USAA CD Rates for April 2024
Written by
Sarah Sharkey
Edited by
Susan Kim
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A CD can help you move your savings in the right direction. USAA offers some attractive CD terms. If you qualify to work with this financial institution, it could help you build your savings for the long term. Here’s a look at USAA CD rates and other details to help you determine if opening a CD with USAA is the right move for you.
What Are the Current USAA CD Rates?
Below is a breakdown of the rates offered by USAA for its standard fixed-rate CDs, which require a minimum deposit of $1,000.
| Term | APY |
|---|---|
| 91 days | |
| 182 days | |
| 7 months | |
| 270 days | |
| 1 year | |
| 15 months | |
| 18 months | |
| 2 years | |
| 30 months | |
| 3 years | |
| 4 years | |
| 5 years | |
| 7 years |
Key Features of USAA CDs
Savers who want to lock in an attractive APY for a predetermined length of time can turn to CDs. USAA offers three different types of CDs:
- Fixed-rate CDs: These CDs earn the same interest rate for the duration of the CD term.
- Adjustable-rate CDs: These CDs give you an opportunity to make a one-time adjustment to your CD rate, up to a 2% increase above the original rate. If interest rates rise during your CD term, this feature can come in handy. You can get an adjustable-rate CD with a term of three, four, five or seven years.
- Variable-rate CDs: These CDs have an interest rate that can change at any time. The rate will vary based on the market conditions and the bank’s discretion. You can get a variable-rate CD with terms of 182 days or one year. You’ll need to make a minimum deposit of $250 to open this type of CD.
As of this writing, the adjustable-rate and variable-rate CDs both have APYs of for all terms.
Beyond these three basic structures, USAA offers different CDs based on the balance you choose. You’ll need at least $1,000 to open a standard CD with a fixed or adjustable rate, at least $95,000 to open a Jumbo CD, and at least $175,000 to open a Super Jumbo CD. Although these come with different balance requirements, Jumbo and Super Jumbo CDs generally feature the same rate offered by the standard CD for each term.
Additionally, USAA offers Jumbo and Super Jumbo CDs with terms of 30, 120 and 150 days, all of which feature an APY of .
Requirements and Penalties
In terms of the fine print for the standard CDs, here’s what else you need to know:
- Compounding schedule: Monthly
- Grace period: 10 days
If you need to withdraw your funds early, expect to pay one of the following early withdrawal penalties, depending on the term of the CD:
| Term | Early Withdrawal Penalty |
|---|---|
| 30 days or less | 30 days’ worth of interest |
| More than 30 days and up to 1 year | 90 days’ worth of interest |
| More than 1 year but less than 5 years | 180 days’ worth of interest |
| 5 years or more | 365 days’ worth of interest |
While the early withdrawal penalties are steep, the good news is that you won’t face any monthly fees.
Who Is a USAA CD Best For?
If you want to work with USAA, you’ll need to meet eligibility requirements. Specifically, you can qualify for membership if you are a current or former military member. Spouses and children are usually able to join too.
If you meet those eligibility requirements, USAA might be a good fit for your CD needs if you can find a term with an attractive rate that suits your timeline. For example, if you are comfortable with parting with your funds for 182 days, the APY on a fixed-rate CD might be very attractive. However, if you are looking for a shorter term, you might not find a competitive rate. Before moving forward with a USAA CD, confirm that the CD term you choose has an attractive rate. If not, you might need to work with a different financial institution to lock in a top rate.
Another reason to work with USAA CDs is to keep all of your banking needs under one roof. The financial institution offers a wide array of products, including loans and insurance. It could make your life easier to manage the majority of your financial needs with a single entity.
Alternatives to a USAA CD
If you aren’t eligible to open a USAA CD or you simply want to seek out better rates elsewhere, there are plenty of other options. Here’s a look at how USAA’s rates stack up against some of the top CD rates available today.
| Bank | 1-Year CD APY | 5-Year CD APY |
|---|---|---|
| USAA | ||
| Ally Bank | ||
| BMO Alto | ||
| Capital One* |
Other Savings Products Offered by USAA
Opening a CD can be the right move if you want to grow your savings. In general, certificates of deposit offer attractive interest rates. But the catch is that you’ll have to give up access to your funds for a predetermined amount of time. For some, giving up access to your funds is a deal breaker. For example, it’s usually not a good idea to tuck your emergency savings into a CD. If you do need those funds during an emergency, you’ll get stuck paying an early withdrawal penalty for that privilege.
If you are looking for another savings product with USAA, there are two main options. Both offer penalty-free access to your savings. Here’s a look at the two main savings accounts offered by the bank.
USAA Savings
A USAA Savings account requires a minimum deposit of $25. Once open, the account offers APY on all balances.
USAA Performance First Savings
A USAA Performance First Savings account requires a minimum deposit of $10,000. Once open, the account offers a tiered interest rate structure. Below is a closer look at the currently offered rates:
- Earn APY on balances of less than $10,000.
- Earn APY on balances of $10,000 to $49,999.99.
- Earn APY on balances of $50,000 to $99,999.99.
- Earn APY on balances of $100,000 to $249,999.99.
- Earn APY on balances of $250,000 to $499,999.99.
- Earn APY on balances of $500,000 and up.
When you save more in this account, you can tap into a higher APY.
How To Open a USAA CD
If you want to open a USAA CD, the first step is to apply for membership. You’ll need to have a qualifying military connection to get approved.
If USAA accepts you as a member, you can open a CD. Be prepared to provide some basic information like your name, Social Security number, address and funding account information to set up your CD.
Final Take To GO
USAA offers a wide range of CD terms. Some of the terms available come with attractive rates attached. But many of the rates available are somewhat lackluster. Before opening a USAA CD, it makes sense to shop around for the top rates for the particular CD term you have in mind.
FAQ
- Are USAA CDs compounded monthly?
- When you store funds in a USAA CD, the interest compounds and is credited to your account on a monthly basis.
- What happens when a USAA CD matures?
- When a USAA CD matures, the CD will automatically renew. The new CD will have the same term as your original CD, but the interest rate will reflect the currently available interest rate. After maturity, you'll have a 10-day grace period to change the term, add funds, remove funds or close your account.
- What is the highest interest rate for USAA?
- As of this writing, the 182-day CD offers the highest interest rate at USAA of 5.05% APY.
- Does USAA have a jumbo CD?
- Yes, USAA offers jumbo CDs. You'll need to make a minimum deposit of $95,000 to open a Jumbo CD and at least $175,000 to open a Super Jumbo CD with USAA.
- What is the downside of a CD?
- The major downside of a CD is that your funds are locked up for a particular period of time. If you need to access your funds early for any reason, you should expect to pay an early withdrawal penalty.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of April 22, 2024.
*Capital One interest rates accurate as of April 22, 2024. See website for all current rates.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
