The Ultimate USAA Bank Thread

Edit by Moderator: New Thread Started. Here
This thread contains a lot of information about USAA and their products and services. If there is anything you feel should be added, changed, or deleted, please send me a private message or put it in the Quick Summary.

GENERAL INFORMATION

Website
USAA

To gain access to the full website, you need a member number. There is no obligation, and this will allow you to see USAA's full product range. Call 1-800-531-2265.

Routing Number
314074269

Eligibility Requirements
Property and Casualty Insurance: To get property or casualty insurance from USAA, you have to have a military affiliation.

Banking: To open a bank account, you must meet one of these requirements:
1. have a military affiliation
2. be a current bank customer
3. be a resident of Bexar County, Texas (San Antonio)

PRODUCTS AND SERVICES

Checking
- No minimum or average balance requirements
- No monthly service fees
- 1/2 percent rebate of all non-PIN purchases made with the Debit Mastercard
- ATM card and Debit Mastercard both available
- Free bill pay (no balance or direct deposit requirements)
- Free checks for the life of the account (custom blue USAA non-duplicate checks, one box per order)
- New accounts can be funded by mailing a check, by initiating an ACH transfer from another bank, or by using a credit/debit card ($500 maximum on credit/debit cards)
- Only Visa and Mastercard accepted for opening deposit
- $25 to open

USAA Savings
- No minimum or average balance requirements
- No monthly service fees
- Tiered interest rates depending on balance
- $25 to open

Performance First Index Account
- No minimum or average balance requirements
- No monthly service fees
- Tiered interest rates depending on balance
- $10,000 to open

First Start Savings
- No minimum or average balance requirements
- No monthly service fees
- Tiered interest rates depending on balance
- $1 to open
- Available to persons 17 years of age and younger

Credit Cards
Those without a military affiliation might pay higher interest rates and may not be eligible for credit card rewards programs.

Other Account Features
- No ATM fees on the first 10 non-USAA ATM withdrawals each statement cycle ($2.00 each after that)
- ATM surcharge rebates of up to $15.00 per account per statement cycle
- Real-time online banking

INTEREST RATES

The first column shows the current rates; current rates are in effect through the date at the top of the first column. The other columns show previous rates so that you can see a trend in rates.

Checking
08/10 ---- 06/15 ---- 05/25 ---- 05/18 ---- 04/27 ---- 04/20 ---- 04/13---- Tier
0.00% --- 0.00% --- 0.00% --- 0.00% --- 0.00% --- 0.00% --- 0.00% --- Under $1,000.00
0.15% --- 0.15% --- 0.15% --- 0.15% --- 0.15% --- 0.15% --- 0.15% --- $1,000 and over

USAA Savings and First Start Savings
08/10 ---- 06/15 ---- 05/25 ---- 05/18 ---- 04/27 ---- 04/20 ---- 04/13 ---- Tier
2.85% --- 2.75% --- 2.75% --- 2.50% --- 2.50% --- 2.50% --- 2.50% --- $0 to $999.99
3.65% --- 3.56% --- 3.56% --- 3.30% --- 3.30% --- 3.30% --- 3.30% --- $1,000.00 to $4,999.99
3.75% --- 3.61% --- 3.61% --- 3.35% --- 3.35% --- 3.35% --- 3.35% --- $5,000.00 to $9,999.99
3.90% --- 3.71% --- 3.71% --- 3.45% --- 3.45% --- 3.45% --- 3.45% --- $10,000.00 to $24,999.00
4.15% --- 3.87% --- 3.87% --- 3.61% --- 3.61% --- 3.61% --- 3.61% --- $25,000 and up

Performance First Index Account
08/10 ---- 06/15 ---- 05/25 ---- 05/18 ---- 04/27 ---- 04/20 ---- 04/13 ---- Tier
2.22% --- 2.22% --- 2.22% --- 2.22% --- 2.22% --- 2.22% --- 2.22% --- $0 to $9,999.99
4.80% --- 4.51% --- 4.43% --- 4.34% --- 4.29% --- 4.25% --- 4.22% --- $10,000.00 - $24,999,99
5.06% --- 4.77% --- 4.69% --- 4.60% --- 4.55% --- 4.51% --- 4.48% --- $25,000.00 - $49,999.99
5.17% --- 4.88% --- 4.79% --- 4.71% --- 4.66% --- 4.61% --- 4.58% --- $50,000 and up

CDs and IRAs
The CD and IRA rate levels are too numerous to list all of them here, but the rates are very competitive, generally ranging from 3.50%APY to 5.25%APY, although the rates change often.

