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The bottom line: Navy Federal has more appealing savings options, but you might favor USAA for checking.
USAA and Navy Federal are excellent options if you’re searching for a financial institution specifically geared toward military members.
We’ve compared the institutions’ bank accounts to see which products stand out the most. We’re also evaluating each bank’s trustworthiness so you can know more about their history.
USAA pros and cons
ProsCons
Eligible for membership if you or an immediate family member (parent or spouse) are an active or past military member
Refunds some out-of-network ATM fees
Free checking account
Variety of CDs
Low interest rates on savings accountsLimited customer serviceInterest compounded monthly, not daily
Navy Federal pros and cons
ProsCons
Eligible for membership if you or a family member are: an active duty, retired, or veteran military member OR work for the Department of Defense
Solid interest rates on savings and money market accounts
Refunds some out-of-network ATM fees
Free checking account
24/7 customer support by phone
Must open the Navy Federal Credit Union Share Savings Account to become a memberInterest compounded monthly, not daily
USAA vs Navy Federal checking account comparisons
USAA and Navy Federal both have a plethora of checking accounts. We’ve compared each institution’s free checking account.
USAA Classic Checking AccountNavy Federal Free Active Duty Checking™ AccountAPYUSAA Classic Checking AccountNavy Federal Free Active Duty Checking™ AccountMinimum opening depositUSAA Classic Checking AccountNavy Federal Free Active Duty Checking™ AccountMonthly service feeNoneNonePerksReimburses up to $15 in out-of-network ATM feesFree overdraft protection is availableEarly direct depositAccess to 1,200 free USAA ATMsAccess 60,000 USAA-preferred ATMs nationwide (Allpoint, MoneyPass, and PNC Bank ATMs)Reimburses up to $20 in out-of-network ATM feesEarly direct depositAccess to 30,000 free ATMsCaveats$2 transaction fee on USAA-preferred ATMs if you exceed the limit (10 free withdrawals per month)$29 overdraft fee$29 overdraft fee$20 overdraft protection transfer feeNext stepsUSAA Classic Checking AccountNavy Federal Free Active Duty Checking™ Account
Winner: USAA
The USAA Classic Checking Account makes it a bit easier to avoid common bank fees. It offers free overdraft protection, whereas the Navy Federal Free Active Duty Checking™ Account charges a fee if you utilize overdraft protection. You’ll also have some access to ATM networks outside of USAA, so it may be easier to waive out-of-network ATM fees.
USAA vs Navy Federal savings account comparisons
We’ve compared savings accounts with low minimum opening deposits and minimal service fees.
USAA Savings AccountNavy Federal Credit Union Share Savings AccountAPYUSAA Savings AccountNavy Federal Credit Union Share Savings AccountMinimum opening depositUSAA Savings AccountNavy Federal Credit Union Share Savings AccountService feeNone$3 quarterly service fee (Only if you have no other Navy Federal accounts, AND your balance is under $50, AND your account has been inactive for 12 months)PerksFree debit cardCreate separate savings goalsCaveatsLow interest rateInterest compounds monthly, not dailyInterest compounds monthly, not dailyNext stepsUSAA Savings AccountNavy Federal Credit Union Share Savings Account
Winner: Navy Federal
You’ll earn a higher interest rate through the Navy Federal Credit Union Share Savings Account than with the USAA Savings Account. It also lets you create individual savings goals, which may be ideal if you are looking for budgeting tools.
USAA vs. Navy Federal CD comparisons
USAA Bank Certificate of Deposit (CD)Navy Federal Credit Union Standard CertificateTerm lengths30 days to 7 years3 months to 7 yearsMinimum opening depositUSAA Bank Certificate of Deposit (CD)Navy Federal Credit Union Standard CertificateAPYUSAA Bank Certificate of Deposit (CD)Navy Federal Credit Union Standard CertificateEarly withdrawal penalties30 days to 1 year of interest 90 days to 1 year of interestTypes of CDsStandard CDs, Jumbo CDsStandard share certificates, Jumbo share certificatesNext stepsUSAA Bank Certificate of Deposit (CD)Navy Federal Credit Union Standard Certificate
Winner: Navy Federal
Navy Federal tops USAA when it comes to certificates. A Navy Federal Credit Union Standard Certificate pays a much higher interest rate than the national average CD rate.
Money market account
USAA doesn’t offer a money market account, but Navy Federal does. The Navy Federal Credit Union Money Market Account makes it easy to access money in your account with paper checks and an ATM card. It also has a Navy Federal Credit Union Money Market Account minimum opening deposit — most financial institutions require at least $1,000 for money market accounts.
Winner: Navy Federal
Navy Federal is a default winner for this category because USAA doesn’t have a money market account. You might find the Navy Federal Credit Union Money Market Account appealing if you don’t have much money to deposit.
USAA vs. Navy Federal trustworthiness and BBB ratings
The Better Business Bureau rates businesses based on responses to customer complaints, honesty in advertising, and transparency about business practices.
USAA has an A- grade from the BBB. Meanwhile, Navy Federal received NR (“No Rating”) because its currently responding to previously closed complaints.
A good BBB rating won’t guarantee a smooth relationship with a financial institution. You’ll want to talk to current customers or read online customer reviews to see if a bank might be right for you.
Both USAA and Navy Federal have been involved in recent public controversies.
USAA has been involved in the following public settlements:
In 2020, the Office of the Comptroller of the Currency required USAA to pay $85 million in a settlement that accused the bank of failing to establish and carry out an efficient compliance risk management program and IT risk governance program.In 2019, the Bureau of Consumer Financial Protection required USAA to pay $12 million in a settlement that said USAA did not stop automatic payments when customers requested.
Navy Federal has been involved in the following scandal:
In 2020, a Navy Federal employee filed a lawsuit claiming the lender pressured mortgage underwriters to approve loans even if they thought an applicant wouldn’t be able to pay off the loan. She dropped the case in late 2020 but said Navy Federal retaliated against her whistleblowing by changing her job duties.
Winner: Tie
Both financial institutions have been involved in recent public controversies. You might want to consider learning more about mission-driven banks if you want to be part of a financial institution that aligns with your values and hasn’t been involved in recent controversies.
Frequently asked questions
Which bank is better, USAA or Navy Federal?
Your preferences between these two institutions may depend on whether you prefer banks or credit unions. Credit unions usually require you to meet certain requirements to join. At Navy Federal, you’ll need to open the Navy Federal Credit Union Share Savings Account to become a member.
You’ll also want to see if you’re eligible to bank with either institution. To bank with USAA, you or an immediate family member must be a past or active military member. At Navy Federal, you’re eligible if you or a family member are active duty, retired, or veteran military member, or work for the Department of Defense.
Which military bank is the best?
Both Navy Federal and USAA are great choice for military members and are featured in our guide of best banks and credit unions for military members.
Each financial institution stands out for different reasons. Navy Federal is a good brick-and-mortar institution for savings accounts. It also may stand out to you if you prioritize in-branch services since it has 247 locations worldwide, including some branches on Navy bases.
You might favor USAA if you’re looking for a strong checking account. It also has more short-term CDs.