Dedicated to Deposits: Deals, Data, and Discussion

Competitive CD Rates at USAA Federal Savings Bank - Nationally Available

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USAA Federal Savings Bank is offering some competitive mid-term and long-term CD rates expecially on its Super Jumbo CDs which require a $175K minimum deposit. Below is a list of all of the CDs with terms of 15 months and above. 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 8/04/2009:

USAA's Certificate of Deposit rates as of 8/04/2009:

APY APY APY
Term $1K-$95K $95K-$175K $175K+
------- -------- ---------- -------
15 months 2.05% 2.10% 2.36%
18 months 2.15% 2.20% 2.46%
2 years 2.25% 2.30% 2.56%
30 months 2.32% 2.43% 2.68%
3 years 2.40% 2.55% 2.81%
4 years 3.15% 3.21% 3.46%
5 years 3.25% 3.30% 3.56%
7 years 3.35% 3.40% 3.66%

When I called USAA Bank today using their toll-free number, I was told that they typically change rates on Fridays. According to the CSR, the CD rate will lock at the time you submit the application. Funding can be done by an ACH transfer from your current checking or savings account. At maturity, you can call and instruct them to transfer the CD funds to another account via ACH.

USAA Bank also offers IRA CDs with the same rates as above. Refer to the bank's IRA CD rate table for the latest rates.

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, quarterly or annually.
  • Grace period is 10 calendar days at maturity when you can close the CD without penalty
  • Early withdrawal penalty for terms of 7 years is 365 days of interest on the amount withdrawn. For terms of over 1 year to 5 years it's 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 (Note, only those who qualify for USAA insurance can qualify for Deposit@Home.)

USAA Bank's deposit products are now available to all

Even though the USAA's Become a Member Page does not state it, you don't need a military connection to qualify for USAA Bank deposit products. I confirmed this again when I called this morning. You still have to have a military connection to qualify for their loan and insurance products (and Deposit@Home). For a couple of years USAA Bank had excluded the general public access to their banking products. I was informed by a reader earlier this year that they quietly ended this exclusion.

In addition to banking services, USAA is well known for providing top services in auto insurance and mutual funds. So if you're lucky enough to qualify for these through the military connection, you might want to look into their products. The consumer advocate, Clark Howard, has mentioned USAA many times. You can read some of his commentary here.

USAA Federal Savings Bank is headquartered in San Antonio, Texas. It has been a FDIC member since 1983 (FDIC Certificate # 32188). The bank continues to have solid financial ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 3/31/09 data.

Other High Certificate of Deposit Rates
  Tags: USAA Bank, CD rates, Texas

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Comments
17 comments.
Comment #1 by Anonymous posted on
Anonymous
Uh...how is anything less than 5% or 6% a "competitive" cd???


These rates are TERRIBLE!!

Esp. when there are plenty of great rates out there (if you know where to look!!)

-1
Comment #2 by Anonymous posted on
Anonymous
OK, genius, enlighten us where you can find a 5%-6% FDIC insured CD today.

0
Comment #3 by Anonymous posted on
Anonymous
17:13 PM poster, that was my thought too.

1
Comment #4 by ChrisCD (anonymous) posted on
ChrisCD
Back to topic, I am a member of USAA and have been since I was 18. I don't use their bank accounts only because they weren't as convenient as they are now. But I do use many of their other products. They have always been easy to work with.

As far as the rates, at least if you are going to trash them, give some alternatives. From what I see out there, they are very competitive.

1
Comment #5 by Anonymous posted on
Anonymous
.


>> Back to topic, I am a member of
>> USAA and have been since I
>> was 18.

Hmm ... I've been a member of USAA for not that long ... but for a few decades at least.



>> I don't use their bank accounts
>> only because they weren't as
>> convenient as they are now.

I have used their banking for ages. So far as I recall USAA has free 'phone' based ACH transfers since 1993/94. They were offering 'phone ACH' even when Citi, Chase, Bank Of America, Wells Fargo, Siget, CoreStates, Chemical, NationsBank ( the last four were great banks that merged with other banks ) had no such facility.


>> But I do use many of their
>> other products. They have
>> always been easy to work with.

Indeed ... I have a very very positive opinion of USAA. Mutual Funds, Annuities, Insurance ... all of the USAA products have been quite useful.

One of the great things in my opinion about USAA is that unlike the BACs, JPMs, Cs, WFCs, USBs of the world who work for the benefit of their shareholders, USAA works for the benefit of their members! Therefore what we have here is a Commercial Bank that acts like a Credit Union!

.

1
Comment #6 by Bozo (anonymous) posted on
Bozo
I've been with USAA since I was an Ensign in the Navy. That was a long time and 60 pounds ago. I agree their current CD rates are a tad lame, but aren't everyone's?

The point is: with USAA you get superior service.

USAA is a fine company.

Bozo

1
Comment #7 by Anonymous posted on
Anonymous
I don't have the official Military connection that USAA needs. I went through an online application for a web account. It seemed to reject me based on my military service dates. I can't really remember how it happened, but I just kept pushing through the application and in the end I got the online account. Today I just applied for a 4 year CD and it seemed to all go well. I hope they don't try to pull the funds the same day as I think some of my funds needed don't clear until monday at schwab. So far everything has been good with no issues at USAA. Will post more.

1
Comment #8 by Anonymous posted on
Anonymous
I did a four year jumbo CD (post above) I have to say everything went very smooth. Decided to have the interest deposited to another account, so will see how that goes. Very good bank from what has happened so far.

1
Comment #9 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. Glad to read the CD opening process went smoothly.

1
Comment #10 by Anonymous posted on
Anonymous
The must have dropped the rates a bit the past few days. I did the 4yr super jumbo at 3.46% now is it 3.15% Wasn't sure I was doing the right thing really as I've missed a big run up in the stock market, but decided I wanted to be earning some cash as I'm not working.. and hope to stay that way.. ;) I was mostly out of the market on the way down..

1
Comment #11 by Anonymous posted on
Anonymous
 A link to the Depository Agreement is on the bottom of this page. WHERE ??????

1
Comment #12 by KenBDG posted on
KenBDG
There's a depository agreement link at the very bottom of that USAA CD page

.

2
Comment #14 by Anonymous posted on
Anonymous
I`m tempted by the 4% apy.but for 7 years and 365 days of interest penalty for early withdraw WOW!AND that's IF they let you withdraw it.Whats up with that wording I`ve never seen it expressed like that "IF". Still tempting as I need only the interest.

1
Comment #15 by Anonymous posted on
Anonymous
Well I pulled the trigger on the 7 yer super jumbo,4.06% apy.All went very smooth they pulled it from my CU no problems.Very polite CSR.

1
Comment #16 by Anonymous posted on
Anonymous
lOWERED 7 YEAR JUMBO FROM 4.06% TO 3.96%.

1
Comment #17 by James Morgan - Puritan Financial Advisor (anonymous) posted on
James Morgan - Puritan Financial Advisor
For a couple of years USAA Bank had excluded the general public access to their banking products. I was informed by a reader earlier this year that they quietly ended this exclusion.

1