The best military banks and credit unions give veterans, reservists, active-duty personnel and employees of the Department of Defense access to various benefits like no monthly fees, discounts on loans, ATM fee reimbursements and more.
We compared 17 military banks and credit unions, including regional and nationwide financial institutions, and reviewed their fees, interest rates, ATM networks, branch locations and other features to find the seven best banks and credit unions for military members and their families.
Summary of the 7 best military banks and credit unions
Best for checking: Security Service Federal Credit Union
Security Service is the best military credit union for checking accounts because it earns interest ranging from 0.05% to 0.65% depending on your balance, and there’s no monthly fee. And the more money you keep in your checking account, the more interest you’ll earn. Plus, Security Service FCU offers several other benefits, including deployment loans and a credit card that earns 1.5% cashback on every purchase with no annual fee.
Criteria to become a member
To become a Security Service Federal Credit Union member, you must meet any of the following criteria.
Live, work, worship, attend school, volunteer or own a business in Colorado, Texas or Utah.
Be a member of select military branches or units, or work for the Department of Defense at specific military bases within Security Service’s service areas.
Live with or be related to an existing member of the credit union.
Pros
Competitive interest checking. Its Power Protected Checking account earns up to 0.65% depending on your account balance.
No monthly fee or minimum deposit. You won’t need to worry about avoiding a monthly fee or meeting minimum opening deposits.
Lots of financial products. With Security Service Federal Credit Union, you have a broad range of accounts from checking to IRA accounts.
Cons
Membership requirements. If you’re not a member of the military or related to one, you’ll need to live in Colorado, Texas or Utah to become a member.
ATM fees. The credit union charges $1.50 for using out-of-network ATMs, and doesn’t reimburse fees charged by the owners of those machines. Other military banks and credit unions, including USAA, Navy Federal and Service Credit Union will refund ATM fees charged by other institutions.
Security Service Federal Credit Union offers the same accounts to qualifying civilians as it does for military members. Here are three of this credit union’s best offerings.
Power Checking. This free, interest-bearing checking account includes optional add-ons such as ID monitoring and smartphone insurance.
Power Cash Back World Mastercard. Earn 1.5% cashback on every purchase with this credit card that doesn’t require an annual fee.
CDs. Earn up to 1.00% APY on certificates with terms ranging from three months to seven years. And depending on the CD, you’ll only need $250 or $500 to get started.
USAA is the best military bank for digital banking because it has a highly rated app with more features than the other accounts on this list. The USAA mobile app includes free budgeting tools and it works with Siri, Google Assistant and other voice-activated tools.
Your USAA account also integrates with all major digital wallets, including Apple Pay, Google Pay and Samsung Pay, and it works with the Zelle payment processing platform. However, USAA’s interest rates on savings accounts and CDs aren’t competitive. And USAA only has five brick-and-mortar branches, so it may not be easy for you to meet with a banker in person.
Criteria to become a member
To qualify for a USAA account, you must meet either of the following requirements.
Active, retired, and honorably discharged veterans from the US military
Family members are eligible, though this does not include the account holder’s parents or siblings
Pros
Early pay days. Most banks offer up to two days early, but with USAA you get paid up to one day early with direct deposits.
Reimbursed ATM fees. $15 in out-of-network ATM fees reimbursed each month.
Cash deposits. While most digital banks don’t offer a way to make cash deposits, you can with USAA. But you can only deposit cash at 1,200 USAA ATMs.
Cons
Limited branches. USAA only has five branches spread among four states: Colorado, Maryland, New York and Texas.
APYs aren’t competitive. USAA’s Savings account only earns 0.03% APY. The USAA Performance First Savings account earns to 0.25% APY, but only balances above $500,000 earn the highest rate. USAA‘s CDs are available with one, two-year and five-year terms, but APYs range from 0.04% to 0.25%.
USAA’s savings accounts don’t offer competitive APYs, but these accounts have decent perks.
USAA Classic Checking. Get up to $15 in out-of-network ATM fees refunded each month, but you’ll only earn 0.01% APY when you keep a balance of $1,000 or more.
USAA® Rewards™ American Express® Card. A no-annual-fee card that earns 3x points on restaurants, 2x points on groceries and 1x points on all other qualifying purchases.
USAA® Preferred Cash Rewards Visa Signature® Card. Earn 1.5% cashback on all qualifying purchases with no annual fee and no restrictions regarding categories.
