Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
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 the 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.
USAA Pros and Cons
Pros
Cons
Eligible for membership if you or an immediate family member (parent or spouse) are an active or past military member
Refunds some out-of-network ATM fees
Free checking account
Variety of CDs
Low interest rates on savings accounts
Limited customer service
Interest compounded monthly, not daily
Navy Federal Pros and Cons
Pros
Cons
Eligible for membership if you or a family member are: an active duty, retired, or veteran military member OR work for the Department of Defense
Solid interest rates on savings and money market accounts
Must open the Navy Federal Credit Union Share Savings Account to become a member
Interest compounded monthly, not daily (except for CDs)
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.
USAA Classic Checking Account
Navy Federal Free Active Duty Checking™ Account
APY
USAA Classic Checking Account
Navy Federal Free Active Duty Checking™ Account
Minimum opening deposit
USAA Classic Checking Account
Navy Federal Free Active Duty Checking™ Account
Monthly service fee
None
None
Perks
Reimburses up to $10 in out-of-network ATM fees
No overdraft fees
Free overdraft protection is available
Early direct deposit
Access to 1,200 free USAA ATMs
Access 100,000 USAA-preferred ATMs nationwide (Allpoint, MoneyPass, and PNC Bank ATMs)
Reimburses up to $20 in out-of-network ATM fees
Early direct deposit
Access to 30,000 free ATMs
Caveats
$29 overdraft fee
$20 overdraft protection transfer fee
Next steps
USAA Classic Checking Account
Navy Federal Free Active Duty Checking™ Account
USAA vs. Navy Federal Savings Account Comparisons
We've compared savings accounts with low minimum opening deposits and minimal service fees.
USAA Savings Account
Navy Federal Credit Union Share Savings Account
APY
USAA Savings Account
Navy Federal Credit Union Share Savings Account
Minimum opening deposit
USAA Savings Account
Navy Federal Credit Union Share Savings Account
Service fee
None
$3 quarterly service fee (Only if you have no other Navy Federal accounts, AND your balance is under $50, AND your account has been inactive for 12 months)
Standard share certificates, Jumbo share certificates, EasyStart certificates, SaveFirst accounts
Next steps
USAA Bank Certificate of Deposit (CD)
Navy Federal Credit Union Standard Certificate
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 Navy Federal Credit Union Money Market Account minimum opening deposit — most financial institutions require at least $1,000 for money market accounts.
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.
