Anonymous
Anonymous asked in Politics & GovernmentPolitics · 9 years ago

USAA offers me a better deal on checking, a higher rate on my CDs and lower rates on insurance?

Why?

But you know why. Could this same model be expanded to other facets of business?

And no geniuses, USAA is not a government agency and it isn't owned or operated by the government, despite what some Conservatives seemed to think last time I asked this.

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  • Anonymous
    9 years ago
    Favorite Answer

    USAA is a credit union. Every member of USAA is a co-owner so to speak. When USAA makes a profit, it is returned directly to the owners. The credit union doesn't have investors clamoring for higher fees and profits, which are directly extracted from the banks customers.

    Edit: there are other ways to get into USAA. I did not serve in the military and I use it.

  • 9 years ago

    USAA is a for profit private company that serves Veterans and their children. They are like a cross between an insurance agency and a credit union. Such benefits are provided at many credit unions across the United States. The fundamental difference between a credit union and a bank is that the credit union is owned by it's members so they are both customer and owner. A traditional bank is owned by its share holders and the people who bank there are merely their customers.

    Because USAA is owned by its members the profits are spread among the members in the form of dividends, higher yielding funds, and lower insurance rates. Anyone can start one. In fact this was one of the biggest upset during the health care debacle because they government severely restricted the creation of private health care unions.

    Source(s): I have a checking account, credit card, auto insurance and IRA all with USAA.
  • Anonymous
    9 years ago

    Credit unions are always better than banks.

    Global CU, Armed Forces CU and USAA are among the best. (Global used to give me 6% on my checking account. I couldn't even get that on 30-year bonds.)

  • Anonymous
    9 years ago

    Credit unions usually do

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  • Anonymous
    9 years ago

    because its only for those that have served their country. Thumbs up for a private company to care about our military!

  • 9 years ago

    and just why is the state of your finances in the political section...

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