Cassidy Horton is a finance writer covering banking, life insurance and business loans. She has worked with top finance brands including NerdWallet, MarketWatch and Consumer Affairs. Cassidy first became interested in personal finance after paying off $18,000 in debt within 10 months of graduating college. She later went on to triple her salary in two years by ditching her 8-to-5 job to write for a living.
Cassidy Horton
Cassidy Horton is a finance writer covering banking, life insurance and business loans. She has worked with top finance brands including NerdWallet, MarketWatch and Consumer Affairs. Cassidy first became interested in personal finance after paying off $18,000 in debt within 10 months of graduating college. She later went on to triple her salary in two years by ditching her 8-to-5 job to write for a living.
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Fact Checked
Elizabeth Aldrich
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Military banks and credit unions offer a wide range of products and services specifically designed for military members, veterans and their families. In this roundup, we’ll introduce you to the five best checking accounts at military banks and credit unions, including why we picked them, the pros and cons and any details you need to know before you sign up.
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Show Summary
Best Checking Accounts at Military Banks and Credit Unions 2024
Every servicemember needs a reliable checking account. So, for our best list, we focused on military banks and credit unions offering simple, low-fee or free checking accounts that stand out above the rest.
Annual percentage yields (APYs) and account details are accurate as of May 1, 2024.
PenFed Credit Union Free Checking
Annual Percentage Yield
0%
Minimum Deposit Requirement
$25
Monthly Maintenance Fee
$0
Learn More
Read Our Full Review
0%
$25
$0
Editor's Take
PenFed Credit Union Free Checking gets a perfect 5-star rating according to our methodology for a few reasons: It has no monthly fees, receives early direct deposits and gives you access to a nationwide network of over 85,000 surcharge-free ATMs.
Plus, if you sign up for PenFed’s Power Cash Rewards Visa Signature® Card*, you’ll earn 2% cash back on all purchases for those who qualify and 1.5% cash back on all other purchases.
Pros & Cons
- No monthly maintenance fees
- Early direct deposits
- Over 85,000 ATMs
- Low $25 opening deposit
- Membership is open to anyone
- Non-members will need to open a savings account first
- Account doesn’t earn interest
Details
Even though PenFed is a military credit union, you don’t have to be affiliated with the military to join. Anyone can become a member by opening a free Membership Savings account. Once your savings account is open, you can then open a PenFed Free Checking account.
USAA Classic Checking
Annual Percentage Yield
0.01%
Minimum Deposit Requirement
$25
Monthly Maintenance Fee
$0
Learn More
Read Our Full Review
0.01%
$25
$0
Editor's Take
We picked USAA Classic Checking because it offers access to over 100,000 preferred ATMs nationwide, up to $10 in refund per statement cycle for non-preferred network ATMs and early paydays. Plus, there’s no monthly service fee for checking accounts.
USAA Youth Spending also scored a 4.7 out of 5-star rating, based on our methodology. Similar to USAA’s Classic Checking account, it has no monthly fees and a minimum $25 opening deposit.
Pros & Cons
- No monthly maintenance fee
- $25 minimum opening deposit
- 100,000 preferred ATMs nationwide
- Low interest rate
- Only open to military members and their families
Details
To join USAA, you must be a U.S. military member, veteran, pre-commission officer or a spouse or child of a military member. USAA’s Classic Checking earns a negligible 0.01% APY—and you’ll need to maintain a $1,000 minimum daily balance to earn it.
PenFed Credit Union Access America Checking
Annual Percentage Yield
0.15% to 0.35%
0.35% on balances of $20,000 and up to $50,000
Minimum Deposit Requirement
$25
Monthly Maintenance Fee
$10
waivable with monthly direct deposits of $500 or more or daily balance of $500 or more
Learn More
Read Our Full Review
0.15% to 0.35%
0.35% on balances of $20,000 and up to $50,000
$25
$10
waivable with monthly direct deposits of $500 or more or daily balance of $500 or more
Editor's Take
The PenFed Credit Union Access America Checking is a great choice for anyone looking for a high-yield checking account. It offers an APY of 0.15% to 0.35%, making it one of the highest-yielding checking accounts available. There are multiple ways to avoid the monthly fee, and account holders can receive their paychecks up to two days early.
