Colorado Federal Savings Bank Has Top Internet Bank 1-Year CD


Deal Summary: 1-Year CD, 1.35% APY, $5k minimum deposit

Availability: Nationwide (internet bank)

Colorado Federal Savings Bank (CFSB) is ending the week with a new rate on its 1-year CD (1.35% APY). The minimum deposit for any CFSB CD is $5k, with no stated balance cap.

1.35%$5k-Colorado Federal Savings Bank1 Year CD
Accounts mentioned in this post. Rates as of September 20, 2017.

In its more than six-year history, the 1-year CD has offered the 1.35% APY five times (four of those in the last two years), with the rate only lasting about five or six weeks.

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 fine print on the Certificate Rates page also states:

CFSB will only allow transfers to and from your original linked account. It is our policy not to change linked accounts. It is recommended you link a checking account that you intend to keep open.

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.

Since I last wrote about CFSB in 2015, there’s been a change (found on the FAQs page) that is probably of interest, and often a deal breaker, to many DA readers:

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 stance 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, it’s prudent to thoroughly read all disclosures and available information before committing.


As an internet bank, Colorado Federal Savings Bank is able to offer all its Savings and CD products to all US citizens (18 years or older). In the past, CFSB's headquarters in Greenwood Village also provided a brick and mortar office for customers who banked locally. This has changed: all accounts can only be opened online, with all other transactions also done online.

Bank Overview

Colorado Federal Savings Bank has an overall health rating of "A+" at, with a Texas Ratio of 0.78% (excellent), based on September 30, 2016 data. In the past year, CFSB has increased its total non-brokered deposits by $465.61 million, an excellent annual growth rate of 41.95%. Please refer to our financial overview of Colorado Federal Savings Bank (FDIC Certificate # 33111) for more details.

Established in 1990, Colorado Federal Savings Bank has grown to become Colorado’s seventh largest bank, with assets in excess of $1.8 billion.

How the CD Compares

When compared to the 194 similar length of term CDs tracked by, requiring a similar minimum deposit and nationally available, Colorado Federal Savings Bank’s 1-Year CD APY currently ranks third, but when compared only to other internet banks, it tops the list.

The above rates are accurate as of 2/17/2015.

To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table, or our Rates Map page.