USAA Bank CD Review (2026): Loyalty Bank, Below-Market Rates
Quick take: USAA Bank serves military service members, veterans, and their families. ~$100B in deposits. FDIC cert #32188. As of June 2026, rates trailed online-bank competitors by 35-80 bps across the curve: 4.15% on the 1-year, 3.85% on the 5-year. USAA's appeal is the broader ecosystem (insurance, banking, investing) for military families, not best-in-class CD yields.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 4.50%, the top nationally available 5-year CD (DepositAccounts, September 24, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $118,826 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $7,310 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Rates (USAA Bank, as of June 2026)
| Term | APY | Minimum |
|---|---|---|
| 3-month CD | 3.50% APY | $1,000 |
| 6-month CD | 3.80% APY | $1,000 |
| 9-month CD | 3.95% APY | $1,000 |
| 1-year CD | 4.15% APY | $1,000 |
| 18-month CD | 4.05% APY | $1,000 |
| 2-year CD | 4.00% APY | $1,000 |
| 3-year CD | 3.90% APY | $1,000 |
| 5-year CD | 3.85% APY | $1,000 |
| 7-year Jumbo CD | 3.95% APY | $95,000 |
Rates verified against USAA Bank's public rate sheet on the publication date and change frequently. Confirm current APYs directly with the bank before opening an account.
Who can join USAA
USAA Bank is a subsidiary of United Services Automobile Association, a member-owned mutual organization originally founded in 1922 to insure US Army officers. Membership eligibility expanded over decades and now includes: active-duty and retired US military (all branches), pre-commissioned officers, military veterans who joined USAA themselves or whose parent joined USAA, and immediate family of existing USAA members.
If you're not military-affiliated, you cannot open a USAA account. This restriction limits USAA's competitive need to pay top-of-market rates. Their members are sticky due to the integrated insurance/banking/investing ecosystem.
USAA Bank is FDIC-insured (cert #32188) and OCC-regulated as a federal savings association. Deposits exceed $100 billion.
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
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Why USAA rates trail the online-bank pack
USAA's deposit base is captive. Members rarely leave because USAA's auto and homeowner insurance is bundled with the banking. That captive funding lets USAA pay below-market CD rates without losing members. The 1-year at 4.15% trails BrioDirect (4.85%) by 70 bps, BMO Alto (4.75%) by 60 bps, and Live Oak (4.60%) by 45 bps.
USAA's true value is the broader package: military-friendly insurance, USAA's investing platform, and a deeply integrated app. The CDs are an okay convenience, not a competitive product.
What we like about USAA Bank CDs
- Integrated USAA ecosystem (insurance + banking + investing) is genuinely valuable for military families
- Top-rated customer service in J.D. Power surveys, year after year
- FDIC-insured at the USAA Federal Savings Bank level
- Reasonable EWP (30 days interest on under-1-year terms)
- Branchless online and mobile banking is highly polished
What we don't
- Rates trail online-bank competitors by 35-80 bps across the curve
- 5-year rate (3.85%) is well below MYGAs and most CD competitors
- Membership restricted to military and immediate family
- Jumbo CD doesn't pay materially more than standard despite $95K minimum
- Captive deposit base reduces competitive pressure on USAA to raise rates
How USAA Bank CDs compare vs peers
If this rate is on your shortlist, you should also be pricing:
| Competitor | Term | APY |
|---|---|---|
| Navy Federal CU (military) 5-yr Certificate | ~4.30% APY | $1,000 min |
| PenFed CU (open membership) 1-yr Certificate | ~4.55% APY | $1,000 min |
| BMO Alto | 1-year CD | ~4.75% APY |
| Synchrony Bank | 5-year CD | ~4.35% APY |
| Top A-rated MYGA carrier | 5-year MYGA at ~5.65% | MUCH higher long-term yield |
Internal benchmarks: Best 5-Year CD Rates 2026 · Best 1-Year CD Rates 2026 · Online vs Brick-and-Mortar CDs.
When a MYGA beats this USAA Bank CD
USAA's 5-year CD at 3.85% loses badly to MYGAs. Compare $250,000 over 5 years:
- USAA 5-yr CD at 3.85%: $250,000 grows to $302,476 (taxable annually)
- A-rated 5-yr MYGA at 5.65% (June 2026 rate): $250,000 grows to $329,251 (tax-deferred)
- Pre-tax delta: $26,775 in favor of the MYGA
If you're a USAA member and using USAA for insurance, that's a real benefit, but it doesn't extend to CDs. For 5-year money, take the MYGA. For 1-year money where you want to keep all your accounts in one USAA app, the 4.15% APY is mediocre but acceptable; for yield-maximizing 1-year placement, look at BMO Alto, BrioDirect, or Bask.
USAA Bank CD FAQ
Want to see if a MYGA beats this CD for your situation?
Free side-by-side: this CD vs. top MYGA rates for your state and amount.
CDs are safe and simple. MYGAs are insurance-company versions of CDs, often paying 50-150 bps more for the same lockup. The math depends on your tax bracket and state guaranty fund coverage.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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My take
USAA is an outstanding institution for military families across insurance, banking, and investing. The CD product is convenience, not competitive yield. For 1-year money, USAA's 4.15% is acceptable if you're already deep in the USAA ecosystem; for 5-year money, the rate is bad enough that you should consider a MYGA or external CD even if it means holding accounts at two institutions.
About Hans Goldstein: Independent retirement income specialist. CA Life License #4273294. NPN #20602398. Reviews 30+ carriers and tracks bank CD rates weekly. Phone: 213-414-2808. Email: hans@hansgoldstein.com.
Disclosure
This review reflects publicly available bank rate sheets and approximate APYs as of the date stated above. CD rates change frequently (sometimes weekly), and the rates above may be stale by the time you read this. Always confirm current rates and terms against the bank's current rate sheet and disclosure documents before opening an account. FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category; deposits above that amount at a single bank are not insured. This article is general information for educational purposes; it is not personalized financial advice, a solicitation, or an offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) and is not a bank, deposit broker, or registered investment adviser. CDs are bank deposit products and are not sold by insurance producers; references to CDs are for comparison context only. MYGAs (multi-year guaranteed annuities) are insurance contracts, subject to surrender charges and state guaranty fund coverage rather than FDIC. Early withdrawal of a CD before the maturity date typically results in a penalty that may exceed interest earned. Always read the actual deposit account agreement and consult a licensed advisor before making material financial decisions.