Dedicated to Deposits: Deals, Data, and Discussion

5.32% 5-Year Jumbo CD at USAA Federal Savings Bank

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Update 12/06/08: The CD rates have gone down. Please refer to the bank's website for the latest rates.

USAA Federal Savings Bank is offering some competitive long-term CD rates. The highest rate is the Super Jumbo 5-year CD which has an APY of 5.32%. This requires a minimum deposit of $175,000. An APY of 5% is available for a $1,000 minimum deposit. Below is a list of all of the CDs with terms of 3 years and more. I didn't list the shorter terms since those rates are not as competitive. These are based on the bank's rate table as of 12/04/08:


USAA's Certificate of Deposit rates as of 12/04/08:

APY APY APY
Term $1K-$95K $95K-$175K $175K+
------- -------- ---------- -------
3 years 4.00% 4.25% 4.51%
4 years 4.50% 4.55% 4.81%
5 years 5.00% 5.05% 5.32%
7 years 5.00% 5.05% 5.32%

You can join USAA online, however, to be eligible to join, you must have some military connection. Here are the full eligiblity details.

The bank's CD page describes the features of the CDs. A link to the Depository Agreement is on the bottom of this page. Some of the details of these CDs include:
  • Interest can be added back to the CD balance or credited to another account monthly
  • For CDs with a term over one year, interest may only be paid monthly, quarter or annually.
  • Grace period is 10 calendar days at maturity when you can close the CD without penalty
  • Early withdrawal penalty for terms of over 1 year to 5 years is 180 days of interests (if they consent on the withdrawal)
In addition to competitive CD rates, USAA offers a free checking account with many perks including free worldwide ATM use, free checks and Deposit@Home that allows customers to deposit checks using their home scanner and PC.

In addition to banking services, USAA is well known for providing top services in auto insurance and mutual funds. The consumer advocate, Clark Howard, has mentioned USAA many times. You can read some of his commentary here and here.

USAA Federal Savings Bank is headquartered in San Antonio, Texas. It has been FDIC insured since 1983 (FDIC Certificate # 32188). The bank has solid financial ratings for soundness: 5 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/08 data.

Related Pages: USAA Bank, CD rates, Texas

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Comments
4 Comments.
Comment #1 by Anonymous posted on
Anonymous
I have a jumbo CD with USAA, and I've been very happy with them. When I opened the CD, I requested that they transfer the interest on the CD every month to my checking account at my local bank. This has worked out very well.

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for sharing your experience. Do you know if they allow payable-on-death accounts?

1
Comment #3 by Anonymous posted on
Anonymous
Didn't last long - down to 5.21% for max

1
Comment #4 by Anonymous posted on
Anonymous
I have no military connection at all but I do have a USAA Master Card. I do not know how I obtained it but probably it did not require any membership at that time. Does anyone know if I can leverage that into a membership?

1