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  • Early withdrawal penalty for terms of 7 years is 365 days of interest on the amount withdrawn.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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