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USAA vs. Navy Federal Credit Union: Which Bank Is Right for You?

Review Updated
Steven Porrello
Author: Steven Porrello
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Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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Fact Checked: Ashley Maready
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Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

Bottom line: Navy Federal Credit Union has better customer service reviews and more branches overseas, whereas USAA offers more financial services.

USAA vs. Navy Federal Credit Union: Account options

Navy Federal Credit Union is bursting at the seams with checking account options, wile USAA has more variety in the savings department, but there's a good chance both banks have something to meet your needs.

Savings accounts

USAA offers three savings accounts: the USAA Savings, USAA Performance First® Savings, and the USAA Youth Savings. The USAA Savings is free and can be opened with $25, but the APY (0.01%) falls far below the national average for savings accounts. The USAA Performance First® Savings has a slightly better APY (up to 1.50%), but you'll need a $10,000 deposit to open it. You'll also need over $500,000 to earn its best APY, which is still significantly below the top high-yield savings accounts.

Navy Federal Credit Union offers the Navy Federal Share Savings Account, a basic savings account with no monthly maintenance fees and a $5 minimum opening deposit. Its APY (0.25%) is higher than USAA's basic savings account, but still also below the national average. It also offers the Navy Federal Money Market Savings Account, which earns up to 2.25% APY, depending on account balance.

Rates as of Dec 20, 2024
Offer
 
 
 
 
Account
Rating
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
APY 0.01% up to 1.50% Rate info Circle with letter I in it. Balances less than $10,000 earn 0.05%, balances $10,000 to $49,999.99 earn 0.10%, balances $50,000 to $99,999.99 earn 0.90%, balances $100,000 to $249,999.99 earn 1.00%, balances $250,000 to $499,999.99 earn 1.10%, balances $500,000 to over $1,000,000 earn 1.50% 0.25% up to 2.25% Rate info Circle with letter I in it. APYs are tiered based on MMA type (Standard vs. Jumbo) and deposit amount. The highest 2.25% APY is earned by Jumbo MMA holders with a $1,000,000 and over deposit.
Min. to earn APY $0.01 $0.01 $5 to open and maintain account $0
Next Steps
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Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
3.80%
Rate info Circle with letter I in it. 3.80% annual percentage yield as of December 27, 2024. Terms apply.
Min. to earn: $0
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

up to 4.00%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
3.80%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A

Checking accounts

Both USAA and Navy Federal Credit Union offer free checking accounts that earn interest, but Navy Federal Credit Union has far more options.

USAA has a single basic checking account, the USAA Classic Checking. The account has no monthly service fees, a $25 minimum opening deposit, and earns a small percentage of interest. It also comes with a debit card that can access over 100,000 fee-free ATMs nationwide, plus a $10 fee reimbursement per statement cycle for ATMs outside this network.

Navy Federal Credit Union has five checking accounts. All five accounts earn interest, reimburse ATM fees up to a certain amount per year ($120 or $240), and either have no monthly fees or options to waive one. Two of these accounts -- Free Active Duty Checking and Free Easy Checking -- require direct deposits to remain open, while the Free Everyday Checking does not. The Flagship Checking account earns the most interest, but you need to keep a $1,500 daily balance to avoid the $10 monthly fee. The Free Campus Checking is available for members aged 12 to 24.

Compare checking accounts

We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.

Account APY Promotion Next Steps
0%
Min. to earn: N/A
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
Open Account for Discover® Cashback Debit

On Discover Bank's Secure Website.

up to 1.10%
Min. to earn: $1
High APY when you complete 10 or more qualifying debit card purchases each month

CDs

Both USAA and Navy Federal Credit Union offer competitive rates on a variety of CD terms, but Navy Federal Credit Union also has unique CD types that could be more appealing to those who don't have large minimum deposits.

USAA Standard CDs come in 13 terms, ranging from 91 days to seven years. Accounts can be opened with a $1,000 minimum deposit.

