Join Early Retirement Today
Reply
 
Thread Tools Display Modes
do I still need USAA checking
Old 02-02-2024, 07:50 PM   #1
Full time employment: Posting here.
perinova's Avatar
 
Join Date: Apr 2006
Posts: 516
do I still need USAA checking

So a long time ago (around 1994), I opened USAA checking account which allowed for easy banking while relocating. At the time, but for USAA, banking was mostly local.

Today I find myself monitoring monthly the money I have in the account and transferring money from other more profitable account.
There are better places it seems nowadays, betterment and wealthfront etc...

But since I already have investments at Fidelity I am thinking of simplifying everything and using their cash management account, getting 2.7pct interest at present.

Any comment in doing this? I don't think I am losing anything by doing this.

Thanks.
perinova is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-03-2024, 02:35 AM   #2
Recycles dryer sheets
 
Join Date: Dec 2021
Posts: 171
Yeah, over the years I've drifted further & further from USAA. I used to have everything there, now almost nothing... I've considered abandoning it completely, just haven't pulled the trigger yet. Realistically, there's basically nothing that you lose from leaving them. Plenty of better options are available now. They used to be great .... but they've slipped pretty far over the last 15-20 years (imho).
Kork13 is online now   Reply With Quote
Old 02-03-2024, 05:41 AM   #3
Thinks s/he gets paid by the post
 
Join Date: Feb 2019
Location: St Pete
Posts: 1,222
When married our "ours" account was as USAA. I kept my individual open but I just use it for any peer to peer payment linkages so if they are compromised there is little to gain with a very minimal balance. I move money in during the month and sweep it to my CU at the end of each month. Since my tour money is paid via PayPal and Venmo (occasional tips) it is my defacto business account. I have no issues with USAA but they are not my primary institution but don't expect great returns on cash anyway. Any cash I want to work for me is in MMF, T-Bills, or occasionally CDs with promotional rates.
__________________
FIREd 7/2021 at age 47
FLSUnFIRE is offline   Reply With Quote
Old 02-03-2024, 08:16 AM   #4
Recycles dryer sheets
foxcreek9's Avatar
 
Join Date: Sep 2015
Posts: 309
Fidelity Bloom account has automatic sweep into SPAXX (currently about 5%) while CMA does not. There is no longer a signup bonus for Bloom but the savings account (vs the spending account) will give you 10% bonus up to $30 each year. I have all our credit card payments pulled from Bloom, checks are free, 10 cents back on each debit card purchase.

I also have a CMA account for the debit card on international travel.
foxcreek9 is offline   Reply With Quote
Old 02-03-2024, 08:51 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
 
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,633
Still have auto & home, and two credit cards. We had checking briefly, a very long time ago. But local bank and HYSA make more sense, at least for us.
target2019 is offline   Reply With Quote
Old 02-03-2024, 08:59 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Feb 2019
Location: St Pete
Posts: 1,222
Quote:
Originally Posted by Kork13 View Post
Yeah, over the years I've drifted further & further from USAA. I used to have everything there, now almost nothing... I've considered abandoning it completely, just haven't pulled the trigger yet. Realistically, there's basically nothing that you lose from leaving them. Plenty of better options are available now. They used to be great .... but they've slipped pretty far over the last 15-20 years (imho).
I think it depends. I'm very happy to have them for my homeowners and auto in FL They are competitive (at least for the risk group I get thrown in) for auto but I do pay a premium on my HO but its worth it to have a company with great customer service and deep pockets insuring me should I need it.

I feel like a lot of mutual companies and CUs end up declining as they expand their membership base and feel they lose a bit of their mission. Why grow if meeting the members' needs (to justify higher corporate salaries?!).
__________________
FIREd 7/2021 at age 47
FLSUnFIRE is offline   Reply With Quote
Old 02-03-2024, 09:00 AM   #7
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,398
Weíll stay with USAA, all our insurance is with them and itís almost impossible to get homeowners coverage here is South Fl. In addition, my mum has her pensions deposited with USAA and changing that would really be time consuming.

Iíve had my share of squabbles with USAA over the years, but at the same time theyíve made much more of an effort to accommodate requests that other banks refuse to even consider. It would be nice if they paid more interest or had a money market option.
MichaelB is offline   Reply With Quote
Old 02-03-2024, 09:04 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Jul 2002
Posts: 1,579
Simplification is always a good idea, especially as you get older. While I see attractive rates being offered at many banks, especially on -line, these days I'm very mindful of keeping our finances as simple as possible in case something happens to me and it can be very unexpected, such as the heart surgery I had four years ago. I remember the night before surgery, of trying to show my wife how to transfer money to our main checking account if case I'm incapacitated for a lengthy period. Used a Chromebook on a hospital bed. And I was incapacitated due to a stroke following the surgery.


Simple is good. And it simplifies tax season, less statements required.


I closed all financial accounts with USAA decades ago, but have found their insurance and claims handling outstanding and would not change insurance companies to save a few dollars ever. And I like the twice a year rebate checks from their Subscriber Savings Accounts.
RE2Boys is offline   Reply With Quote
Old 02-03-2024, 09:31 AM   #9
Full time employment: Posting here.
 
