World-Class Service for Those Who Serve
Written: Oct 04 '03 (Updated Dec 03 '03)
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Product Rating:
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Pros: Pays you to use debit card, top-notch customer service, very few catches, can bank anywhere
Cons: Hard to bank in-person, military affiliation required, online bill payment restrictions
The Bottom Line: If you meet the membership requirements, the services USAA offers will make this the only bank you will ever need.
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| MASTERNC's Full Review: USAA |
Right now, the banking market is very competitive. Almost every bank offers free checking and other perks to attempt to lure customers. However, there is almost always a catch. That catch can range from a minimum balance or direct deposit requirement (to avoid a monthly fee) or having a limited number of ATMs to use, forcing customers to pay two fees for using another bank's ATM. Also, customer service may be limited, placing customers in a frustrating situation should an emergency arise. The result for the consumer is a mess of information to research and sort through in order to avoid paying their hard earned money to a bank so they can lend it out to others. There is one bank that I have found that is straightforward and actually pays its customers for banking with them.
USAA is an organization that caters to those who are affiliated with the military in any way (from the Air Force to ROTC candidates) as well as for several generations of their descendants. While one must meet these requirements to be a member, and consequently, to enroll in USAA's various services (including insurance and banking), USAA provides excellent and unfailing coverage as many of its clients are frequently relocating around the world as a result of their service.
Both of my grandfathers were in the military at some point, and consequently, I am eligible for USAA services. My parents have loyal USAA customers for decades and will not deal with anyone else, especially for their insurance.
Recently, I began college about 300 miles from home. Knowing that my bank did not have any branches near my college, I figured that I would have to open another account somewhere else (only to close it upon graduation) or pay hefty fees for using ATMs and do without any access to branches for deposits and other services.
However, I received a mailing from USAA regarding their College Start program. The program is designed to give college students a firm financial footing by offering a free checking account (which is the same that all members are offered), a low-rate credit card (which I will review separately), and a newsletter with valuable financial tips for students. The benefits that USAA offered and its nationwide service convinced me that this was a great program for me. Within 10 days of signing up online, my check card and checks arrived in the mail.
Features: USAA's banking accounts are very user-friendly. My first account with USAA was a First Start savings account, a special savings account designed for minors, which I opened in 1999. Technically, it was a normal savings account, but also included a special newsletter. I already had a savings account, but it was a passbook savings account which earned quarterly interest and had limited features. However, USAA's account offered monthly statements, interest that compounded monthly PLUS bonus interest (which is credited twice a year), an ATM card, and (which surprised me the most) checks. Although this was a savings account, I now had an interest-bearing "mini-checking" account (unfortunately, there is a 3 check per month limit for savings accounts).
As USAA realizes that its members are stationed in different places around the country, it makes banking as flexible as it can, especially since it has no ATM network of its own. As a result, one can keep the same account no matter where he or she lives. USAA not only gives accountholders 10 free ATM withdrawals a month, but also reimburses cardholders up to $15 per month for the fees charged by ATM owners. No longer do I have to worry about how much an ATM charges when I get cash; I know I will get the fee back at the end of the month.
USAA's checking accounts offer even more services, including no minimum balance and no monthly fee regardless of activity. There is also no monthly limit on debits (unlike my other bank, which limits to 25 per month without charge). The best feature, however, is the debit Mastercard. For "credit" purchases made without a PIN number, USAA pays back 1/2 percent of those purchases at the end of the month. This is a feature I have never seen anywhere else in a fee-free debit card. Sure, the percentage may seem very small, but it does add up. In the six months I have had the card, I have saved up over $5, which is pretty good for a college student, and the savings would be much higher for a family (who would probably spend a lot more than me).
USAA has a little catching up to do with online bill paying though. While you can pay all your USAA bills for free, paying non-USAA bills requires a direct deposit on your account (still, the number of free bill payments is limited) or the payment of a $5 monthly fee. Using Quicken or MS Money to pay bills costs even more. With many banks now offering free online bill paying, USAA needs to change this policy.
While the interest rates aren't as high as Internet-only banks, they are higher than any local bank I have seen.
All USAA accounts can be accessed online. Money can easily be transfered among USAA accounts and even to and from non-USAA accounts. However, one must return a paper application to allow these transfers to occur (it isn't automatically allowed). While available balances aren't updated until transactions clear, the website still isn't bad and is very customer-friendly. Balances and transfers can also be done by phone using a touch-tone automated system. Best of all, USAA is very secure. To access banking, not only does the user have to enter his/her membership number and password, but must also enter a PIN number to access any banking functions.
Support: Customer service is another way that USAA shines. Even though USAA has very few banking offices, it is never difficult to reach someone. The few times I have had to call USAA, although it takes a minute or so to find my way through the prompts, I have been connected to a live person within a few rings. I have never sat on hold. The reps are very professional and friendly and they always thank you for your business. Also, my e-mails have been answered within hours rather than days. The promptness and courtesy of USAA astounds me. I think many corporations need to follow their example of customer service.
The only downside is that all bank deposits must be mailed in. However, USAA provides you with postage-paid envelopes at no charge (deposit slips also cost nothing) and deposits are usually credited within 3-5 days (the time it takes for the mail to get to Texas, where USAA's main office is). However, this is only a small inconvenience as most of my banking deposits are electronic.
I know that wherever life may take me after college, I can always count on USAA to be there for my banking needs.
Recommended:
Yes
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Epinions.com ID:
MASTERNC
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Location: Pittsburgh, PA USA
Reviews written: 33
Trusted by: 1 member
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