Best Military Banks and Credit Unions - NerdWallet (2024)

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 5.30% 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.

When you use your debit card overseas at Visa/Plus ATM locations, Navy Federal typically charges up to 1% per transaction and $1 for ATM withdrawals and inquiries.

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.

ATMs and branches: PenFed offers free access to over 85,000 ATMs through the Allpoint and Co-op networks. But to visit a branch, you need to be in the Washington, D.C., area or near select military bases in the U.S. and abroad.

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 two 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 – or by joining the Financial Fitness Association.

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 4.65% APY, and has a $500 minimum, which is low compared to some institutions’ requirements.

ATMs and branches: Service Credit Union participates in the Co-op network of more than 5,600 shared branches, as well as the Co-op network of more than 30,000 shared ATMs.

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-to two-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 2023 American Banker survey of bank customers. Account holders have various ways to ask for help, including well-rated mobile apps and X (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.

ATMs: Members get free access to USAA Bank-owned ATMs as well as the bank’s wider network of 100,000 USAA-preferred ATMs in the U.S. In addition, USAA reimburses you up to $10 per month in fees for out-of-network ATMs.