Yes, USAA offers savings accounts with competitive interest rates

USAA has a savings account called the USAA Savings Account, available to members who meet their membership requirements. The account earns interest on your balance, and the rate changes based on market conditions and USAA's current offerings. You can open one online or through their mobile app if you are already a USAA member, or you can open a savings account at the same time you open a checking account if you are new to USAA.

The account has no monthly maintenance fee, no minimum balance requirement to open it, and no minimum balance to earn interest. You can make deposits through direct deposit, transfers from other accounts, mobile check deposit, or in-person at a USAA branch or through their network of ATMs. Withdrawals work the same way—you can transfer money out to another account, use it to pay bills, or withdraw cash at an ATM.

Key Takeaways

  • USAA savings accounts earn interest with no monthly fee and no minimum balance requirement.
  • Interest rates vary and change based on market conditions, so you should check USAA's current rate before opening.
  • You can deposit money through direct deposit, transfers, mobile check deposit, or ATM deposits at USAA locations.
  • USAA limits you to six withdrawals or transfers per month from a savings account under federal banking rules, though this rule is no longer strictly enforced by regulators.

How interest works on a USAA savings account

Interest on a USAA savings account is calculated daily on your entire balance and paid monthly. That means if you have $5,000 in the account, USAA calculates how much interest that $5,000 earns each day, and at the end of the month they deposit the total interest into your account. The next month, you earn interest on the original $5,000 plus the interest that was added, which is called compounding.

The interest rate USAA pays changes over time. It is not locked in—USAA adjusts rates based on what the Federal Reserve does and what other banks are offering. You can see the current rate on USAA's website or by logging into your account. If rates go up, your earnings go up. If rates go down, your earnings go down.

Interest is taxable income. At the end of the year, USAA sends you a 1099-INT form showing how much interest you earned, and you report that on your tax return.

Withdrawal limits and how they affect your account

Federal banking rules historically limited savings account withdrawals to six per month. USAA enforced this limit, but the Federal Reserve suspended the rule in 2020 and has not reinstated it. USAA no longer counts withdrawals against a limit, so you can withdraw money as often as you need to.

However, if you make frequent large withdrawals, USAA may contact you to understand your banking pattern. This is standard practice across banks and is not a penalty—they are checking that your account is not being used for something other than personal savings.

Moving money in and out of your USAA savings account

You can deposit money into your USAA savings account through several methods. Direct deposit is the fastest—your employer or benefit payer sends money straight to your account, usually within one to two business days. You can also transfer money from another bank account you own using USAA's online transfer tool or mobile app; this typically takes one to three business days depending on the other bank. Mobile check deposit lets you photograph a check and deposit it through the app, and the funds usually appear within one to two business days.

Withdrawals work the same way in reverse. You can transfer money from your USAA savings account to another account you own at any bank—this takes one to three business days. You can also withdraw cash at a USAA ATM or at a branch location if one is near you. USAA has a network of ATMs and branches, but coverage varies by location, so check their ATM locator before you open an account if you need frequent in-person access.

USAA savings accounts versus other USAA products

USAA also offers a money market account, which works similarly to a savings account but usually pays a higher interest rate in exchange for requiring a higher opening balance. USAA also offers certificates of deposit (CDs), which lock your money away for a set period—usually three months to five years—and pay a fixed interest rate that is higher than the savings account rate. If you need to access your money quickly and unpredictably, a savings account is the right choice. If you have money you will not need for several months or longer, a CD or money market account may earn you more.

USAA also has checking accounts, which earn little to no interest but let you write checks and use a debit card. Most people keep a checking account for everyday spending and a savings account for money they want to set aside and grow.

Who can open a USAA savings account

USAA membership is limited to military members, veterans, and their families. You must be a U.S. citizen or permanent resident and at least 18 years old. If you are on active duty, a veteran with an honorable discharge, or a family member of someone who meets these criteria, you can become a USAA member and open a savings account.

You can open an account online, through the mobile app, or by calling USAA. The process takes about 10 to 15 minutes and requires a valid government ID, your Social Security number, and basic personal information. Once your account is open, you can start depositing money immediately.

Frequently Asked Questions

What is the current interest rate on a USAA savings account?

USAA's savings account rate changes regularly based on market conditions. You can find the current rate on USAA's website or by logging into your account. Rates vary, so compare it to other banks if you are deciding whether to open an account.

Can I have more than one USAA savings account?

Yes. You can open multiple savings accounts with USAA and give each one a nickname to keep track of them—for example, "Emergency Fund" or "Vacation." This can help you organize money for different goals.

What happens if I need to withdraw money before a certain date?

There is no penalty for withdrawing from a USAA savings account whenever you need to. Unlike a CD, which charges a fee if you withdraw early, a savings account lets you access your money anytime without cost.

Is my money safe in a USAA savings account?

Yes. USAA is a federally chartered bank, and your savings account is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. If USAA fails, the FDIC protects your money up to that limit.

Can I earn interest on a USAA checking account?

USAA checking accounts earn very little to no interest. If you want to earn meaningful interest, keep your everyday spending money in checking and move savings to a savings account or money market account.