USAA Federal Savings Bank and Navy Federal Credit Union offer a full range of financial products and services geared toward the needs of military members and their families. Either one could be a good fit if you’re affiliated with the military and looking for a new place to keep your money.
While USAA and Navy Federal have some things in common, they’re not identical. Comparing the benefits and features can help you decide which one might be right for you.
This review focuses on each organization’s checking and savings products. All account details and annual percentage rates (APYs) are accurate as of April 1, 2025.
USAA Preferred Cash Rewards Credit Card
1.5% Reward Rate
Earn 1.5% cash back on every purchase
Welcome Bonus
$200 reward bonus
Annual Fee
$0
Regular APR
16.15% to 28.15% variable
Credit Score
Good, Excellent
Simple rewards and a well-rounded suite of travel protections make this an essential everyday card and handy travel companion. No annual fees or foreign transaction fees make it that much better.
- High rewards rate on every purchase
- Travel protections
- No foreign transaction fees
- No balance transfer promotion
- Exclusive to USAA® members
- Must be a USAA® member, or become a member, to apply. USAA proudly offers membership to current and former military, as well as their spouses and dependents.
- Earn unlimited 1.5% cash back on purchases, no category restrictions, no caps on cash back.
- Intro Offer: Earn a $200 reward bonus when you spend $1,000 on qualifying purchases within 90 days of account opening.
- Auto Deductible Reimbursement (ADR) up to $200.
- A fee of 5% of the amount of each balance transfer, cash advance and convenience check applies.
- No annual fee.
- Cash back rewards never expire.
- Redeem cash back your way, on your schedule.
- No foreign transaction fees.
- 16.15% to 28.15% variable regular APR.
- Terms and Restrictions apply. See the Reward Terms and Conditions and the ADR Benefit Guide on USAA’s website for details.
- See Rates and Fees for details.
Who Can Join USAA or Navy Federal?
Both USAA and Navy Federal offer banking services to active-duty military members and veterans, their family members and certain other groups.
USAA Membership
To bank with USAA, you must fall into one of these categories:
- Current members of the U.S. military (active duty, Guard or Reserve, all branches)
- Former members of the U.S. military (honorable or general (under honorable conditions) discharge, all branches)
- Pre-commissioned officers (cadets or midshipmen at a U.S. service academy, affiliated academy prep school or advanced ROTC program)
- Officer or warrant officer candidates (commissioning within 24 months)
- Family members of USAA members (spouses, former or widowed spouses, children)
Navy Federal Credit Union Membership
Despite its name, Navy Federal is open to more than members of the Navy. You qualify if you’re in one of these groups:
- Active-duty members of the U.S. military (all branches)
- Reservists, officer candidates, ROTC members and Delayed Entry Program (DEP) members
- Veterans, retirees and those who receive annuity payments from the military
- Department of Defense civilian personnel (DoD civilian employees, DoD contractors at U.S. government installations, government employees assigned to DoD installations)
- Department of Defense civilian retirees and those who receive annuity payments from the DoD
- Family and household members of Navy Federal members (spouses, children, parents, siblings, grandparents, grandchildren)
Which Is Right for You: USAA or Navy Federal?
| USAA | Navy Federal | |
|---|---|---|
| Bank Accounts and Services Offered | Checking
Savings
Youth accounts
CDs
Credit cards
Loans | Checking
Savings
CDs
Money market account (MMA)
Retirement and education savings
Credit cards
Loans |
| Branches | 4 (near U.S. military bases) | 360 worldwide |
| Fee-free ATMs | 100,000 | 30,000 |
| Mobile App Available? | Yes | Yes |
| Insurance | FDIC-insured | NCUA-insured |
While both institutions have your banking and credit needs covered, USAA and its partners offer more when it comes to insurance, retirement and investing services. Navy Federal Credit Union, however, offers business banking while USAA does not.
Navy Federal is better for in-person banking, with 360 branches worldwide compared to just four financial centers operated by USAA. That said, USAA’s network of over 100,000 fee-free ATMs is larger than Navy Federal’s 30,000+ fee-free ATMs.
Both institutions are federally insured: As a bank, USAA is covered by the Federal Deposit Insurance Corp. (FDIC). As a credit union, Navy Federal is covered by the National Credit Union Administration (NCUA). That means that your deposits are insured up to $250,000 per account type at each of these institutions.
USAA Rate Advantage Credit Card
No Rewards
This card does not offer rewards on purchases.
Welcome Bonus
None
Annual Fee
$0
Regular APR
11.15% to 25.15% variable
Credit Score
Good, Excellent
If you think you’ll carry a balance, the USAA Rate Advantage has one of the lowest ongoing APRs around. There’s also no penalty APR if you have a late payment and no annual fee to worry about.
- 0% intro APR for 15 months on balance transfers, then 11.15% to 25.15% variable regular APR
- $0 annual fee
- No foreign transaction fees
- No rewards
- Must be a USAA® member or have a family member who is to qualify
- Must be a USAA® member, or become a member, to apply. USAA proudly offers membership to current and former military, as well as their spouses and dependents.
- Intro Offer: Get a 0% intro APR for 15 months on balance transfers and convenience checks that post within 90 days of account opening. After this time, the variable regular APR of 11.15% to 25.15% will apply to introductory balances.
- A fee of 5% of the amount of each balance transfer, cash advance and convenience check applies. If you transfer a balance or write a convenience check to take advantage of the introductory rate offer, you will immediately incur interest on purchases until you pay your balance in full, including any transferred balances.
- No annual fee.
- No foreign transaction fees.
- 11.15% to 25.15% variable regular APR.
- See Rates and Fees for details.
