USAA vs. Navy Federal Credit Union — which is the best banking option for those in uniform?

If you're an active-duty member or veteran, there are benefits to opening an account with a bank or credit union that understands your needs. Navy Federal Credit Union (NFCU) and United Services Automobile Association (USAA) are two well-known financial institutions that both claim to be the ideal place for service members and their families. But choosing the one that's right for your financial needs depends on what you value. While USAA offers digital convenience and more access to ATMs nationwide, NFCU stands out with its broad eligibility, letting you include not just spouses and children but also parents, grandparents and siblings.

USAA membership is primarily available to active duty service members, members of the National Guard or Reserve, veterans, contracted cadets or midshipmen, officer and warrant officer candidates, as well as their spouses, former spouses, widows, widowers and children. 

NFCU membership is open to active and retired members of the U.S. military, as well as their families. Eligible family members include parents, grandparents, spouses, siblings, children (including adopted and stepchildren), grandchildren and household members. Department of Defense civilian employees are also eligible for membership.  

USAA and NFCU both offer checking accounts with features that cater to slightly different needs. USAA's Classic Checking Account has no monthly fees and comes with nationwide ATM access. However, it requires a $25 minimum deposit to open, and you need to maintain a daily minimum balance of $1,000 to earn a low interest rate.  

NFCU offers four types of checking accounts for those who want low-cost and no-frills banking. Neither the Free Easy Checking nor the Free Everyday Checking have any monthly fees or minimum balance requirements. The same holds true with the Free Active Duty Account, which also lets you access your military pay a day early if you're on active duty or retired (despite the account's name). Plus, you receive up to $240 a year in ATM fee rebates. 

While each account earns some interest, NFCU's Flagship Checking Account is the only one to offer tiered interest rates based on your balance, starting at 0.35% APY for balances over $1,500. The account has a $10 monthly fee if your daily balance falls below $1,500, so it's a better choice if you can maintain a higher balance and want your money to work for you. 

If you're looking to help your child build their finances, both institutions offer checking account options designed to educate children on financial responsibilities. 

USAA's Youth Spending Account is a good choice for anyone under 18 who is still learning about managing finances, as it offers tools like spending limits and alerts for parents. Once the account holder reaches the age of 18, their account will convert to the Classic Checking account. Both the Youth Spending Account and the Classic Checking Account require a $25 minimum deposit to open and earn interest on balances of $1,000 or more. 

NFCU's Campus Checking Account is designed for those between the ages of 14 to 24 and comes with no monthly service fees or minimum balance requirements, as well as ATM fee rebates of up to $120 a year. The account also earns interest on all balances, so you don't have to worry about maintaining a certain balance to qualify.  

NFCU's Share Savings Account is a solid no-frills account that earns 0.25% APY with a minimum deposit of $5. For higher balances, NFCU's Money Market Savings Account and Jumbo Money Market Savings Accounts offer tiered APYs where you can earn up to 1.50% APY or 2.25% APY, respectively. 

The USAA Savings account earns a lower APY of 0.01% APY and comes with a higher minimum opening deposit of $25 compared to the NFCU Share Savings Account. If you want to earn a higher yield, the Performance First® Savings account offers tiered APYs of up to 1.10%, depending on the balance. However, the APYs remain low until your balance hits $50,000, and the account requires a minimum deposit of $1,000.  

NFCU comes with a variety of CD options with terms ranging from three months to seven years. The credit union has sorted and branded its CDs to cater to different types of savers and their goals — for example, the Standard CDs are more of the traditional certificates you'd find at other institutions, requiring a $1,000 minimum deposit and having terms as long as seven years. On the other hand, the EasyStart CDs seem geared toward someone with more short-term goals, and only require a $50 minimum deposit to open — but also have a maximum term length that caps out at two years.

USAA offers fixed-rate CDs with terms from 30 days to seven years. USAA also offers jumbo CDs and what it calls "Super Jumbo" CDs which offer higher APYs than their standard certificates, but they require much higher minimum deposits ($90,000 and $175,000 respectively).   

USAA offers access to over 100,00 preferred ATMs nationwide, and NFCU offers access to more than 30,000 ATMs located at credit unions and retail locations throughout the U.S. and Canada.

USAA will automatically refund up to $10 of out-of-network fees per billing cycle, while NFCU provides a $10 rebate per billing cycle if you have the Flagship Checking, Free Easy Checking or Free Campus Checking accounts. Free Active Duty Account holders get a rebate of up to $20 per billing cycle.

NFCU will also charge its own service fee of $1 per transaction at a non-network ATM, while with USAA you are only on the hook for whatever fee the non-network ATM charges you.

NFCU offers 366 physical branches worldwide, while USAA only offers four financial centers within the nation.

USAA is great if you or your family qualify for membership and value the convenience of digital banking. With over 100,000 preferred ATMs nationwide, USAA makes it easy to access your money, even if physical branches are limited. The checking and savings accounts are straightforward but may be less appealing if you're seeking competitive interest rates, especially if maintaining high balances isn't feasible. If you're looking for fixed-rate CDs, USAA offers flexibility with terms ranging from 30 days to seven years, though the APYs are typically lower compared to NFCU.  

If you're looking for competitive interest rates, a wide range of account options and eligibility for a broader scope of family members, NFCU may be the right choice for you. NFCU offers competitive rates, including CD options with high APYs and savings accounts that require just $5 to open. NFCU also stands out for its eligibility requirements, welcoming not only service members and veterans but also an extensive range of family members, including parents, grandparents, siblings, grandchildren and household members.  

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Correction: This story has been updated to reflect that USAA is a bank. A previous version referred to it as a credit union.