USAA Epic Collapse

[bcuziknow]

Stunning this place is still open. And that clown is still CEO

https://www.msn.com/en-us/money/companies/us-watchdog-orders-usaa-bank-to-rectify-practices/ar-AA1wbxxf?

[bcuziknow]

This action is a response to practices deemed unsafe or unsound by the OCC, particularly in areas of management, earnings, and information technology. 

Practices “unsafe and unsound” was the justification OCC and FDIC closed Washington Mutual 2008

[FUSEPLUG]

Pulled my last two accounts from them earlier this year.  I think the ads finally sent me over the edge.  

[uhhello]

Any recommendations for everyday checking/small savings

[bcuziknow]

Navy Federal 100% 

[SurelySerious]

American Express has decent checking and high yield savings (~3.69% now) that works pretty well. Fidelity CMA is probably better for checking, though; FDIC option is 2.2% interest and reimbursed ATM fees.

[uhhello]

What a pain in the ass.  Been with them forever but writing is on the wall.  Only having checking with them but switching everything over sucks.

[Sua Sponte]

Switched to Navy Fed in 2019. Left insurance in 2023 for State Farm. Only have a small insurance policy with USAA just to remain a member. 

Edited December 21, 2024 by Sua Sponte

[Sua Sponte]

32 minutes ago, uhhello said:

What a pain in the ass.  Been with them forever but writing is on the wall.  Only having checking with them but switching everything over sucks.

It’s not that bad. Navy Fed is amazing.

[SocialD]

3 hours ago, Sua Sponte said:

It’s not that bad. Navy Fed is amazing.

 

What makes them amazing?  I'm in the middle of researching different banks, after being with USAA my entire adult life, I'm bailing on everything.

[Sua Sponte]

46 minutes ago, SocialD said:

 

What makes them amazing?  I'm in the middle of researching different banks, after being with USAA my entire adult life, I'm bailing on everything.

I’ve been a USAA member since 2001. Back then they were great with customer service, no issues. That’s how Navy Fed is now. I have two auto loans through them and they routinely beat USAA in APR. Their app (iOS, dunno about Android’s) is vastly better than USAA’s. 

[Lord Ratner]

Fidelity CMA with money market for the cash

[nunya]

21 hours ago, SurelySerious said:

Fidelity CMA

☝️  And use SPAXX for your cash reserves. Auto liquidation without any attention on your part and it pays 4.2% right now.

[FourFans]

I'm debating between Fidelity and Navy Fed.  I like the idea of Fidelity, especially for youth accounts for my kids that can transform into their own accounts in a few years.  But I really don't like the idea of being one debit card fraud away from my retirement and investment accounts being tapped as they'd all be linked to my account.  Have heard good things about Navy Fed, but does anyone have feedback on their app functionality (beyond 'it's really great') and using/linking kids accounts?  I don't need any loans, and getting loans pushed on me is an automatic turn off.

Edited December 23, 2024 by FourFans

[Lord Ratner]

30 minutes ago, FourFans said:

I'm debating between Fidelity and Navy Fed.  I like the idea of Fidelity, especially for youth accounts for my kids that can transform into their own accounts in a few years.  But I really don't like the idea of being one debit card fraud away from my retirement and investment accounts being tapped as they'd all be linked to my account.  Have heard good things about Navy Fed, but does anyone have feedback on their app functionality (beyond 'it's really great') and using/linking kids accounts?  I don't need any loans, and getting loans pushed on me is an automatic turn off.

Could you explain the debit card fraud concern a bit more?

[nunya]

43 minutes ago, Lord Ratner said:

Could you explain the debit card fraud concern a bit more?

I'm with LR - I don't share that concern. I've got 6 retirement accounts, 4 cash accounts (2 with active debit cards), 3 youth accounts (1 with an active debit card), 2 credit cards, an HSA, a DAF, and a partridge in a pear tree. 

I'm as positive as I can be without knowing Fidelity's inner workings that fraudulent access to one card won't compromise the other accounts. One of my cash accounts and one of my credit cards are explicitly for overseas/travel use just for that fraud firewall.

Edited December 23, 2024 by nunya

[Lord Ratner]

10 minutes ago, nunya said:

I'm with LR - I don't share that concern. I've got 6 retirement accounts, 4 cash accounts (2 with active debit cards), 3 youth accounts (1 with an active debit card), 2 credit cards, an HSA, a DAF, and a partridge in a pear tree. 

I'm as positive as I can be without knowing Fidelity's inner workings that fraudulent access to one card won't compromise the other accounts. One of my cash accounts and one of my credit cards are explicitly for overseas/travel use just for that fraud firewall.

