Best Military Banks and Credit Unions

With more than 12 million members, Navy Federal is the largest federally insured credit union by total assets. But unlike the largest banks, it offers competitive rates on certificates.

Eligibility: An applicant must be a member of the military, a veteran or an employee of the Department of Defense, or have a relative who is.

Accounts and other products: Credit unions, even big ones, typically offer better rates than banks. Navy Federal has an extremely competitive 4.85% return on 12-month Special EasyStart Certificates and a tiny annual percentage yield of 0.01% on its free checking account. It also offers competitive low auto loan rates.

ATMs and branches: Navy Federal has a strong presence on and near military installations in the U.S. and abroad. The credit union also belongs to the Co-op network, giving members fee-free access to more than 30,000 ATMs throughout the U.S. and Canada.

PenFed is the country’s third-largest federally insured credit union by total assets, and you’d be hard-pressed to find a bigger U.S. network of ATMs. PenFed also has generous membership qualifications.

Eligibility: Anyone is eligible to apply. Membership requires that you open and maintain a savings account with at least $5.

Accounts: PenFed's savings accounts and Access America Checking account each earn interest. The rate on its online savings account is 3.00% APY. Compare that with the national average savings rate: 0.46% APY. And PenFed’s Access America Checking has an APY of 0.15% for balances below $20,000, and 0.35% for balances up to $50,000.

Andrews Federal Credit Union is a Black-owned institution and a military credit union mostly available on the East Coast, but part of a network of shared branches and ATMs. Andrews Federal offers resources that cater specifically to military members.

Eligibility: Andrews Federal supports military families and membership is open to active and retired military members and their family members, people connected to the Washington, D.C., area or certain military bases and members of specific employer groups. Members of the nonprofit American Consumer Council are also eligible to join; ACC membership requires a fee between $8 and $15.

Customer service: Andrews Federal offers customer support by phone seven days a week with extended hours, and virtual assistance is available by chat. The credit union’s app earns good ratings from both iOS and Android users.

Accounts and other products: Andrews Federal special overseas offerings for military families include bill pay, special pricing on vehicles and assistance loans for high utilities costs. A variety of savings and checking accounts and share certificates are available to all members, and one rewards checking account caters to military members. The rewards account gives customers a 5 cents credit (deposited to their savings account) for purchases made with their debit card. Savings rates are low and the checking accounts all have a monthly fee, though they can be waived by meeting requirements. Certificate APYs are more competitive: A one-year certificate earns 5.00% and a five-year certificate earns 4.20%.

Although membership is mostly limited to three states, Security Service offers its members high rates on some certificates and nationwide ATM access.

Eligibility: You’re eligible to apply for Security Service if you’re an employee of the Department of Defense or select military branches at certain bases within its service area, or you have a family member who is already part of the credit union. Civilians in Colorado, Texas and Utah can also qualify.

Accounts: The Security Service Power Checking account has no minimum balance or monthly fee, though it also doesn’t earn any interest. To open a basic savings account, you’ll need to deposit a minimum of $5, but you need a minimum balance of $100 across all Security Service accounts — or a loan, checking account, line of credit, share certificate, IRA, or credit card at the credit union — to avoid a $3 monthly fee.

The savings account earns an unimpressive 0.05% APY, though, which is less than the national average.

Security Service offers higher rates on its share certificates; its standard one-year certificates earn at least 2.15% APY, depending on the deposit balance and the location. The minimum deposit is $500, which is much lower than you’ll find at some other institutions. With that amount, you can open a 15-month CD that earns a highly competitive 4.90% APY.

This credit union’s savings rates are competitive on balances up to $500. Nonmilitary membership is open to employees of select employer groups and members of a not-for-profit organization.

Eligibility: Service Credit Union membership is open to active-duty military and veterans, current and former Department of Defense employees and members of select employer groups (mostly in New Hampshire). Family members of those eligible can also qualify for membership. You can also become eligible for membership by joining the American Consumer Council, which can be done free of charge by using a promo code from Service Credit Union.

Accounts: Service’s Everyday checking account doesn’t charge a monthly fee. If you sign up for direct deposit, you can receive fee rebates for out-of-network ATM charges, as well as rate discounts on auto loans. Its savings account earns a 5.00% APY on the first $500, and 0.25% on amounts above that figure. The credit union’s one-year certificate earns a competitive 5.15% APY, and has a $500 minimum, which is low compared to some institutions’ requirements.

Perhaps best known for its insurance products, USAA Bank offers its more than 13 million members a range of bank accounts, well-rated mobile apps and more.

Eligibility: To open a bank account at USAA, you or a family member must have served in the military. In addition to banking benefits, such as one-day-early direct deposit, active-duty service members may get reduced rates on credit cards and other loan debt.

Customer service: USAA Bank is the top bank based on reputation, according to a 2022 American Banker survey of bank customers. Account holders have various ways to ask for help, including well-rated mobile apps and Twitter.

Accounts and other products: Its checking accounts have no monthly fees or minimum balance requirements. You also can use Apple Pay, Google Pay and Samsung Pay; deposit checks from your mobile device; and access USAA’s online money-management tool. The company offers a range of products, including auto loans and savings accounts, though savings rates are low.