Join Date: Nov 2015
Posts: 678
Quote:
Originally Posted by FLSUnFIRE View Post
I think it depends. I'm very happy to have them for my homeowners and auto in FL They are competitive (at least for the risk group I get thrown in) for auto but I do pay a premium on my HO but its worth it to have a company with great customer service and deep pockets insuring me should I need it.

I feel like a lot of mutual companies and CUs end up declining as they expand their membership base and feel they lose a bit of their mission. Why grow if meeting the members' needs (to justify higher corporate salaries?!).
There's also the fact that there are not a lot of good options in Florida for homeowners insurance in the first place. State Farm isn't risking the entirety of State Farm for Florida, they've created "State Farm Florida", and if a big hurricane BKs them, some homeowners might be out of luck.
teej1985 is offline   Reply With Quote
Old 02-03-2024, 10:06 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
 
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,633
Keep in mind that the bank and insurance company are separate matters. You can keep the insurance without any USAA bank products. Maybe I'm wrong?
target2019 is offline   Reply With Quote
Old 02-03-2024, 10:19 AM   #11
Recycles dryer sheets
foxcreek9's Avatar
 
Join Date: Sep 2015
Posts: 309
Quote:
Originally Posted by teej1985 View Post
There's also the fact that there are not a lot of good options in Florida for homeowners insurance in the first place. State Farm isn't risking the entirety of State Farm for Florida, they've created "State Farm Florida", and if a big hurricane BKs them, some homeowners might be out of luck.

SF-Florida was created after Hurricane Andrew, it was noted that if Andrew would have turned north and hugged the shoreline it would have bankrupted the entire P&C insurance industry. Andrew cost SF more than $3 billion in today's money.
foxcreek9 is offline   Reply With Quote
Old 02-03-2024, 10:55 AM   #12
Full time employment: Posting here.
 
Join Date: Nov 2015
Posts: 678
Quote:
Originally Posted by target2019 View Post
Keep in mind that the bank and insurance company are separate matters. You can keep the insurance without any USAA bank products. Maybe I'm wrong?
Absolutely, but having a banking product provides a multi-product discount on insurance in some states.

I have a token USAA Credit Card, but seldom use it.

I did open a checking account a few months ago for A $200 new account bonus though, but I also don't use it.
teej1985 is offline   Reply With Quote
Old 02-03-2024, 12:04 PM   #13
Recycles dryer sheets
 
Join Date: Aug 2019
Location: Triangle region
Posts: 91
Back when I opened my USAA checking account 35+ yrs ago, they were the best game in town for active duty military. I did all my banking through them and found them very accommodating to the unique requirements of military life, especially when overseas. All of our children also bank at USAA...I opened their accounts when they were kids so they would have the option to become USAA members when they became adults.

We also do all of our home, auto, term and umbrella insurance through USAA - I have not found a better combination of insurance price, coverage, and service, especially after making a claim. The few times we had to make an auto claim, the repair shop always commented on how I "was lucky to have USAA...the other companies are all a pain to deal with". I know I can save a few $ shopping around, but when I checked Amica car insurance directly against USAA, found it substantially more expensive...I suspect bundling is the reason.

However, after retirement I found it necessary to have a local bank, and became a member of a local credit union, especially after acquiring some rental properties - it's our primary account now. I still keep my USAA checking account to simplify bill paying for all USAA insurance premiums and to simplify transferring cash to our kids, since they all maintain their USAA accounts. And that USAA credit card I opened up 35+ yrs ago is definitely a keeper for credit scoring!
__________________
Plans are of little importance, but planning is essential - Winston Churchill

If you don't know where you are going, you'll end up someplace else - Yogi Berra
schenbew is offline   Reply With Quote
Old 02-03-2024, 01:45 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 37,756
Quote:
Originally Posted by perinova View Post
So a long time ago (around 1994), I opened USAA checking account which allowed for easy banking while relocating. At the time, but for USAA, banking was mostly local.

Today I find myself monitoring monthly the money I have in the account and transferring money from other more profitable account.
There are better places it seems nowadays, betterment and wealthfront etc...

But since I already have investments at Fidelity I am thinking of simplifying everything and using their cash management account, getting 2.7pct interest at present.

Any comment in doing this? I don't think I am losing anything by doing this.

Thanks.
You arenít limited to 2.7% interest in your Fidelity cash management account. You can buy money market funds in that too. I usually buy Fidelity Govt Cash Reserves which is yielding around 5%. Fidelity automatically pulls from it to satisfy checks/withdrawals when the core is depleted. Itís very convenient.

Regardless I still maintain a bank checking account and use it for billpay. I have credit cards issued by the same bank and get some perks.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 02-03-2024, 07:14 PM   #15
Full time employment: Posting here.
perinova's Avatar
 
Join Date: Apr 2006
Posts: 516
Appreciate all your insights!

fyi there is a recent thread on the subject "Fidelity as a one stop shop" in the boggleheads.

