Dedicated to Deposits: Deals, Data, and Discussion
DETAILSINSTITUTIONAPYMINMAXPRODUCT
USAA Bank1.11%$175k-5 Year CD - Super Jumbo
USAA Bank1.11%$175k-7 Year CD - Super Jumbo
USAA Bank1.11%$175k-5 Year IRA - Super Jumbo (Traditional,Roth,SEP,SIMPLE)
USAA Bank1.11%$175k-7 Year IRA - Super Jumbo (Traditional,Roth,SEP,SIMPLE)
USAA Bank1.00%$175k-4 Year CD - Super Jumbo
USAA Bank1.00%$175k-4 Year IRA - Super Jumbo (Traditional,Roth,SEP,SIMPLE)
USAA Bank0.96%$175k-3 Year CD - Super Jumbo
USAA Bank0.96%$175k-3 Year IRA - Super Jumbo (Traditional,Roth,SEP,SIMPLE)
Accounts mentioned in this post. Rates as of July 26, 2014

Top Jumbo Long-Term CDs at USAA Bank - Available Nationwide

POSTED ON BY

USAA Bank

With the standard FDIC deposit insurance limit permanently set to $250K, depositors can now open jumbo long-term CDs without worrying that some of the amount will become uninsured in 2014. For those who prefer to stay under the standard limit, this gives you more choices. One bank to consider is USAA Bank which has some very competitive long-term super jumbo rates. These are listed at USAA Bank's CD rates page and at the IRA CD rates page as of 7:00am on 7/23/2010:

  • 2.56% APY 3-year CD, 6-mo EWP
  • 2.81% APY 4-year CD, 6-mo EWP
  • 3.31% APY 5-year CD, 6-mo EWP
  • 3.86% APY 7-year CD, 12-mo EWP

The super jumbo 15-month CD is also competitive with a 1.60% APY.

These rates require a minimum deposit of $175K. Lower rates are available for minimums of $1K and $95K.

The EWP stands for early withdrawal penalty. According to the account disclosure, the penalty is 180 days of interest for terms of over 1 year to 5 years and 365 days of interest for terms of 7 or more years. As you can see, this is a downside with the 7-year term.

When I contacted USAA last year, I was told that they typically change rates on Fridays so I hope these will continue through today. 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.

A reader recently provided the following review of opening this super jumbo CD at USAA Bank:

I just made a "super jumbo" CD (defined as over $175k) at USAA for a 3.79 rate/3.86 yield. Smaller investors can still get a solid 3.55% yield. I like that a bank will give a bonus for larger deposits. On our $200K CD, the extra .30% means $600 more per year--not too shabby. The application on line takes just 5 minutes as they promise, and that includes the time to link USAA to my local bank. The transfer went smoothly.

Their phone personnel are awesome. I had a lot of questions and they were very patient in explaining everything to me. My only criticism is the website itself, which is part of the reason I had to call in the first place. The site is too congested IMO, making it difficult to find what you need. For example, it takes about three clicks to get to the CD rates page--and the "view rates" tab is in small letters to the far right of the page. This is only reason I couldn't give them the full 5 stars, but the rate itself more than makes up for the slight inconvenience.

Available to All

There was a time that only those with military connection could open bank accounts at USAA. This exclusion no longer applies to most banking services. People from any state can open CDs and other bank accounts online at usaa.com. Please refer to USAA Bank's membership page for the full details.

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, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for USAA Bank). These ratings are based on 3/31/10 financial data.

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.


  Tags: USAA Bank, CD rates, Texas, IRA rates

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Comments
4 Comments.
Comment #1 by linmarie posted on
linmarie
I called them and they told me that the early withdrawal penalty was 12 months interest for a term of 12 months or longer

5
Comment #2 by Bozo (anonymous) posted on
Bozo
I just helped my Mom open the seven year super-jumbo CD, and it went smoothly. Been a USAA member since 1970.  Can't beat the rates long-term.

 

Bozo

2
Comment #5 by Anonymous posted on
Anonymous
From their web site:

Penalty for Early Withdrawal: Your certificate account has a maturity
date. Except as mentioned below, you cannot withdraw any
principal from this account before the maturity date without our
consent, and we will charge a penalty for early withdrawal. We
can only consent to an early withdrawal at the time you request
it. If we consent, the penalty for early withdrawal will be an amount
equal to:
a) Three hundred sixty five (365) days interest on the amount
withdrawn on certificates of deposit with terms of seven years
or more.
b) One hundred eighty (180) days interest on the amount withdrawn
on certificates of deposit with terms greater than one year to
less than seven years.
c) Ninety (90) days interest on the amount withdrawn on certificates
of deposit with terms of one year or less.
d) Thirty (30) days interest on the amount withdrawn on certificates
of deposit with terms of thirty (30) days or less.

 

 

1