Is USAA a bank or is it a credit union?

[Statistical]

I am thinking it is a credit union but no other credit union I know offers investments services, wealth management, and host of insurance (homeowner, property, auto, life) products.

I am sick of dealing with BofA and was on the phone w/ USAA they offered to have me open a checking (no fees even free ATM + refund of other banks ATM fees). Everytime I deal with them the customer service has been refreshingly (and shockingly) good. Also I have a CC with them and they haven't raised the rate in the crisis (10.9% fixed).

However I don't want to jump from one bank to another bank.

Is USAA a credit union, a bank, or something completely different?

[CreekDog]

1. insurance company

for military, veterans and their families only.

(on edit: looks like they added banking to their offerings, like State Farm did, but and they are a bank (with FDIC insurance rather than NCUA) not a credit union)

you could probably save some money by going to their insurance and also going to a credit union where you live.

[Statistical]

2. How can an insurance company offer banking & investing products?

[msongs]

4. subsidiaries. just refied the house for 4.25%. nice deal nt

[CreekDog]

6. i don't know but a number of them have gotten into the business

probably a lot of insurance companies are in better shape than banks because they didn't sell all those bad mortgages.

[tabasco]

3. They call themselves a bank.

USAA Savings Bank

[Statistical]

7. That they do but they also have no shareholders which is more like a CU.

I am starting to think they are something unique not a traditional wallstreet bank and at same time technically not a shareholder.

I do know they return profits to members (gotten a check from them from time to time) so maybe they operate as a non-profit corporation with both banking and insurance charters?

[FBaggins]

5. They are an insurance company that owns a federal savings bank

Call it an S&L (but ignore the bad taste that label leaves in your mouth)

They are exceptional at just about everything they do. Last I looked (years ago), their mutual funds were sub-par... but you are likely to be well pleased with them if you qualify to be a member and can deal with the convenience issue (you won't exactly find a branch on every corner).

No... I don't work for them. :)

[Statistical]

9. Yeah I qualify they already handle all our insurance.

The no branch isn't much of an issue.
They allow you to scan & deposit checks at home/online.
Also you can use any ATM for free.

Just trying to figure out if they are a bank.

Reading the website looks like they are but they have no shareholders. So they are a bank owned by members?

[FBaggins]

12. Don't worry about the label in this case

I"m not sure how much detail you want on the differences between a commercial bank and USAA flavor of FSB... but I'd be willing to bet that whatever concern the label "bank" puts into your head... USAA doesn't have that problem.

[Capn Sunshine]

8. They are a Bank, but if you want a credit union

try Pentagon FCU.

https://www.penfed.org/index.asp



BTW any credit union has "FCU" somewhere in its name

[notesdev]

10. They are a non-TARP bank!

not my bank but I got respect for that.

[Lost-in-FL]

11. Their service is top notch and when they say low fees they really mean it.

I have been a customer for over 12 years now.

If they aren't a CU they act like one. Their customer service is great.

[moc]

13. USAA is a financial services company.

We have virtually all our financial products with USAA: homeowner's insurance, auto insurance, mortgage, credit card, home equity line, 529s, and retirement account.

Are you former military? My understanding is that USAA is only available to commissioned officers and their descendants.

They are fabulous. I've been them for probably 30 years. My parents have been with them for over 50.

[FBaggins]

15. You'll be pleased to know that they have expanded their membership

They now accept virtually anyone who has ever served (honorably)... as well as the dependents of same.

[moc]

17. That's wonderful. I'm glad more people can take advantage of their wonderful services.

One of the things that they do that blows me away is they give us a dividend on our auto insurance each year in December. Most recently, it's not been that big (usually only $80-100), but I remember 10 or so years ago when we routinely got checks in the $400-$600 range from them each year. How many insurance companies do you know give money back to their customers?

[FBaggins]

18. The ones that are essentially owned by their customers

That actually used to be fairly common. Some life insurance companies (usually with the word "mutual" in their names) were owned by their policy-holders.

When some of those companies converted to shareholder ownership, many people who just thought of themselves as "customers" got great big checks.

