I last reported on Third Federal Savings & Loan about 29 months ago when its 6-year CD had a 4.00% APY. Several commenters considered a rate that low and a term that long as "crazy". Two and a half years later, interest rates are now much lower, and I'm sure many would consider Third Federal's latest 6-year CD as crazy. It's not the best rate, but for those who prefer to bank at branches in South Florida, it's competitive with a 2.50% APY as of 7/14/2011.
The minimum deposit is $500. More details and rates for other CD terms are available from the bank's CD page. The rates are not the only thing that have become worse at Third Federal since 2009. The early withdrawal penalty has also become worse. According to the bank's disclosure, the penalty is 360 days of interest for terms of 3 years or more. It used to be half of that.
In addition to opening the CD at a branch, there's an online application. However, IRA CDs can only be opened at a branch. In the online application, the CD can be funded by check or ACH transfer.
For those who prefer opening CDs at an office, Third Federal branches are located in Ohio and in South Florida (both on the east and west coast).
Don't confuse Third Federal with Fifth Third. They're two different banks.
Third Federal is a sizable bank with $10.69 billion in assets. It has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 14.64% (above average). Please refer to our financial overview of Third Federal for more details. The bank has been a FDIC member since 1938 (FDIC Certificate # 30012).
How This CD Rate Compares
For nationally available CDs, you can get higher rates with a 5-year term, but these are becoming harder to find. The two best 5-year CD rates for a bank is 2.65% APY at Quaint Oak Bank and 2.54% APY at EverBank (as of 7/14/2011). Higher rates are available from easy-to-join credit unions. The best without a checking requirements is 2.83% APY at University Federal Credit Union. 6-year CDs are rare. 7-year CDs are more common, and the best nationally available 7-year CD rate is 3.00% APY at iGObanking.com (just dropped from 3.10%).
Searching for Top CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.