Orlando Harmon
USAA Federal Savings Bank is a member of the Federal Deposit Insurance Corporation (FDIC) and insures deposits up to $250,000 per depositor, per ownership category, in the event of a bank failure. The bank offers a range of financial products, including checking accounts, savings accounts, credit cards, auto loans, personal loans, and mortgages, primarily serving members of the U.S. military and their families. While USAA's checking and savings accounts offer low-interest rates, customers may find convenience in having their banking and insurance needs met under one roof.
| Characteristics | Values |
|---|---|
| Insured by | Federal Deposit Insurance Corp. (FDIC) |
| Insurance limit | $250,000 per depositor, for each account ownership category |
| Insurance scenario | In the event of a bank failure |
| Account types | Checking, savings, CDs, credit cards, auto loans, personal loans, mortgages |
| ATM access | 60,000 fee-free ATMs |
| Branch offices | 2 |
| Minimum opening deposit | $25 |
| Monthly service fees | None |
| Overdraft fee | $29, up to three per day |
| Overdraft protection transfer fee | None |
| Non-USAA ATM withdrawal fee | $2, after 10 ATM withdrawals in a month |
| Interest rates | Low |
| Membership | Open to current and former members of the U.S. military and their families |
| Number of physical locations | 4 |
| Mobile app rating (iOS) | 4 stars |
| Mobile app rating (Android) | 4.6 stars |
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What You'll Learn
USAA Federal Savings Bank is FDIC-insured
USAA Federal Savings Bank is a San Antonio-based financial services company that was founded in 1922 by a group of Army officers who came together to insure their cars. Over the years, USAA expanded its services from insurance to banking and opened membership to enlisted service members and their families. Today, USAA Bank offers a range of financial products, including checking accounts, savings accounts, certificates of deposit (CDs), credit cards, loans, and mortgages.
USAA Bank is FDIC-insured, which means that its customers' deposits are protected by the Federal Deposit Insurance Corporation (FDIC) in the event that the bank fails. The FDIC insurance coverage provides peace of mind to USAA Bank customers, knowing that their money is safe and insured.
The FDIC insurance coverage limit is $250,000 per customer, per account ownership category. This means that if USAA Bank were to fail, customers could recover up to $250,000 of their deposits per insured account category. For joint accounts, each co-owner is considered a separately insured customer, allowing for a collective recovery of up to $500,000 in the event of a bank failure, provided there are no other shared accounts.
It is important to note that not all financial products offered by USAA are FDIC-insured. The FDIC only insures deposit accounts, such as checking and savings accounts, and certificates of deposit. Investment products, such as stocks, bonds, and mutual funds, are not insured by the FDIC and can lose value.
USAA Bank customers can rest assured that their money in checking and savings accounts is insured and protected by the FDIC. This FDIC insurance coverage provides an extra layer of security and trust for customers, making USAA Bank a reliable choice for their financial needs.
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USAA's history and customer base
USAA, or the United Services Automobile Association, was founded in 1922 in San Antonio, Texas. It was founded by 25 U.S. Army officers who wanted to provide mutual self-insurance for each other, as they were deemed a high-risk group and were unable to secure auto insurance. The company began as a member-owned organisation, with members insuring each other.
USAA's mission has always been to serve its niche market of members of the U.S. military and their immediate families. Over the years, the company has expanded its membership eligibility to include veterans, enlisted members of the Armed Forces, and members of the National Guard and Reserves. As of 2020, USAA had over 13 million members.
USAA is headquartered in San Antonio, Texas, and has offices in eight U.S. cities and three overseas locations. The company employs over 37,000 people worldwide. USAA is a pioneer in direct marketing, with most of its business conducted over the internet or telephone. The company offers a wide range of insurance and banking products to its members, including personal property and casualty insurance, life insurance, and banking services. USAA is also known for its commitment to community involvement and support of military families.
USAA has received numerous awards and recognitions for its exceptional customer service and commitment to its members. The company provides a comprehensive benefits package to its employees, including health insurance, retirement plans, and paid time off. USAA's former CEOs include retired Air Force Brigadier General Robert F. McDermott, who is credited with decentralising operations and introducing automation. Under his leadership, USAA shifted from service-by-mail to service-by-phone and constructed the USAA office building in San Antonio.
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USAA's eligibility criteria
USAA is a financial services company that was founded in 1922 by a group of Army officers who came together to insure their cars. Over the years, USAA expanded its services to include banking, insurance, investments, and retirement products for current and former members of the U.S. military and their families.
Active Duty Military Personnel
Active-duty military members of the U.S. Army, Navy, Air Force, Marines, Coast Guard, National Guard, and Reserves are generally eligible for USAA membership. This includes individuals who are currently serving in any branch of the U.S. military.
