USAA and Navy Federal Credit Union (NFCU) both offer products and services for members of the armed forces and their families. We examined both financial institutions to compare their product offerings, rates, fees, and more. Read on to find out how these two financial institutions compare.
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USAA (short for the United Services Automobile Association) is a federal bank serving military members, veterans, and their families. It offers banking, insurance, retirement, and investment services, as well as VA and conventional mortgage loans.
To bank with USAA, you must become a member. Only U.S. military members and veterans, pre-commissioned officers, and their spouses and children are eligible to join.
Navy Federal Credit Union, commonly referred to as Navy Fed, was established in 1933 and has since grown to serve 14 million members belonging to the Department of Defense, Army, Marine Corps, Space Force, and Coast Guard, as well as veterans and their families. Navy Fed offers personal and business products and services, including checking and savings accounts, credit cards, loans, and more.
Read more: Credit union vs. bank: Which is right for you?
USAA and Navy Federal Credit Union both offer basic, free checking accounts that earn 0.01% APY (Navy Fed also offers several more checking account options that earn up to 0.45% APY, depending on the specific account).
While USAA requires a minimum opening deposit of $25 and a $1,000 minimum balance to earn interest, Navy Federal Credit Union’s checking account is free to open and has no minimum balance requirements to earn interest or avoid fees. Neither account imposes a monthly maintenance fee, but both accounts do charge a fee for overdrafts.
With 100,000 ATMs, USAA offers a much larger network size compared to Navy Fed’s 30,000 ATMs.
Read more: The 10 best free checking accounts available today
When comparing their savings account options, Navy Federal Credit Union’s basic savings account offers a higher yield and a lower minimum opening deposit/minimum balance requirement that USAA’s basic offering. Neither account charges a monthly maintenance fee to keep your account open.
However, USAA also offers a high-yield savings account that earns up to 1.10% APY. The catch: You must deposit at least $1,000 to open a Performance Savings account, and only balances of $500,000 and up earn the highest rate.
Read more: The 10 best high-yield savings accounts available today
USAA and Navy Fed offer a variety of CD accounts across several terms.
USAA offers a maximum rate of 2.25% APY on its standard CDs, with the opportunity to earn more on its jumbo accounts. The minimum opening deposit for standard CDs is $1,000.
On the other hand, Navy Federal Credit Union offers as much as 4.15% APY on its standard share certificates, and even higher rates on its promotional accounts. The minimum opening deposit ranges from just $5 up to $1,000, depending on the account you choose.
Read more: What is a share certificate?
USAA does not currently offer a money market account.
Navy Federal Credit Union’s money market account offers rates between 0.25% and 2.25% APY, depending on your balance. There is no minimum opening deposit requirement, but you must deposit at least $2,500 to earn interest.
Read more: The 10 best high-yield money market accounts
Overall, Navy Fed offers higher maximum APYs for its accounts. However, this is dependent on how much money you keep in your account. For savers with smaller balances, it’s worth considering both financial institutions.
Neither institution charges monthly service fees for its accounts, and have comparable early withdrawal penalties for CDs. Navy Fed charges a lower overdraft fee than USAA ($20 vs. $29, respectively).
USAA offers similar products and services to Navy Fed. However, it does not offer a money market account, which may be a drawback depending on your banking needs. It does, however, offer a larger ATM network.
Navy Federal Credit Union stands out for its wide range of account options, around-the-clock customer support, and competitive APYs. Its minimum opening deposit requirements, for the accounts that have one, are on the lower end when compared to other financial institutions, which can be a valuable perk.
