USAA Savings Account Interest Rates: March 2024 (2024)

Vault’s Viewpoint on USAA

• USAA offers three savings accounts and CDs with terms of up to seven years
• For its savings accounts, USAA interest rates range from 0.01% to 1.60% APY
• High minimum deposit for USAA Performance First® savings account

Overview of USAA Savings Accounts

USAA offers three savings accounts: USAA Savings, USAA Performance First® Savings and USAA Youth Savings. None of the bank’s savings accounts have monthly maintenance fees. You must become a USAA member to open a savings account. The money you deposit into your USAA savings account is covered under FDIC insurance up to the legal limit.

USAA Savings is a basic everyday savings account that requires a $25 minimum deposit. USAA Savings earns 0.01% APY, which is less than the national average of 0.46%. USAA Performance First® Savings requires a significant minimum deposit of $10,000. Even with a high deposit, you don’t automatically receive the highest rates the account offers. Performance First Savings earns between 0.05% and 1.60% APY, depending on the account balance.

The Youth Savings account helps children learn about managing and saving money. The account must be opened and jointly held by the parent or guardian of the child. Features of the USAA savings account for kids include account alerts, parental controls and an ATM card. The child can use the ATM card to deposit funds into their savings account. The card can’t be used for purchases. When the child turns 18, the Youth Savings account automatically converts to a regular USAA savings account.

USAA savings accounts come with several free tools to help boost your savings, including a tax refund tool that automatically saves the portion of your tax refund that you choose. You may need to have a USAA checking account as well as a savings account to use some of the advertised tools. ATM cards are available upon request to make withdrawals and deposits at select USAA ATMs.

In addition to ATMs, here are some other ways to deposit money into your USAA savings account:

• Transfers from an existing USAA account
• Transfers from an external bank account
• Remote check deposit through the USAA mobile app
• Direct deposit

Compare USAA’s savings accounts below.

Pros of a USAA Savings Account

Benefits of USAA’s savings accounts include:

• Low minimum deposits for USAA Savings and USAA Youth Savings accounts
• No monthly maintenance fees
• Can request ATM card access

Cons of a USAA Savings Account

USAA savings accounts have some drawbacks to consider, such as:

• Low interest rates
• High minimum deposit for USAA Performance First® Savings account
• Must be connected to the military to become a USAA member and open a savings account

How Much Can You Earn With a USAA Savings Account?

USAA savings rates range from 0.01% to 1.60% APY. The amount you’ll earn in a USAA savings account depends on the amount you deposit. USAA interest rates are compounded and credited to your account monthly. Enrolling in automatic transfers and limiting withdrawals from your savings account can help grow your balance steadily over time.

The Performance First® Savings account has tiered interest rates, meaning the rate you earn depends on how much you deposit. The interest rates on Performance First are 0.05% to 1.60% APY. Balances less than $10,000 earn 0.05% APY. To earn the highest rate (1.60% APY), you’ll need to maintain a balance of $500,000 or higher in your Performance First® savings account.

Compare how much you can earn with USAA savings accounts below. Estimates are based on a $10,000 deposit and assume no additional contributions or withdrawals for five years. Note that the interest rates below are variable, meaning they can change at any time.

How to Open a Savings Account With USAA

Here are several general steps to follow when opening a USAA savings account.

1. Determine your USAA membership eligibility: The first step to opening a USAA savings account is to determine whether or not you’re eligible to become a USAA member. USAA membership is limited to military members and their families, and only USAA members can access the company’s banking products, including savings accounts.
2. Choose the right account for you: USAA offers three different savings accounts: USAA Savings, USAA Performance First® Savings and USAA Youth Savings. Choose the account that aligns with your needs and goals. For example, if you’re a parent looking to open a joint savings account with your child, the Youth Savings account may be the right fit for you.
3. Fill out an application: The easiest way to apply for a USAA savings account is through the bank’s website. You may need the following information to apply: identification, full name, address and date of birth. Before you can apply for a savings account, you must become a USAA member.
4. Deposit money: The last step is to deposit money into your savings account. USAA Savings and Youth Savings require a $25 minimum deposit to open an account. Performance First® Savings requires a $10,000 minimum deposit. With any savings account, you can choose to deposit more than the minimum if you want to.

Alternatives to a Savings Account With USAA

Savings accounts may not be the right fit for every person or situation. Here are some alternatives to consider.

Certificate of Deposit (CD)

A CD is a savings vehicle where you deposit money for a specific term, such as six months or 12 months. CDs are worth considering if you have a sum of money you won’t need to access for the duration of the term. Like most banks, USAA charges a penalty for taking early withdrawals from a CD. USAA prepayment penalties vary depending on the CD term and can be up to 365 days of simple interest on the amount withdrawn.

USAA offers CDs with terms of 30 days to seven years. USAA’s CD rates range from 0.05% APY to 5.25% APY, depending on the term. USAA’s 182-day (about six months) CD has the highest rate at 5.25% APY. The minimum deposit is $1,000 for a standard fixed-rate CD. USAA also offers a Jumbo CD with a $95,000 minimum deposit and a Super Jumbo CD that requires a $175,000 upfront deposit.

USAA Classic Checking

Though not a savings account, USAA’s Classic Checking has the same rate (0.01%) and minimum deposit ($25) as USAA Savings and USAA Youth Savings. However, unlike the savings accounts, you must maintain a daily balance of $1,000 or more to earn interest. Classic Checking customers pay zero monthly service fees and have access to more than 100,000 ATMs nationwide.

New Classic Checking customers can receive $200 when they open an account and set up qualifying direct deposits before March 14, 2024. Placing your savings in a checking account may be a good option if you want the benefits of a checking account (such as debit card access) for your savings.

High-Yield Savings Account

Although there is no USAA high-yield savings, you can find this type of savings account at other banks. High-yield savings accounts are similar to regular savings accounts but usually offer significantly higher rates. For context, the average savings interest rate is 0.46% but many high-yield savings accounts offer rates between 4.00% and 5.00% APY.

Many online banks offer high rates due to less overhead than traditional banks. This allows them to pass some of the savings on to customers in the form of higher rates. Since a USAA high-yield savings account isn’t an option, you can explore one of the best high-yield savings accounts instead.