7 best military banks and credit unions

Best for checking: Security Service Federal Credit Union

Security Service is the best military credit union for checking accounts because it earns interest ranging from 0.05% to 0.65% depending on your balance, and there’s no monthly fee. And the more money you keep in your checking account, the more interest you’ll earn. Plus, Security Service FCU offers several other benefits, including deployment loans and a credit card that earns 1.5% cashback on every purchase with no annual fee.

Criteria to become a member

To become a Security Service Federal Credit Union member, you must meet any of the following criteria.

• Live, work, worship, attend school, volunteer or own a business in Colorado, Texas or Utah.
• Be a member of select military branches or units, or work for the Department of Defense at specific military bases within Security Service’s service areas.
• Live with or be related to an existing member of the credit union.

• Benefits and disadvantages

  Pros

  • Competitive interest checking. Its Power Protected Checking account earns up to 0.65% depending on your account balance.
  • No monthly fee or minimum deposit. You won’t need to worry about avoiding a monthly fee or meeting minimum opening deposits.
  • Lots of financial products. With Security Service Federal Credit Union, you have a broad range of accounts from checking to IRA accounts.

  Cons

  • Membership requirements. If you’re not a member of the military or related to one, you’ll need to live in Colorado, Texas or Utah to become a member.
  • ATM fees. The credit union charges $1.50 for using out-of-network ATMs, and doesn’t reimburse fees charged by the owners of those machines. Other military banks and credit unions, including USAA, Navy Federal and Service Credit Union will refund ATM fees charged by other institutions.

• Top products for military members

  Security Service Federal Credit Union offers the same accounts to qualifying civilians as it does for military members. Here are three of this credit union’s best offerings.

  • Power Checking. This free, interest-bearing checking account includes optional add-ons such as ID monitoring and smartphone insurance.
  • Power Cash Back World Mastercard. Earn 1.5% cashback on every purchase with this credit card that doesn’t require an annual fee.
  • CDs. Earn up to 1.00% APY on certificates with terms ranging from three months to seven years. And depending on the CD, you’ll only need $250 or $500 to get started.

Best for digital banking: USAA

USAA is the best military bank for digital banking because it has a highly rated app with more features than the other accounts on this list. The USAA mobile app includes free budgeting tools and it works with Siri, Google Assistant and other voice-activated tools.

Your USAA account also integrates with all major digital wallets, including Apple Pay, Google Pay and Samsung Pay, and it works with the Zelle payment processing platform. However, USAA’s interest rates on savings accounts and CDs aren’t competitive. And USAA only has five brick-and-mortar branches, so it may not be easy for you to meet with a banker in person.

Criteria to become a member

To qualify for a USAA account, you must meet either of the following requirements.

• Active, retired, and honorably discharged veterans from the US military
• Family members are eligible, though this does not include the account holder’s parents or siblings

• Benefits and disadvantages

  Pros

  • Early pay days. Most banks offer up to two days early, but with USAA you get paid up to one day early with direct deposits.
  • Reimbursed ATM fees. $15 in out-of-network ATM fees reimbursed each month.
  • Cash deposits. While most digital banks don’t offer a way to make cash deposits, you can with USAA. But you can only deposit cash at 1,200 USAA ATMs.

  Cons

  • Limited branches. USAA only has five branches spread among four states: Colorado, Maryland, New York and Texas.
  • APYs aren’t competitive. USAA’s Savings account only earns 0.03% APY. The USAA Performance First Savings account earns to 0.25% APY, but only balances above $500,000 earn the highest rate. USAA’s CDs are available with one, two-year and five-year terms, but APYs range from 0.04% to 0.25%.

• Top products for military members

  USAA’s savings accounts don’t offer competitive APYs, but these accounts have decent perks.

  • USAA Classic Checking. Get up to $15 in out-of-network ATM fees refunded each month, but you’ll only earn 0.01% APY when you keep a balance of $1,000 or more.
  • USAA® Rewards™ American Express® Card. A no-annual-fee card that earns 3x points on restaurants, 2x points on groceries and 1x points on all other qualifying purchases.
  • USAA® Preferred Cash Rewards Visa Signature® Card. Earn 1.5% cashback on all qualifying purchases with no annual fee and no restrictions regarding categories.

Best ATM network: PenFed Credit Union

Pentagon Federal or PenFed is the best military credit union for ATM access because its network includes more than 85,000 ATMs, including many convenient locations inside retailers like 7-Eleven, Walgreens and CVS. PenFed also offers an interest-bearing checking account plus decent APYs on savings accounts. But it has relatively few branches compared to other credit unions on this list, and you need to meet specific requirements to avoid some fees.

Criteria to become a member

PenFed previously required nonmilitary applicants to donate to a military charity to qualify for membership, but the credit union no longer requires this. Now, any U.S. citizen or permanent resident can join PenFed simply by funding a savings account with at least $5.

