USAA, a bank that’s open to military members and their families, offers three different savings accounts for its members. However, in a high-rate environment, USAA offers precious little on its savings products, and even those who qualify for membership may want to look elsewhere.
Annual percentage yields (APYs) and account details are accurate as of April 8, 2024.
Are USAA savings account interest rates worth it?
In short: no.
USAA offers three savings accounts: USAA Savings, USAA Youth Savings and USAA Performance First® Savings Account.
The annual percentage yield (APY) on the first two savings accounts is far lower than the national average savings rate. The third account offers a higher APY, though you’ll need a very high minimum balance to earn it.
If you want to grow your savings, then you’ll likely find a much better APY elsewhere. Here’s a quick look at what you can earn with a USAA savings account:
| ACCOUNT | APY | MINIMUM OPENING DEPOSIT |
|---|---|---|
USAA Savings | 0.01% | $25 |
USAA Youth Savings | 0.01% | $25 |
USAA Performance First | 0.05% – 1.60% | $10,000 |
Overview of USAA interest rates
When comparing savings accounts, it’s a good idea to look at APY, how often the bank compounds interest, the minimum opening deposit and the monthly fees.
APY
On a USAA Savings account and a Youth Savings account, you earn an APY of 0.01% no matter what your balance is. But rates are tiered with the USAA Performance First savings account. Here’s how they break down by account balance:
| BALANCE | APY |
|---|---|
Under $10,000 | 0.05% |
$10,000 to $49,999.99 | 0.10% |
$50,000 to $99,999.99 | 1.00% |
$100,000 to $249,999.99 | 1.10% |
$250,000 to $499,999.99 | 1.20% |
$500,000 and above | 1.60% |
Minimum opening deposit
Both the USAA Savings account and Youth Savings account offer their standard APYs without conditions; you just need at least $25 to open the account. You can use the following methods to fund it:
- A USAA bank account.
- An account at another bank.
- Any Visa credit card, Mastercard credit card or USAA Bank credit card, up to $100.
The USAA Performance First savings account requires a minimum deposit of at least $10,000. If you apply online, you’ll need to fund the account with your existing USAA checking or savings account.
Monthly fees
None of USAA’s savings accounts charge monthly maintenance fees, which is a positive. But you may have to pay other fees, such as an excess withdrawal fee if you have more than six withdrawal transactions from your account in one month.
How much can you earn?
The interest you can earn with a USAA savings account depends on your APY, the amount you deposit and how long you keep the funds in the account. USAA’s interest rates are relatively low, so you won’t earn much compared to some other savings and investment options.
Generally, you’ll earn more by keeping your money in the account and making regular contributions. USAA compounds interest on a monthly basis and pays it to your account each month. Thanks to the magic of compounding, you earn interest on your contributions as well as the interest you already earned.
A savings calculator can help you estimate your earnings. Here’s an example of how much interest you could earn by depositing $10,000 into a USAA savings account and making monthly contributions:
| ACCOUNT | STARTING DEPOSIT | APY | MONTHLY DEPOSIT | BALANCE AFTER 10 YEARS | INTEREST EARNED |
|---|---|---|---|---|---|
USAA Savings account | $10,000 | 0.01% | $100 | $22,016 | $15.96 |
Youth Savings | $10,000 | 0.01% | $100 | $22,016 | $15.96 |
USAA Performance First | $10,000 | 0.05% – 1.60% | $100 | $22,080 – $24,738 | $80 – $2,738 |
How USAA compares
The national average deposit rate for a savings account was 0.46% APY as of April 15, 2024, according to the Federal Deposit Insurance Corporation’s (FDIC) official record. That puts the USAA Savings and Youth Savings account rates far below the national average deposit rate, while the Performance First rate is triple the average.
Many online banks, such as Ally and Synchrony, offer APYs well above what USAA offers — and many of them come with no fees, balance minimums or membership requirements.
Other savings options at USAA
In addition to its savings accounts, there are the USAA Certificates of Deposit (CDs). These accounts come with a fixed APY for the duration of the term, which range from one month up to seven years. The APYs depend on the CD term and range from 0.05% to 5.25%.
About USAA
Founded in 1922, the United Services Automobile Association is a bank that’s based in San Antonio, Texas, and open to veterans, current members of the armed forces and their spouses and children.
USAA offers a full suite of banking options, including mortgages, auto loans, checking and savings accounts, credit cards and more. It consistently receives some of the highest marks for customer service.
Members can access more than 100,000 in-network ATMs and will receive up to $10 in refunds for out-of-network ATM fees they incur. There are also a handful of USAA branch locations across the U.S.
Frequently asked questions (FAQs)
To open a USAA savings account, you’ll first need to become a member. Then you can log into your account online and apply for a savings account.
The bank will ask for your full name, address, date of birth and other identifying information. It will also require a minimum deposit of $25 for the USAA Savings and Youth Savings accounts and at least $10,000 for the USAA Performance First savings account. You can make the deposit using a bank account or a credit card.
Customers with a USAA Savings account or a Youth Savings account can earn an APY of 0.01%. The USAA Performance First savings account has tiered rates, so you can earn from 0.05% to 1.60% based on your daily balance.
No, USAA doesn’t offer a high-yield savings account. It has three savings accounts with varying APYs.
Yes, in some cases. If you are the spouse or child of a current or former military member, then you can join USAA and open a savings account.
