USAA Certificates of Deposit

USAA Certificates of Deposit Review

USAA Certificates of Deposit are offered by USAA, a financial services company founded in 1922 and based in San Antonio, TX. USAA Certificates of Deposit are available in 50 states (and Washington, DC).

Key Takeaways

• Small selection of CD account types. USAA Certificates of Deposit only offers jumbo and traditional CDs.
• Low APY. The maximum annual percentage yield for this account is only 0.47%.
• $1,000 minimum deposit. This is a typical minimum initial deposit for the CDs we track.
• Wide selection of CD terms. USAA Certificates of Deposit allows you to create a CD ladder by spreading your cash across certificates with different terms. This combines the benefits of frequent access to funds and higher rates of return on your savings.

Pros & Cons of USAA Certificates of Deposit

USAA Certificates of Deposit FAQ

Are CD from USAA federally insured?

Yes, your USAA CDs are insured up to $250,000 per person by the Federal Deposit Insurance Corporation (FDIC #34351). The FDIC is an independent agency of the United States government that protects you against the loss of your insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.

What types of CDs does USAA offer?

• Traditional CDs. These CDs pay a fixed interest rate if you deposit a fixed amount of money for a specific term. Once the maturity date arrives, you have the option of cashing out or automatically renewing the CDs for another term.
• Jumbo CDs. A jumbo CD requires a higher minimum balance than that required by traditional CDs. In exchange, jumbo CDs pay higher interest rates.

What rates does USAA offer on its CDs?

USAA Certificates of Deposit offers an APY starting at 0.05% and ranging up to 0.47%. APY stands for annual percentage yield and shows the interest rate paid by the CD after taking into account compounding.

What is the minimum deposit to open a CD account with USAA?

USAA Certificates of Deposit require a minimum deposit of $1,000 to open an account.

What is the grace period for USAA Certificates of Deposit?

There is a 10-day grace period for USAA Certificates of Deposit. A grace period is a period of time during which you can withdraw the money in your CD without paying an early withdrawal penalty. A grace period starts the day after a CD’s maturity date, or the final day a CD is opened. Standard CDs renew automatically at the same term if you don't withdraw your money after the 10-day grace period. Note that the new CD rates probably won’t be the same as the original.

What types of fees, such as early withdrawal penalties, does USAA charge?

Financial institutions don't typically charge many fees on CDs. However, most charge a fee if you choose to withdraw your money before the term ends.

USAA does not charge an early withdrawal fee.