Is it a good idea to keep a military bank account and a civilian bank account?

Merchant of Death

Use a military credit union so you get the best rates on loans and things like that, but also keep a separate bank account with a large national bank such as Chase, so you can withdraw money anywhere in the country, stop at the ATM, deposit money, whatever you need to do. Also helps with credit cards.

cOfFeEkIsS

Depends on what the benefits are for keeping your civilian bank. I would say ditch it because the minute you go to another country you may need assistance with a lost card, blank checks, loans, disputes etc. Military banking is convenient and offer a lot that the other banks don't - plus the convenience of finding one in the middle of nowhere.

DietrichVonQuint

I don't understand the question. Do you mean having a bank account with a military friendly bank? If so, if it is in your best interest I suppose.

FRC

I have an account with Navy Federal Credit Union (NFCU) and United Services Automobile Association (USAA). Both cater pretty exclusively to military members and their dependents.

The main advantages of military-related credit unions is that chances are, there will be a local branch at your installation even overseas. They also conduct a wide range of business including loans at very good rates and CD's and savings accounts that are at decent rates and generally better than major national banks. They are not a bad deal to handle your pay and loans for car and other short-term necessities. I have not shopped around for house loan rates, so I am not sure who is best.

USAA provides insurance, banking and investment services and is open only to military officers and their dependents (children, wife/husband). Their physical offices are located in Texas and I have never been there. I have used them as my primary bank for 10 years now, insurance since 1991, and I have some investments with them. Their online services and customer service have been superior to other banks I have dealt with - Citi and BofA, plus local ones. The catch is banking by mail - that is the main way to do business with them.

Both of these banks have very good fee structures and tend not to have as many "gotcha" fees that other banks rely on for profits. Theoretically, USAA and NFCU are also privately held compared to large national banks and are better in tune with their customers.

Finally, I know that USAA avoided the entire subprime banking fiasco and is in a strong position financially.

There is a "military bank" run by the military and available only at overseas installations. I have used them only to exchange money and get cash from their ATMs as they do not charge fees. However, their customer service is lousy as they rely on dependents of military stationed in the country, so there is a great deal of turnover and poor training.

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