OTHER INFORMATION

ACH Transfers
USAA has an ACH transfer capability which allows you to electronically transfer funds from any of your other bank accounts at other financial institutions. The service is very fast.

ACH transfers into a USAA account requested before 8:00 p.m. Central Time will be used to pay checks the same night.

ACH transfers involving non-USAA accounts are limited to an aggregate $5,000 per day, including future/scheduled transfers.

I would also caution people from using USAA simply to transfer funds to and from other bank accounts. I have heard stories of USAA closing accounts when used simply as a "transfer account."

Online Banking
Online banking is real-time. For example, if you make an ATM withdrawal, the transaction shows up online immediately, including the location of the ATM. Likewise, if you make a Debit Mastercard purchase, the purchase shows up online immediately, including the name of the merchant.

Transfers from one account to another are immediately available in the destination account.

Customer Service
USAA has the best customer service in the business. They are one of the only institutions that consistently gets the answer right the first time. They are always friendly on the phone, and always eager to help in whatever way they can. They make you feel that they really do want your business.

Bill Pay
With Bill Pay, there are 3 different ways that a payment could be made (remember that "Payment Date" means the date you want the payee to receive the payment):

- Electronic Payment - the funds for the bill payment are withdrawn from your account on the Payment Date.
- Check Payment - funds are withdrawn when the payee cashes the check.
- "Guaranteed Funds" Check Payment - funds are withdrawn on the Payment Date.

You can often pay next day, often as late as 6-7 pm Eastern time, which is beyond their official cut-off times.

Software
USAA allows direct download of account information (credit card, checking, savings) from:
- Microsoft Money
- Quicken (yes, Quicken is supported)
- Yodlee

ATM and Debit Card Rebates
The ATM surcharge rebates and Debit Card rebates are deposited into your account automatically at the end of the statement cycle; you do not have to mail in ATM receipts for the ATM surcharge rebate.

Miscellaneous Information
- USAA uses their own "security verification system" - not sure if that means ChexSystems, identity verification through a credit report, or what.
- You cannot make deposits at a non-USAA ATM.
- If you are not a U.S. citizen, you may be asked to send in identification before the account(s) can be opened or you receive your membership number.
- USAA's Touchline (automated telephone banking) is voice-driven.
- USAA's Quick Post deposit method allows members to send checks overnight via UPS for posting the next day.

If you want this to be the "ultimate" USAA thread, a couple of obvious things you're missing for someone even just beginning to look: 1. a link to USAA, 2. description their eligibity requirements (which I think comes down to being military, or related to someone who is, right?)

I have heard that USAA has decent credit card offerings...notably low APR's, high limits, CashBack, only 1% foreign transaction fee, etc.

Does anyone have info on their CC offerings to add here?

No it is 0.5%

"No ATM fees on the first 10 non-USAA ATM withdrawals ($1.00 each after that)"

Is this per month?

News to me, this post by emre on 8/9/05. I'm a member, but know nothing of this dividend. I do get a dividend back on my car insurance premium, but I think this is something else. Worth noting in the USAA particulars for membership or in some tiered-benefits category? -Zer (whose membership may be tiered as a military dependent, since I am a total non-combatant myself; however, I am totally rated for safe-driver discount on USAA auto insurance) emre1000 - answering a query on "What is USAA SSA?" thread.
SSA = Subscribers Savings Account. My understanding is it's how much of the reserves that USAA keeps which belongs to you. Some years, they don't pay anything out to you but you get money deposited into it, other years, you get a credit from it against your insurance premiums. USAA is owned by the members, therefore, they are the ones who get the SSA. This is only if you have insurance through USAA, and only if it's throught the parent organization which is for NCO's and Officers in the military and their families maybe. Junior Enlisted members are placed into the USAA General Insurance company until they become NCO's or not. The General Insurance is also where they place all of the high-risk driver to make them pay higher premiums and not the whole USAA population. The SSA is separate than the dividends that they pay out. EDIT: Just confirmed that SSA is not for dependents. Eligibility is restricted to officers/NCOs, widows of officers/NCOs, USAA employees with five yrs service. Got that info at 1-800-531-8111, which is the USAA ph# on my notice of USAA automobile dividend credit.

