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USAA and Navy Federal Credit Union offer a full range of financial products and services geared toward the needs of military members and their families. Either one could be a good fit if you’re affiliated with the military and looking for a new place to keep your money.
While USAA and Navy Federal have some things in common, they’re not identical. Comparing the benefits and features can help you decide which one might be right for you.
This review focuses on each bank’s checking and savings products. All account details and annual percentage rates (APYs) are accurate as of May 1, 2024.
Which Bank Is Better: USAA or Navy Federal?
While both institutions have your banking and credit needs covered, USAA and its partners offer more when it comes to insurance, retirement and investing services. Navy Federal Credit Union, however, offers business banking while USAA does not.
Navy Federal is better for in-person banking, with 350 branches worldwide compared to just four financial centers operated by USAA. That said, USAA’s network of over 100,000 preferred ATMs with up to $10 in refund per statement cycle for non-preferred network ATMs is larger than Navy Federal’s 30,000+ fee-free ATMs.
Both institutions offer free checking and savings accounts with low minimum opening deposits. Navy Federal’s savings rates are higher than USAA’s, but CD rates are comparable across the two.
USAA vs. Navy Federal: Checking Accounts
USAA offers one checking account option, while Navy Federal has multiple checking accounts, each with different features, benefits and fees. USAA and Navy Federal pay interest on checking account balances, although both pay a negligible amount.
Both the USAA Classic Checking and Navy Federal Credit Union Free EveryDay Checking accounts made our list of the best checking accounts at military banks and credit unions. Here’s how the two compare.
Navy Federal vs. USAA: Savings Accounts
Both Navy Federal and USAA offer free savings accounts and certificates of deposits (CDs). Navy Federal also offers a money market account with better rates on higher balances, and USAA similarly offers a premium savings account—USAA Performance First® Savings Account—that pays increased rates on higher balances.
Here’s how the basic savings accounts from USAA (USAA Savings) and the Navy Federal Credit Union Basic Savings Account compare.
Both USAA and Navy Federal’s certificate accounts compete with the best CD rates on the market—the USAA Standard Certificates of Deposit offer rates from 0.05% to 4.90% and the Navy Federal Credit Union Standard Certificate offer rates from 2.75% to 4.80% APY. Choosing between the two will depend on your preferred term and deposit amount. You’ll need $1,000 to open a USAA CD or one of Navy Federal’s standard certificates, but Navy Federal also offers the Navy Federal Credit Union EasyStart℠ Certificate with a $50 minimum opening deposit.
Pros and Cons of USAA
No bank is perfect, and while USAA offers some advantages, it may not be right for everyone.
Pros
- Wide range of financial products and services
- Free checking and savings accounts
- Competitive CD rates
- Expansive ATM network
Cons
- Limited branch banking options
- No MMA or business checking
- Low savings account rates
- Must qualify to become a member
Pros and Cons of Navy Federal
As you compare Navy Federal vs. USAA, keep in mind that credit unions often have fewer fees and offer lower interest rates on loans.
Pros
- Hundreds of branch locations
- More checking and savings account options, including MMAs and business checking
- Free checking and savings accounts with no or low minimums
- Competitive CD rates
Cons
- Comparatively smaller ATM network
- Somewhat low savings rates
- Membership is limited
- Limited investing and insurance products
Can anyone join USAA or Navy Federal?
No, both USAA and Navy Federal Credit Union limit membership to military members and their families. Accounts are offered to active-duty service members, retired military members and veterans, although Navy Federal also includes Department of Defense (DoD) civilians. If you don’t have any military affiliation and aren’t a DoD civilian, you won’t be able to join either credit union.
Instead, you can join a federal credit union like PenFed. The second-largest credit union in the country, PenFed also services members of the military, but you don’t have to be a servicemember to join. NASA Federal Credit Union is another option to consider. While it’s designed for employees of NASA and their families, anyone with a National Space Society membership can join. Fortunately, if you don’t have that, NASA Federal Credit Union will provide you with a complimentary membership for a year.
USAA vs. Navy Federal Membership Requirements
As mentioned, you must be eligible to join USAA or Navy Federal in order to open accounts with either one. Membership requirements with each institution center on military status, but Navy Federal’s are slightly looser. The credit union welcomes Department of Defense (DoD) civilians and a wider scope of military family members.
USAA membership is open to:
- Current U.S. military members and veterans
- Precommissioned officers
- Spouses and children of eligible military members or officers
You can apply online to open an account. You’ll need to provide some basic personal information, along with details about your military affiliation.
Navy Federal membership is open to:
- Active-duty and retired military members
- Veterans
- Family members of eligible military members, including spouses, children, siblings, parents, grandparents, grandchildren and other household members
- Department of Defense (DoD) civilians
You can apply for an account online or visit a Navy Federal branch to get started. You’ll need a Social Security number, a driver’s license and $5 to open an account. (There’s a $5 minimum deposit requirement to establish and maintain membership.) This money is deposited into a Membership Savings Account.
Find The Best Banks Of 2024
Bottom Line
Both USAA and Navy Federal Credit Union can help military members and their families manage their financial lives. Whether it makes sense to choose one over the other can depend largely on the types of banking products and services you’d like to have access to and your preference for banking in person or online.
Frequently Asked Questions (FAQs)
Is USAA or Navy Federal FDIC-insured?
USAA is an FDIC-insured bank. Deposits are insured up to $250,000 per depositor, per account ownership type and per financial institution. Navy Federal Credit Union accounts are insured by the National Credit Union Administration (NCUA).
Is a bank or credit union better?
Banks and credit unions can offer the same range of products and services. The differences between them usually lie in the types of fees you’ll pay and how much interest you can earn on deposits. Credit unions also have membership requirements to join, which sets them apart from banks.
Does USAA or Navy Federal offer insurance?
USAA offers members access to a variety of insurance products, including car insurance, RV and boat insurance and homeowners insurance. Members may qualify for special discounts or reduced rates when purchasing insurance through USAA or a partner provider. Navy Federal works with partners to provide discounts on selected types of insurance coverage, but its offerings are more limited.
