Third Federal Savings & Loan has recently started to offer a 45-month CD special with a 1.50% APY. Minimum deposit is $500. This special is listed in the bank’s CD page as of 7/16/2013. According to the bank's disclosure, the early withdrawal penalty is 12 months’ interest. This applies to terns of at least 3 years and less than 4 years.
Third Federal used to offer top rates on its 6-year CD, but that’s no longer the case. The current 6-year CD only has a 1.25% APY. I remember back in February 2009 when it was offering a 4% APY. A few readers commented about how bad of a deal this was. One said “4% for 6 years? A sucker play.” I’m sure those who opened this CD back then are appreciating still earning 4% on their money. This shows that it’s very hard to predict interest rates.
According to the bank’s CD page, “this CD Special is not currently available online.” It can be opened by phone, and I was told that it’s nationally available. I’m afraid I wasn’t impressed with the helpfulness of the Third Federal CSRs when I called this afternoon. They didn’t seem experienced with CDs. Nevertheless, they said they are able to open these CDs by phone. I was told you would need to mail in a check.
It would probably be easier to open the CD at one of Third Federal offices. 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 $11 billion in assets. It has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 11.42% (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
Since the 45-month term is odd, it would have to be compared with either 36-month CDs or 48-month CDs. The best 3-year CD rate that’s nationally available and that doesn’t require a checking account is 1.50% APY at Northern Bank & Trust Company and at Salem Five Direct. The best 4-year CD rate is 1.71% APY at Melrose Credit Union and at Andrews Federal Credit Union. These rates are accurate as of 7/16/2013.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.