• Benefits and disadvantages

  Pros

  • Large ATM network. PenFed’s network includes more than 85,000 ATMs.
  • Interest checking. Its Access America Checking account earns 0.15% APY on balances below $20,000 and 0.35% APY on balances between $20,000 and $50,000.
  • Competitive APY. You’ll earn 0.45% APY on its Premium Online Savings account regardless of your balance.

  Cons

  • Limited branches. PenFed only has about 50 branches, which are located in California, Florida, Georgia, Guam, Hawaii, Maryland, Nebraska, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Puerto Rico, Texas, Virginia and Washington, DC.
  • No waived monthly fees. You’ll pay a $10 monthly fee to maintain your checking account unless you receive monthly direct deposits of at least $500 or maintain a daily balance of $500 or more.
  • Lower savings. Your savings interest compounds monthly as opposed to daily like most savings accounts do. This means your interest is calculated on a monthly basis so you’re earning less than you would with an account that compounds on a daily basis.

• Top products for military members

  There are PenFed’s best accounts for members of the military.

  • Access America Checking. Earn 0.15 APY on balances below $20,000 and 0.35% APY on balances between $20,000 and $50,000, but you must have direct deposit or maintain a daily balance of $500 to avoid the $10 monthly fee.
  • Premium Online Savings Account. Earn 0.45% APY with no monthly maintenance fee.
  • Power Cash Rewards Visa Signature Card. Members of the military get 2% cashback on all purchases with no annual fee.

Best for CDs: Navy Federal Credit Union

Navy Federal Credit Union is the best military credit union for CDs due to its Special EasyStart Certificate, which earns 3.0% APY over a term of 12 months. Get this certificate for any amount ranging from $50 to $3,000, and you can add money to the account at any time. Navy Federal Credit Union also offers several other certificates with terms ranging from three months to seven years and APYs ranging from 0.40% to 0.95%. But account holders can only open one Special EasyStart Certificate at a time.

Criteria to become a member

To qualify for an account at Navy Federal Credit Union, you must meet one of the following criteria:

• Active Duty members, reservists, veterans, retirees and annuitants of the Army, Marine Corps, Navy, Air Force and Coast Guard
• Army and Air National Guard personnel
• Delayed Entry Program personnel
• Department of Defense (DoD) civilians
• US government employees assigned to DoD installations
• Contractors assigned to DoD installations
• Family members of one of the above

• Benefits and disadvantages

  Pros

  • Competitive APYs on CDs and checking. Earn up to 0.45% on its Flagship Checking account depending on your account balance and 3% APY on its Special EastStart 12-month CD.
  • Early pay days. Unlike some banks that allow direct deposits up to two days early, you’ll receive yours up to one day in advance.
  • ATM reimbursements. Its Free Active Duty Checking account includes up to $20 in refunds for out-of-network ATM fees. But reimbursements don’t cover overseas currency conversion fees.

  Cons

  • Monthly compounding interest. Interest on savings accounts compounds monthly, not daily. Given the credit union’s current APY of 0.40%, the difference in interest would be negligible unless you have hundreds of thousands of dollars in your account. But if and when interest rates rise, the difference would be more significant, especially over the course of decades.
  • Direct deposit required for best rates. Members need direct deposit to avoid checking accounts fees and qualify for the CD with the highest rate.

• Top products for military members

  Here are three of Navy Federal’s best accounts for military members and their families.

  • Free Active Duty Checking. Get paid one day early and receive up to $240 in ATM rebates per year.
  • Flagship Checking. Earn tiered dividends ranging from 0.35% APY to 0.45% APY depending on your account balance.
  • Special EasyStart Certificate. 12-month certificates that earn up to 3.0% APY on balances up to $3,000.

Best for military benefits: Chase Bank

Criteria to qualify for military benefits

• Primary benefits are available to all active, reserve or National Guard service members and vets with qualifying military IDs. Benefits include a waived monthly service fee, a free safe deposit box and four waived fees for using out-of-network ATMs.
• Enhanced benefits are available to active duty and reserve military service members of the Air Force, Army, Coast Guard, Marines, Navy and National Guard. To qualify for the Enhanced benefits, you also need to set up direct deposit for your military base pay. Benefits include unlimited waivers.

• Benefits and disadvantages

  Pros

  • No monthly fees. Chase waives the $25 monthly fee on its Chase Premier Plus Checking for military members.
  • Early pay days. Unlike some banks that allow direct deposits up to two days early, you’ll receive yours up to one day in advance.
  • Debt cancellation. Chase’s Survivor program relieves spouses and dependents from the burden of any debt if the account holder is killed in action or dies due to injuries suffered in the line of duty.

  Cons

  • Low interest rates. Chase only offers 0.01% APY on its checking accounts, and the best rate you can earn on your savings or with a CD is 0.01% APY. By comparison, Navy Federal offers a one-year CD that pays 3.0% APY.
  • No benefits for family. While you can add family members to your account, they won’t get the same benefits. For instance, members of the military don’t have to pay a monthly fee for Chase Premier Plus Checking account, but family members opening a separate account do.

