The rates are listed in the CD rate table. The regular CDs can be opened online, but IRA CDs cannot. I called their customer service number (1-800-844-7333), and I was told that people in any state can open these CDs online. It appeared the application allows for ACH funding, but according to the CSR it does not. The only options are to mail in a check or a wire transfer (they charge $10 for incoming wire transfer). She said you have 15 days after you submit the application for them to receive the check to guarantee the rate.
At CD maturity, you can call and instruct them to close the CD. To receive the funds, you can request a check or have them transfer the money to your Third Federal savings account. They do have a no-fee savings account that can also be opened online by people in any state. Unfortunately, it doesn't have the best rates (top yield is only 2.75% APY). Update 8/28/08: I was told that wire transfers are not an option for receiving funds from a closed CD. A reader has also been told the same thing.
Some important details listed in the savings disclosure include:
- Early withdrawal penalties equal 90 days of interest for terms from 92 days to 1 year and 180 days of interest for terms over 1 year
- Grace period equals 7 calendar days after the maturity date
- During the grace period, the account will earn interest at the renewal rate then in effect for the account
For those looking for a financially sound bank, this may be a good choice. The bank has a 5 star rating (superior) at BauerFinancial based on 3/31/08 data. This Cleveland news article profiles Third Federal Savings as one of three banks in its area that has been able to avoid being badly hurt by the mortgage mess. Here are a few excerpts from the article:
Its percentage of bad loans is an almost non-existent 0.10 percent. ... Third Federal's other secret is maintaining super-high levels of capital to cushion against hard times. ... Its key capital ratio is 20 percent, even though regulators require just 6 percent and most banks have 7 to 8 percent.
The bank has been FDIC insured since 1938 (FDIC Certificate # 30012).