Please note that credit card interest rates are high for non-military members. Non-military members are also not eligible for rewards cards.

I've been a USAA member since I was about 15 - never used any of their services - my parents made me a member. I just did a quote and it's $1,101.87 for 6 months - wow - I pay $1430.00 for 1 year with AAA. Yet again another disapointment with them.

They have the best customer service tho

I just looked at a stmt and see that my USAA MC/Visa CC shows 6%apr for purchase and 9%apr for cash advance, with $20k CL. I do not carry a balance. Better rates for USAA cash advance checks arrive from time to time, but I don't recall what rate they offer as I shred the checks on arrival. I'm not military (no military service my own self), but my membership is as a military dependent. I don't do 'rewards' or 'points', but I vaguely recall that some USAA card I have offers some rewards. Maybe it's the debit card linked to checking. I don't use debit cards. Just don't remember that dang PIN! -Zer Grim said: Please note that credit card interest rates are high for non-military members. Non-military members are also not eligible for rewards cards.

Grim said: Please note that credit card interest rates are high for non-military members. Non-military members are also not eligible for rewards cards.

Are there any non-military memebrs here who hold USAA credit cards? What are your rates?

slander1709 said: foomeister said: Are there any non-military memebrs here who hold USAA credit cards? What are your rates?
Don't know what you mean by non-military. I have not personally served in the military, though my father did, so I fall into the former military dependent category. I have a 7.75% APR on purchases from USAA and 10.75% on cash advances. The card offers a flat 1% Cash Back on everything. I was offered the card after a long period of non-use on my previous USAA credit card.

Thanks. By non-military, I mean someone that has no military affiliation, either directly or as a dependent...someone that joined only to take advantage of USAA's financial services and is ineligible for insurance, etc. through USAA.

<<I would find it helpful if you mentioned in title that this was a discussion about USAA financial products, not insurance.>>

oops my mistake...'financial products' may include insurance, annuities, mutual funds etc., my mistake for suggesting it. Maybe your title could be reduced to suggest a discussion of having an account with USAA Federal Savings Bank....and whatever benefit is derived from being a customer of that bank.

'The Ultimate USAA Federal Savings Bank Thread' for example

Sorry for the numerous edits (didn't have my first cup of coffee)...but your title Banking Products is just fine

I really need that cup of coffee....now it's 'Bank' thread

I am member of USAA also. My parents have been members for years and have always had auto insurance with them. So I started my own policy when I got out on my own. Their auto is little higher in certain instances. However they have the best claim service I have ever seen. They usually send a refund check at the end of year as well. About a monthly payment's worth. I have checked into their property insurance and it seems a little higher as well, have signed up for that one yet. They recently sent me a loan check for $3k 10%APR. They have tried to talk me into getting a checking account and it sounds like a very good deal. I am just hesistant about it since I guess if you have a check to cash you have to either go to another bank or mail the check to them. Not sure how that would work.

As I understand it, USAA began as an Automobile (insurance) Association, then expanded to other insurance services to meet the needs of mobile military families, some of whom move families every few years -- in and outside USA borders -- and might therefore be unable to get good rates from insurance companies. The banking part followed later, with brokerage services a fairly new branch of USAA services, I think. See below for a full outline. -Zer tooshy said: <<I would find it helpful if you mentioned in title that this was a discussion about USAA financial products, not insurance.>> oops my mistake...'financial products' may include insurance, annuities, mutual funds etc., my mistake for suggesting it. Maybe your title could be reduced to suggest a discussion of having an account with USAA Federal Savings Bank....and whatever benefit is derived from being a customer of that bank. 'The Ultimate USAA Federal Savings Bank Thread' for example. ...your title Banking Products is just fine.... Possibly this description of USAA will help folks understand that banking is not the first thrust for USAA, which is why insurance keeps coming up as people talk about what they like or don't like about USAA. United States Automobile Association (USAA) is a family of companies that provide insurance and diversified financial services predominantly for the military community. Since 1922, USAA has been providing insurance facilities. USAA car insurance has achieved a high rating as an insurance company that offers excellent service at competitive prices. USAA insurance facilities encompass Automobile, Homeowners, Renters, Fire, Flood and boat insurance schemes. You can avail USAA auto insurance for specialized needs such as antique auto insurance and large yacht insurance.

