In this review of USAA, we will briefly outline the history of USAA as a financial institution, review some of the products and services offered by USAA, show what it takes to open an account with USAA, and share what others have to say about USAA.
History of USAA
USAA (United Services Automobile Association) got its start in 1922 when 25 army officers agreed to insure each others’ vehicles. They began as just an automobile insurance organization that catered to military officers. By 1928, they had grown to 8,000 members. Their numbers continued to grow, and they continued to net profits through the stock market crash of 1929 and the Great Depression. During the 1960’s, USAA opened its membership to include former officers of the armed forces and expanded to offer other types of insurance. Over the next several decades, USAA expanded its offerings to include investment and banking products (with the opening of USAA Federal Savings Bank). They also expanded membership to include all members of the armed forces, former or current, along with their spouses, children, and widows. Today, while one must qualify in one of these categories to get their insurance, most of USAA’s banking and investment products are available to the general public.
Products and Services offered by USAA
USAA has become a truly diverse company, and the products they offer are too many to enumerate here. Usaa provides `insurance of all types (given that you meet the membership requirements); various investment products, including IRA’s, mutual funds, and annuities; loans of all types; and other standard banking fare, including savings accounts, checking accounts, CD’s, and credit cards.
Given the focus of this website, we will provide a brief description of just their checking accounts, savings accounts, and certificates of deposit.
USAA Checking accounts
USAA offers three options for checking accounts. These include free checking, college checking, and teen checking. Following are some of the features included in all of these checking account options:
- Free ATM use (ATM fees across the nation are reimbursed up to $1.50/transaction and $15.00/month.)
- Free checks
- Interest bearing (on balances over $1,000)
- Free USAA Web BillPay
- Free overdraft protection
- Free rewards debit card (gives 0.5% cash back on all purchases when you run your card as credit)
In addition to these features, the teen checking account offers full access to parents as joint account holders.
USAA Savings accounts
USAA offers standard savings, youth savings, and college savings options (college savings is a 529 and qualifies more as an investment product). With their standard and youth savings accounts they offer several benefits:
- Only $25 to open an account
- No minimum balance requirement
- Deposit checks from home using USAA Deposit@Home (for qualifying customers)
- Tiered rates (higher rate on higher balances)
USAA Certificates of Deposit
USAA offers very competitive rates on their certificates of deposit. Terms range from 30 days to seven years, and they offer three different options on their CD’s:
- Fixed rate (rate remains the same for the duration of the term)
- Adjustable rate (rate is fixed but account holder has the option to adjust it one time if it rates go up)
- Variable rate (rate varies from day to day depending on the current situation of the market)
Opening an Account with USAA
To open an account with USAA, an individual needs to fill out an online membership application. To get insurance or one of the other benefits that are available only to military, ex-military, and their families, you must provide that person’s information as well as your own. To just open a checking or savings account, you only need fill out your own information including name, social security number, and date of birth. An application can be completed in as little as five minutes.
USAA’s Focus
Although some of their products are now available to the general public, USAA’s focus remains “to help facilitate the financial security of military families.” USAA has no direct affiliation to the U.S. government or the armed forces, but as it was started by a group of army officers and has traditionally catered to military personnel and their families, the people at USAA understand better than any other financial services/insurance company what needs, wants, and dreams the men and women in our military have.
Customer Reviews of USAA
The sheer number of customer reviews on USAA can be a bit overwhelming. At almost 90 years old, the company has undergone many changes, going from conducting most of its business through the mail and telephone to conducting most of their business on the internet. With members in all age categories, they have had a very diverse group follow them into the information age. Most reviews are glowing. The few that are not mainly deal with the fact that they have moved to a less-personal, online forum. However, customer service on the phone is still available, and most customers have had an extremely positive experience dealing with USAA’s operators. On most forums, USAA garners at least four out of five stars (or the equivalent depending on the rating system). USAA comes highly recommended by at least 80% of reviewers, and there is no in between (customers either love them or they hate them).
Summary of USAA Review
USAA is an excellent company with a long, proven track record. They have weathered the storms of one Great Depression and several recessions, and it looks like they will be around for the long term. USAA Bank would be a great option for anyone looking for an online banking product or investment product. And for military and ex-military personnel and their families, USAA is also a great option for insurance. For more information on USAA or their products, or to open an account, go to their website at www.usaa.com.
USAA Banking Review,
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April 14, 2012 at 8:40 pm
A poorly run bank that attempts to leverage the good will of the military first to insurance, a traditional starting point for new members, to its financial arm. While USAA has excellent car insurance, its bank is dreadful. Over the years, the bank has made a host of mistakes in such areas as credit cards, and checking. On a couple of occasions I was informed that someone had attempted an unauthorized access of my account, when the person in question was me. And frequently, bank representatives, when I question them about my some aspect of my account, like a balance, recent activity, payment due date, etc., will ask why I want to know that information. Since when is a customers reasoning, anywhere, not private, especially when it pertains to money. USAA service is fair, but trust me, you will wind up using their service to unwind problems in your account that are not of your own making. From my point of view, USAA offers a host of weakly to moderately competitive products, resulting in high margins. They hope that their friendly (and very inconsistent) service, and their military customers sense of loyalty, will keep them under the USAA umbrella. USAA bank is poorly run. Be smart….look elsewhere.