USAA vs. Navy Federal: Checking Accounts
USAA offers one flagship checking account, in addition to a checking account for children. Navy Federal has four checking accounts, each with different features, benefits and fees, in addition to its student checking account and business accounts.
USAA and Navy Federal pay a negligible amount of interest on checking account balances.
Both the USAA Classic Checking and Navy Federal Credit Union Free EveryDay Checking accounts made our list of the best checking accounts at military banks and credit unions. Here’s how the two compare.
| Account Features | USAA Classic Checking | Navy Federal Credit Union Free EveryDay Checking |
|---|---|---|
| Opening deposit | $25 | $0 |
| Monthly fee | $0 | $0 |
| Interest (APY) | 0.01% | 0.01% |
| Minimum balance to earn APY | $1,000 | None |
| Overdraft fee | $29 | $20 |
| ATM reimbursements | $10 per month | $10 per month |
| ATM cash withdrawal limit | $600 per day | $1,000 per day |
| Foreign transaction fee | 1% | 1% + $1 service fee (foreign transaction fees are not charged at in-network ATMs) |
| Deposit methods | Mobile deposit, direct deposit, wire transfer, by mail, in-branch, ATMs that accept deposits | Mobile deposit, direct deposit, wire transfer, by mail, in-branch, ATMs that accept deposits |
| Notable features | Get paid up to two days early with direct deposit | Opt-in to overdraft protection; get free personalized checks |
The Verdict
These two checking accounts are fairly similar, but Navy Federal wins by a slight margin. It doesn’t require a minimum opening deposit, whereas USAA does. Though both accounts offer extremely low interest rates, USAA requires you to have a $1,000 balance before you start earning interest. Navy Federal lets you start earning interest with any balance.
Navy Federal vs. USAA: Savings Accounts
Both Navy Federal and USAA offer free savings accounts and certificates of deposit (CDs). Navy Federal also offers a money market account with better rates on higher balances, and USAA similarly offers a premium savings account—USAA Performance First® Savings Account—that pays increased rates on higher balances. Still, these rates are much lower than the highest yields you can find.
Here’s how the basic savings accounts from USAA (USAA Savings) and the Navy Federal Credit Union Basic Savings Account compare.
| Account Features | USAA Savings | Navy Federal Credit Union Basic Savings Account |
|---|---|---|
| Interest (APY) | 0.01% on all balances | 0.25% |
| Minimum opening deposit | $25 | $0 $5 |
| Monthly fee | $0 | $0 |
| Notable features | Automatic savings tools, budgeting tools | Savings calculator |
The Verdict
Navy Federal wins out for its slightly higher APY and lack of minimum opening balance.
Both of these basic savings accounts will keep your funds safe, but if you’re looking to maximize the interest you earn, you should look elsewhere. Both these institutions’ rates are extremely low. You can find high-yield savings accounts, usually offered by online banks, that pay 4.00% APY on your balance.
Navy Federal Credit Union Platinum Credit Card
No Rewards
This card does not earn rewards.
Welcome Bonus
N/A
Annual Fee
$0
Regular APR
10.99% - 18.00% variable APR
Credit Score
Fair, Good, Excellent (650 - 699)
Many people skip credit union cards because they assume they won’t qualify. Navy Federal might be easier to join than you realize, and the card doesn’t charge a fee for balance transfers, making for a low cost balance transfer option.
- No annual fee
- No balance transfer fees
- No foreign transaction fees
- Low interest rates
- No promotional interest rate on purchases
- No rewards program
- There are longer promotional APR periods available
- No annual fee
- No foreign transaction or balance transfer fee
- Zero Liability policy for confirmed unauthorized transactions
- 24/7 access to stateside member reps
- Enjoy the ability to freeze and unfreeze your cards
- Gain free access to your FICO® Score
Pros and Cons of USAA
No bank is perfect, and while USAA offers some advantages, it may not be right for everyone.
Pros
- Wide range of financial products and services
- Free checking and savings accounts
- Competitive CD rates
- Expansive ATM network
Cons
- Limited branch banking options
- No MMA or business checking
- Low savings account rates
- Must qualify to become a member
Pros and Cons of Navy Federal
As you compare Navy Federal vs. USAA, keep in mind that credit unions often have fewer fees and offer lower interest rates on loans.
Pros
- Hundreds of branch locations
- More checking and savings account options, including MMAs and business checking
- Free checking and savings accounts with no or low minimums
- Competitive CD rates
Cons
- Comparatively smaller ATM network
- Low savings rates
- More limited membership
- Limited investing and insurance products
Find The Best Banks Of 2025
Bottom Line
Both USAA and Navy Federal Credit Union can help military members and their families manage their financial lives. Whether it makes sense to choose one over the other can depend largely on the types of banking products and services you’d like to have access to and your preference for banking in person or online.
Frequently Asked Questions (FAQs)
Are USAA or Navy Federal deposits FDIC insured?
USAA is an FDIC-insured bank. Deposits are insured up to $250,000 per depositor, per account ownership type and per financial institution. Navy Federal Credit Union accounts are insured for the same amount by the National Credit Union Administration (NCUA).
Is a bank or credit union better?
Banks and credit unions can offer the same range of products and services. The differences between them usually lie in the types of fees you’ll pay and how much interest you can earn on deposits. Credit unions also have membership requirements to join, which sets them apart from banks.
Does USAA or Navy Federal offer insurance products?
USAA offers members access to a variety of insurance products, including car insurance, RV and boat insurance and homeowners insurance. Members may qualify for special discounts or reduced rates when purchasing insurance through USAA or a partner provider. Navy Federal works with partners to provide discounts on selected types of insurance coverage, but its offerings are more limited.
