Third Federal Savings & Loan just came out with a new CD special, and the rate is very competitive. It has a 2.00% APY with a 49-month term. The bank continues to offer two other CD specials. The best of these two is a 29-month CD with a 1.50% APY. The other one is a 19-month CD with a 1.00% APY. Minimum deposit is $500. These special rates are listed in the bank’s CD page as of 6/11/2014. Thanks to DA member me1004 who first posted on this 49-month CD special in the forum.
According to the bank's disclosure, the early withdrawal penalty for the 49-month CD is 18 months’ interest and the penalty for the 39-month CD is 12 months’ interest. These are harsh penalties.
Third Federal has a long history of offering competitive 6-year CDs. but the 6-year CD rate is currently only 1.75% APY which isn’t anything to get excited about.
There’s an online application which can be accessed by clicking on the "buy now" link that’s to the right of each CD in Third Federal’s rate table. As of this morning (6/11/2014) there is no option to select the 49-month CD in the application. Since the other specials are listed as options, it seems likely that the 49-month CD option will soon be added.
According to the application’s FAQ, you can fund the CD with an electronic transfer (ACH) or by mailing a check. Maximum deposit for an ACH transfer is $100,000, and the maximum deposit by check is $500,000. IRA CDs cannot be opened online.
When I called Third Federal last year, I was told the CDs are nationally available. I’m afraid I wasn’t impressed with the helpfulness of the Third Federal CSRs. They didn’t seem experienced with CDs.
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 more than $11 billion in assets. It has an overall health grade at DepositAccounts.com of a B+ with a Texas Ratio of 10.00% (excellent). 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
This new 49-month CD is a very good option for those looking for a CD with a term around 4 years. Two other options that are better are from credit unions. NASA Federal Credit Union still has the best deal with a 2.25% APY 49-month CD special. The second best deal is at Melrose Credit Union which offers a 48-month CD with a 2.02% APY. You can check to see if there are higher rates in your state by using our 4-year CD rate table.
Another option to consider is a 60-month CD with a top rate and a mild early withdrawal penalty. One of the best options is a 5-year CD at Synchrony Bank which pays 2.30% APY for a $25K minimum deposit. You can see the effective yields if this CD is closed early using our CD early withdrawal penalty calculator.
The above rates are accurate as of 6/11/2014.