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USAA and Navy Federal are excellent options if you’re searching for a financial institution specifically geared toward military members. (See Insider’s full list of the best banks for military »)
We’ve compared the institutions’ bank accounts to see which products stand out the most. We’re also evaluating each bank’s trustworthiness so you can know more about their history.
Insider’s Featured Products for Military Members
4X points on all travel categories for PenFed Honors Advantage Members, 3X points on all travel categories, 1.5X points on all other purchases
50,000 bonus points when you spend $3,000 in the first 90 days of account opening
$95 (waived for existing Honors Advantage Members)
2% cash back on all purchases for PenFed Honors Advantage Members, 1.5% cash back on all purchases made with your card
$100 statement credit offer when you spend $1,500 in the first 90 days from account opening
5x points on gas paid at the pump and EV charging stations, 3x points at the supermarket (including most Target and Walmart locations), restaurants, and TV, radio, cable, streaming services, 1x points on all other purchases
15,000 bonus points when you spend $1,500 in first 90 days of account opening
USAA Pros and Cons
Navy Federal Pros and Cons
USAA vs Navy Federal Checking Account Comparisons
USAA and Navy Federal both have a plethora of checking accounts. We’ve compared each institution’s free checking account.
Annual Percentage Yield (APY)
0.01% on balances of $1,000 or more
Minimum Deposit Amount
$25
Annual Percentage Yield (APY)
0.01% on balances of $1,000 or more
Minimum Deposit Amount
$25
USAA Classic Checking
Details
Annual Percentage Yield (APY)
0.01% on balances of $1,000 or more
Minimum Deposit Amount
$25
USAA vs Navy Federal Savings Account Comparisons
We’ve compared savings accounts with low minimum opening deposits and minimal service fees.
Navy Federal Credit Union Share Savings Account
Annual Percentage Yield (APY)
0.25%
Minimum Deposit Amount
$5
Navy Federal Credit Union Share Savings Account
Annual Percentage Yield (APY)
0.25%
Minimum Deposit Amount
$5
On Navy Federal Credit Union’s secure site. Navy Federal Credit Union, NCUA insured.
Navy Federal Credit Union Share Savings Account
Details
Annual Percentage Yield (APY)
0.25%
Minimum Deposit Amount
$5
USAA vs. Navy Federal CD Comparisons
Navy Federal Credit Union Standard Certificate
Annual Percentage Yield (APY)
0.45% to 4.45%
Minimum Deposit Amount
$1,000
Navy Federal Credit Union Standard Certificate
Annual Percentage Yield (APY)
0.45% to 4.45%
Minimum Deposit Amount
$1,000
Navy Federal Credit Union, NCUA insured.
Navy Federal Credit Union Standard Certificate
Details
Annual Percentage Yield (APY)
0.45% to 4.45%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
0.05% to 4.50%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
0.05% to 4.50%
Minimum Deposit Amount
$1,000
USAA Bank CD
Details
Annual Percentage Yield (APY)
0.05% to 4.50%
Minimum Deposit Amount
$1,000
USAA vs. Navy Federal Money Market Account
USAA doesn’t offer a money market account, but Navy Federal does. The Navy Federal Credit Union Money Market Account makes it easy to access money in your account with paper checks and an ATM card. It also has a $0 minimum opening deposit — most financial institutions require at least $1,000 for money market accounts.
Navy Federal Credit Union Money Market Account
Annual Percentage Yield (APY)
0.00% to 0.90%
Minimum Deposit Amount
$0
Navy Federal Credit Union Money Market Account
Annual Percentage Yield (APY)
0.00% to 0.90%
Minimum Deposit Amount
$0
On Navy Federal Credit Union’s secure site. Navy Federal Credit Union, NCUA insured.
Navy Federal Credit Union Money Market Account
Details
Annual Percentage Yield (APY)
0.00% to 0.90%
Minimum Deposit Amount
$0
USAA vs. Navy Federal Trustworthiness and BBB Ratings
The Better Business Bureau rates businesses based on responses to customer complaints, honesty in advertising, and transparency about business practices.
USAA has an NR (“No Rating”) grade from the BBB, and Navy Federal received NR (“No Rating”) because both are currently responding to previously closed complaints.
A good BBB rating won’t guarantee a smooth relationship with a financial institution. You’ll want to talk to current customers or read online customer reviews to see if a bank might be right for you.
Both USAA and Navy Federal have been involved in recent public controversies.
USAA has been involved in the following public settlements:
- In 2020, the Office of the Comptroller of the Currency required USAA to pay $85 million in a settlement that accused the bank of failing to establish and carry out an efficient compliance risk management program and IT risk governance program.
Navy Federal has been involved in the following scandal:
- In 2020, a Navy Federal employee filed a lawsuit claiming the lender pressured mortgage underwriters to approve loans even if they thought an applicant wouldn’t be able to pay off the loan. She dropped the case in late 2020 but said Navy Federal retaliated against her whistleblowing by changing her job duties.
USAA vs. Navy Federal: Frequently Asked Questions
Your preferences between these two institutions may depend on whether you prefer banks or credit unions. Credit unions usually require you to meet certain requirements to join. At Navy Federal, you’ll need to open the Navy Federal Credit Union Share Savings Account to become a member.
You’ll also want to see if you’re eligible to bank with either institution. To bank with USAA, you or an immediate family member must be a past or active military member. At Navy Federal, you’re eligible if you or a family member are active duty, retired, or veteran military member, or work for the Department of Defense.