Retired Military Personnel
Retired and honorably discharged veterans are also eligible for USAA membership. This includes individuals who have completed their military service and received an honorable discharge.
Family Members of USAA Members
USAA membership can be passed down to the spouse, children, and unmarried former spouse of a USAA member. For example, if your parent is a USAA member and a military servicemember, you are likely eligible for membership as their child. Similarly, if a USAA member gets married, their new spouse and future children become eligible for membership. However, if an eligible servicemember chooses not to join USAA, their spouse cannot join either.
It's important to note that eligibility cannot be passed on posthumously. If eligible parents are deceased and were not USAA members, their children are not eligible for membership. Additionally, membership cannot be passed 'up' to parents or 'across' to siblings.
National Guard and Reserve Members
Members of the National Guard and Reserves can also access USAA insurance coverage and other financial services.
To confirm eligibility, individuals should contact the USAA New Member Team and provide the necessary documentation, especially if they are eligible family members of USAA members.
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USAA's checking account features
USAA is a financial services company that provides banking, insurance, investments, and retirement products to current and former members of the U.S. military and their families. The company offers a range of products and services, including checking accounts, savings accounts, and certificates of deposit (CDs).
USAA's checking account, the USAA Classic Checking, has a $25 minimum opening deposit requirement. However, it does not require a minimum balance and does not charge monthly service fees. Account holders can make up to 10 ATM withdrawals per month without incurring additional charges. After the 10 free withdrawals, USAA charges $2 per withdrawal at non-USAA ATMs. The bank also offers reimbursement of up to $10 per month for other banks' ATM fees.
USAA checking accounts provide a small amount of interest on balances of at least $1,000. The bank declines transactions that would result in an overdraft and charges a $29 overdraft fee, up to three times per day. Notably, USAA does not charge an overdraft protection transfer fee.
USAA offers a personal budgeting tool called USAA Money Manager, which allows customers to view all their USAA and non-USAA accounts in one place. This tool helps with tracking expenses and setting budgets.
In addition to checking accounts, USAA provides savings accounts with no monthly service fees, no minimum balance requirements, and fraud protection. Savings accounts are intended for long-term growth, earning interest over time. Account holders can easily transfer money electronically from other USAA accounts or other banks, deposit checks using the mobile app, or deposit at select USAA ATMs.
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USAA's other financial products
USAA is a financial services company that was founded in 1922 by a group of military officers. The company provides banking, insurance, investments, and retirement products to current and former members of the U.S. military and their families.
USAA offers a range of financial products beyond just checking accounts. These include:
- Savings accounts: USAA savings accounts are interest-bearing accounts that help customers save money and earn monthly interest. These accounts can be easily accessed and managed online or through the USAA mobile app. There are no maintenance fees or minimum balance requirements.
- Certificates of Deposit (CDs): USAA offers CDs with terms ranging from 30 days to seven years. CDs require a minimum deposit of $1,000 and offer competitive interest rates.
- Credit cards: USAA offers various credit cards with features such as cashback rewards and no annual fees.
- Loans: The company provides auto loans, personal loans, and mortgages to its members. USAA also offers a Veterans Affairs jumbo loan with no down payment and no origination fee.
- Insurance: USAA has a range of insurance products, including auto insurance, homeowner's insurance, renter's insurance, and life insurance. They also have programs like Connected Home and PreFix to help prevent costly home repairs.
- Investments: While USAA sold its investment management and brokerage accounts to Charles Schwab in 2020, they continue to offer investment products to their members.
USAA also provides a personal budgeting tool called USAA Money Manager, which allows customers to track their spending and set budgets by viewing all their USAA and non-USAA accounts in one place.
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Frequently asked questions
Yes, USAA Federal Savings Bank is a member of the FDIC and its deposit accounts are insured up to $250,000 per depositor, for each category of account ownership, in the event of a bank failure.
The USAA Classic Checking account requires a $25 minimum opening deposit, but there is no minimum balance and no monthly service fees.
You can open a USAA checking account online. You'll be asked a series of questions to determine your eligibility and will need to provide personal information to verify your identity. Membership is limited to active and former U.S. military, pre-commissioned officers, and their spouses and children.
USAA offers a personal budgeting tool called USAA Money Manager, which enables you to track your spending and set a budget. The USAA Classic Checking account also provides flexible ATM options, with access to over 100,000 USAA-preferred ATMs nationwide and reimbursement of up to $10 per month for out-of-network ATM fees. Additionally, USAA offers a wide range of online and mobile banking services, including a mobile app for iPhone and Android users.
