This thread is a continuation of the invaluable thread previously maintained by GoCowboys here. It is at his request that I "take over" as keeper of the USAA flame at FWF. All of us interested in USAA owe him a debt of gratitute for his work on this thread over the past year.
PLEASE NOTE: USAA SAVINGS BANK IS NO LONGER ACCEPTING NEW MEMBERS FROM THE GENERAL PUBLIC. As of June 30, 2006, one must either be elligible for their property and casualty insurance programs via their military service, prior service, or familiy connection to same; OR they must be an existing USAA Savings Bank customer.HOWEVER, anyone may still join USAA investments, and thereby qualify for an AMA account. See later thread entries for details.
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 reply to the thread or put it in the Quick Summary.
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 if you are elligible to do so.
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: As of June 30 2006, you must meet one of these requirements to open a bank account:
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.
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.
MOVING FUNDS
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. These limits can be increased upon request and review by the bank. Also, larger amounts can be moved on a per-request basis by speaking with representatives or their supervisors.
I would also caution people from using USAA simply to transfer funds to and from other bank accounts. There are several reported cases of USAA closing accounts when they determine they are being used simply as "transfer accounts."
Quick Post This deposit method allows members to send checks overnight via UPS for posting the next day. Dropping off a free envelope at any UPS store before the UPS cutoff time will get funds posted the next day.
ACCOUNT OVERDRAFT PROTECTION
USAA has an industry-leading account protection feature that warrants its own entry. Basically, any USAA bank account can be "protected" by any other account at USAA OR many other accounts at other financial institutions. (Note that a particular account may be a "protector" or a "protected" account, but not both simultaneously!)
For example, as at many banks, a checking account can be set up to be protected by a USAA savings account. But in addition, that same account could ALSO be protected by a USAA credit card (with its no fee cash advances), OR a debit or credit card from another bank. Thus if properly constructed, a checking account should be almost "overdraft proof", since there can be multiple layers of protection placed on it.
Recently, account protection has gone through some evolution, as USAA has been updating their systems. As we discover more about the current mechanics of account protection, this thread will be updated accordingly.
OTHER INFORMATION
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.
Thread History Aug 24 2006: original thread taken from GoCowboys, with slight edits and new performace first rates. Aug 27 2006: new PF rates, "Moving Funds" section added (thanks EricGo), section added on account protection. 09/08/06: updated last two PF rates. 09/17/06: fixed typo in warning about no new applications (thanks PoodleMan). Perf first index not updated, as rates remained the same (will update upon changes.) 09/25/06: Perf first index rates still remaining the same since Sept 1. 10/11/06: Perf first index rates drop slightly as of 10/06/06. 10/15/06: Perf first index stay the same as of 10/13/06. 11/27/06: Perf first index increased on 11/3 and to a new high on 11/24/06. 01/05/07: Perf first index drops for first time since 10/06. 04/18/07: Note added that brokerage/AMA accounts still available to the otherwise non-qualified.
Message edited by: DaveHanson on 2007-04-18 23:31:38 CDT
I appreciate the kind words, and I'm glad that Dave will "oversee" the USAA thread. I'll still be around, I just have a few things in my personal life that are requiring a lot of my attention.
I did the little eligibility calculator thing on the website. While I do not qualify my Dad does. Then family members can qualify. Before I jump through all of the hoops can someone let tell me in on the club secrets?
The rates listed in the OP are good but not quite as good as what I have. I lightly skimmed through the old thread but it seems like a lot of people were given misinformation or were confused.
Do they have 0%/1.9% for life deals on CCs (already have a no fee BT card for laundering money)? Do they have savings accounts higher than 5.18% listed? Do they have 6%+ CDs?
Thanks for the help. If you could point me to some of the hot deals I'd greatly appreciate it.
Message edited by: mst3k on 2006-08-24 21:21:00 CDT
GoCowboys said:I appreciate the kind words, and I'm glad that Dave will "oversee" the USAA thread. I'll still be around, I just have a few things in my personal life that are requiring a lot of my attention.
Logged in and searched the USAA website for info, but could not determine if ATM withdrawal debits are counted against the 6 debits allowed per month on a USAA savings account.
Federal law concerning Savings accounts permits the exclusion of ATM withdrawals and many banks do not count them against the 6 allowed.
Message edited by: Alcibiades on 2006-08-24 21:40:58 CDT
ATM Withdrawals from Savings (or ATM Transfers from Savings to Checking) do not count against the 6 maximum monthly withdrawals...online transfers out from savings, phone transfers out from savings, or written checks against the savings account DO count....This is true of most banks, including USAA.....
If you call in, USAA usually has some sort of fixed BT for life or for 12 month promo's, BUT you have to call in. They offered 5.5% for life a few months back when I mentioned PENFED had that promotion going...
craig10x said:(or ATM Transfers from Savings to Checking)But recurring (scheduled) transfers from Savings to Checking are counted by some banks.
