USAA vs. Navy Federal: Which Is the Best Choice for Military Members? (2024)

August 14, 2024

9 min Read

Written by John Csiszar

Edited by Melanie Grafil

PredragImages / Getty Images

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Who Can Join USAA?

USAA membership is open to U.S. military members and veterans, pre-commissioned officers and their spouses and children.

Pros

100,000 surcharge-free ATMs
Extensive lineup of credit cards
Broad range of insurance coverages
No-free checking and savings accounts
Investment services and military-specific benefits

Cons

Fewer physical branches
Generally low APYs on checking and savings products

Who Can Join Navy Federal?

Navy Federal Credit Union is also open to current and former members of the U.S. military, including their families. However, membership is also offered to civilian employees of the Department of Defense.

Differences in Membership Benefits

At the most basic level, the membership benefits offered by USAA and NFCU are similar. Both offer no-fee, no-minimum checking and savings accounts, insurance, loans, credit cards, mobile banking and investment options. USAA has the edge if you’re more mobile-oriented, as it has a much more extensive ATM network–with 100,000 fee-free terminals– and a limited branch network. If you prefer in-person banking, however, NFCU offers 357 branches worldwide, vs. just five physical USAA locations. NFCU’s fee-free ATM network only extends to 30,000 terminals.

Here’s an in-depth look at each credit union’s offerings:

Checking and Savings Accounts

Both USAA and NFCU offer a range of checking, savings and money market accounts. Here are the highlights of each credit union’s offerings.

USAA Classic Checking

Fees: $0
Minimum Balance: $25
APY: on balances of at least $1,000
Standout Features:
- 100,000 fee-free ATMs
- Up to $10 per month in out-of-network fee rebates
- $200 sign-up bonus with direct deposit (valid through Dec. 10, 2024)

NFCU – Free Active Duty Checking

Fees: $0
Minimum Balance: $0
APY:
Standout Features:
- 30,000 fee-free ATMs
- Up to $240 in annual out-of-network ATM fee rebates

NFCU – Free Easy Checking

Fees: $0
Minimum Balance: $0
APY:
Standout Features:
- 30,000 fee-free ATMs
- Up to $120 in annual out-of-network ATM fee rebates

NFCU – Free Campus Checking

Fees: $0
Minimum Balance: $0
APY:
Standout Features:
- 30,000 fee-free ATMs
- Up to $120 in annual out-of-network ATM fee rebates

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NFCU – Free EveryDay Checking

Fees: $0
Minimum Balance: $0
APY:
Standout Features:
- 30,000 fee-free ATMs
- No opening deposit required

NFCU – Flagship Checking

Fees: $10 for balances under $1,500
Minimum Balance: $1,500 to avoid monthly fee
APY: to
Standout Features:
- 30,000 fee-free ATMs
- Up to $120 in annual out-of-network ATM fee rebates

Here’s the comparison between the two credit unions and their savings account offerings.

USAA Savings

Fees: $0
Minimum Balance: $25
APY:

USAA Performance First Savings

Fees: $0
Minimum Balance: $1,000
APY: to

USAA Youth Savings

Fees: $0
Minimum Balance: $25
APY:

NFCU – Share Savings Accounts

Fees: $0
Minimum Balance: $5
APY:

NFCU – Money Market Savings Accounts

Fees: $0
Minimum Balance: $2,500 to earn dividends
APY: to

NFCU – Jumbo Money Market Savings Accounts

Fees: $0
Minimum Balance: $100,000 to earn dividends
APY: to

NFCU SaveFirst Account

Fees: $0
Minimum Balance: $5
APY:

Credit Cards Comparison

Both USAA and NFCU offer an extensive range of credit cards. Here’s the complete lineup for each:

USAA Credit Cards

Preferred Cash Rewards Card: 1.5% cash back, $200 reward bonus for spending $1,000 in first 90 days
Eagle Navigator™ Visa Signature® Credit Card: 3x points on travel, 1x points on other purchases, $100 TSA PreCheck® or Global Entry® credit every four years, $95 annual fee
Rewards™ American Express® Credit Card: 0% intro APR for 15 months on balance transfers/convenience checks, 3x points on dining, 2x points on groceries and at gas stations, 1x points on other purchases, no annual fee
Rewards™ Visa Signature® Credit Card: 0% intro APR for 15 months on balance transfers/convenience checks, 2x points on dining and at gas stations, no annual fee
Cashback Rewards Plus American Express® Credit Card: 0% intro APR for 15 months on balance transfer/convenience checks, 5% cash back on gas station and military purchases up to $3,000 yearly, 2% cash back on first $3,000 of grocery purchases yearly, unlimited 1% cash back on other purchases, no annual fee
Preferred Cash Rewards Visa Signature® Credit Card: Unlimited 1.5% cash back on all purchases, $200 reimbursem*nt of auto policy deductible with a claim and at least eight purchases in the prior month, no annual fee
Rate Advantage Visa® Platinum Credit Card: 0% intro APR for 15 months on balance transfers/convenience checks, APR as low as 12.15% on carried balances, no annual fee
Secured VISA® Platinum Credit Card: Credit limit of $250 to $5,000 backed by security deposit, true VISA® card (not prepaid or debit card), no annual fee
Secured American Express® Credit Card: Credit limit of $250 to $5,000 backed by security deposit, true American Express® card (not prepaid or debit card), no annual fee

