Comments on: A Banking Alternative: USAA?

By: Dorsey

Dorsey — Tue, 22 Sep 2009 01:32:15 +0000

Pandora’s box was opened when I called to ask USAA about a $24 charge on my auto insurance bill. Eventually, a CS rep told me it was for the jewelry rider on my homeowner’s insurance on our house in Alaska.

By: The Corner Office Blog - An entrepreneurs thoughts on business, personal finance and investing. » My USAA Banking Experience

Mon, 11 May 2009 12:40:10 +0000

[...] I’ve decided to move all my banking to USAA from Bank of America. The fact that the big BOA still needs money from good old Uncle Sam [...]

By: Grant

Grant — Mon, 11 May 2009 00:38:13 +0000

@Tom & Aaron,

I asked the USAA rep about the possibility of a non-USAA member taking advantage of USAA banking. Essentially, the rep verified Aaron’s claims.

While it’s not explicitly obvious, a non-USAA eligible member can become a client of USAA banking, they just can’t take advantage of the insurance side of the business.

By: Tom

Tom — Sun, 10 May 2009 21:57:52 +0000

Aaron: Thanks, I wasn’t aware of the difference between the insurance and the banking. Use both but never asked. I have two sons who have been members since they got their first drivers licenses and cars but never joined the military.

I am currently (required MRWD) drawing on my IRA from USAA nad balances remaining are drawing a gauranteed 4.o%. USAA currently offering 3.25% on 2 YR CD’s and $100.00 for “new” checking accounts. Not bad in these times with no bank worries.

By: Aaron

Aaron — Sat, 11 Apr 2009 07:21:46 +0000

The restrictions apply to the insurance, mostly. You can still bank through them.

I don’t know if it’s accurate, or not, but I think they can’t be so restrictive with the banking piece, because of the FDIC insurance.

I had a rep say something to that effect, several years ago.

I’m switching from a netbank back to USAA. I’ll miss the good interest rates… but the USAA service is second to none.

By: Grant

Grant — Sat, 11 Apr 2009 00:07:00 +0000

You are absolutely right, Tom, and thanks for bringing that very important point up. I had assumed that I’d written about the USAA eligibility requirements in the past, however a quick search reveals that I haven’t.

For those who are curious, the eligibility requirements are as follows, based on the website information:

-Active-duty officers and enlisted personnel.

-Children whose eligible parents have or had a USAA auto or property insurance product.

-National Guard and Selected Reserve officers and enlisted personnel.

-Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS).

-Former military personnel:
o Retired officers and enlisted personnel.
o Former officers and enlisted personnel who separated from the military on or after January 1, 1996.

By: Tom

Tom — Fri, 10 Apr 2009 20:17:44 +0000

I received your blog as part of receiveing Google Alerts on anything “USAA” and then read your “About TCOB” after my 1st post above. You don’t offer in your history any comments about your military background but from your statement of your knowledge about USAA insurance and mail receipt of offers I assume you are already a member and know the restrictions. Sorry to butt in so to speak, but I’m a big fan of USAA and it has served me well. Good luck in your endeavors.

By: Tom

Tom — Fri, 10 Apr 2009 19:57:56 +0000

It should be emphasized that USAA has membership requirements which have to be satisfied. Not just anyone can join. Check website. I’ve been a member since 1969 and membership has eased quite a bit since then. I also maintain a small , local bank account for ease of money transfer, ATM, etc.