Pros & Cons
- Competitive rate structure
- Highly rated mobile app
- Large ATM network
- Waivable monthly fee
- Low minimum deposit requirement
- Recurring direct deposit required to earn dividends (interest)
- Monthly fee if you don’t meet requirements
- $30 non-sufficient funds fee
Details
The yields earned on credit union accounts are referred to as dividends rather than interest. PenFed’s dividends are compounded daily and credited to your account monthly. To receive dividends, you must have recurring direct deposits of $500 or more on a daily balance of up to $50,000. Amounts over $50,000 don’t earn dividends.
To join PenFed, you must open a savings account and deposit at least $5. You can’t access the checking account without a PenFed savings account.
Though PenFed’s Access America Checking account has a monthly maintenance fee of $10, the credit union makes this fee easy to avoid. You can set up at least $500 in monthly direct deposits or maintain a daily balance of at least $500 to waive the fee.
You will receive your first 50 checks for free from PenFed, and additional checks cost $5 for 50.
The credit union offers a fee-free overdraft line of credit to Access America Checking account holders. This line of credit provides $300 or more in overdraft protection with a fixed 17.99% APR. There is no fee for the line of credit or individual overdrafts. When an incoming payment bounces, PenFed charges a $30 nonsufficient funds fee or a $10 uncollected funds fee if the money is in the payer’s account but is on hold.
Navy Federal Credit Union Free EveryDay Checking
Annual Percentage Yield
0.01%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Learn More
Read Our Full Review
0.01%
$0
$0
Editor's Take
Navy Federal Credit Union’s free EveryDay Checking account is one of the best free checking accounts available, especially for those affiliated with the military. There are no monthly fees or minimum balance requirements to earn dividends and no opening deposit requirements. Earnings are automatically deposited into your account each month—but the current dividend rate is only 0.01%.
As a member, you get access to free financial counseling. Plus, there are 350 Navy Federal branches worldwide, including some overseas near military bases.
Pros & Cons
- No monthly fees or minimum balance requirements
- Earns dividends
- Has branches overseas and near military bases
- Access to free financial counseling services
- Low interest rate
- Only open to military members and their families
Details
This account has no monthly fees or minimum deposit requirements. To join Navy Federal, you must be one of the following:
- Activity-duty or retired military
- Veteran
- Department of Defense civilian
- Immediate family member of a military member, including a parent, grandparent, spouse, child, sibling, grandchild or household member
Navy Federal Credit Union Flagship Checking
Annual Percentage Yield
Up to 0.45%
on balances of $25,000 and over
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$10
waived with average daily balance of $1,500 or more
Learn More
Read Our Full Review
Up to 0.45%
on balances of $25,000 and over
$0
$10
waived with average daily balance of $1,500 or more
Editor's Take
Navy Federal Flagship Checking is ideal for anyone who wants to earn interest on their deposits. It’s a premium account that earns a tiered APY (annual percentage yield) and comes with up to $120 in ATM fee rebates when you set up direct deposits. Although there’s a $10 monthly service fee, you can avoid it by maintaining a minimum $1,500 balance.
Beyond these perks, many members enjoy Navy Federal’s free financial counseling and worldwide branches, many of which are located near military bases.
Pros & Cons
- Competitive interest rate
- Waivable monthly fee
- Up to $120 in yearly ATM refunds
- Has branches overseas and near military bases
- Only open to military members and their families
- Limited ATM network compared to other options on our list
Details
This account has a $10 monthly fee that’s waived when you maintain a minimum $1,500 balance. Your interest rate is tied to your daily balance: Earn 0.35% APY for balances of $0 to $9,999, 0.40% APY for balances of $10,000 to $24,999 and 0.45% for balances of $25,000 or more.