Best ATM network: PenFed Credit Union
Pentagon Federal or PenFed is the best military credit union for ATM access because its network includes more than 85,000 ATMs, including many convenient locations inside retailers like 7-Eleven, Walgreens and CVS. PenFed also offers an interest-bearing checking account plus decent APYs on savings accounts. But it has relatively few branches compared to other credit unions on this list, and you need to meet specific requirements to avoid some fees.
Criteria to become a member
PenFed previously required nonmilitary applicants to donate to a military charity to qualify for membership, but the credit union no longer requires this. Now, any U.S. citizen or permanent resident can join PenFed simply by funding a savings account with at least $5.
Pros
Large ATM network. PenFed’s network includes more than 85,000 ATMs.
Interest checking. Its Access America Checking account earns 0.15% APY on balances below $20,000 and 0.35% APY on balances between $20,000 and $50,000.
Competitive APY. You’ll earn 0.45% APY on its Premium Online Savings account regardless of your balance.
Cons
Limited branches. PenFed only has about 50 branches, which are located in California, Florida, Georgia, Guam, Hawaii, Maryland, Nebraska, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Puerto Rico, Texas, Virginia and Washington, DC.
No waived monthly fees. You’ll pay a $10 monthly fee to maintain your checking account unless you receive monthly direct deposits of at least $500 or maintain a daily balance of $500 or more.
Lower savings. Your savings interest compounds monthly as opposed to daily like most savings accounts do. This means your interest is calculated on a monthly basis so you’re earning less than you would with an account that compounds on a daily basis.
There are PenFed’s best accounts for members of the military.
Access America Checking. Earn 0.15 APY on balances below $20,000 and 0.35% APY on balances between $20,000 and $50,000, but you must have direct deposit or maintain a daily balance of $500 to avoid the $10 monthly fee.
Premium Online Savings Account. Earn 0.45% APY with no monthly maintenance fee.
Power Cash Rewards Visa Signature Card. Members of the military get 2% cashback on all purchases with no annual fee.
Navy Federal Credit Union is the best military credit union for CDs due to its Special EasyStart Certificate, which earns 3.0% APY over a term of 12 months. Get this certificate for any amount ranging from $50 to $3,000, and you can add money to the account at any time. Navy Federal Credit Union also offers several other certificates with terms ranging from three months to seven years and APYs ranging from 0.40% to 0.95%. But account holders can only open one Special EasyStart Certificate at a time.
Criteria to become a member
To qualify for an account at Navy Federal Credit Union, you must meet one of the following criteria:
Active Duty members, reservists, veterans, retirees and annuitants of the Army, Marine Corps, Navy, Air Force and Coast Guard
Army and Air National Guard personnel
Delayed Entry Program personnel
Department of Defense (DoD) civilians
US government employees assigned to DoD installations
Contractors assigned to DoD installations
Family members of one of the above
Pros
Competitive APYs on CDs and checking. Earn up to 0.45% on its Flagship Checking account depending on your account balance and 3% APY on its Special EastStart 12-month CD.
Early pay days. Unlike some banks that allow direct deposits up to two days early, you’ll receive yours up to one day in advance.
ATM reimbursements. Its Free Active Duty Checking account includes up to $20 in refunds for out-of-network ATM fees. But reimbursements don’t cover overseas currency conversion fees.
Cons
Monthly compounding interest. Interest on savings accounts compounds monthly, not daily. Given the credit union’s current APY of 0.40%, the difference in interest would be negligible unless you have hundreds of thousands of dollars in your account. But if and when interest rates rise, the difference would be more significant, especially over the course of decades.
Direct deposit required for best rates. Members need direct deposit to avoid checking accounts fees and qualify for the CD with the highest rate.
Here are three of Navy Federal’s best accounts for military members and their families.
Free Active Duty Checking. Get paid one day early and receive up to $240 in ATM rebates per year.
Flagship Checking. Earn tiered dividends ranging from 0.35% APY to 0.45% APY depending on your account balance.
Special EasyStart Certificate. 12-month certificates that earn up to 3.0% APY on balances up to $3,000.
Chase is the best bank for military benefits because it waives fees for personal and business accounts for military members. Chase also provides benefits under the Servicemembers Civil Rights Act (SCRA), which includes reduced interest rates, early termination of auto leases and protection from foreclosures and repossessions.Chase also offers a unique Survivor Program, which absolves outstanding debt for eligible spouses and dependents of Chase military customers who lose their lives either in the line of duty or as a result of wounds received while in action. Plus, Chase has more than 4,700 branches across the US, making it the best military bank for in-person interactions. But Chase’s savings accounts don’t earn competitive interest rates.
