USAA does not offer a dedicated high-yield savings account

USAA's standard savings account earns interest, but the rate is not competitive with high-yield savings accounts from online banks. As of early 2024, USAA's savings account rate is significantly lower than what you can find elsewhere — typically under 0.5% annual percentage yield (APY), while high-yield accounts at other institutions pay 4% to 5% APY or higher.

If you bank with USAA and want to earn more on your savings, you have two paths: keep money in USAA's savings account for convenience and access to their customer service, or move funds to a high-yield account at another bank and maintain both accounts. Many people do both — they keep a smaller emergency fund at USAA and move larger savings balances to a higher-paying account.

USAA does offer money market accounts, which sometimes pay slightly higher rates than savings accounts, but these also typically lag behind dedicated high-yield savings products offered by online banks.

Key Takeaways

  • USAA savings accounts pay significantly less interest than high-yield savings accounts at online banks, usually under 0.5% APY compared to 4% to 5% elsewhere.
  • You can open a high-yield savings account at another bank while keeping your USAA account open for checking and routine banking.
  • USAA's money market accounts pay slightly more than savings accounts but still do not match high-yield rates from competitors.
  • The choice between USAA savings and a high-yield account depends on whether you value convenience and USAA's customer service more than earning maximum interest.
  • Interest rates change frequently, so checking current rates at both USAA and online banks before moving money will show you the actual difference for your situation.

How USAA savings rates compare to other banks

The gap between USAA and high-yield savings accounts is substantial. A high-yield savings account at an online bank like Marcus, Ally, or American Express Personal Savings typically pays 4% to 5% APY, while USAA's savings account pays a fraction of that. On a $10,000 balance, the difference in annual earnings could be $400 to $500 per year.

USAA's rates have not kept pace with the broader market. Even as the Federal Reserve raised interest rates significantly between 2022 and 2023, USAA's savings rates remained low. This is partly because USAA operates as a membership-based credit union and does not rely on deposits the way traditional online banks do — they generate revenue primarily from insurance products and investment services.

Money market accounts at USAA pay slightly more than savings accounts, but the difference is usually small — perhaps 0.1% to 0.2% higher. If USAA's savings account pays 0.4% APY, their money market account might pay 0.5% or 0.6%, which still falls far short of high-yield options.

When it makes sense to keep money at USAA

USAA's lower rates do not mean you should move all your money out. If you use USAA for checking and bill pay, keeping a savings account there offers convenience — you can transfer money between accounts instantly without waiting for an external transfer to process. If you need to access your emergency fund quickly, having it in the same place as your checking account simplifies that process.

USAA also offers strong customer service, with phone support available 24/7 and no branch network to worry about. If you value that support and do not have a large amount of money sitting in savings, the interest rate difference may not matter enough to justify opening another account elsewhere.

Additionally, USAA members sometimes receive promotional rates or special offers on savings products. These are not permanent, but they can occasionally make USAA's rates more competitive for a limited time. Checking your USAA account dashboard or calling their customer service line will show you any current promotions.

How to move money to a high-yield account while keeping USAA

You do not have to choose between USAA and a high-yield savings account — you can use both. Open a high-yield savings account at an online bank and link it to your USAA checking account. Most online banks accept external transfers via ACH (Automated Clearing House), which typically takes one to three business days.

To set up the transfer, you will need your USAA account number and routing number. Log into your USAA account, find the transfer or link account section, and enter the details for your new high-yield account. Once linked, you can move money between them whenever you want. Some people move a lump sum once and leave it there; others move money monthly as they save.

Keep in mind that high-yield savings accounts are still FDIC-insured (or NCUA-insured if they are credit unions), so your money is protected up to $250,000 per account. If you have more than that, you can open accounts at multiple banks to stay within the insurance limits.

What to look for in a high-yield savings account

If you decide to open a high-yield account elsewhere, compare a few key features beyond just the interest rate. Check whether the bank charges monthly fees — most online banks do not, but some traditional banks do. Look at the minimum balance requirement; many high-yield accounts have no minimum, while others require $1,000 or more to earn the advertised rate.

Also consider how easy it is to move money in and out. Some banks limit the number of transfers you can make per month, though this is less common now than it used to be. Check whether the bank offers a mobile app and whether you can deposit checks by phone camera, which is convenient if you receive paper checks.

Finally, verify that the bank is FDIC-insured. This is standard for online banks, but it is worth confirming before you move money. The FDIC website has a tool where you can search for any bank and confirm its insurance status.

USAA's other savings and investment products

Beyond savings and money market accounts, USAA offers certificates of deposit (CDs), which lock your money away for a set period in exchange for a may provide rate. CD rates at USAA are also lower than rates at online banks, but they can be worth considering if you have money you will not need for six months to five years and want a may provide return.

USAA also provides investment accounts, including brokerage accounts and retirement accounts (IRAs). These are separate from savings products and are designed for longer-term growth rather than emergency funds or short-term savings. If you have money you will not need for several years, investing through USAA or another provider may make more sense than keeping it in a savings account.

Frequently Asked Questions

Can I earn more interest by opening a USAA money market account instead of a savings account?

USAA money market accounts typically pay slightly more than savings accounts — usually 0.1% to 0.2% higher — but the difference is small. Both still pay significantly less than high-yield savings accounts at online banks. If earning maximum interest is your goal, a high-yield account elsewhere will serve you better.

What happens to my USAA savings account if I move money to another bank?

Your USAA account stays open and active. You can keep it for checking, bill pay, or a small emergency fund while maintaining a high-yield savings account elsewhere. There is no penalty for having money in multiple banks, and you can move money back to USAA anytime.

How long does it take to transfer money from USAA to a high-yield savings account?

ACH transfers from USAA to another bank typically take one to three business days. Some high-yield banks offer faster transfers or even same-day transfers, but standard ACH is the most common method. Check with your high-yield bank to see what transfer speeds they support.

Is my money safe in a high-yield savings account at an online bank?

Yes, as long as the bank is FDIC-insured. Most online banks that offer high-yield savings are FDIC-insured and protect your deposits up to $250,000 per account. You can verify a bank's insurance status on the FDIC website before opening an account.

Should I close my USAA savings account if I open a high-yield account elsewhere?

Not necessarily. Many people keep both — a USAA savings account for convenience and quick access, and a high-yield account elsewhere for money they are saving long-term. Closing the USAA account is optional and depends on whether you value the convenience of having everything in one place.