Colorado Federal Savings Bank is an online, savings-focused institution that makes limited banking options available to customers and potential customers. It offers savings accounts and certificates of deposit on its depository banking side, and mortgage loans on its lending side. Its deposit accounts typically offer interest rates that are higher than the national average because the bank exists solely online and does not have expenses related to branch operations. The savings account offering has a minimum initial deposit requirement and ensures FDIC insurance of up to $250,000 per depositor. The certificates of deposit range in term lengths from 6 months to 5 years and have initial minimum deposit requirements.
Since Colorado Federal Savings Bank online banking is the exclusive medium for account openings and management, the bank employs the industry standard security protocols for its web-based platform.
Colorado Federal Savings Bank was originally established in 1990 and is headquartered in Greenwood Village, Colorado. Its headquarters also function as a full-service brick and mortar office for customers banking locally.
I was on my way to my favorite credit union when they unfortunately turned down my cash deposits from my local business. Luckily, I came across Colorado Federal Bank for online savings. The returns from funds with them was higher than my credit union, and they are super friendly and easy to work with. The website is simple to use, and I felt good after opening the account with them. Highly recommended.
If you are thinking about taking out a Certificate of Deposit with Colorado Federal Savings Bank, here are two things to consider:
1. Positive--the interest rate locks in with the submission of the online application.
2. Negative--they do not accept POD (Payable On Death) accounts; therefore, no beneficiaries can be assigned to the account.
Since number 2 was a deal breaker for me, I did not ask any further questions. None of the information above was listed in the disclosures on the website; I had to call and ask.
*EDIT* Some new ACH info: Don't try to pull money from Colorado Federal: "It is Colorado Federal Savings Bank policy to allow funds transfers only if they are initiated in our online banking system. In accordance with this policy we have returned the following transfers..." This policy is offset, somewhat, by its high limit transfers, but might inconvenience some folks who would prefer to initiate ACH elsewhere.
When one opens a CD with Colorado Federal via ACH, the bank opens the CD prior to the funds being transferred and puts a de minimis amount of money in it for the ACH verification. It cuts the maturity of the CD by a week or two while also decreasing the total return. For instance, a $10,000 one year CD at 1.35% APY (1.34% compounded quarterly) $10,131.55 or so. (Yes, only a few dollars difference, but something to consider. Also, the maturity date will not be the anniversary of the balance transfer.) For a renewal CD, the above would not apply.
Second oddity: If one has an online savings account with Colorado Federal, one cannot fund a CD from the account, but must use an externally linked checking account.
I opened an account with this bank when they were offering a substantial yield. The gradually lowered the yield over the next several months and now are a bankrate three star bank. When I decided to switch to another bank they would not credit me my last month’s interest! They cited a loophole in one of their disclosures that states if you close your account before interest is credited, you will not receive the accrued interest. I don't recall seeing that disclosure when I opened the account. What's worse, I didn't even close my account, they did it automatically when I transferred my balance away. This seems very unethical to me and definitely not something I have ever dealt with any other institution. I checked my new institutions disclosures and they happily pay accrued interest when an account is closed. When I asked to talk to a manager about this issue I was sent to voicemail. I missed his return call but he dismissed my complaints as invalid and did not return my second call. Seems like they would rather have an unhappy customer than do the ethical thing. They got the use of my money for 25 days and refuse to pay the stated interest. Other than that, their statements don't look very official and their interface to transfer money is very odd.
|FDIC Certificate #||33111|
|Return on Assets - YTD||0.86%|
|Return on Equity - YTD||7.61%|
|Annual Interest Income||$10.6MM|
|Assets and Liabilities|
|Assets||Q1 2017vs Q1 2016||$1.72B$1.83B|
|Loans||Q1 2017vs Q1 2016||$548.4MM$490.1MM|
|Deposits||Q1 2017vs Q1 2016||$1.13B$1.25B|
|Equity Capital||Q1 2017vs Q1 2016||$196.1MM$195.0MM|
|Loan Loss Allowance||Q1 2017vs Q1 2016||$4.4MM$3.4MM|
|Unbacked Noncurrent Loans||Q1 2017vs Q1 2016||$3.8MM$1.3MM|
|Real Estate Owned||Q1 2017vs Q1 2016||$204.00K$109.00K|
Rates for Colorado Federal Savings Bank are currently being reviewed.
Colorado Federal Savings Bank is an Internet only bank and does not have branch locations. Its headquarters is located at 8400 E. Prentice Avenue, Suite 840 - Greenwood Village, CO 80111