• Top products for military members

  Here are Chase’s best accounts and benefits for members of the military.

  • Chase Premier Plus Checking. The $25 monthly service fee is waived for military members.
  • Business Complete Banking. Monthly service fees are waived with qualifying proof of military status.
  • Survivor Program. This program cancels debt inherited by spouses and dependents of Chase military customers killed in action, die of wounds received in action or die in combat operations.

Service Credit Union: Best for savings

But if you plan to keep more than $12,500 in your account, look into PenFed Credit Union’s Premium Online Savings account that earns 0.45% APY as you’ll earn about $0.76 more than at Service Credit Union. If you’re sent to an active combat zone, Service Credit Union’s Deployed Warrior Savings lets you earn 10% APY on balances up to $10,000.

Criteria to become a member

When Service Credit Union opened in 1957, it exclusively catered to members of the military and their families. But membership is now open to civilians as well. To open an account, you must meet at least one of these criteria.

• Active-duty military, veteran or the family member of one
• A current or former employee of the Department of Defense or the family member of one
• Member of the credit union’s Select Employer Groups
• Member of the American Consumer Council (free to join with promo code SERVICE)

• Benefits and disadvantages

  Pros

  • Early deposits. Receive direct deposit payments up to two days early.
  • ATM reimbursements. You won’t pay for using an out-of-network ATM, but if you incur a fee, you get up to $30 in ATM fees reimbursed each month.
  • Competitive APY. You’ll earn 5% on the first $500 in your account and 0.25% on the remaining balance. Plus, earn up to 10% APY on balances less than $10,000 if you’re in an active combat zone.
  • International services. Service Credit Union offers international bill pay in 18 local currencies throughout more than 40 countries. If you move to Europe, you’ll be eligible to open a V Pay card, which lets you shop anywhere in the Single Euro Payments Area (SEPA) without paying foreign transaction fees.

  Cons

  • Basic tier limitations. The basic tier for SCU’s Everyday Checking and Dividend Checking accounts don’t include ATM rebates.
  • Perks aren’t for everyone. You must qualify for the credit union’s Direct Deposit+ tier to get a 0.75% discount on loans and $30 in ATM reimbursements. The standard Direct Deposit tier includes a 0.50% loan discount and $15 in ATM reimbursements, while the basic tier doesn’t offer any loan discount or ATM reimbursements.

• Top products for military members

  Here are three of Service Credit Union’s best accounts for military members.

  • Primary Savings. Earn 5.0% APY on your first $500 and 0.25% APY on balances greater than that.
  • Everyday Checking. Receive up to $30 in out-of-network ATM fee rebates and a 0.75% discount on loans if you get paid by the Defense Finance and Accounting Service (DFAS).
  • Deployed Warrior Savings. Active-duty service members deployed to combat zones can earn 10% APY on savings balances up to $10,000.

Tyndall Federal Credit Union: Best for earning rewards

Tyndall is the best military credit union for rewards because you earn one point for every dollar you spend with your credit card and one point for every $5 you spend with your debit card. There’s no fee or enrollment required and you can redeem your points for cashback, gift cards, vacation packages, merchandise and more. Tyndall also offers a no-fee checking account and a relatively high APY for their Smart Checking account, but not all military members are eligible for accounts.

Criteria to become a member

To qualify for an account at Tyndall Federal Credit Union, you must satisfy any of the following criteria.

• Live, work, worship, attend school or volunteer in select counties in Florida and Alabama.
• You are a current or former employee of one of Tyndall’s select employee groups.
• You are a current or former employee of one of the groups or organizations Tyndall serves.
• One of your immediate relatives or members of your household is within Tyndall’s field of membership.

• Benefits and disadvantages

  Pros

  • Spend rewards. You’ll earn one point for every dollar spent with your credit card and one point for every $5 spent with your debit card.
  • Interest checking. Earns up to 2.02% APY but only when you swipe your debit card at least 41 times a month.

  Cons

  • Limited branches. There are only 14 branches in Northwest Florida and Southwest Alabama.
  • Difficult membership requirements. Only military members stationed at Tyndall Air Force Base or living in select Florida and Alabama counties can qualify for an account.
  • Low savings rates. Tyndall’s Regular Share savings account only earns 0.01% APY, and its money market account earns a maximum of 0.05% APY. By comparison, Navy Federal’s savings account earns 0.25% APY and Service Credit Union offers 5.0% APY on your first $500 and 0.25% APY thereafter.

• Top products for military members

  Here are Tyndall’s three best accounts and products for members of the military.

  • Smart Checking. Earn up to 2.02% APY if you swipe your debit card at least 41 times per month.
  • Everyday Rewards credit card. Earn points for every dollar you spend, low 10.49% APR and no annual fee.
  • Tyndall Certificates. Earn a fixed-rate dividend on terms ranging from one to five years, but you must deposit a minimum of $1,000.