I'm quickly growing tired of the incompetence of USAA reps when I call and ask a simple question. I recently set up an 18-month CD (which generates a modest interest rate due to the size of the amount) and I noticed that my first interest return had some taxes withheld. I simply asked the rep who had withheld the money and why...they didn't seem to know and towed the company line "We advise you to speak to a tax preparer or call the IRS." Really? Like, really? I've been with your frustrating excuse of a bank for nearly 25 years and you tell me to call the IRS???? This might be the last straw...I don't care if all my kids are "automatic" members of USAA...I will most likely to tell them to go find a competent banking system.
@jetpilot55, I understand that you have concerns about backup withholding, and I'm sorry for the unsatisfactory service provided by phone. On the Tax Certification (W-9) form, we ask the following question:
If you selected "Yes" to the above question, we are required to withhold 24% for US Persons and 30% for Non-Resident Alien of the amount of interest or dividend payable to the account. An updated Tax Certification (W-9) form is required to discontinue the withholding. We can send you a new Tax Certification (W-9) form, if needed.
You mentioned that you've been banking with USAA for nearly 25 years. We're grateful for your loyalty, and we'd hate to think this matter would be a deciding factor in your continued relationship with USAA. I will share your experience with the appropriate folks at USAA. Please allow some time for a thorough review of the situation. ~DC