Similar, except we use a different bank entirely for overseas/safety accounts. Transfer money from fidelity --> overseas account when needed, and we never carry the cards for the Fidelity CMA. That way if I'm held at gunpoint there's nothing on me that indicates the existence of another account to withdraw from. Just the USAA accounts with <$1k in them. 

 

That said, I don't actually have a fear of the fidelity accounts getting accessed as a function of my CMA being breached, but we already had the USAA accounts, so using them in this manner was simple. 

[FourFans]

2 hours ago, Lord Ratner said:

Could you explain the debit card fraud concern a bit more?

The concern runs along the lines that when it comes to access: If you can think it, someone IS working out a way to do it.  Having an often used access point, either by debit card or online log-in, provides a point of entry to someone with the savy to exploit it.  I don't have to understand all the workings for them to still clean me out and introduce years of pain trying to restore accounts. Having witnessed friends go through identity theft, I'd rather not experience that.  btw, there is no such thing as identity theft protection, just insurance that will help pay for the 6-18 month clean-up afterwards.

Given the number of "surprise, we lost your personal information/account number/we were hacked/we didn't see that coming" events I've experienced and witnessed, the arguments of "that's not possible" or "they protect your account" holds zero weight for me.  I have kept my USAA, Fidelity, and Vanguard, and credit accounts distinctly separate.  It's fairly easy.  I'm most likely going with NFCU for that reason.  I couldn't care less about having a brick and mortar place.  It's about air-gap security for my accounts if you will.  The convenience of Fidelity for banking intrigues me as you can get a solid rate of return on your cash accounts, though it sounds like I can have the same functionality with NFCU...minus the transitory high rate of return on my checking account of course.

[nunya]

That concern sounds more like a compromised login concern, which is more than valid. I don't think that correlates to a compromised debit card concern.

[jango220]

On 12/23/2024 at 11:07 AM, FourFans said:

Have heard good things about Navy Fed, but does anyone have feedback on their app functionality (beyond 'it's really great') and using/linking kids accounts? 

I joined Navy Fed when they were offering the 3.5% CD during the halcyon first summer of COVID. They’ve increasingly impressed me, including their recent 4.7% CD this past summer as well, and now have a larger share of my banking business. I would say their app is better than USAA but lags slightly behind Chase and some of the other big banks in functionality. But it is relatively easy to accomplish all of the normal banking tasks solely via app. However, their branches are well run if you happen to have one by you. 

It took me roughly 6-9 seconds to open an account for my kid through them, linked to my own. Fairly straightforward to deposit checks into that account, transfer between my NFCU and external accounts, etc. Only issue I’ve noticed is that I cannot turn off paperless statements for that specific account, even though the appropriate containers are checked in the app and on the site. Minor annoyance to feed a single sheet into the shredder every month. One day I will call/chat them to remedy, but it’s pretty far down on the to-do list.

[AC&W]

1 hour ago, jango220 said:

It took me roughly 6-9 seconds to open an account for my kid... Only issue I’ve noticed is that I cannot turn off paperless statements for that specific account...

I'm not 100% certain, but I suspect accounts associated with a minor are required to issue paper statements. I experienced the same until my kids turned 18. 

[uhhello]

1 hour ago, AC&amp;W said:

I'm not 100% certain, but I suspect accounts associated with a minor are required to issue paper statements. I experienced the same until my kids turned 18. 

Can't turn off ours with local credit union that our kid uses with us.

[Lord Ratner]

6 hours ago, uhhello said:

Can't turn off ours with local credit union that our kid uses with us.

Makes sense... Because I totally didn't intercept physical mail when my report card was in it as a kid. 

My email however, is a literal fortress with a unique complex password and a physical hardware key that has its own separate pin for access...

[VMFA187]

How many hours is it going to take for me to switch everything over? Damnit. 

[HeyWatchThis]

Hey dudes a follow up question because like a lot of you...I've been with USAA my entire adult life and seems like Navy Fed is a decent option. I literally have everything thru USAA other than investments (House, multiple cars, life, umbrella, etc).  

Has anyone had to make a claim with Navy Fed?  My neighborhood had a hell of a tornado rip thru it back in 2019...After a few weeks/month you could drive through the neighborhood and know which house had USAA and which ones didn't.  USAA didn't hesitate or fight a single claim we submitted on our house.  My neighbor was a State Farm agent and it took over a year for them to approve her siding claim.  I've also throughout the years made a couple vehicle claims and everything went as smooth as it could.

If Navy Fed doesn't fight you tooth and nail on paying out claims then I'll probably switch as well...