD and a 60 month CD sit at 1.72% APY and 1.37% APY, respectively, according to FDIC data.
That said, some online banks and credit unions with nationwide acceptance are starting to offer yields above 5.25% and 4.50% APY for the same respective terms.
Variable Rate CDs
USAA’s variable rate CDs are not competitive at this time. As their name indicates, these rates are variable and can change at any time even after opening and funding them.
Adjustable Rate CDs
USAA’s adjustable rate CDs are also not competitive at this time. They give you the option to request a rate change one time during the term to whatever the newly listed rate is by USAA at that time.
How Much Can You Earn with a USAA CD?
The amount of interest you can earn with a USAA CD depends on 3 variables. These are:
- Your deposit amount.
- Your interest rate or APY (annual percentage yield).
- Your CD’s term.
Below is a scenario showing total interest earnings with USAA’s most competitive CDs based on a $10,000 deposit.
|CD Term||APY||Total Earnings|
How do USAA CD Rates Compare?
Below we compare USAA Bank’s CD rates to the best CD rates offered by some of the largest U.S. banks as well as popular online banks. All of the institutions listed in these tables are FDIC insured.
USAA CD Rates vs Big Banks
|Bank||Min. Deposit||Best APY|
|Bank of America||$100,000||4.70%|
USAA CD Rates vs Online Banks
|Bank||Min. Deposit||Best APY|
|Marcus by Goldman Sachs||$500||5.00%|
USAA Minimum Deposit Requirements
|CD type||Minimum Deposit Required|
Compounding and Crediting Interest
Interest on USAA Bank CDs is compounded daily and credited monthly either back into the CD (for further compounding) or into another connected account. This is a nice feature for those using interest payments as income.
Grace Period and Early Withdrawal Fees
Upon the maturity of your USAA CD you will have a 10 day grace period in which you may close out your CD or modify it without facing any withdrawal penalties.
If you need access to funds in your CD prior to its maturity you will face an early withdrawal fee. The early withdrawal fee is structured as follows:
|30 days or less||30 days’ interest|
|30 to 364 days||90 days’ interest|
|365 days to 5 years||180 days’ interest|
|5 years +||365 days’ interest|
How to Open a USAA CD Account
You can open a CD account with USAA in one of the following 3 ways:
- Online, through their website. This is the quickest way. Steps outlined below.
- By downloading their app for either IOS or Android.
- Stopping by one of their local branches. Locate them here.
If you choose to open the CD online. Here are the steps to open and fund your account:
- Navigate to the USAA CD landing page here. Click “Open a CD.”
- From here you’ll have an option on the left to login if you’re already a member. On the right, you can click the green “Join Online” button to become a member.
- Fill out the required personal information. They may ask about employment and citizenship information. Have your drivers’ license or state issued ID handy.
- Follow the next prompts to fund your account. For this you’ll need the bank account number you’re funding the CD with as well as the routing number for the bank.
As the interest rate environment continues to heat up for savers, so too do USAA’s CD rates.
As of August, 2023 their best CD rates sit at 5.00% APY which is up from 4.00% APY since our last update in March.
USAA CD FAQs
Still have questions about USAA’s certificate of deposit rates? Take a look at what other consumers are asking around the web along with our responses below.
Are USAA’s CDs insured by the FDIC?
Yes. USAA is member FDIC and all of their deposit accounts are federally insured up to $250,000 per depositor. USAA’s FDIC number is 32188.
Can I Open More Than One USAA CD?
Yes. USAA Members can open many CDs at the same time. A popular strategy savers use is a CD ladder which is when you buy a series of CDs with staggered maturities with the goal of having maturing funds at your disposal every ~6 months or so.
Does USAA Offer Joint CD Accounts?
Yes. You can set up joint CD accounts with family members but everyone must also be a member with USAA.
Does USAA Offer a Money Market Account?
No. USAA does not offer a money market account at this time.
Does USAA Offer Savings Accounts?
Yes. USAA has 3 variable-rate savings accounts. These are:
- USAA Youth Savings – $25 minimum to open
- USAA Savings – $25 minimum to open
- USAA Performance First – $10,000 minimum to open.
USAA Savings Account Rates
|Performance First||0.05% – 1.60%|