Top Long-Term CD Rates Continue at Franklin Federal Savings Bank


Franklin Federal Savings Bank in Virginia continues to offer top rates on its long-term CDs. The highest rate is a 7-year CD which has a 2.73% APY. Minimum deposit is $500, and it’s also available as an IRA certificate. Below is list of all of the bank’s competitive long-term CD rates. These are listed on the bank’s certificates rate sheet as of 3/14/2014.

  • 2.73% APY 7-year CD and IRA CD
  • 2.42% APY 6-year CD and IRA CD
  • 2.02% APY 5-year CD and IRA CD
  • 1.51% APY 4-year CD and IRA CD

The rates for the shorter-term CDs are not as competitive.

Update: According to the CSR, the early withdrawal penalty for the 6- and 7-year CDs is 12 months of interest. The EWP for the 5-year CD is 9 months of interest.


A reader informed me that Franklin Federal Savings Bank is currently accepting out-of-state deposits. Anyone can open the CDs by mail. You can download all the paperwork off the bank’s website. They do require that you have the paperwork notarized before mailing. You also have to mail a copy of your driver’s license and the check. More information and the bank’s phone number are listed in the bank’s new account application page. Please note that small banks often change their policies regarding out-of-state deposits.

Bank Overview

Franklin Federal Savings Bank branches are located in Richmond and in the Richmond suburbs.

The bank has an overall health grade at of a B with a Texas ratio of 22.63% (average) based on December 2013 data. Please refer to our financial overview of Franklin Federal Savings Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 28798).

How These CD Rates Compare

Now that PenFed’s CD specials are over, this bank’s 7-year CD rate takes the top spot for the best nationally available 7-year CD rate. The next highest 7-year CD rate is 2.20% APY at Apple Federal Credit Union. Navy Federal Credit Union has a 2.80% APY 7-year CD, but Navy Federal has membership limitations. Rates up to 2.65% are available with brokered CDs that are available at Fidelity. These rates are accurate as of 3/14/2014.

To search for nationwide CD/IRA rates and CD/IRA rates in your state, please refer to the best CD rates and best IRA CD rates sections of

Anonymous   |     |   Comment #1
Thanks to Ken, i found this bank on They are pleasant to deal with and will call you when your money arrives so as to verify the rate before depositing as rates can change daily.
Anonymous   |     |   Comment #2
What is the EWP for the 7 year CD?
Anonymous   |     |   Comment #3
Ken, you state..."Rates up to 2.65% are available with brokered CDs that are available at Fidelity."  Where can "we" find the various brokered CDs/terms, available broker for same, and (most importantly) the financial institution that is the issuer (assumes all are FDIC)?  Thanks!
Anonymous   |     |   Comment #4
Here is a link to fidelity cd and other fixed income offers.  Note: Be aware of Blue Sky Restrictions where some of these cd's are not available for certain states.  Also some of these cd's are not call protected.

Anonymous   |     |   Comment #5
Thanks...helpful.  The rates for 5 years "is nothing to write home about," i.e. less than 2%.   No banks are identified. 

Still think it would be helpful for "someone" to provide a listing of those banks offering insured CDs through a broker.
Pablo Savin
Pablo Savin (anonymous)   |     |   Comment #6
I have been dealing with Edward Jones and they are offering brokered cds at 3.3 % . I have gone down that road yet. They keep trying to push me down other avenues. Driving me crazy
Anonymous   |     |   Comment #7
This is #3/5.  My personal concern is if any bank is using or participating in brokered and paying higher interest than that to their "regular" customers!  I dropped a couple of banks in 2007 before the meltdown based upon those banks offering higher rates thru brokers than that offered to the "regulars."
Anonymous   |     |   Comment #11
This is #7....thanks...Looks like Vanguard describes its process but the sites (at least I couldn't find) the names of FDIC banks that it has/is offering CDs...I understand the "process" but the public doesn't not see the issuers that participate in this with broker houses.  Anyone "out there" that has info on the names of the actual banks that participate in brokered FDIC CDs (w/o looking at each bank's financial statements on their activity)?  Thanks!
paoli2   |     |   Comment #12
I have been purchasing Vanguard CDs for years for my spouse's IRA and I always can see the name of the banks online and be able to check out any info on them I need.  In fact, they are now adding the FDIC Insurance Certificate number with the Cds to verify they are insured.  You should be able to see a list of the Bank CDs they are selling on Vanguard's webpage in the "New Issue" CDs.  I always get the exact Cusip number of the one I am buying and it is always the same as listed on their CD page.  I do not know what other info you may need which you cannot find.  If the particular bank CD I am interested in has banks in other locations, I can also get the exact location which is selling the particular CD.  You may be looking in the wrong place for your Vanguard CDs.
Anonymous   |     |   Comment #13
First, appreciate all your posts!

