USAA Money Market Accounts: Everything You Need To Know
Written by
Kellan Jansen
Edited by
Susan Kim
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Money market accounts can be a great way to build your savings. If you’re a USAA customer, you may be interested in opening one of these accounts with your bank. This guide will tell you whether it’s possible while highlighting some of the pros and cons of USAA savings products.
Does USAA Have Money Market Accounts?
As of 2024, USAA does not offer money market accounts. However, USAA offers several savings accounts, which may still meet your needs, including:
- USAA Savings ($25 minimum opening deposit)
- USAA Performance First ($10,000 minimum opening deposit)
- USAA Youth Savings ($25 minimum opening deposit)
Performance First accounts pay an interest amount that scales as you deposit more funds, while the other accounts currently pay a flat rate on all deposits.
Here are some high-level pros and cons of USAA and its savings products.
Pros
- Offers several savings options, including an account type for minors
- Automated saving with your USAA checking account
- Highly rated iOS mobile app
Cons
- Low interest rates
- Few physical locations
- High minimum deposit amounts for the best APYs
USAA Savings Account Features
USAA savings accounts come with several features that can enhance your banking experience. For example, all accounts include custom alerts to prevent fraud and allow you to manage your savings online or on the go with the bank’s mobile app.
USAA savings accounts can also integrate with your other USAA accounts, including everyday checking. The bank makes it easy for you to take advantage of these integrations with features like automatic transfers and other tools that can help you put your savings on autopilot.
You can’t get a debit card for your USAA savings account, but you can request a free ATM card. This allows you to make cash withdrawals with zero fees at USAA ATMs. USAA also refunds up to $10 of fees and surcharges from non-USAA ATMs each month.
USAA Money Market Account Interest Rates
Since USAA doesn’t offer money market accounts, we’ll look at the interest rates it currently pays on its savings accounts in this section.
The main drawback of USAA savings accounts is that they pay significantly lower interest rates than competitors. The highest interest rate USAA offers is APY. However, this is only available to USAA Performance First customers with at least $500,000.
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For regular USAA Savings and USAA Youth Savings clients, the interest rate is negligible. The bank pays APY, regardless of how much you have in your account.
There are plenty of other banks that pay above 4.00% APY on savings options. This essentially means you’d be leaving money on the table by storing your funds at USAA instead of another institution that would pay you a higher APY.
That’s not to say there’s no reason to use a USAA savings account. You might still decide to do so if you want to keep all of your money at one bank, prefer to support a military-oriented financial institution, or have other special needs that USAA meets better than competitors.
For example, if you already have your account with USAA and want to open up a new savings account for your child, then it may be easier to monitor the account if you open it with USAA instead of another bank.
USAA Account Accessibility
USAA makes it easy to manage your savings account online or on your phone. The bank has a straightforward online account dashboard you can use and has mobile apps for Apple and Android devices. USAA’s iOS app currently has a rating of 4.8 out of 5 stars on the App Store, while its Google Play app has a rating of 4 out of 5 stars.
If you need support, you can visit a branch if you live near one, or you can call the bank’s customer service number.
The main downside is that there aren’t many physical USAA branches. That can be a problem if you enjoy face-to-face banking but live outside of the bank’s covered territory.
Money Market Account Alternatives
Since USAA doesn’t offer money market accounts, you’ll need to go with another financial institution if you want to sign up for one. There are plenty of options to consider, but here are two popular ones to get your search started.
Ally Bank
Ally Bank currently pays APY on money market accounts across all balance tiers — significantly more than USAA’s savings accounts. These accounts also come with no monthly maintenance fees, 24/7 customer support and no minimum balance requirements.
Vio Bank
Vio Bank currently pays APY on its Cornerstone Money Market Savings account. It carries no monthly fee, and you can open an account with as little as $100.
How To Apply for a USAA Money Market Account
Unfortunately, it’s not possible to apply for a USAA money market account. But you can apply for a USAA savings account by simply visiting the bank’s website.
You’ll need to be a member of USAA before applying. But you can complete this step online in a few minutes. The key requirement is that you need to have served in the military yourself or be the spouse or child of someone who did.
Who USAA Money Market Accounts Are Best For
USAA doesn’t offer money market accounts, but it can be a potential fit for people who are OK with a traditional savings product instead. But the bank offers lower APYs than many of its competitors, so it’s likely only going to be a good option for your savings needs if you have a special reason for wanting to keep your money at USAA.
Final Take on USAA Saving Accounts
USAA offers several savings options to choose from, which include useful features like custom alerts for fraud prevention and access to highly rated mobile apps. But the bank’s APYs are low compared to some competitors. This means you can likely earn more interest if you keep your money somewhere else.
FAQ
- Does USAA offer a money market account?
- No, USAA does not offer money market accounts. You can open a new savings account with USAA instead if you want to keep savings at the bank.
- Does USAA have a high-yield savings account?
- No, USAA doesn't have a high-yield savings account in the traditional sense. It offers a USAA Performance First account for savers with at least $10,000 to deposit, but it still offers lower APYs than most high-yield alternatives.
- What is the highest interest rate at USAA?
- The highest interest rate you can get for money saved at USAA is 0.00%. Many of the bank's competitors will pay you above 4.00% as of February 2024.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Feb. 12, 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.
