O-1 Budget in Flight School

[Tycho_Brohe]

Usaa or NFCU for banking? Are they pretty much the same or usaa more versatile?

I only use USAA, but I hear people like to use both because NFCU has actual banking locations around the bases, making it easier to get some cash out if needed. I know it was a pain in the ass when I got to my current apartment, needed first and last plus a large deposit, so basically three months of rent up front. Like an idiot, I didn't have an actual checkbook, I just used the card for everything. And I can only get 500 from an ATM per day, so I was stressing. Took out a cash advance on my card, paid it off IMMEDIATELY. Would've been easier to (A) write a USAA check from the beginning, or (2) walk into an NFCU and make a withdrawal if it absolutely needed to be cash. No harm in just having a checking account at NFCU, and having everything else (and another checking account) through USAA.

The loan is good if you already have other loans (student, car, etc.) with a higher interest rate. Other than that, yeah, don't borrow money.

Bingo. When you sign up for the military, any existing debt with a rate higher than 6% gets reduced to 6% as part of the SCRA protection. After that, debt has a sort of triage. Credit card debt is top priority, since good God, they have some crazy high rates. Student debt is usually next on the list. Secured debt, like auto loans and mortgages, are bottom of the totem pole, since they're usually longer term and lower rates.
So don't go blindly taking the loan assuming it's free money, because by definition, it's not. It's costing you exactly 2.99%. Proceed with caution, and don't get over your head.

 

[BleedGreen]

And I can only get 500 from an ATM per day...

I ran into this problem yesterday but I was able to call them and request a temporary limit increase for my debit card. After a few minutes on the phone I was able to pull out 1500 from the atm.

It took me a while to get used to not having a physical branch to go into but now I am to the point where I don't know why I would need to go in.

 

[Tycho_Brohe]

I ran into this problem yesterday but I was able to call them and request a temporary limit increase for my debit card. After a few minutes on the phone I was able to pull out 1500 from the atm.

It took me a while to get used to not having a physical branch to go into but now I am to the point where I don't know why I would need to go in.

Yeah once I got my checks from USAA I was set, haven't needed anything else since. I carry almost no cash (except at tie cuttings where I lose some dolla dolla bills), I've never really found myself in need of it. Only thing I can think of that's totally cash only (and doesn't involve buying some Blue Sky from Skinny Pete on a street in Albuquerque) is a cab. So I keep some on hand for emergencies, use checks for the rent, and plastic for literally everything else. Also makes it easier to keep track of monthly spending, money in vs. money out and so on.

 

[Flash]

I have needed a physical bank a few times and NFCU usually comes through for me there, I just had to deposit a check there this past weekend because it was over the limit for online deposit at USAA. That and some of their rates are better for loans. Little if any harm in having both.

 

[Tycho_Brohe]

I have needed a physical bank a few times and NFCU usually comes through for me there, I just had to deposit a check there this past weekend because it was over the limit for online deposit at USAA. That and some of there rates are better for loans. Little if any harm in having both.

When I need to deposit a check, I just go to the UPS Store. You give them the check and your debit card, and they put it into your account. They even give you back the voided check to keep for your files. Not sure if there's a limit to that though.

 

[BleedGreen]

I have needed a physical bank a few times and NFCU usually comes through for me there, I just had to deposit a check there this past weekend because it was over the limit for online deposit at USAA. That and some of there rates are better for loans. Little if any harm in having both.

Good point, I think USAA's only solution for this problem is to mail them your check for deposit.

 

[Spekkio]

2) The loan is good if you already have other loans (student, car, etc.) with a higher interest rate. Other than that, yeah, don't borrow money.

+1. I would add the 'borrowing money to invest it into relatively high-risk securities with delusions of becoming a millionaire off of passive income' in the irresponsible category.

That $450/mo you pay toward your loan could be directly invested into your TSP. It's called cost-spread; no need for a loan to gamble it all on black.

