Money market accounts can be a great way to build your savings. If you are a USAA customer, you may be interested in opening one of these accounts with your bank. This guide will tell you if it's possible and highlight some of the pros and cons of USAA savings products.
Does USAA have money market accounts?
Starting in 2024, USAA will no longer offer promotionsmoney market accounts. But USAA offers several savings accounts that may still meet your needs, including:
- USAA Savings ($25 minimale openingsstorting)
- USAA Performance First ($10.000 minimale openingsstorting)
- USAA Youth Savings ($25 minimale openingsstorting)
Performance First accounts pay an interest rate that increases as you deposit more money, while the other accounts currently pay a flat rate on all deposits.
Here are some high-level pros and cons of USAA and its savings products.
Benefit
- Offers multiple savings options, including an account type for minors
- Save automatically with your USAAcheckaccount
- Highly rated iOS mobile app
Cons
- Low interest rates
- Few physical locations
- High minimum deposit amounts for the best APYs
Features of USAA Savings Accounts
USAAsavings accountcomes with several features that can improve your banking experience. For example, all accounts are equipped with tailor-made alerts to prevent fraud and you can manage your savings online or on the go with the bank's mobile app.
USAA savings accounts also integrate with your other USAA accounts, including daily checking. The bank makes it easy for you to take advantage of these integrations with features like direct deposits and other tools that let you put your savings on autopilot.
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You cannot get a debit card for your USAA savings account, but you can apply for a free debit card. It allows you to withdraw cash without any feesUSAA ATMs. USAA also refunds up to $10 in non-USAA ATM fees and surcharges each month.
Interest rates for money market accounts from the USA
Because USAA does not offer money market accounts, in this section we will look at the interest it currently pays on its savings accounts.
The biggest drawback to USAA savings accounts is that they pay significantly lower interest rates than the competition. The highest interest rate USAA offers isAPI. However, this is only available to USAA Performance First customers with a minimum $500,000.
For regular USAA Savings and USAA Youth Savings customers, the interest rate is negligible. The bank paysAPY, regardless of how much you have in your account.
There are plenty of othersbankerwho pay more than 4.00% APY on savings options. This essentially means that you are leaving money on the table by keeping your money at USAA instead of another institution that would pay you a higher APY.
That doesn't mean there isn't a reason to use a USAA savings account. You may still decide to do this if you want to keep all your money in one bank, prefer to support a military-oriented financial institution, or have other special needs that USAA meets better than the competition.
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For example, if you already have an account with USAA and want to open a new savings account for your child, it may be easier to monitor the account if you open it with USAA instead of another bank.
Availability of USAA accounts
USAA makes it easy to manage your savings account online or on your phone. The bank has a simple online account dashboard that you can use and has mobile apps for Apple and Android devices. USAA's iOS app currently has a 4.8 out of 5 star rating on the App Store, while the Google Play app has a 4 out of 5 star rating.
If you need support, you can visit a branch if you live nearby, or call the bank's customer service number.
The biggest disadvantage is that there are not many physical USAA locations. This can be a problem if you like face-to-face banking, but live outside the bank's coverage area.
Alternatives to Money Market Accounts
Because USAA doesn't offermoney market accounts, you will have to go to another financial institution if you want to sign up for one. There are plenty of options to consider, but here are two popular ones to get your search started.
Ally Bank
Ally Bankcurrently payingAPY on money market accounts at all balance levels - significantly more than USAA savings accounts. These accounts also have no monthly maintenance fees, 24/7 customer support, and no minimum balance requirements.
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Vio-bank
Vio-bankcurrently payingAPY on his Cornerstone Money Market Savings account. It costs nothing monthly and that is possibleopen an accountwith just $100.
How to Apply for a USAA Money Market Account
Unfortunately, it is not possible to apply for a USAA money market account. But you can apply for a USAA savings account by simply visiting the bank's website.
You must be a member of USAA before applying. But you can complete this step online in just a few minutes. The most important requirement is that you have served in the military yourself or are the spouse or child of someone who has.
Who Are USAA Money Market Accounts Best For?
USAA doesn't offer money market accounts, but it could be a good fit for people who are fine with a traditional accountsavings product instead. But the bank offers lower APYs than many of its competitors, so it's probably only a good option for your savings needs if you have a special reason for wanting to keep your money with USAA.
Latest deal on USAA savings accounts
USAA offers multiple savings options to choose from, including helpful features like custom fraud prevention alerts and access to highly rated mobile apps. But the bank's APYs are low compared to some competitors. This means you can probably earn more interest if you keep your money elsewhere.
FAQ
- Does USAA offer a money market account?
- No, USAA does not offer money market accounts. You can open a new savings account with USAA instead if you want to keep the savings in the bank.
- Does USAA have a high-yield savings account?
- No, USAA does not have a high-yield savings account in the traditional sense of the word. It offers a USAA Performance First account for savers with a minimum of $10,000 to deposit, but it still offers lowerAPY'sthan most high-yield alternatives.
- What is the highest interest rate at USAA?
- The highest interest rate you can get for the money you save with USAA is0,00 %. Many of the bank's competitors will pay you more than 4.00% from February 2024.
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Prices are subject to change; Unless otherwise stated, prices are updated periodically. All other account information is correct as of February 12, 2024.
Editor's note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings, or recommendations expressed in this article are solely those of the author and have not been reviewed, approved, or otherwise endorsed by any entity mentioned in this article.
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