Which Military Bank Is Best?
Table of Contents
- Navy Federal Credit Union is a brick-and-mortar institution with 247 branches around the world.
- USAA provides predominantly online savings accounts, checking accounts, and CDs.
- Navy Federal has more appealing savings options, but you might favor USAA for checking.
- Read Insider’s bank reviews of Navy Federal Credit Union and USAA.
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.
Pros and cons: USAA
Pros and cons: 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.
Annual Percentage Yield (APY)
0.01% APY on balances of $1,000 or more
Minimum Deposit Amount
$25
- Low $25 minimum opening deposit
- No monthly service fees
- Refunds up to $15 per month in out-of-network ATM fees
- Link to another USAA account for free overdraft protection
- Receive direct deposit one day before payday
- USAA ATMs are free and accept deposits
- $29 nonsufficient funds fee
- Only 10 free withdrawals from USAA-preferred ATMs per month, then $2 fee
- USAA-preferred ATMs don’t accept deposits
Read Our Review
- Available to active military, veterans, and military families
- Physical offices in US (AZ, CO, FL, MD, NY, TX, VA); England (London); Germany (Frankfurt); Luxembourg (Luxembourg)
- 1,200 USAA ATMs; 60,000 USAA-preferred ATMs nationwide
- Earn 0.01% APY on balances of $1,000 or more
- Interest compounded and deposited monthly
- FDIC insured
Savings account comparisons
We’ve compared savings accounts with low minimum opening deposits and minimal service fees.
Annual Percentage Yield (APY)
0.25% APY
Minimum Deposit Amount
$5
- Join Navy Federal Credit Union as an active military member, military veteran, Department of Defense employee/retiree, or family member of any of the aforementioned groups
- 247 branches worldwide, including on select military bases
- Interest compounded monthly, paid monthly
- You’ll pay $3/quarter if you have no other Navy Federal accounts, AND your balance is under $50, AND your account has been inactive for 12 months
- Federally insured by the NCUA
CD comparisons
Annual Percentage Yield (APY)
0.40% to 1.10% APY
Minimum Deposit Amount
$1,000
- Join Navy Federal Credit Union as an active military member, military veteran, Department of Defense employee/retiree, or family member of any of the aforementioned groups
- 247 branches worldwide, including on select military bases
- Terms ranging from 3 months to 7 years
- Earn higher APY with a higher balance
- Early withdrawal penalty of 90 days dividends for terms of 3 months to 1 year; 180 days dividends for terms of 1 year to 5 years; 365 days interest for terms of 6 and 7 years
- Interest compounded monthly, paid monthly
- Federally insured by the NCUA
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 $0 minimum opening deposit — most financial institutions require at least $1,000 for money market accounts.
Annual Percentage Yield (APY)
0% to 0.45% APY
Minimum Deposit Amount
None
- Join Navy Federal Credit Union as an active military member, military veteran, Department of Defense employee/retiree, or family member of any of the aforementioned groups
- 247 branches worldwide, including on select military bases
- 30,000 free ATMs
- Tiered interest rate system; earn higher rates with higher balances
- Interest compounded monthly, paid monthly
- Federally insured by the NCUA
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.
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.