Paladin-6
Contributor
If you have ever watched HGTV’s “Love It or List It” show, you know that it focuses on the tension experienced between a couple when they are trying to decide whether to stick with their current home by upgrading it or whether it is time to simply move on and list it for sale because the often much beloved home simply no longer meets their needs no matter how many improvements are made. After many years, I have reached that same type decision point with USAA Federal Savings Bank.

I have fondly called USAA FSB my banking home for over 30 years. As my financial situation has grown and become more complicated, USAA FSB has only made incremental steps in many areas. Consequently, my situation and affection for USAA FSB is now strained. Over the years, I have migrated my investments (to Charles Schwab), my mortgage (to Wells Fargo), my cash savings (to Discover Bank) and my credit card business (to American Express), because USAA FSB was simply no longer competitive in these spaces. To be clear, the lack of competitiveness was not measured in small differences or increments. For example, the investment management fees were double with USAA’s Digital Investment Advisor vs. Schwab Intelligent Portfolio service and the saving interest rate paid by Discover Bank was 10x USAA’s rate (.2% vs. 2.1%). In every case, USAA’s products were either clearly inferior or over-priced. Sigh…..

My last USAA FSB product is the checking account, so here goes my own “Love It or List It” analysis.

What I would say caused me to “Love It” and stay with USAA FSB.
1. The mobile app is great! It integrates easily with external accounts and gives access to quick information on the go.
2. Mobile deposits continue to rock.
3. ATM fee rebates are still a wonderful benefit.
4. The Web Page Dashboard, like the mobile app, make accessing lots of information very easy.
5. USAA’s corporate philosophy and company mission continue to resonate with me when so many financial institutions are of dubious ethical character.

Reason I would “List It” and move on from my USAA FSB Checking Account.
1. The daily $5k transfer limit is very awkward at times when transferring money to external accounts. You can’t even schedule subsequent transfers for a future date because the system still sees the original one pending. With Discover Bank, I can transfer up to $300k per month. 😖
2. Credit card alerts and notifications are far too slow. My alerts from AMEX are near instantaneous. With USAA FSB:
a. Credit card charge alerts typically come the next day or two days later.
b. A recent PIN and password change alert came 30 hours later!?
3. My Eagle rewards credit card no longer offers premium benefits and actually pays the same or LESS cash back than every no annual fee card USAA offers. Sadly I am now forced to pay a $49 annual fee for an inferior product. Also, unlike AMEX, USAA refuses to allow a migration to another USAA credit card so I will lose that 29-year account history once I close this over-priced account.Sigh…..
4. No 24/7 in person banking and investment phone support like Schwab and Discover Banks. Life is very busy these days and I am typically doing personal finance work late at night.
5. Credit Card Statements and Year End Summary statements do not separate out charges on shared accounts with different card holders like AMEX.

That is my initial list. What say you?

3 REPLIES

@Paladin-6, I understand finding the right banking institution is extremely important to you. Thank you for taking the time to provide your feedback. I will have this submitted on your behalf. If you have specific questions that we can help with, please let us know! ~ Sam

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Paladin-6, Don't feel bad about it. USAA makes certain choices to benefit its business model (noticed I didn't say member?) and that's ok, but it shouldn't any of us from making changes that benefit us--the member--even if it means terminating a long time relationship. Like you--I have called USAA home for the past 33+yrs (had many of their products) but that relationship (with my entire family) ended in 2017. Every aspect of their credit card program stopped being benficial (i.e., problems using them overseas, delay in posting pending transactions, fruad prevention, etc). I'm not going to bore with the other banking disappointments, because you've already highlighted them. I closed all my banking products and went to NFCU (40+yrs with them), investments to Vanguard/Schwab. Only produt remaining is auto/homeowners insurance. We'll see what happens in the next two months--with renewal--maybe. My homeowners premium went up when I called in to update the age of my roof (replaced last year). My cars range between 12-18yrs old. If I do move on with my insurance--I probably won't come back to the community page. Good luck.

Hello @USAF_Ret. Thank you for sharing your feedback with us. I am certainly concerned to read about the premium side of things with the auto & home insurance policies. We are always happy to review these for potential savings opportunities which may be available to you. Please, connect with us via chat on USAA.com or by dialing 800-531-722. to get started. Thank you for sharing this with us.