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.
Applied for a 1 year CD online on a Thursday afternoon. Friday morning, the two test deposits had been made to my linked external account. I verified the amounts and by Friday evening, the ACH transfer had been made and the account was funded.
That is a pretty fast turnaround, and not always the case in my experience with some other banks.
All in all, a pleasant account opening experience.
Since Colorado Fed S B is offering high CD rates, I thought I'd post regarding my recent account opening experience. Their account opening experience is both complex and efficient. By complex I mean they used just about every security requirement that I have experienced with all other online banks. Since I have a credit freeze on my accounts at all of the credit bureaus, I called ahead to ask if that would be a problem. They said that since they use a credit bureau to verify applications, I would need an extra step of emailing an image of my drivers license; no problem I've had this request before.
They require an ID and password be set up for purposes of processing the application. However, once the CD is funded, they required an entirely new/different ID & PW for account access (through electronic banking); I've encountered this complexity at one other institution. Like most online banks, they send test deposits/withdrawals to your funding bank, as part of the account set up. So, I started my application before the funds had even been moved into my funding account. You control the funding timing, because the CD is not funded until you respond to report the test transactions. CFSB, established the effective date of my CD on the date I reported the test transactions and initiated ACH transfer to fund the CD. Hence, I am earning interest before they have received the funds. No lost interest.
CFSB's disclosures make it pretty clear that you need to fund a CD from an account that you expect will be open to receive the proceeds at maturity, as they will only electronically transfer to the opening account. As another poster observed, this could be viewed as a security feature.
CFSB initiated their processing steps as soon as they had the necessary information at each stage, thus I say they are efficient for CDs. I think this is the most reliable of all the highest CD rate institutions, based on reviews on this site.
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.
I had a 18 mo CD maturing this month and called the bank to confirm their policy on redemption. I was told that the proceeds must be transferred to the same external bank account that was used to set up the initial funding. If the account is closed or you wish to use another bank you must fax a form to them stating that the account was closed which they then must confirm with that bank themselves which I thought was odd. Since my account was still open I instructed them by email and confirmed by telephone that I wanted the funds returned to the original account. Today being Friday I received notice that the CD was renewed at the same rate and term. I won't be able to speak to them until Monday and assume that I will be in for some more hoop jumping and lost interest. My advice would be to avoid doing business with this bank.
|FDIC Certificate #||33111|
|Return on Assets - YTD||0.8%|
|Return on Equity - YTD||7.59%|
|Annual Interest Income||$42.2MM|
|Assets and Liabilities|
|Assets||Q3 2020vs Q3 2019||$2.51B$2.15B|
|Loans||Q3 2020vs Q3 2019||$1.16B$979.3MM|
|Deposits||Q3 2020vs Q3 2019||$2.24B$1.86B|
|Equity Capital||Q3 2020vs Q3 2019||$244.3MM$231.2MM|
|Loan Loss Allowance||Q3 2020vs Q3 2019||$14.4MM$12.3MM|
|Unbacked Noncurrent Loans||Q3 2020vs Q3 2019||$13.0MM$8.8MM|
|Real Estate Owned||Q3 2020vs Q3 2019||$0$110.00K|
Always verify rates and promotions with the bank or credit union. We are not Colorado Federal Savings Bank; we are a rate comparison website and cannot provide official rates or promotions.
|APY||MIN||MAX||ACCOUNT NAME||VIEW DETAILS|
|0.55%||$50k||-||Premier Savings - New Customers Only|
|0.45%||$1||-||High Yield Savings|
|APY||MIN||MAX||ACCOUNT NAME||VIEW DETAILS|
|0.75%||$5k||-||60 Month CD|
|0.65%||$5k||-||36 Month CD|
|0.60%||$5k||-||24 Month CD|
|0.50%||$5k||-||12 Month CD|
|0.50%||$5k||-||18 Month CD|
|0.45%||$5k||-||11 Month No Penalty CD|
|0.30%||$5k||-||6 Month CD|
|0.20%||$5k||-||3 Month CD|
|0.04%||$5k||-||1 Month CD|
|0.04%||$5k||-||2 Month CD|
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