Criteria to qualify for military benefits
Chase offers two levels of benefits for members of the military:
Primary benefits are available to all active, reserve or National Guard service members and vets with qualifying military IDs. Benefits include a waived monthly service fee, a free safe deposit box and four waived fees for using out-of-network ATMs.
Enhanced benefits are available to active duty and reserve military service members of the Air Force, Army, Coast Guard, Marines, Navy and National Guard. To qualify for the Enhanced benefits, you also need to set up direct deposit for your military base pay. Benefits include unlimited waivers.
Pros
No monthly fees. Chase waives the $25 monthly fee on its Chase Premier Plus Checking for military members.
Early pay days. Unlike some banks that allow direct deposits up to two days early, you’ll receive yours up to one day in advance.
Debt cancellation. Chase’s Survivor program relieves spouses and dependents from the burden of any debt if the account holder is killed in action or dies due to injuries suffered in the line of duty.
Cons
Low interest rates. Chase only offers 0.01% APY on its checking accounts, and the best rate you can earn on your savings or with a CD is 0.01% APY. By comparison, Navy Federal offers a one-year CD that pays 3.0% APY.
No benefits for family. While you can add family members to your account, they won’t get the same benefits. For instance, members of the military don’t have to pay a monthly fee for Chase Premier Plus Checking account, but family members opening a separate account do.
Here are Chase’s best accounts and benefits for members of the military.
Chase Premier Plus Checking. The $25 monthly service fee is waived for military members.
Business Complete Banking. Monthly service fees are waived with qualifying proof of military status.
Survivor Program. This program cancels debt inherited by spouses and dependents of Chase military customers killed in action, die of wounds received in action or die in combat operations.
Service Credit Union: Best for savings
Service Credit Union is the best military credit union for savings because the first $500 in your account earns 5.0% APY, and balances over that amount earn 0.25% APY. If you keep $1,000 in your account for a year, you’ll earn a total of $26.83 in interest.
But if you plan to keep more than $12,500 in your account, look into PenFed Credit Union’s Premium Online Savings account that earns 0.45% APY as you’ll earn about $0.76 more than at Service Credit Union. If you’re sent to an active combat zone, Service Credit Union’s Deployed Warrior Savings lets you earn 10% APY on balances up to $10,000.
Criteria to become a member
When Service Credit Union opened in 1957, it exclusively catered to members of the military and their families. But membership is now open to civilians as well. To open an account, you must meet at least one of these criteria.
Active-duty military, veteran or the family member of one
A current or former employee of the Department of Defense or the family member of one
Member of the credit union’s Select Employer Groups
Member of the American Consumer Council (free to join with promo code SERVICE)
Pros
Early deposits. Receive direct deposit payments up to two days early.
ATM reimbursements. You won’t pay for using an out-of-network ATM, but if you incur a fee, you get up to $30 in ATM fees reimbursed each month.
Competitive APY. You’ll earn 5% on the first $500 in your account and 0.25% on the remaining balance. Plus, earn up to 10% APY on balances less than $10,000 if you’re in an active combat zone.
International services. Service Credit Union offers international bill pay in 18 local currencies throughout more than 40 countries. If you move to Europe, you’ll be eligible to open a V Pay card, which lets you shop anywhere in the Single Euro Payments Area (SEPA) without paying foreign transaction fees.
Cons
Basic tier limitations. The basic tier for SCU’s Everyday Checking and Dividend Checking accounts don’t include ATM rebates.
Perks aren’t for everyone. You must qualify for the credit union’s Direct Deposit+ tier to get a 0.75% discount on loans and $30 in ATM reimbursements. The standard Direct Deposit tier includes a 0.50% loan discount and $15 in ATM reimbursements, while the basic tier doesn’t offer any loan discount or ATM reimbursements.
Here are three of Service Credit Union’s best accounts for military members.
Primary Savings. Earn 5.0% APY on your first $500 and 0.25% APY on balances greater than that.
Everyday Checking. Receive up to $30 in out-of-network ATM fee rebates and a 0.75% discount on loans if you get paid by the Defense Finance and Accounting Service (DFAS).
Deployed Warrior Savings. Active-duty service members deployed to combat zones can earn 10% APY on savings balances up to $10,000.
