Eligible members of USAA Federal Savings Bank can get one-time, no-interest loans if the U.S. government shuts down on Oct. 1.
A loan would be equal to the amount of one net paycheck totaling $500 to $6,000 and must be repaid within three months of funding, said the bank, which serves military members and their families. Payments would be split into two equal installments, with the first payment due in about 60 days and the next in about 90 days.
Kiplinger is keeping an eye out to see if other banks, including those we've ranked as the best banks for you, will have similar offerings in the case of a shutdown. If you're preparing for that possibility, it's a good idea to know how to open a savings account online and how to keep your savings safe.
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The bank said it will also offer payment assistance through its other banking products, along with special payment arrangements for its insurance products. Kiplinger's Reader's Choice Awards for auto insurance companies ranked USAA the overall winner this year.
The news comes as the threat of a federal government shutdown looms large. Lawmakers have less than two weeks to come to an agreement on government funding measures to avert a shutdown. House Speaker Kevin McCarthy (R-CA) is becoming a bull’s-eye that even his fellow Republicans are shooting arrows at amid a deadlock over the issue.
To apply, members must have direct deposit set up with USAA
To be eligible for the USAA loans, members must have direct deposit set up for checking or savings accounts with the bank as of the shutdown date. They also need to have had at least one qualifying direct deposit posted to their account within 30 days prior to the paycheck interruption, and they must have a physical U.S. address or an APO, DPO or FPO address.
“Stability plays an important role in the financial security of our members, and empowering that security is our mission,” said Mark Pregmon, USAA vice president of Consumer Lending.
To take advantage of the offer, USAA advises members to use its app, visit the USAA website or call 800-531-USAA (8722) or 210-498-2211.
According to a recent survey, 61% of Americans of all income brackets were living paycheck to paycheck in July, when the survey was conducted. That is 2 percentage points higher than a year ago, according to the survey of 3,443 Americans conducted from July 5 to July 20 by LendingClub in partnership with PYMNTS.
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