The cash manager option seems to nicely fit all requirements to not to have to manually transfer funds from investments.

Just one concern is to have the same log-in to the CMA account as the investments. I am not sure if multiple log-in are an option with Fidelity.
perinova is offline   Reply With Quote
Old 02-03-2024, 07:57 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 37,756
Quote:
Originally Posted by perinova View Post
Appreciate all your insights!

fyi there is a recent thread on the subject "Fidelity as a one stop shop" in the boggleheads.

The cash manager option seems to nicely fit all requirements to not to have to manually transfer funds from investments.

Just one concern is to have the same log-in to the CMA account as the investments. I am not sure if multiple log-in are an option with Fidelity.
No, just one log-in per individual AFAIK.

Fidelity shows you all your accounts.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 02-04-2024, 06:18 AM   #17
Thinks s/he gets paid by the post
The Cosmic Avenger's Avatar
 
Join Date: May 2016
Location: Mid-Atlantic
Posts: 2,626
Quote:
Originally Posted by target2019 View Post
Keep in mind that the bank and insurance company are separate matters. You can keep the insurance without any USAA bank products. Maybe I'm wrong?
I believe that's correct, but we keep our USAA checking open to autopay our homeowner's and auto insurance. Our primary checking, with direct deposit, is at Fidelity, and I just transfer some funds over to USAA periodically to keep it at a few hundred dollars or so.

USAA was great in the early days, they were very early to online banking, and they always sent us postage-paid deposit envelopes upon request. And about a year ago we had a homeowner's claim and they were great to deal with. But their banking and credit cards are really just slightly above average at best. I keep the USAA credit card open 1) to keep our total limit higher, and 2) in case other cards are unavailable (e.g., closed due to fraud).
__________________
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
The Cosmic Avenger is offline   Reply With Quote
Old 02-04-2024, 06:28 AM   #18
Thinks s/he gets paid by the post
 
Join Date: Feb 2019
Location: St Pete
Posts: 1,222
Quote:
Originally Posted by teej1985 View Post
There's also the fact that there are not a lot of good options in Florida for homeowners insurance in the first place. State Farm isn't risking the entirety of State Farm for Florida, they've created "State Farm Florida", and if a big hurricane BKs them, some homeowners might be out of luck.
Ding-Ding! Yep, USAA is still USAA so if there is a catastrophic loss, I expect a quicker resolution as they are the entity I'll deal with and not a subsidiary that instantly goes insolvent and needs to get bailed out and/or deal with delays with reinsurers. I only have a condo policy so while the % I pay additional for USAA sounds steep the $ amount is fairly low. I just need to hope the HOA policy for the building shell pays out in a timely manner!
__________________
FIREd 7/2021 at age 47
FLSUnFIRE is offline   Reply With Quote
Old 02-05-2024, 09:55 AM   #19
Recycles dryer sheets
 
Join Date: Jun 2007
Location: Oklahoma City
Posts: 338
I appreciate this thread because it reminded me to stop keeping any savings (or very minimal) in USAA as it gets basically no return. Keeping an average $5,000 in my SPAAX money market fund at fidelity or the ALLY savings account instead of USAA covers my Netflix payment each month.
__________________
USAF Veteran -- Retired Air National Guard -- OSW -- ONW -- OIF
militaryman is offline   Reply With Quote
Old 02-05-2024, 04:07 PM   #20
Full time employment: Posting here.
 
Join Date: Nov 2015
Posts: 678
Quote:
Originally Posted by The Cosmic Avenger View Post
I believe that's correct, but we keep our USAA checking open to autopay our homeowner's and auto insurance. Our primary checking, with direct deposit, is at Fidelity, and I just transfer some funds over to USAA periodically to keep it at a few hundred dollars or so.

USAA was great in the early days, they were very early to online banking, and they always sent us postage-paid deposit envelopes upon request. And about a year ago we had a homeowner's claim and they were great to deal with. But their banking and credit cards are really just slightly above average at best. I keep the USAA credit card open 1) to keep our total limit higher, and 2) in case other cards are unavailable (e.g., closed due to fraud).
That's not necessary You can auto pay your USAA homeowners and auto insurance with any Visa or Mastercard credit card, for no fee.

FLSUnFIRE was also unaware of this though it's been the case since at least 2010 when I opened my first policies.
teej1985 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Best Bank / CU for Checking? Need 1-day ACH 24601NoMore FIRE and Money 15 05-13-2022 12:19 PM
From totally free checking to totally fleece checking easysurfer FIRE and Money 47 06-30-2012 02:23 AM
for those still wo*king, are you still putting $ in your 401K? ER_Hopeful Young Dreamers 58 01-14-2009 01:12 PM
USAA Member? Please read about Phishing mickeyd Other topics 0 07-10-2006 03:33 PM
USAA Commission versus Expense Ratios? bearkeley FIRE and Money 5 01-24-2006 08:30 PM

» Quick Links

 
All times are GMT -6. The time now is 03:32 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.