USAA Bank used to offer very competitive Jumbo CD rates for its long-term CDs. Unfortunately, in the last couple of months, the Jumbo CD rates for terms over 4 years haven't been much better than the regular CD rates, and you can get better 5-year and 7-year CD rates at several other internet banks. However, USAA Bank still offers a nice premium rate for the shorter-term Jumbo CDs, and some of these are very competitive. The following are some of the best Super Jumbo CD rates listed at USAA Bank's CD rates page as of 1/27/2011:
- 2.15% APY 3-year CD
- 1.96% APY 30-month CD
- 1.80% APY 2-year CD
- 1.70% APY 18-month CD
- 1.50% APY 15-month CD
These rates require a minimum deposit of $175K. The rates are 25 basis points lower for a $95K minimum. For a $1K minimum, rates are 30 to 35 basis points lower. The 2-year and 3-year CDs are also available as IRA CDs.
According to USAA Bank's Depository Agreement, the early withdrawal penalty is 180 days of interest for terms over 1 year and under 7 years. It's 90 days of interest for terms over 30 days and up to 1 year. It's 365 days of interest for the 7-year term.
Another important thing to note in the disclosure is that the bank has the right to refuse an early withdrawal request: "Any withdrawals before the maturity date require Bank’s consent." However, it appears this would probably only be used to offset money that is owed to USAA such as due to unpaid loans.
When I contacted USAA last year, I was told that they typically change rates on Fridays so I hope these don't change tomorrow. 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.
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's a large bank with $43.61 billion in assets. The bank has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 4.50% (excellent) based on September 2010 data. Please refer to our financial overview of USAA Bank for more details. It has been a FDIC member since 1983 (FDIC Certificate # 32188).
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.