USAA auto insurance and other types of insurances are the primary services offered by the United States Automobile Association (USAA). It is consistently rated among the best property and casualty insurance companies in the nation by most of the important consumer publications. The company has a rich tradition of offering excellent services at competitive prices.

Apart from insurance services, USAA provides other financial and money-management services like annuities, mutual funds including IRAs, brokerage and banking services. Banking services include checking accounts, no annual fee credit cards, savings accounts, home loans and more. Many goods and services are offered at discount rates to members of USAA through its many commercial enterprise affiliates.

The Insurance Rating Commission has approved a rate decrease for the USAA insurance in January 2004. The USAA car insurance rates will be reduced by an average of 2.2.% for policy holders who consist mainly of military personnel and their dependents. This reduction in USAA auto insurance rates will result in lowered premiums.

With a member base of more than 5 million, USAA is a member-owned Fortune 500 Company.

National Guard and Reserve enlisted personnel, officers and officer candidates and those on active duty are eligible for USAA insurance membership. Soldiers can request for USAA insurance quotes for various insurance needs. USAA has its headquarters in San Antonio, Texas and offices throughout the U.S. and Europe. This does not say clearly that some USAA services are open to people with no military affiliation at all. Nor does it say that military dependents qualify as members, which is how I got in on the insurance. Glad of that, as it's been useful. -Zer

Cashing checks? I just endorse a check and deposit it by mail. Always write FOR DEPOSIT ONLY and my account number on the back of the check, just above my endorsing signature. That makes the check useless to anyone who might find it on its way to my bank. One of the things I like about USAA is that its return envelopes are post-paid. When I deposit to my local bank, I spend 37cents. Hmm, that's kind of wasteful, isn't it? Stamps are expensive! -Zer chill1 said: I am member of USAA also. My parents have been members for years and have always had auto insurance with them. So I started my own policy when I got out on my own. Their auto is little higher in certain instances. However they have the best claim service I have ever seen. They usually send a refund check at the end of year as well. About a monthly payment's worth. I have checked into their property insurance and it seems a little higher as well, have signed up for that one yet. They recently sent me a loan check for $3k 10%APR. They have tried to talk me into getting a checking account and it sounds like a very good deal. I am just hesistant about it since I guess if you have a check to cash you have to either go to another bank or mail the check to them. Not sure how that would work.

Never thought about using CC to fund a CD or a new account. Interesting idea, in view of possible points earned. Unless, of course, the transaction is regarded as a cash advance with a fee for 'lending' that money. Was your transaction a cash advance? -Zer tooshy said: I opened a savings account (funded with cc) in addition to checking simply to park funds for billpay that will earn a small amount of tiered interest, at least 1.45%.

USAA offers one of the highest 5yr CD rate, 5%, min 1K deposit (see CD thread). Very convenient to transfer funds and create CDs. However, no cc funding as far as I could tell.

Do they run a hard credit check when opening an account?

You earned 12.50? How? What period of time? -Zer tooshy said: Some banks allow cc funding of your initial account as part of their new account verification process. I like it for several reasons, one of course is to earn rewards, and the other is ease of available funds. Make your CD today and line your ducks in a row tomorrow I used the Penfed cc which has no cash advance fee (just in case), and according to USAA CSR, the funding should go thru as a purchase. Sometimes cc issuers recode it as a cash equivalent that doesn't earn rewards, but still has a purchase grace to it.

The maximum cc funding was $500 for savings and $500 for checking. It earned just $12.50 but for the lack of effort required it paid for a free lunch EDIT: Ah, the 12.50 is tied to using PenFedCC with 1.25% rebate.
I was trying to figure interest earned(?) on money deposited at USAA.
No wonder I could not make any sense of the math! Duh! -Zer (not too numerate)

What are the Credit card rates for non military.

Not sure if this is mentioned at CD thread, but I found it interesting. USAA 5yr CD (min.$1k) at adjustable rate 4.74% with option to adjust up to 2% at customer's call (one time only) if USAA rates go up. CSRep advised me to grab that if rate goes up even 1.5%, not to be greedy in waiting for a full 2% in the coming 5yr period. I was looking at the 5yr/5% but decided to take the chance on rates rising in the next five years. -Zer tooshy said: USAA offers 5yr CD rate, 5%, min 1K deposit (see CD thread).