 

[villanelle]

If you want something with brick and mortar branches, it's sort of silly to choose NFCU, since their locations are pretty limited. We have a Chase account for our brick and mortar back-up bank. (Not that it's serving us especially well in that capacity, given that the Navy seems hellbent on keeping us overseas forevah, but it's a sound plan in theory!) They have some special military account where you get their highest level of checking account free, or something like that, no direct deposit of paycheck required and no minimum balance. There is a Chase in pretty much every other strip mall in 'Merica. I think with the military account we get a few free out of network ATM withdraws every month as well.

 

[Que3n]

Yeah like LET73 said, it's available to OCS grads, although I don't recall hearing anything at all about it at OCS itself, at least there wasn't like a brief on it or anything like that. Most of the info I got on it was from this site, still might be around here somewhere, but broad strokes, 2.99% APR for five years, up to 25 grand (note: you don't have to take the full amount). Payments on the full 25k are about 450/mo. And you need to have your paychecks on direct deposit with USAA, and they need to see a copy of your CAC card and your Oath of Office (I had to substitute the other document instead, the one with the Presidential seal that sounds all nautical and whatnot).

And since you work in finance, you probably know this, but for everyone else, don't take this money and buy a car with it. In most cases, auto loans on new cars will be significantly less than 3% (auto loans are "secured" debt, e.g. backed by the value of the car, if you miss payments they can just take the car back; while the career starter loan is "unsecured debt," AKA signature loans, meaning all they have is your word that they'll pay it back, so it's riskier for them and the interest rate is therefore higher). Insert another plug for USAA's car buying service here for that very reason.

Thanks for the added detail, I guess this isn't as sweet of a deal as the Academy grads get. My cousin is looking at 0.5% APR - to which I say use it and pay off any other debt, perhaps buy a car and/or make a max Roth contribution. I was personally going to use for refinancing my vehicle and one of my Fiancee's high interest student loans. That being said- 2.99% is more than I'm paying on my car, we could possibly save a bit on her student loan but I'm hoping to just pay that bastard off ASAP.

 

[Tycho_Brohe]

Thanks for the added detail, I guess this isn't as sweet of a deal as the Academy grads get. My cousin is looking at 0.5% APR - to which I say use it and pay off any other debt, perhaps buy a car and/or make a max Roth contribution. I was personally going to use for refinancing my vehicle and one of my Fiancee's high interest student loans. That being said- 2.99% is more than I'm paying on my car, we could possibly save a bit on her student loan but I'm hoping to just pay that bastard off ASAP.

Yeah Academy grads get a better deal for some reason. Still, I took the loan and maxed out my Roth IRA and invested the rest. Like Spekkio said, not recommended unless you really know what you're doing, and even then you can still wind up in the hole. The reason it's good for paying off debt is that it's essentially a guaranteed rate of return when you're paying off something with high interest, your profit would be the difference between the interest rate and the 3% you're paying on the loan. Made a lot more sense when savings rates were closer to 6% before the financial crisis.

 

[Que3n]

Apologize if this is discussed anywhere... I searched as long as my patience would allow before posting: Does the Navy match TSP contributions? I.E. - 100% of the first 3% and 50% of the next 2% - My google-fu isn't working very well today and I'm finding mixed results, figured I'd ask the guys who are currently contributing.

 

[Flash]

Apologize if this is discussed anywhere... I searched as long as my patience would allow before posting: Does the Navy match TSP contributions? I.E. - 100% of the first 3% and 50% of the next 2% - My google-fu isn't working very well today and I'm finding mixed results, figured I'd ask the guys who are currently contributing.

No, servicemembers don't get their TSP contributions matched.

 

[Que3n]

No, servicemembers don't get their TSP contributions matched.

Alright, thank you. Suppose it was wishful thinking.

 

[wlawr005]

They do have incredibly low service rates though, and my TSP has averaged a 21% return rate for the past 6 years.

I don't use lifecycle, I manage it myself.

 

[squeeze]

Good point, I think USAA's only solution for this problem is to mail them your check for deposit.

Stateside you can take the check to most UPS stores and they can deposit checks over the mobile limit. On the mobile app there is a locator for participating stores. I successfully used it when I sold a vehicle and deposited the check, so it works.