UPDATE: The 1-Year CD rate has increased to 1.71% APY.
The last time I had occasion to write about Mutual Federal Bank (Mutual Fed) was more than six years ago. While Mutual Fed is a small bank with only $78.2 million in assets, it is currently offering a highly competitive 1-year Certificate (1.62% APY). The minimum opening deposit is $500, with a balance cap of $249k.
|0.65%||$500||$249k||Mutual Federal Bank||1 Year Certificate|
|0.65%||$500||$249k||Mutual Federal Bank||1 Year IRA|
The 1-year CD is also available as an IRA (Traditional), earning the same APY and with the same funding requirements.
Added to the product line in late 2009, the 1-year Certificate’s APY ranged between 1.01% and 0.70% APY for about six years. In the past two months, there have been two rate increases, adding a total of 61 bps.
According to CSR, the Early Withdrawal Penalty for the 1-year Certificate is 3 months interest on the amount being withdrawn.
Headquartered in Chicago’s Lower West Side, Mutual Federal Bank’s market area is greater metropolitan Chicago, aka Chicagoland.
Opening a Certificate must be done at the single Illinois branch located on West Cermak Road in Chicago.
Although there is an “Open an Account” button on the Bank’s website, a “Coming Soon” message pops up when the button is clicked.
Mutual Federal Bank has an overall health rating of "B+" at DepositAccounts.com, with a Texas Ratio of 15.20% (above average), based on March 31, 2017 data. The Bank has an excellent capitalization level (18.39%), the result of holding $78.2 million in assets with $14.38 million in equity. Please refer to our financial overview of Mutual Federal Bank (FDIC Certificate # 28302) for more details.
Mutual Federal Bank was founded in 1905 as the Mutual Federal Savings and Loan Association of Chicago. According to an April 2006 press release, the Bank’s holding company, Mutual Federal Bancorp, Inc. (the Company),
sold 1,091,062 shares, 30% of its outstanding common stock, at $10.00 per share in a subscription offering, which ended on March 16, 2006, to depositors of the Bank as of June 30, 2004.
The Company also issued 2,545,813 shares, or 70% of its outstanding common stock, to Mutual Federal Bancorp, MHC. At closing, the Bank became a wholly-owned subsidiary of the Company.
How the Certificate Compares
When compared to the 348 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available within the market area, Mutual Federal Bank’s 1-Year Certificate APY currently ranks first.
The above rates are accurate as of 8/18/2017.