October 18, 2011 at 2:11 pm
I should be surprised to read “horror stories” from former or dissatisfied customers but in reality, folks will generally take time to tell you that the service was great or the service was awful. I find myself in that former category.
I’ve had insurance through USAA for probably 20 years and recently refinanced through them to hopefully get away from BofA. We got a great rate on our home that we bought in 2006 and this, even after my wife wrapped her new Benz around a Prius back in April. The refi was painless. Forms were submitted and papers were signed and I’m saving about $500 a month.
It’s too bad that those with the ‘poor me’ stories here can’t be a bit more forthcoming with the details. I just don’t believe that there isn’t some level of personal responsibility that could be reason for the hardships described.
September 7, 2011 at 6:55 pm
My good friends did business with USAA for many years. He was a lifetime marine, gone reservist and started his own construction business. When the economy went bad, so did his business. He immediately went active military once again and tried to make his obligations in a timely manner. They fell short on their mortgage payment. They tried on many occasions to make it right, but were turned down by USAA who refused to negotiate any arrangement that might allow them to catch up. In keeping this brief as possible, I spent six months with my friend helping her to relocate while her husband was deployed to Irac. I will never forget the numerous phone calls that came at all hours of the day and night from that company. My friend would always pick up and offer to resolve the issue, but was met with condescending remarks and threats. EVERY DAY!!! USAA is a predatory bank that preys on military families and you should consider this when you think of doing business with them. By the way, this was not a mortgage that was upside down, they had equity in their home of over 10 years, that company made money and destroyed that family at the same time! So it irritates me to see their commercials on tv claiming to be so supportive of the military family- right….only as long as they can squeeze the last dollar out of you!
September 4, 2011 at 4:41 am
Excellent bank! Great customer service and I am able to use my atm/debit card worldwide as I travel everywhere. It is very convenient. USAA is king!
August 4, 2011 at 4:24 pm
I am active duty military and had been part of a large flock of sheep that considered USAA to be “the BEST!” – However, their motto – “we know what it means to serve,” is false, unless you consider they are just serving themselves. As a member for over a decade, I overlooked periodic problems in different departments with USAA (for example, they once refused to cover an auto accident because an online payment I arranged to have sent via a deployed ship arrived a day late), but when we needed help (desperately) with a loan modification after a series of health, employment, and housing related problems while I was deployed, USAA when OUT OF THE WAY TO BE UNHELPFUL. From losing time sensitive paperwork (3x’s!!!) to subcontracting their mortgage services to an band of thieves (RCS), attempting to enforce a fraudulent court document, and stonewalling an attorney we had to hire to assist in dealing with the above problems – A well seasoned real estate attorney considered USAA to be nearly criminal in their attempts to go out of their way to make sure a homeowner would not be able to navigate their FEDERALLY TARP FUNDED loan modification programs. An example of the ridiculousness occurred when USAA changed their loan modification forms and required a notarized copy. Try accomplishing that while deployed. Any bank could do a better job, and its so shameful for this company to prey upon often deployed military members in difficult economic times.
I hope USAA turns it around, I used to brag about their services. I wish I could give negative stars on this websites performance scale.
July 25, 2011 at 4:48 pm
My husband has been a member with USAA for seven years, their banking has been wonderful. We attempted to get a mortgage through them. We were pre approved, we had the VA inspection, they had their paperwork SIX weeks before we were supposed to close on Monday the 25th. My processor, Mamie, began processing our paperwork on Tuesday the 19th, was out of the office the 20th and 21st, and not once did she, her manager, or her managers manager return my desperate phone calls or emails. At 8:30 p.m. on Friday the 22nd she left a voice mail that said I was not approved because I didn’t make enough money in 2009! Since day one she knew that we would be kicked out of our apartment the day after closing, she knew what I made in 2009 for six weeks! She also knew that if we had to request an extension, we would loose the contract with the seller because he was convinced he could make more money on it. So here we are, Monday that 25th, all of our things packed into storage and going to live at a hotel until we can find somewhere to live. We cannot afford this! THEY LEFT ME HOMELESS and DIDN’T CARE! I have never lost so much sleep or years off my life as I have while dealing with USAA. As soon as I find a home I will remove all accounts with them. DON’T USE USAA FOR ANYTHING MORTGAGE RELATED!
June 10, 2011 at 7:28 am
excellent bank!
April 16, 2011 at 4:47 am
Quite an interesting institution — no affiliation with the military, yet caters specifically to them, at least in part. I might take a closer look.
April 7, 2011 at 7:12 pm
hmmm nice …
90 years old is really reliable …
i prefer USAA for online banking ….
compared to others usaa rocks