USAA has both a dividend payout (which you described)... and a "subscriber savings account" (IIRC) for primary customers that essentially builds up a balance for people who hardly ever have a claim.

[Skittles]

24. I just switched my auto insurance to them, at a big discount

yes INDEED

[Lisa0825]

16. I am with USAA because my dad was retired USCG. I read recently that

they were expanding their eligible customer base.

"Now Serving All Who Have Served Honorably"
https://www.usaa.com/inet/ent_blogs/Blogs?action=blogpost&blogkey=newsroom&postkey=now_serving_all_who_have&offerName=pubHome_ProdBckt_3_112209_now_serving_all_vets

[spartan61]

19. We have been with USAA for almost 40 years,

since my husband was a young 2nd Lt. in the Marine Corps. At one time only officers and their descendents were eligible for membership but later opened membership to active duty enlisted. Just recently they have changed their policy so any veteran, officer or enlisted, can participate in USAA. Like you, we have all of our financial products with USAA. We have never, ever been disappointed in all the years we have been with them. Whenever we have had to make a claim, auto or homeowners, they are on top of the situation and we receive our check within a week.

I encourage any of the veterans here on DU to look into USAA. BTW, my credit card is still only 6.0% (veriable) And... members receive a check once a year from their subscriber's savings account. After 40 years of membership, we will be receiving two checks per year. Great company!!!

[C_Lawyer09]

14. I don't know what they are

But they are absolutely top notch. The best service, programs, investment advice, hands down. They are the most professional organization I've ever dealt with. They helped me with my state DMV when I was deployed. All my friends bank with USAA. They refund ATM surcharges, allow mutual fund participation with a fifty dollar a month allotment (no front load)and offer stellar insurance.

[NMDemDist2]

20. they are an insurance company that is member owned (like a credit union is)

they also offer banking services

I love em......

but I bank with a local credit union for ease of availablity

if you live in san antonio or phoenix or sacramento or one of their other sites, it may be worth considering.

[kentuck]

21. USAA is an insurance company started by retired military..

mostly for the benefit of active-duty and retired "members". When troops are deployed overseas, they help them get their home, life, and auto insurance in order before they leave. I worked with them for a while.

[Techn0Girl]

22. I've been with USAA for over 5 years...they are THE BEST !

They are a bank and they have the best customer service you will ever encounter from ANY bank in the U.S. they are outstanding - completely without equal.

They now take non-military accounts.
No branches except in Ca and Texas I think but internet banking with them is a breeze.

They are like what banks were 20 years ago.

[CBR]

23. Love USAA!! Everytime I have purchased a vehicle and mentioned

that I have car insurance with them, I get multiple comments about how lucky I am. They have great customer service.

[itsrobert]

25. USAA is great.

ATM fees returned.
Deposits at Home through scanner and IPHONES.
Credit Card is a low interest rate.

[Jane Austin]

26. I wrote to them and asked just that.

They are a savings institution, or thrift.

They're not a credit union, but they are member-owned.

We're very happy with them, as well as with University Federal Credit Union in Austin.

[Swamp Rat]

27. Been with USAA for decades

:patriot: :thumbsup:

USAA is a bank with policy-shareholders.

[dgibby]

28. If you qualify for USAA, then you can probably joing NFCU.

I have my insurance with USAA and all my banking with Navy Fed. Credit Union. I wouldn't deal with anyone else. They're both great!

[FarCenter]

29. They are a federal savings bank regulated by the Office of Thrift Supervision

Federally chartered banks are of two types:

Federal savings banks are regulated by the Office of Thrift Supervision and operate under the laws that govern savings and loans.

Federal commercial banks are regulated by the Office of the Comptroller of the currency an operate under the laws that govern what have historically been known as banks.

Most of the banks closed each friday because they have failed are savings banks governed by OTS.

Famous failures in the mortgage debacle, like IndyMac and WaMu were federal savings banks governed by OTS.

"Investment banks" as were Lehman and Bear Stearns are not really banks, but they were financial serviced firms regulated by the Securities and Exchange Commission.