In the past 18 months, Colorado Federal Savings Bank’s (CFSB) 12-month CD has been a contender in the race to be the top-rated nationally available one-year CD. In the seven 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. CFSB made a move today by raising the 12-month CD rate to 2.20% APY – not quite at the top, but edging ever closer. The minimum deposit is $5k, with no stated balance cap.
As stated on the Certificate Rates page, the Early Withdrawal Penalty 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 is excited to announce that we now offer PODs on our accounts. 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 always, make sure to read all disclosures and available information thoroughly before committing your funds.
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 "B+" at DepositAccounts.com, with a Texas Ratio of 2.49% (excellent), based on December 31, 2017 data. CFSB has an excellent capitalization level (11.74%), the result of holding $1.81 billion in assets and $212.79 million in equity. 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 $1.81 billion and more than 124,000 customer accounts.
How the CD Compares
When compared to the 207 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 second.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.25% APY||12-Months Online Time Deposit||My eBanc|
|2.20% APY||12-Month CD||Colorado Federal Savings Bank|
|2.17% APY||12-Month CD||First Internet Bank|
The above rates are accurate as of 4/13/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.