Colorado Federal Savings Bank (CFSB) added 35 bps to its 12-month CD (2.86% APY) yesterday. This latest rate increase puts the 12-month just shy of being the top-rated nationally available 1-year CD (minimum deposits of $10k or less). The 12-month CD can be opened with a $5k minimum deposit, with no stated balance cap.
A total of 116 bps have been added to the 12-month CD in the past year in five rate increases. In the eight-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.
CFSB also raised rates on three other CDs: 6-month (2.35% APY), 24-month (2.95% APY), and 36-month (3.05% APY), but none are as competitive as the 12-month.
Since I last wrote about CFSB’s 12-month CD in July 2019, the Early Withdrawal Penalty has changed, with the penalty on CDs with terms greater than one year doubling.
Early Withdrawal Penalty for withdrawals prior to maturity date equals 1 month of interest on Certificate Term of less than 6 months, 3 months’ worth of interest on Certificate Term of 6 months and one year, and 6 months’ worth of interest for a certificate term over one year.
The Disclosure of Account Terms on the CD page also states:
At redemption, funds will be returned to the original external account utilized to open the CD. Please fund your CD from an account you intend on keeping open to reduce any delay in the return of your proceeds. Colorado Federal Savings Bank does not issue checks to close online accounts.
In other words, make sure the account you link to the CD when funding is an account you will keep open for the term of the CD, as CFSB is not flexible on this point.
CFSB began to offer PODs almost three years ago. 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 Disclosure of Account Terms 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 local customers, this is no longer an option. 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 0.30% (excellent), based on December 31, 2018 data. CFSB has an excellent capitalization level (12.25% APY), the result of holding $1.85 billion in assets with $226.33 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 eighth largest bank, with assets in excess of $1.85 billion and more than 192,000 customer accounts.
How the CD Compares
When compared to the 201 similar length-of-term CDs tracked by DepositAccounts.com, which require a minimum deposit of $5k or less and are available nationally, Colorado Federal Savings Bank’s 12-month CD APY currently ranks second.
The above rates are accurate as of 3/20/2019.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.