For its part, Navy Federal Credit Union has seven CD terms, from three months to seven years, with a $1,000 minimum to open. You can earn slightly more with a larger deposit. If you can't meet the $1,000 minimum deposit, you could also get an EasyStart Certificate or Special EasyStart Certificate, which only require $50 deposits.

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer
Logo for USAA Standard CD
Member FDIC.
Logo for Navy Federal Credit Union Standard Certificate
Federally insured by NCUA.
Account USAA Standard CD Navy Federal Credit Union Standard Certificate
3 Mo. 0.05% up to 2.20%
6 Mo. 3.00% --
9 Mo. 2.75% --
1 Yr. 2.55% up to 4.35%
1.5 Yr. 2.40% up to 4.15%
2 Yr. 2.15% up to 4.05%
3 Yr. 2.05% up to 4.05%
4 Yr. 2.00% --
5 Yr. 2.00% up to 3.85%
7 Yr. -- up to 3.85%
Min. Deposit $1,000 $1,000
Early Withdrawal Penalty Yes Yes
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USAA vs. Navy Federal Credit Union: APYs

In truth, neither USAA or Navy Federal Credit Union has stellar APYs for savings or checking accounts. Between the two, the USAA Performance First® Savings is slightly better, though you'll need at least $10,000 to open this account. Even then, a deposit of $500,000 is needed to earn the highest rate, which is still comparatively low.

Navy Federal Credit Union doesn't have a high-yield savings account. But it does have a money market account, with an APY of up to 2.25% that is determined by your account balance. Only Jumbo accounts with balances of $1,000,000 or more will earn the highest APY.

Both have some competitive rates for CDs, but Navy Federal Credit Union has better rates for longer terms.

USAA vs. Navy Federal Credit Union: Customer service

Navy Federal Credit Union has a stellar 4.5 out of 5-star rating on Trustpilot. It's rare to find a bank or credit union with an excellent rating on this site and speaks volumes to the credit union's customer satisfaction. For its part, USAA has a ranking that's more common: 1.3 out of 5 stars.

Members of Navy Federal Credit Union can get stateside phone support from a customer service representative 24/7, plus a free financial consultation over the phone Monday through Friday 9 a.m. to 6 p.m.. The USAA customer service center isn't available 24/7 and has different hours depending on the department you want (banking, credit cards, loans, etc.).

USAA vs. Navy Federal Credit Union: Mobile apps

USAA and Navy Federal Credit Union have highly rated mobile banking apps that share many of the same functions. Both apps let you deposit checks, pay bills, sign up for new accounts, transfer money, and manage your credit cards. If you also have USAA auto insurance, you can see your auto ID card and call for roadside assistance within the app.

The USAA app has 4 out of 5 stars on Google Play and 4.8 stars out of 5 on the App Store. Navy Federal Credit Union's app has 4.3 stars on Google Play and 4.9 stars on the App Store.

USAA vs. Navy Federal Credit Union: Which is right for you?

Both institutions are excellent choices for military members, veterans, and their families. For its part, USAA has more savings accounts options and a better rate on a 6-month CD. However, Navy Federal Credit Union has several more checking accounts and much better APYs for most of its CD terms. It also ranks significantly higher for customer service and can offer savers a money market account with a decent APY.

Our bank and credit union methodology

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

Learn more about how Motley Fool Money rates bank accounts.

FAQs

  • USAA is great for active-duty military members, veterans, or their immediate family members who want their bank to offer numerous financial services, including deposit accounts, credit cards, loans, and insurance.

  • Navy Federal Credit Union is really great for those stationed overseas, as it has branches in Bahrain, Cuba, Greece, Guam, Korea, Italy, Japan, Singapore, and Spain. It's also an excellent choice for those who rank customer service high on their list and want a credit union that looks out for them. It might also be right for those who plan to set up direct deposit for their checking accounts.