Prestigious Contributor

I wanted to reach out on this page and get some clarification and share some ideas

 

1. I was on the CDs page and noticed that you discarded the variable CD product, that was paying 0.46%, I am wondering if you are going to up the rates and reintroduce that product? It would be nice to have a low buy in option and to continue adding to it overtime, with an interest rate more in line with the market, or at least create one that you can continue to add funds to overtime, even if the minimum initial is 1K.

 

2. I am wondering if you are going to consolidate the savings accounts as well, your regular savings account pays better than the performance first savings accounts all the way up to a certain amount. It would make sense to cannibalize one and then set up rate tiers to encourage savings for the member base. 

 

3. IRA accounts, if we do not make the necessary arrangements to transfer assets to Schwab, is this going to happen automatically when the deal goes through? I am struggling to comprehend how there is any way that USAA is going to be able to incorporate communication between the two internally on the USAA site, seems to me that we are ultimately going to have separate logins and I am wondering if it makes sense to just move now versus later, if it is going to be on my terms versus the unknown. 

 

4. Checking rewards, see discover, banks that use Kasasa, etc...having a 1% cash back debit card would be great. 

 

5. Credit cards, up the Visa rewards to 2% and be an industry leader. Fidelity and Citi are the only others to offer a 2% cash back card. It would be nice to be rewarded.

 

6. Car insurance - lower rates period.

 

7. I would prefer a tool, much like Betterment's Smart Saver two way sweep, I believe this would be much more beneficial to the membership base than the text savings. I like the text savings and don't mean this as a knock, but the variableness of it all and restricted amount it can realistically save makes it difficult to work with. It is great for people who are looking for something to pull some extra cash out, but for those of us with more strategic budgets, working with the variable nature is difficult. I would be very happy if a range would be introduced into the savings booster where you can tell it how little and how much you want in a particular account and it can transfer the rest to an account of your choice. Really want to toot the horn on this one as I want to see it.

 

Thanks.

 

3 REPLIES

Hello @jimmyb84 and thank you for taking the time to share this feedback and suggestions. I have sent this information to the appropriate area to be reviewed during future enhancements.  In regards to Charles Schwab, this agreement includes brokerage and managed portfolio accounts. Members who have one of these accounts do not need to take any action at this time and can continue to interact with USAA as they do today. We will communicate any necessary changes throughout the process. We appreciate you taking time to submit this.  ~Sarah 

Regarding #3, it's all speculation of course until the deal is approved, but one could easily imagine the USAA website reports information and acts as a portal to Schwab via SSO, similar to how USAA works with Experian today

 

And the Schwab experience will probably be a unique site for USAA members (like USAA Experian), or for another example, I have a Fidelity 401k site that is unique to a former employer which is completely separated from my regular Fidelity brokerage account and cannot be combined

 

The conversion would likely be an automatic transfer-in-kind from USAA to Schwab with no way to stop it except by closing your USAA brokerage / managed account prior, similar to how the USAA ETFs converted to the Victory ETFs automatically

 

With all of the latest back-end fintech and SSO options available, there is no reason the USAA website couldn't be integrated with the Schwab experience pretty transparently, but it depends on how much work they want to put into it

 

For myself, there is no harm in just letting the TiK occur, letting them do all of the work, and dealing with Schwab later based on what they offer

 

I doubt USAA can say much until the deal is approved - if they communicate what they would like to happen and it doesn't materialize the forum complaints will be worse and endless compared to the complaints about lack of communication now about an unknown...

I agree with you. Complaints would be worse for sure. Voice of reason is what you are my friend. I have moved my Traditional IRA to Schwab, but like you, am going to wait until the switch occurs for my Roth and Brokerage. The only downfall of that is I have to wait until the conversion to really start investing, as the only commission free options now are Fidelity. I really like Schwab's interface and it's pretty slick in its own right. Hopefully they can mesh the two together.