We have been members for decades, through military and diplomatic life. I used to encourage friends to join USAA because their rates were good and customer service was top notch. But then credit union rates improved greatly and regularly beat USAA's. We have a bit extra in our savings bank, but rather than moving the funds to the credit union again, I thought of laddering some CDs at USAA. I hadn't seen the rates in a while ... what a shock! Across the board no matter how much ($1K or $1M) or how long (up to 5 years) you hold the CD the rates are 0.03%! I called USAA because I thought it might be a technical problem or typo. The representative was sympathetic but said "no, I'm sorry rates have been quite low." I mentioned rates at the credit union and she said, well that's the credit union, USAA is a bank and goes by what the Fed determines and is competitive with other banks. Capital One (a bank) has CD rates starting at 0.10% for a 6-month CD going up to 0.40% for a 60-month CD. American Express (also a bank) is the same for 6-month CD at 0.10%, up to 0.55% for a 60-month CD. How is "0.03%" competitive?? Sorry, USAA. I'd love to keep as much business with you (you cover all our insurance), but can't justify such a huge difference in rates.

4 REPLIES

@EBNoir, Thank you for posting in our Member Community regarding our CD rates. A CD ladder is a great plan however I can see how the current rates are disheartening. I will forward your feedback to the appropriate area. As a member, we value your opinion and see that you are actively looking at rates. Thank you. ~ Suzy 

My wife and I moved essentially all our money out of USAA and switched our insurance to GEICO- I've been with USAA since the mid-1980s. This was for three reasons: 1)I strongly object to USAA's newly discovered  "woke" and "defund the police" bigoted political activism 2) Their customer service had declined to the point it is at times detrimental to contact them (just the other week they erroneously canceled a credit card we use at times to fund the little charity we run in Honduras) 3)Their rates are abysmal. Don't hesitate: go to Ally Bank, an on-line bank that doesn't pretend to be otherwise with a 12-month CD rate at this moment of 0.55 (NOT .055) and a saving account return of 0.50 almost 17 times more than USAA. I don't buy USAA's line about the "Fed" determining the rates, and think they are simply maximizing profits at the member's expense.

Amen, I also complained 

USAA's CD rates have not been close to competitive for long time, very happy that I took all my money out of USAA.