Colorado Federal Savings Bank (CFSB) added 21 bps to its 12-month CD (2.51% APY) yesterday, making it the top-rated nationally available 1-year CD (minimum deposits of $10k or less). In the seven-plus years DA has been tracking CFSB CDs, the 12-month has offered a top APY seven times, with the rate lasting only a few weeks.
In early March, the 12-month CD held the top spot (albeit by 1 basis point) with its 2.11% APY for about three weeks. This week’s rate increase has again boosted the 12-month CD into the top spot by the slimmest of margins: 1 basis point. The minimum deposit is $5k, with no stated balance cap.
Of the remain five CDs offered by CFSB, the 6-month CD (2.05% APY) seems to be the most competitive.
As stated on the Certificate Rates page, the Early Withdrawal Penalty for the 12-month CD reads as follows:
Early Withdrawal Penalty for withdrawals prior to maturity date equals 3 months’ worth of interest on Certificate Term of one year or less and 6 months’ worth of interest for a certificate term over one year.
The Disclosure of Account Terms on the CD page also states:
The external account used to fund your CFSB savings or CD account will remain on file for the duration of your new account. This policy ensures that your funds will only be returned to the account from which they originate.
In other words, make sure the checking account you link to the CD when funding, is a checking account you intend to keep open for the term of the CD, as CFSB is not flexible on this point.
More than two years ago, CFSB began to offer PODs. According to the FAQs page:
The bank will only allow U.S. citizens and permanent resident aliens with a valid social security number to be added as a POD to an account. PODs can be added via the online application for new customers and secure message for existing customers. The bank will allow four joint owners to be designated on an account and up to five payable on death designations per account in equal percentages.
While CFSB’s position on PODs has changed, their position on trust or business remains the same – “No, we do not offer trust or business accounts.”
While the FAQ page provides many answers, more detailed information can be found in the Terms and Conditions of Your Account document.
As an internet bank, Colorado Federal Savings Bank offers its Savings accounts and CDs to all US citizens (18 years or older) who have a valid Social Security number. While CFSB's headquarters in Greenwood Village (15 miles south of Denver) provided a brick-and-mortar office in the past for customers who banked locally, this is no longer the case. Opening any type of account, and all subsequent transactions, must be done online.
Colorado Federal Savings Bank has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 0.42% (excellent), based on March 31, 2018 data. In the past year, CFSB has increased its total non-brokered deposits by $54.3 million, an excellent annual growth rate of 4.89%. Please refer to our financial overview of Colorado Federal Savings Bank (FDIC Certificate # 33111) for more details.
Established in 1990, Colorado Federal Savings Bank is currently Colorado’s ninth largest bank, with assets in excess of $1.85 billion and more than 168,000 customer accounts.
How the CD Compares
When compared to the 210 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, Colorado Federal Savings Bank’s 12-month CD APY currently ranks first.
The above rates are accurate as of 7/13/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.