I have an MMA from another bank that permits 3 debits and 3 checks, period. For example, you are not allowed 6 debits and 0 checks. I havent tested b/c they have a $20 fee for each violation, but branch manager "said" was correct.
Message edited by: Alcibiades on 2006-08-24 23:34:33 CDT
USAA is very aware of what pen fed is doing. A year ago or so penfed had a auto refi special. I called USAA and they lowered the rate on my car loan to a quarter point below pen feds special, which was a full point drop for me.
Alcibiades said:craig10x said:(or ATM Transfers from Savings to Checking)But recurring (scheduled) transfers from Savings to Checking are counted by some banks.
I have an MMA from another bank that permits 3 debits and 3 checks, period. Not 6 debits and 0 checks. I havent tested b/c they have a $20 fee for each violation, but branch manager "said" was correct.
Right...well, recurring (scheduled transfers) would count toward the 6...and the 3 checks plus 3 other debits (not 3 checks plus 6 debits) is also correct and would also be true of USAA also (and most banks).... but when you do cash withdrawals at an atm machine (or in a branch from a teller) they do not count toward that total....nor do transfers from savings to checking that YOU do in an atm machine....
longwood8 said:USAA is very aware of what pen fed is doing. A year ago or so penfed had a auto refi special. I called USAA and they lowered the rate on my car loan to a quarter point below pen feds special, which was a full point drop for me. You can probably thank me (among others, I am sure) for that.
A couple of years ago I called USAA with the same situation. I told them that I was considering refinancing my car loan with PenFed, and asked them to make a competitive offer to keep my business.
They weren't very receptive (offered a discount of .05% IIRC) and I got the distinct impression that they either didn't believe that PenFed would offer such a good rate or didn't believe I would follow through and refinance the loan. I made it a point to file the paperwork with PenFed the very next day, and told USAA so when I called back for the loan payoff amount.
Several months later I get a letter from USAA offering me the same rate that they had refused to even consider at the time. By that time, however, I was a happy PenFed loan customer.
I'm glad to hear that they are more flexible now...
Above, I was trying to say that I have an MMA at a different bank that NEVER allows more than 3 debits, even if you write 0 checks that statement period. Weirdest thing.
But in summary, the 6 debit rule for Savings and MMA accounts is implemented differently by different banks, and sometimes very unexpectedly.
Message edited by: Alcibiades on 2006-08-24 23:35:54 CDT
longwood8 said:USAA is very aware of what pen fed is doing. A year ago or so penfed had a auto refi special. I called USAA and they lowered the rate on my car loan to a quarter point below pen feds special, which was a full point drop for me.
What would be great is if we could get USAA to match the Penfed 5/1 ARM deal. That'd be sweet.
They aren't receptive to PENFED anymore...Just bought a car they said no way, and a house closes next week, no way again...They don't match rates anymore....In April they matched a car rate, they won't anymore though...
Alcibiades said:Above, I was trying to say that I have an MMA at a different bank that NEVER allows more than 3 debits, even if you write 0 checks that statement period. Weirdest thing.
But in summary, the 6 debit rule for Savings and MMA accounts is implemented differently by different banks, and sometimes very unexpectedly.
I guess there are always exceptions to the general rule, but i do know that most banks (including USAA) do not count atm withdrawals from savings accounts or transfers (at the atm) from savings to checking as part of the "6 rule" which is imposed upon them by federal requirements....those federal requirements only refer to the other situations we have discussed....
Performance First Index $0 - $9,999 2.22% $10,000 - $24,999 4.82% $25,000 - $49,999 5.08% >$50,000 5.19% APY applies for deposits received by 08/31/2006
Message edited by: gexi on 2006-08-25 12:17:06 CDT
I didn't see mention of checking account overdraft in the summary --
USAA unfortunately does not have a mechanism that allows you to go over and pay interest on the debt without penalties . But they have something better, if one takes the time to set it up:
A different account can be designated as the account to draw from to cover the overdraft, and this transaction is free. The account can be with USAA, or an external account that allows 'cash advances'. My local credit union lets me pull funds out by ACH (I think) using my debit card without fees, so I use this as my backup account. An even smarter approach in some ways is to take out a credit card such as PenFed offers, that has no fee cash advances and around a 8 - 10% apr if I remember correctly. This way you only have to have a decent CL on the card, and not worry about keeping funds in an account.
Unverified, but perhaps one could use a HELOC as the backup account.
Going a bit off-topic ... USAA has an efficient and fast bill-pay service, that is a pleasure to use. In conjunction with the above safety mechanism for overdrafts, I am pretty comfortable that my BT's, credit cards, and bills can go on autopilot for months if need be without havoc.
Message edited by: EricGo on 2006-08-25 15:19:11 CDT
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