Are you considering opening a CD with USAA Bank? If so, you're probably interested in learning about the CD rates USAA Bank offers. USAA also has CDs. Depending on the term, you will earn 0.01% to 3.71% on a USAA Bank CD. However, you must be willing to part with your money for an extended period of time in order to get the best rates.
USAA Bank has some of the best 1-year credit union CD rates on the market. According to Bankrate, USAA Bank has rates of 1.10% for a 1-year CD, 1.25% for a 2-year CD, and 1.45% for a 3-year CD. Other banks offering competitive rates include U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank, and Wells Fargo.
If you're looking for a better return on your money, you may want to take a closer look at how a USAA savings account interest rate would compare. USAA Bank's savings accounts offer a competitive interest rate of 0.05%. You need a minimum deposit of $1,000 to open a standard CD with USAA Bank.
How much can you earn with USAA Bank's CD rates? According to Bankrate, USAA Bank offers a 3-year CD rate of 3.71%, a 4-year CD rate of 2.02%, a 5-year CD rate of 2.02%, a 7-year CD rate of 2.02%, and a 10-year CD rate of 2.38%. These rates are competitive when compared to other banks. Half of the five-year CD rates on our list, for example, are now 4% or higher.
In addition to CD rates, USAA Bank also offers a number of other financial products and services. The bank's savings account has no monthly maintenance fees, and it includes online and mobile banking plus fee-free access to cash through more than 60,000 ATMs worldwide. Members can take out auto loans for new and used vehicles and refinance existing ones. With competitive rates and dedicated customer service, USAA Bank is a great option for those looking for a financial institution with a variety of services.
But before you open a CD with USAA Bank, it's important to understand the differences between CDs and savings accounts. First, CDs have fixed interest rate: When you open one, you lock in that rate until the CD reaches maturity while savings rates can fluctuate. Second, CD rates aren't directly tied to any benchmark interest rate. In other words, if the Federal Reserve raises the federal funds rate by 25 basis points, the CD rate won't necessarily increase by the same amount.
In conclusion, USAA Bank offers competitive CD rates for customers. The bank's 1-year CD rates are particularly attractive and can provide a better return on your money than a savings account. However, it's important to understand the differences between CDs and savings accounts before you open a CD with USAA Bank.
