Best Military Banks and Credit Unions

Did you know there are dozens of banks and credit unions that cater to members of the military? If you’re a service member or veteran, these financial institutions want your business! Plus, they offer special incentives to draw you in.

So, when you’re looking for a place to deposit your paycheck or take out a loan, be sure to go beyond what’s on your local base or in your neighborhood. There’s a good chance one of the banks or credit unions we’ve reviewed below could be exactly what you’re looking for.

Benefits of Choosing a Military Bank or Credit Union

As a service member or vet, you know that people in the military have unique financial needs. For example, you may struggle to cover payments on your mortgage or car loan if you’re deployed or if your pay rate drops. That’s why financial institutions exist that cater specifically to the military and military families.

When you do business with a military credit union or bank, you’ll find they usually offer unique services for different stages of service. Depending on the financial institution, this can include anything from deployment loans to military debt relief or special banking rates for active-duty service members.

Top Military Banks and Credit Unions

Choosing the right military bank or credit union can be overwhelming. To make the best decision, you’ll want to compare interest rates, fees and more. To make things easier for you, we’ve narrowed it down to these top seven options.

Navy Federal Credit Union

Navy Federal Credit Union (NFCU) is the largest credit union in the world, and for a good reason! The credit union has been repeatedly recognized for excellent customer service, and NFCU customers give the credit union a 4.5 out of five-star rating (Trustpilot).

NFCU has several checking accounts that come with no monthly fees, but the standout account is their Flagship Checking, which pays from 0.35% to 0.45% APY (versus the national average of 0.07%). The minimum deposit requirement is $1,500.

The credit union’s auto loan rates start at 3.89%, which is nearly half the national average rate. Plus, NFCU CDs pay 4% APY, which is nearly impossible to beat elsewhere.

Service Credit Union

Service Credit Union (SCU) offers highly competitive rates on several bank accounts and loans. Service members who are serving in combat zones can open their Deployed Warrior Savings account and earn a whopping 10% on balances up to $10,000. Other SCU members can earn 5% APY on their first $500 in deposits to a Primary Savings Account and 0.25% on balances above that amount. By comparison, the national average rate for savings accounts is just 0.39%.

Service Credit Union also has a seven-month CD that earns 4% APY, and their rates for auto refinancing start at a low 3.99%.

USAA

United Services Automobile Association (USAA) is a bank that specializes in offering various types of insurance. USAA has some of the lowest auto insurance rates in the U.S. But if you’re a service member who lives on base, you can potentially get a discount of up to 15%.

Compared to their auto insurance offerings, USAA’s bank accounts are less exciting. The USAA Savings account offers just 0.01% APY with a minimum deposit requirement of $25. This bank also has a 1.2 star rating on Trustpilot.

USAA’s services are primarily offered online but this bank has physical branches in Colorado Springs, Annapolis, Highland Falls and San Antonio.

PenFed Credit Union

Pentagon Federal Credit Union (PenFed) offers several attractive accounts, plus free credit monitoring tools. With the Premium Online Savings Account you earn 2.70% APY, and you only need a $5 minimum balance. Certificates earn up to 3.10%.

If you’re looking to take out a loan, you might place PenFed at the top of your list. Personal loans and debt consolidation loans from PenFed start at 6.74%, with no origination fees. By comparison, the national average rate for personal loans is 11.65%. PenFed also has a convenient car-buying service that gets you access to auto loan rates starting at just 3.39%.

Chase Bank

Chase Bank isn’t a military bank, but Chase does provide special perks for service members and veterans. They include:

• Waiver of $25/mo. fee on Chase Premier Plus Checking.
• Waived wire transfer fees and ATM fees at non-Chase ATMs for active duty and reserve members who set up direct deposit.
• Survivor Program that cancels Chase debt held by qualified service members who lost their lives while serving.
• Military Pathways Development Program for support in the transition to civilian life.

While Chase’s bank account offerings are underwhelming, some customers appreciate the fact that Chase offers in-person banking in most U.S. states.

Security Service Federal Credit Union

One of the most exciting bank accounts we found in our research was Security Service Federal Credit Union’s (SSFCU’s) Power Protected Checking account. This unique account has a $9 a month fee, but it comes with the following valuable features:

• 24/7 zero copay telehealth for you, your spouse/domestic partner and up to six dependent children
• Up to $1,800/yr in cellphone protection
• Up to $200 a year in roadside assistance
• Direct deposit for your paycheck is available up to 2 days early
• Rates range from 0.05% to 0.79% APY

Other standout products from SSFCU include CDs with rates up to 3.85% and a Money Market account with rates up to 2.53%.

Armed Forces Bank

For 14 out of the last 15 years, Armed Forces Bank (AFB) has been named “Distinguished Bank of the Year” by different departments of the military.

While AFB’s checking and savings rates are low, their CD rates range from 3.05% to 3.35%. AFB also has a Money Market account that earns 3.05% for the first six months if you deposit at least $15,000. After six months the rate drops to a range of 0.65% to 1.75%, depending on your balance.

For people with poor credit or no credit, AFB offers Personal Military Loans ranging from $250 to $15,000. However, interest rates are high (which is common with loans for bad credit), ranging from 14.95% to 35.95%.

Tips for Choosing a Military Credit Union or Bank

As you can tell from the reviews above, each military credit union and bank has something unique to offer. So it’s important to take a look at each institution’s products and services before you decide which one should help you manage your money.

Here are a few key features we recommend comparing when you choose a bank or credit union:

• Rates: Check to see if the interest rates on bank accounts and loans are competitive compared to other financial institutions. Also, look to see if and how you qualify for the best rates available.
• Fees: Review the fees associated with the accounts you want. For deposit accounts, check for monthly service fees. For loans, check for loan origination fees.
• Availability: Make sure the services you need are available in your area. For example, you may want a bank or credit union that offers in-person services on your base. Most banking services are now available online, so check the mobile app reviews as well.

If you want to search a bit deeper, you can read customer reviews and complaints on sites like TrustPilot and the Better Business Bureau. You can also search with the Consumer Financial Protection Bureau to see if any regulatory actions have been taken against the institution in recent years.

FAQs

Can family members of military personnel join military credit unions?

Membership requirements vary by credit union, but most military credit unions allow family members to join.

Are military banks and credit unions located on base?

Most military banks and credit unions have branches located both on and off of military bases.

Do you have to switch to a civilian bank once you leave the military?

You can continue to use military banks and credit unions even after you leave the military.