Why buy brokered Vanguard CDs from a bank that will not provide a better interest rate directly (through a non-brokered acct with that bank)...especially if you are a regular customer of the bank?  (I assume you do not use Vanguard to "move" those brokered CDs from time to time into other securities.)  Or, are the banks "marginal" (need to raise "more" capital than it can otherwise) that are offering the rate through Vanguard...that was the industry problem before the meltdown and several of those banks that could not raise sufficient capital (at a reasonable rate) used brokered accounts...and were later closed by the FDIC.  My concern is a bank not offering its "regular/normal" customers the same or better rate that it provides through a broker as a brokered account.   And, if "we" all knew the names of the banks that used brokered accounts...we could ask them directly why and what rates.
Anonymous   |     |   Comment #14
PS  Looking at Ally Bank brokered CDs at Vanguard...the rates are lower than if one went directly to Ally Bank...strange, i.e. why would anyone buy an Ally Bank brokered CD??
Anonymous   |     |   Comment #15
I will answer your question after you look at the cd rates offered by Bank Of America and tell me why anyone would buy a CD from Bank Of America?
Anonymous   |     |   Comment #19
BofA has access to the Fed more than most other banks and thus is not "in the market" for needing funds.  And, its balance sheet is "ripe" for/with $s.  Finally, given the fees, etc. at BofA it would not be my bank of choice and thus I would not be a customer of theirs (at this time).  But for other banks????
Anonymous   |     |   Comment #17
The reason that I buy CD’s through my Vanguard acts. Is because they are all in tax deferred Vanguard IRA’s. Moving the acts. to a bank IRA is a pain for the small difference in return and not all the money in the acts. are in CD’s. Simply easier, convenient and the money all stays in one place in a diversity of investments. CD’s just a part of the whole.
Anonymous   |     |   Comment #18
Thanks and understood...but a trustee to trustee distribution "could" take it to a bank.   Perhaps the rates for other brokered CDs (other than Ally) are better at Vanguard? Thanks for insight
Anonymous   |     |   Comment #16
In the world of finance there are no "normal" customers. Those days are long gone.
paoli2   |     |   Comment #20
#13  We do know the names of the banks offered by the brokerage.  They are all listed on the brokerage CD page with other info on them.  The reason the rates are a bit lower than the same bank is offering to outside customers is because the brokerage takes a bit for their commission (which they will insist they don't charge commission for CDs). 
kcfield   |     |   Comment #21
Ken: What is EWP for Franklin Federal CDs?
paoli2   |     |   Comment #22
The 2.73% for Franklin Federal 7 year CD is not listed on their webpage.  As of 6/1/14 it shows the 2.42% only for 7 years..  
Anonymous   |     |   Comment #23
Why would you go for 2.73% with Franklin when you can get a higher rate of 3.04% at Toby Credit Union?
paoli2   |     |   Comment #24
#23  I am not particularly interested in Franklin.  I as just commenting about the interest rate.  I also would have no interest in going with Toby.  We live on our monthly interest from CDs and from what I read, Toby doesn't give interest until maturity (7 years).  I would never fool with such a CD.  The more I read about Toby, the less I like it for myself.  What others prefer is up to them.
Higher Long-Term CD Rates in Virginia at Franklin Federal Savings Bank

A few banks are making large increases on their long-term CD rates. As I reported last month, some bankers are wanting to lock investors into longer-term CDs before rates rise. That appears to be the case at Franklin Federal Savings Bank in Virginia. This month it made big increases of its long-term CD rates, and now they’re very competitive. The highest rate is a 7-year CD which has a 2.73% APY. Minimum deposit is $500, and it’s also available as an IRA certificate. Below is list of all of the...

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