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Military banks and credit unions are institutions that specialize in working with past and active-duty members of the military — be it in the Air Force, Army, Navy, Marines or Coast Guard.
These banks and credit unions often can provide services and flexibility service members need to manage their money under unique, often trying, circ*mstances.
In a recent episode of the “American Banker Podcast,” Jody Vickery,veteran and executive vice president for military lending, Armed Forces Banks, told host Penny Crosman that low fixed incomes, the need to potentially maintain two households and vulnerability to predatory financial practices targeting service members are just a few of the factors that set these individuals apart from civilians.
An Armed Forces Banks survey found that the aspects of financial services that are most important to military members are low fees, cited by 59% of respondents; customer service, cited by 55%; and online banking experience, according to 51%.
Low-interest loans are also important, as service members can be particularly affected by government shutdowns or tours of duty that they unexpectedly might have to extend.
Here are the best banks and credit unions for service members, plus the perks active and former military personnel enjoy with membership.
Best Banks for Military Members
The best banks for military members offer free checking accounts and savings accounts, competitive rates on loans and support for members service overseas.
1. Armed Forces Bank
Armed Forces Bank serves military members in all 50 states and abroad with a full selection of financial services. Accounts include several checking and savings options, including rewards checking, with no monthly fees and no minimum balance requirements, although you’ll need a $25 deposit to open an account.
- Get paid one day early with Early Pay
- ATM fee waivers
- Overdraft protection
- Loan discounts
- Identity monitoring
- Competitive CD rates
- Full-featured online banking and mobile app with account management, bill pay
- Client Care Center available to members located in Germany and Korea
2. USAA Bank
The United Services Automobile Association is a financial services group that offers banking, investing and insurance to people and families who serve or have served in the United States Armed Forces.
USAA offers benefits, products and discounts for U.S. military members and their families. These include free checking and savings accounts, free checks, rewards debit cards, overdraft protection and free in-network ATMs.
- Military pay made available in advance with direct deposit
- Competitive lending and credit card rates
- Teams of people to help before, during and after deployment
- Budgeting tool
- Online banking and mobile app with full account management capabilities plus roadside assistance
- ADT home security and monitoring discounts for your home and family, plus three-month deployment credit
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Best Credit Unions for Military Members
If you prefer a member-owned financial institution, one of these credit unions might be the right choice for you.
3. Navy Federal Credit Union
Navy Federal was created in 1933 by and for Navy members who wanted to help themselves and their coworkers meet their financial goals. Today, it includes officers and enlisted personnel of all branches of the armed services, Department of Defense employees and their family members.
- Checking with no monthly fee or balance requirements
- Early access available for military pay, if signed up with direct deposit
- ATM fee rebates
- Checking protection
- Competitive CD rates
- Highly rated mobile app with Face ID
- Low rates on mortgages, auto loans and credit cards
- Customer service numbers for a dozen countries outside the U.S.
4. Pentagon Federal Credit Union
As one of the nation’s largest credit unions, PenFed offers an outstanding selection of financial products and services, as well as extensive educational resources. Physical branches are located in Washington, D.C., and on select bases in the U.S. and abroad.
- Get paid up to two days early with direct deposit
- Free checking option
- Interest checking with waivable fee
- Savings account with aminimum deposit of $5
- High-yield online savings, money market and CDs
- Robust online and mobile banking capabilities including mobile rewards redemption
- Low rates on auto loans, mortgage loans and credit cards
- International customer service numbers for members located in Spain, Italy, Germany and the U.K.
5. Security Service Federal Credit Union
Security Service Federal was originally founded to benefit members of the Air Force and currently has a limited number of branches. The good news is that the credit union takes part in shared branching, so you can bank freely at thousands of their partner locations throughout the country.
- Choose between free checking and a premium account offering mobile phone protection, $0 copay telehealth, roadside assistance, fuel savings and free bank services for $9 monthly fee
- Competitive rates on CDs with terms as low as 3 months
- Access to over 30,000 ATMs
- Access to insurance, investment and business banking services
- Full-featured online banking and mobile app
6. Andrews Federal Credit Union
Andrews earned the distinction of being the Department of the Army Distinguished Credit Union of the Year in 2022 because of its service to military members. It has branches in the Mid-Atlantic region as well as in German, Belgium and the Netherlands.
- Get paid one day early with Early Direct Deposit
- Free high-yield checking accounts with cash-back rewards with Kasasa
- Free high-yield savings accounts
- Overdraft protection
- Low mortgage rates and first-time-buyer program
- Shared ATM locations throughout the country with no-fee access
- Comprehensive digital and mobile banking
- Skip up to two personal or auto loan payments per year for $25 per skipped payment
- Investment program with free guidance
- International toll-free support numbers
Banks vs. Credit Unions: What’s the Difference?
Banks and credit unions provide the same kinds of financial products and services, but they differ in important ways.
For example, banks are for-profit corporations owned by shareholders. Credit unions, on the other hand, are member-owned nonprofit organizations. Credit unions may also be profitable, but they use the profits to pay higher rates on deposit accounts, and to charge lower rates on loans. Therefore, you’ll usually get higher yields on your deposit accounts and better rates on loans if you bank with a credit union instead of a bank.
However, most credit unions restrict membership to certain groups, such as past and present members of the military. What’s more, they might have limited branch locations or service small geographic areas. Banks are more accessible because just about anyone can open an account, and banks typically have a larger physical presence.
Georgina Tzanetos contributed to the reporting for this article.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
GOBankingRates is a personal finance and consumer interest rate website and an online marketing company serving top-tier banks, credit unions and other financial services organizations. Some companies mentioned in this article might be clients of GOBankingRates, which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account.
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