Tyndall Federal Credit Union: Best for earning rewards
Tyndall is the best military credit union for rewards because you earn one point for every dollar you spend with your credit card and one point for every $5 you spend with your debit card. There’s no fee or enrollment required and you can redeem your points for cashback, gift cards, vacation packages, merchandise and more. Tyndall also offers a no-fee checking account and a relatively high APY for their Smart Checking account, but not all military members are eligible for accounts.
Criteria to become a member
To qualify for an account at Tyndall Federal Credit Union, you must satisfy any of the following criteria.
Live, work, worship, attend school or volunteer in select counties in Florida and Alabama.
You are a current or former employee of one of Tyndall’s select employee groups.
You are a current or former employee of one of the groups or organizations Tyndall serves.
One of your immediate relatives or members of your household is within Tyndall’s field of membership.
Pros
Spend rewards. You’ll earn one point for every dollar spent with your credit card and one point for every $5 spent with your debit card.
Interest checking. Earns up to 2.02% APY but only when you swipe your debit card at least 41 times a month.
Cons
Limited branches. There are only 14 branches in Northwest Florida and Southwest Alabama.
Difficult membership requirements. Only military members stationed at Tyndall Air Force Base or living in select Florida and Alabama counties can qualify for an account.
Low savings rates. Tyndall’s Regular Share savings account only earns 0.01% APY, and its money market account earns a maximum of 0.05% APY. By comparison, Navy Federal’s savings account earns 0.25% APY and Service Credit Union offers 5.0% APY on your first $500 and 0.25% APY thereafter.
Here are Tyndall’s three best accounts and products for members of the military.
Smart Checking. Earn up to 2.02% APY if you swipe your debit card at least 41 times per month.
Everyday Rewards credit card. Earn points for every dollar you spend, low 10.49% APR and no annual fee.
Tyndall Certificates. Earn a fixed-rate dividend on terms ranging from one to five years, but you must deposit a minimum of $1,000.
5 factors to consider when choosing a bank for military members
When selecting the best military bank account for you, pay special attention to the following factors.
Fees. Checking accounts and credit cards sometimes have monthly or annual fees for civilians, but these fees are often waived for military members.
Interest rate. Some military credit unions let you earn interest on balances in your checking and savings accounts, but others only offer interest on savings and their rates aren’t always competitive.
ATM network. Military banks and credit unions have different ATM networks. Some are nationwide, while others are only regional. Some credit unions like Service Credit Union let you use ATMs overseas without extra fees, but others will charge you for withdrawals from international ATMs.
Benefits. Some banks and credit unions offer unique benefits for military members, such as fee waivers and discounted rates on personal loans and business loans for veterans.
Physical branches. Most military banks and credit unions have physical branches you can visit to conduct your banking in person, but digital banks exist exclusively online.
4 online alternatives for military members
Although the banks and credit featured in this guide each have something to offer, military members aren’t limited to choosing one of these institutions. Depending on your needs and lifestyle, a civilian-centric online bank might make more sense for your needs. Here are five banks that offer free banking regardless of your military affiliation.
Discover Bank. With Discover you won’t pay fees on insufficient funds, monthly account maintenance and more. But it offers comparatively fewer types of bank accounts.
Ally Bank. With Ally you won’t pay monthly maintenance fees and all accounts earn interest. But business accounts aren’t available and like most online accounts there’s no way to deposit cash.
Axos Bank. Offers unlimited ATM fee reimbursements and 1.25% APY on checking account balances, but you need to receive at least $1,000 in direct deposits each month and use your debit card at least 15 times a month to qualify.
Synchrony Bank. Earn 0.4% APY on its savings account that also comes with an ATM card you can use to withdraw money from your account. But customer service is limited to weekdays from 7 a.m. to midnight ET.
Bottom line
The best military banks and credit unions each have their specific strengths and weaknesses. Consider the factors that matter to you most, and weigh your options carefully. And if you’re not satisfied with any of these options, compare our picks for the best online banks.
Michael Benninger is lead editor of banking at Forbes Advisor and a former writer at Finder, specializing in banking. His work and analysis has been featured in Business Insider, Yahoo Finance, GoBankingRates and the Los Angeles Times, among other top media. He holds a B.A. in business administration and marketing from Rowan University in New Jersey.
SoFi and Capital One are both good picks for different reasons. SoFi is best for everyday banking, but Capital One has more account options and branches.
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