Navy Federal membership is open to the following groups:
- Activity-duty or retired military members
- Veterans
- Department of Defense civilians
- Immediate family members of a military member, including a parent, grandparent, spouse, child, sibling, grandchild or other person in the household
Summary: Best Checking Accounts at Military Banks and Credit Unions
| Bank/Credit Union | Forbes Advisor Rating | Annual Percentage Yield | Minimum Deposit Requirement | Monthly Maintenance Fee | LEARN MORE | ||||
|---|---|---|---|---|---|---|---|---|---|
| PenFed Credit Union Free Checking |  |
5.0 |  |
0% | $25 | $0 | Learn More | Read Our Full Review | |
| USAA Classic Checking |  |
4.7 |  |
0.01% | $25 | $0 | Learn More | Read Our Full Review | |
| PenFed Credit Union Access America Checking | |
4.6 | |
0.15% to 0.35% | $25 | $10 | Learn More | Read Our Full Review | |
| Navy Federal Credit Union Free EveryDay Checking |  |
4.5 | |
0.01% | $0 | $0 | Learn More | Read Our Full Review | |
| Navy Federal Credit Union Flagship Checking | |
4.2 |  |
Up to 0.45% | $0 | $10 | Learn More | Read Our Full Review |
Methodology
To help you find the best military bank or credit union for your needs, we looked at a variety of factors, including fees, branch and ATM access, customer service and product offerings. We also considered each institution’s reputation and customer reviews.
Then, we weighted each factor as follows and ranked institutions accordingly.
- Fees: 50%
- ATM and branch access: 15%
- Customer experience: 10%
- Digital experience: 10%
- APY: 5%
- Minimum deposit requirements: 5%
- Minimum balance requirements to avoid the monthly fee: 5%
The five military banks and credit unions you see on this list rated highest according to our methodology.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
What Is a Military Bank?
A military bank is a financial institution that offers banking products and services specifically designed for military members, veterans and their families. Military banks usually have lower fees than traditional banks and offer special perks like free checking accounts, waived ATM fees or financial counseling.
When it comes to choosing a new bank or credit union, there are many factors to consider—but if you’re looking for an institution that specializes in serving the needs of those associated with the military, then a military bank is likely your best bet.
How Do Military Banks Work?
Military banks work just like any other bank or credit union. They offer deposit accounts like checking and savings accounts as well as loans and credit products like credit cards and lines of credit. They also offer online banking services so you can manage your account from anywhere in the world.
In addition to traditional banking products and services, many military banks offer specialized services geared toward helping military members relocate, start a business, buy a house and more.
In most cases, you need to be affiliated with the military (or have an immediate family member who is) to join a military bank or credit union. But some institutions, such as PenFed, open membership to anyone.
How To Choose a Military Bank
There are a few things you’ll want to keep in mind when choosing a military bank.
- Your military affiliation. Are you in the Armed Forces? Are you active-duty military, a veteran or a family member? Or do you simply want to support an institution that supports our troops?
- The kinds of products and services you need. Do you need a checking account? A savings account? A loan?
- Whether you want to bank online, in person or both. If you’d prefer to have branch locations nearby, that may narrow your options.
- The types of fees you can expect to pay. Do you want a free account or are you OK with paying a monthly fee in exchange for earned interest? Always compare rates and fees between different military banks to ensure you’re getting the best deal possible.
How To Change Bank Accounts in the Military
If you’re in the military and need to change your bank account for any reason, follow these steps:
- Decide which military bank or credit union you’d like to open an account with. (The options on this list are a good place to start.)
- Open up a new account with this bank.
- Transfer all the money from your old account over to your new one.
- Switch over any direct deposits or automatic payments that are going to your old account.
- Contact your old bank and ask them to cancel your account.
How Do Military Banks Help Veterans
Military banks understand the unique financial needs of veterans and their families. That’s why they offer products and services that are specifically tailored to meet those needs. Some military banks offer low-interest loans for veteran homebuyers or business owners. Others offer free financial counseling services for veterans who need help managing their money.
