Recall, USAA is a tax-exempt membership organization. Seems to me with so many members living overseas that 1% is still very high even if disclosed in a 13 page fine pring document that only a lawyer would love. We also can't compare fairly to other banks as they have stockholders that depend on their dividends...you might be one if you're invested in the TSP. USAA doesn't have stockholders so the 1% should be zero. It doesn't effect me living in the states, but I would vote to change it for my fellow members overseas.
Great post. Another arguement against the $2 surcharge on the ATM transactions over ten per month: I need a bank from which I can withdraw large amounts of cash on occasion to pay contractors at a cash discount. ATMs are limited to $600 maximum per transaction, which is the highest amount of $20 bills that will fit in an output.
I'm going to look hard at local banking options to get a better option for this convenience.