USAA Review – A Company Worth Keeping
If you’ve ever heard of USAA then you have likely heard the same thing over and over – that members love them. My wife and I have been USAA members for about 15 years and have had various parents be members for much longer. With that being said, I thought I’d do a USAA review to go over my experience with them in the event you’re on the fence about becoming a member.
A little background on USAA, they started in 1922 and their mission is to serve and care for the financial needs of individuals who have been in the military as well as their families. USAA has regularly been recognized as one of the top companies in terms of customer service and offer a very wide range of financial products from insurance of many types, brokerage services, savings vehicles and credit cards – just to name a few.
We love USAA so much that over the years we’ve acquired seven different products with them. With the brief background out of the way let’s move on to the review of USAA.
Who Can Join USAA
As I said previously, USAA is open to those who have served or do serve in the military. Up until a few months ago, they allowed non-military individuals to use their banking products, but I’ve read that has changed about a year or so ago. In terms of who can join USAA, here’s the brief list:
- Active, retired, or honorably discharged members of the U.S. military
- Individuals in commissioning programs like ROTC
- Adult children whose eligible parents had or currently have an auto or property insurance product through the company
- Widows or widowers of USAA members who had products through the company
If you think you might be eligible to join USAA you can check out this section of their site, and it will walk you through whether or not you’re eligible.
What Does USAA Offer?
As I shared above, USAA offers pretty much any financial product you can think of. I’ll highlight a few of the products they offer.
Car Insurance: This is one of the cornerstone products available through USAA. They offer an extremely competitive rate and call us several times per year to ask about our driving habits to see if they can further reduce the cost of our car insurance. Thankfully, they’re usually able to lower it at least a little bit with each call. If you’re looking for better rates or wanting better service then consider looking at the auto insurance available through USAA.
Life Insurance: This is a fairly new USAA product to us in that we just purchased it a year or two ago for Mrs. Frugal Rules. We had called in for something unrelated and they offered her $50,000 term life coverage for $5 per month. Seeing as we needed more life insurance coverage on her anyway, we jumped at the deal the rep offered.
Homeowners Insurance: USAA was one of the first calls we made after finding our house about seven years ago. We enjoy very competitive rates and feel like they worked hard to get us the lowest price possible.
Credit Cards: Mrs. Frugal Rules has a Mastercard through USAA as they do offer a number of credit cards. Some of their cards offer rewards programs associated with them and have rates as low as 6.9 percent. If you’re a travel hacker then you may want to look elsewhere, but the cards available at USAA do have some decent cash back options. Take a look at the credit cards available at USAA to see if any of them meet your needs.
Banking Services: This is another cornerstone product offered by USAA and one we’ve used for years. USAA offers products like free checking, money markets, high yield savings accounts, CDs and more. We have several banking products with USAA and use them in tandem with our Discover Online Savings accounts. If you’re looking for a new alternative for your online banking needs, take a look at the products available at USAA.
Brokerage Account Services: This is one product we don’t have through USAA (more on that in a bit), but they offer a full suite of brokerage services that can help with your investment strategies.
Advantages of USAA
Excellent Customer service: Above all else, I have been incredibly impressed with the customer service at USAA, which makes sense since they’re known for it. We’ve been members for almost 15 years and pay a little extra on prices because it’s that good. Whenever we call them they’re very helpful, never pressure sales on us and look for ways to save us money. To me, that is what makes USAA second to none.
Care for the needs of their members: I know this may not be a true advantage, but I think it speaks to their values. They highly value those that have served our country, or those related to them and USAA wears that on their sleeve. So much of what you get with them flows from that.
Wide array of options: If you really wanted to, you could take care of all your financial services needs through USAA. I know other companies offer a lot of products, but everything (and I mean everything) can be found at USAA. They’ve really set it up so you can have a one stop shop, which can help you as a client in many ways.
Disadvantages of USAA
Limited availability: This is the one thing I wish I could change about USAA, but I understand why they do it. They want to focus on their mission, but it means not everyone can join.
Brokerage services: The one real disadvantage I’ve seen with USAA is the brokerage services they offer. I have seen a lot of brokerage offers in my years, and the brokerage service through USAA is fairly average. They do offer prices on stock trades as low as $5.95 and offer 50 free trades when you open an account, but their pricing is tiered, which can lead to confusion for the investor. Having taken a look at the platform, it’s pretty straightforward though without a lot of bells and whistles. That said, I do my investing elsewhere, but have full confidence in the rest of their services. If having all of your financial accounts at one place is important then the brokerage services will serve you well – I just prefer to have a little more when it comes to my investment products.
USAA review – my take
If you’ve not been able to tell thus far, I love USAA. Yes, their brokerage service isn’t the best in my opinion and they have limited membership opportunities, but those pale in comparison to the overall value and service they offer. That is also not to mention the fact that USAA offers pretty much any financial product that most families would need and they do so at a competitive rate.
If you’re interested, but don’t know if you’re eligible to join USAA I would recommend giving them a call and a representative can tell you in a few minutes if you qualify for membership. If you do, then you really can’t go wrong in choosing USAA for your financial needs.
What stands out to you most when you choose a financial services company? What fun things do you have planned for this weekend?
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