USAA CD Rates Review
USAA bank serves military members and their families with a variety of financial products and services including personal banking, investments and retirement options. USAA CD rates are fairly competitive; the current APY on USAA CDs may be as high as 2.22%.
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USAA Bank, based in San Antonio, Texas, has been serving the needs of the military community and their families since 1922. USAA customer are in the U.S. military, retired or separated from the military with an Honorable Discharge, family members of military personnel, widowers and unremarried former spouses, and cadets or midshipmen.
USAA Certificates of Deposit (CDs)
USAA is unique in terms of the CDs is offers because it offers many more options than most other financial institutions. The three primary types of CDs from USAA are variable rate, adjustable rate, and fixed rate.
The variable rate CD is good for flexibility, particularly regarding being able to make additional deposits. It also provides higher return rates than traditional savings account.
The adjustable-rate CD is good for someone who wants a guaranteed rate of return, but also a potential one-time adjustment if rates rise. You can also make one additional deposit if the rate is adjusted.
The fixed-rate CD provides a guaranteed rate throughout the term of the CD, with no additions allowed.
USAA CD Rates
The following breaks down the current CD rates offered by USAA for the Fixed Rate CD, the Adjustable Rate CD, and the Variable Rate CD.
Fixed Rate CD
| Term Length | $1,000 – $94,999 | $95,000 – $174,999 | > $174,999 |
| 91 days | 0.30% | 0.35% | 0.35% |
| 182 days | 0.56% | 0.61% | 0.61% |
| 7 months | 0.56% | 0.61% | 0.61% |
| 270 days | 0.66% | 0.71% | 0.71% |
| 15 months | 0.71% | 0.76% | 0.76% |
| 18 months | 0.76% | 0.81% | 0.81% |
| 2 years | 1.51% | 1.56% | 1.56% |
| 3 months | 1.54% | 1.59% | 1.59% |
| 3 years | 1.71% | 1.76% | 1.76% |
| 4 years | 1.87% | 1.92% | 1.92% |
| 5 years | 2.12% | 2.17% | 2.17% |
| 7 years | 2.17% | 2.22% | 2.22% |
Adjustable Rate CD
| Term Length | $1,000 – $94,999 | $95,000 – $174,999 | > $174,999 |
| 3 years | 0.91% | 0.96% | 0.96% |
| 4 years | 1.22% | 1.27% | 1.27% |
| 5 years | 1.49% | 1.54% | 1.54% |
| 7 years | 1.54% | 1.59% | 1.59% |
Variable Rate CD
| Term Length | > $249 |
| 1 year | 0.46% |
| 182 days | 0.46% |
Eligibility Requirements
To be eligible to open any of the above CDs with USAA, you have to be associated with the military in some way, whether it’s direct current service, former military service, or through a family member of the military. Beyond that, the requirements for opening a CD are pretty standard of opening any depository bank account, such as showing identification.
Minimum Opening Deposit
The minimum opening deposit for a fixed-rate CD is $1,000 for standard rates. For jumbo rates it’s $95,000, and for super jumbo rates, the minimum opening deposit is $175,000. No additional deposits are allowed until the CD reaches its maturity date. For the adjustable rate CD, the minimum opening deposit requirements are the same.
With the variable-rate CD, the minimum initial deposit is only $250, and you can make additional deposits of $25 or more without extending the date of maturity.
Early Withdrawal Penalties
The early withdrawal penalties for CDs from USAA Bank are:
- For CD terms of 30 days or less, the penalty is equal to 30 days of interest
- For CDs that have terms of more than 30 days and up to a year, the penalty is charged as 90 days of interest
- When CD terms are more than a year but less than seven years, the penalty is equal to 180 days of interest
- For terms of seven years or more, the penalty is 365 days of interest
Pros of USAA CDs
The specific pros of a USAA CD depend somewhat on the product you select. However, the general variety of options is one of the biggest pros of going with a CD from USAA. The variety comes in the form of not only the annual percentage yield but also the type of CD itself. Also, with the variable rate CD, the minimum initial deposit is one of the lowest of any available CD.
A USAA CD is a good option for someone who wants a lot of flexibility, the ability to have variable APY earnings on a CD or someone who might not have a high initial amount of money to deposit, but who wants to be able to add to their CD over time, gradually.
Cons of USAA CDs
The primary con of a USAA CD is that it’s only available to people who qualify for USAA membership. Even with the other accounts, the minimum balance requirement is still only $1,000, which is relatively low.
Bottom Line
USAA CD rates are not as competitive as some financial institutions that offer higher CD rates. For the most part, the best CD rates are offered by online-only banks. However, USAA’s CD rates also aren’t the lowest either. If you are a member of USAA Bank, their numerous CD products are worth checking into.
