The USAA Federal Savings Bank invites consumers to take advantage of their highest cd rates earned by their mid-term to long term certificates of deposit. The most attractive money in the bank deal is through their Super Jumbo CD which can requires funds of at least $175,000.

Here is a quick glance of the current interest rates for their CD offerings:

                                   
Term            $1K-$95K       $95K-$175K         $175K+
——-       ——–         ———-       ——-
15 months       1.79% APY         1.85% APY        2.10% APY
18 months       1.90%               1.95%              2.20%
2 years             2.10%               2.15%              2.41%
30 months       2.30%               2.36%              2.61%
3 years             2.50%               2.55%              2.81%
4 years             2.75%               2.81%              3.06%
5 years             3.15%               3.21%              3.46%
7 years             3.75%               3.80%              4.06%

We called USAA and asked for the latest interest rates. We were told that the cd rates are usually updated on Fridays. The CSR informed us that the certificate of deposit rates will lock upon submission of the application. You can send the funds via ACH transfer from your savings or checking account. Upon maturity of the certificate of deposit, you can instruct the bank to send the funds to another account through ACH.

USAA also offers IRA certificates which has the same current interest rates and tier structure as their CDs.

We checked out the link to the depository agreement with regard to certificate of deposit and took note that the earnings of the account can be added to the balance of your CD or be transferred to another account on a monthly basis. Certificates that have a term longer than 12 months, interest can be paid yearly, quarterly, or monthly.

There is a grace period of 10 days upon maturity of your CD. You can close the CD during this time without any penalty.

Early withdrawal penalties apply. It will cost you 180 days of earnings if you decide to take funds out prior to maturity of a 1 year to 5 year cd. Seven-year certificates are charged with one year of its interest.

The membership page does not state it yet but we have confirmed that anyone can enjoy the high yield depository products of USAA even when you don’t have a military connection. Their insurance and loan products though still require that you have military connections.

USAA Federal Savings Bank is based in San Antonio, Texas. It has been indexed with the FDIC since 1983 and is covered by certificate number 32188. The rating for its soundness and safety remain to be very strong. Bankrate.com issued 4 stars while BauerFinancial stamped their report with 5 stars. These financial ratings were based on their March 2009 data.