The Federal Savings Bank Offers Top-Rate 5-Year CD, 3.30% APY

As other banks have been cutting their 5-year CD rates, Chicago-based The Federal Savings Bank (TFSB) has been holding steady with a rate that is now near the top for nationally available 5-year CDs. TFSB is offering 3.30% APY on its 5-year Promotional CD. The minimum opening deposit is $10k of new money, which is defined as “funds not currently on deposit with The Federal Savings Bank.”

While the 3.30% APY has been in place for almost a year, I have been hesitant to feature any TFSB product because of the notoriety associated with Stephen Calk, TFSB’s founder and former CEO. According to a July 1, 2019 article in the Chicago Tribune, circumstances have recently changed.

Regulators have barred Stephen Calk from involvement with Federal Savings Bank of Chicago — or any other bank — pending the outcome of federal bribery charges for allegedly issuing $16 million in high-risk loans to former Trump campaign chairman Paul Manafort in the hopes of landing a senior position with the administration.

Chicago-based Federal Savings Bank, which bills itself as one of the largest veteran-owned banks in America, has locations in Lake Forest and Chicago. Calk took a leave of absence from the bank in May, with his brother, John Calk, assuming the role of CEO and acting chairman, according to bank.

As stated on the Deposit Rates page, the Early Withdrawal Penalty reads as follows:

For CDs with a maturity of 730 days or more, the penalty will equal to 365 days of interest.

According to CSR, funding a CD can only be done by wire or check, although the FAQs attached to the online application states:

How long will it take for my account to be credited when using the ACH funding option?
This normally depends on the cut off times established by your ACH funding bank.

There is a 10-day grace period before the CD automatically renews. Funds from a maturing CD will be distributed by a cashier’s check sent to the address on file; no ACH or wire transfer is available. Maturing funds can also be transferred to an existing TFSB checking or savings account.

Unlimited beneficiaries (equal shares) can be named, with Social Security numbers required.

Availability

Headquartered in Chicago, The Federal Savings Bank offers its product line nationwide to US citizens and resident aliens (18 years or older), who have a US mailing address and a valid Social Security number, through an online application.

Opening a Promotional CD (or any other TFSB product) can be done online, or at either of two full-service Illinois branches located in Chicago (Near West Side neighborhood) and Lake Forest.

Bank Overview

The Federal Savings Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 5.04% (excellent), based on March 31, 2019 data. TFSB has an excellent capitalization level (18.97%), the result of holding $464.04 million in assets with $88.03 million in equity. Please refer to our financial overview of The Federal Savings Bank (FDIC Certificate # 35518) for more details.

The Federal Savings Bank promotes itself as “one of the largest privately held, federally chartered, veteran-owned banks in America.” Established in 2000 as the Generations Bank and headquartered in Kansas City, Missouri, the Bank has rebranded three times, relocated its headquarters to Chicago, and acquired Baytree National Bank & Trust Company of Lake Forest, Illinois. TFSB is currently the 90^th largest bank in Illinois, with assets in excess of $464 million.

How the Promotional CD Compares

When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, The Federal Savings Bank’s 5-Year Promotional CD APY currently ranks second, regardless of minimum deposit requirements.

The above rates are accurate as of 7/13/2019.

To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.