USAA vs. Navy Federal: Which Is the Best Choice for Military Members?
Written by
John Csiszar
Edited by
Melanie Grafil
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The two top dogs for military credit unions are USAA and Navy Federal Credit Union. Here’s an overview of their products, services, features and benefits.
USAA and NFCU are both good credit union options for military members. The better option really depends on your own personal needs in terms of account types and perks.
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.
Pros
- Lower mortgage and auto loan rates
- No fees on most checking and savings accounts
- More physical branches
- Out-of-network fee rebates
- Investment services and military-specific benefits
Cons
- Smaller surcharge-free ATM network
- Money market accounts — particularly the Jumbo Money Market Account — require high minimum balances
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
Thanks!
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 reimbursement 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.