NFCU Credit Cards

cashRewards: Up to 1.75% cash back on all purchases, $300 cash back on $3,000 of purchases in first 90 days, $98 credit for a $49 or more annual Walmart+ subscription, no annual fee
Navy Federal More Rewards American Express® Card: 3X points at supermarkets, 3X points on gas and transit, 3X points at restaurants and 1X points on everything else, low intro APR on balance transfers in first 12 months, no annual fee
Visa Signature® Flagship Rewards: 3x points on travel, 2x points on all other purchases, 40,000 bonus points after spending $3,000 in first 90 days, free year of Amazon Prime®, $49 annual fee
GO REWARDS®: 3X points at restaurants, 2X points on gas and 1X points on everything else, low intro APR on balance transfer in first 6 months, no annual fee
Platinum: APR as low as 11.99%, low intro APR on balance transfers in first 12 months, no annual fee
nRewards® Secured: Builds credit while earning rewards, no annual fee

Loan Services

At USAA, members can access a wide variety of loans, mortgage, auto loans and personal loans to RV loans, boat loans, motorcycle loans and leisure vehicle loans. The credit union offers no fewer than six types of mortgages, with rates starting at 5.75%. Auto loans begin at 4.74%.

NFCU also offers a number of different types of loans, including home mortgages, auto loans, HELOCs, student loans, personal loans, and motorcycle, boat and RV loans. VA mortgage loans start as low as 5.125% with 0% down, and Military Choice Loans, available after VA options are exhausted, start at 6.375% with 0% down. Auto loan rates start as low as 4.09%, while personal loans begin at 8.99%.

Customer Service and Support

At USAA, you can reach a live customer service agent at (800) 531-USAA (8722) Monday through Friday, from 9 a.m. to 5 p.m. CT, and Saturday from 8:30 a.m. to 1 p.m. CT.

For Navy Federal Credit Union, you can reach customer service by phone 24 hours, seven a days a week. If you prefer chat support, that service is available Monday through Friday, 9 a.mm. to 6 p.m. ET.

Digital Banking Experience

The USAA mobile app allows complete management of your account and includes the following features, some of which are not that common in a mobile banking app:

Bill pay
Account activity
Send/transfer money
View your ID card
Get roadside assistance
File and manage claims

The USAA mobile app is much more popular on the App Store, where it has received around 1.8 million reviews with an average rating of 4.8 stars. On Google Play, only around 200,000 customers have left votes, with an average score of 4 stars.

The Navy Federal Credit Union mobile app offers its own broad range of functionality, including:

Card management
Notifications
Transfers
Bill pay
Mobile check deposits
Account management

Just like with USAA, the NFCU mobile app receives both more reviews and higher rates on the App Store than on Google Play. Ratings are 4.9 and 4.2 stars, respectively, with at least 760,000 reviews posted on the App Store vs. just a little more than 94,000 on Google Play.

Insurance Products

USAA offers an incredibly diverse line of insurance products, covering nearly anything a member could need:

Auto insurance
Pay-as-you-drive auto insurance
Motorcycle insurance
ATV insurance
RV and motorhome insurance
Boat insurance
Personal watercraft insurance
Bicycle and e-bike insurance
Classic and collector car insurance
Aviation insurance
Long-term care insurance
Renters insurance
Homeowners insurance
Condo insurance
Landlord insurance
Valuable personal property insurance
Flood insurance
Mobile home insurance
Collectibles insurance
Cell phone protection
Umbrella insurance
Commercial general liability insurance
Business owners policy
Life insurance
Medicare plans
Individual and family health insurance plans
Dental insurance
Vision insurance
Supplemental health gap insurance
Pet insurance
Travel insurance
Special event insurance
Personal cyber insurance

Navy Federal Credit Union also provides extensive insurance services, but they are broken down into just three categories:

Life insurance
Liberty Mutual® auto and home insurance
Guaranteed asset protection

Investment Services

USAA partners with Schwab to provide most of its investment services, including Schwab Intelligent Portfolios to provide automated investing or “robo-advisory” services. This allows members to access $0 commission trading on stocks and ETFs through Schwab, over 4,000 commission-free mutual funds, $0 account minimums and no maintenance fees. The partnership through Schwab also offers a 529 College Savings Plan via Victory Capital.

Navy Federal Credit Union offers two types of investment plans: automated, digital investing and flesh-and-blood financial advisors. Under the digital investing option, customers can choose either a self-directed account or an automated one. Both cost $3.50 per month after a 30-day free trial, with no investment minimum. Working with a financial advisor comes with a complimentary consultation. Fees and minimums may apply.

Military-Specific Benefits

Both USAA and NFCU offer various perks and benefits for their military members. Here are a few of USAA’s highlighted offerings:

Up to a 30% discount on auto and property insurance with USAA SafePilot
Life insurance starting at $12 per month
Discounts of up to 35% on car rentals, and 40% on Disney and Universal Studios tickets
25% off on new tires at Goodyear
20% off one-way rentals with Budget Moving Trucks

NFCU offers the following military-specific benefits:

Up to $20 in ATM fee rebates, free military checks and early access to military pay with qualifying military direct deposit with the Active Duty Checking® account
A 0.25% APR discount on select loans if you have direct deposit
100% financing options on loans that are guaranteed by the Department of Veterans Affairs
A 100% financing option is available for Military Choice Home Loans
Exclusive offers and great rates for Academy, ROTC and DEP students

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Aug. 13, 2024.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.