5 Services Offered by USAA Banks

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5 Services Offered by USAA Banks

USAA Bank is an online bank that serves member of the U.S military and their families. This bank offers many different services ranging from traditional banking services to all kinds of insurance. Even though this bank offers a wide variety of services this paper will discuss only five. Starting with checking accounts, then savings accounts, certificates of deposit, installment loans, and mortgage loans. Each service will be discussed and whether it reflects an asset or liability.

Checking Accounts

Checking accounts are held by members of the make who make deposits and intend to withdraw funds from it frequently. These accounts normally require a minimum balance by depositors and do not acquire interest. With USAA there is no minimum balance requirement, but a balance of $1,000 or more acquires interest of 0.01%. The funds in these accounts are seen as sources of funds, or as described on a balance sheet, liabilities.

Savings Accounts

USAA also offers savings accounts. Thy have two options; a regular savings account with a minimum of $25 to start, or a Performance Savings Accounts with a minimum requirement of $10,000. These are seen as sources of funds or liabilities.

Certificates of Deposit

Certificates of deposit are also offered by USAA. These deposits require a specific amount of funds to be deposited for a specific period of time. USAA has three options to pick from 1.87& APY for 1-year, 1.97% for 2-year, and 2.27% for 5-year fixed APY. These deposits require an initial deposit of $1,000. Banks like USAA offer a variety of options to make it easier for their members to invest.

Installment Loans

This bank offers different types of installment loans. They help members find auto loans, personal loans, and offer credit cards to those who qualify. The interest rate on credit cards vary between 11.90% and 27.90%. If credit card holders pay off the entire balance at the end of each month then they are not charged interest. They also offer personal loans consumers can use to purchase goods, pay off debt, and or remodel their homes. The interest rate on that loan is of 8.99. This is a use of funds and is classified as an asset on balance sheets.

Mortgage Loans

Like mentioned before USAA is a bank that caters military members and their families. They offer members mortgage loans in both forms; VA Loans and Conventional Loans. The APR’s range from 3.7% to 5.0%. These loans are backed by the homes being purchased, so in case of default the bank keeps the home. These types of loans are a use of funds which is classifieds as an asset in a balance sheet.

Conclusion

USAA offers a diverse set of services for consumers. Their interest rates are competitive compared to other banks like it. One of the many attractive features of this bank is the fact that it is an online bank. All transactions that members may need to make can be completed online. Anything you need can be done during all hours of the day. Before this course I didn’t fully understand certain financial activities like investing in CD’s. Until I completely understand how investing in stock works I can start by buying CD’s. These begin by depositing small ($1,000) or a large amount of funds ($10,000 +) into your bank that acquires interest. The money does have to stay in the account until the maturity date, but by them it will have increased by a set percent, in the case of USAA it is around 2% for 1-5 year maturities. This would be a good way for me and my family to begin investing the money we waste.