The Federal Savings Banks Offers Promo CDs Nationwide Again

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Availability: Promotional CDs – 18-month (1.10% APY), 3-year (1.20% APY), 5-year (1.50% APY), $10k minimum deposit, new money.

Availability: Nationwide through online application.

About two months ago, Chicago-based The Federal Savings Bank (TFSB) made two significant changes in regards to its Promotional CDs: online application was no longer available and the Promo CDs could only be opened as renewals – no new Promo CDs. Those changes were recently rescinded. All three Promo CDs can once again opened online and the rates listed on the Deposit Rates page apply to “New & Renewal” Promo CDs.

While the current rates are far less impressive than have been offered in the past year, the 18-month, 3-year, and 5-year Promotional CD APYs are at or near the top for comparable nationally available CDs. The Promotional CDs require a $10k minimum opening deposit and funds must be new money, which is defined as “not currently on deposit with The Federal Savings Bank.”

TFSB has removed the Early Withdrawal Penalty (EWP) information from its Deposit Rates page, but according to CSR, the EWPs have not changed. CDs with terms of 2 years or more, the penalty is 365 days of interest; CDs with terms of less than 2 years have a penalty of 180 days interest.

The first page of the online application states,

Funding Certificate of Deposits (CD) is only accepted by either a check or with a wire. Wiring instructions and address to send check to will be available at the end of application. ACH is not accepted to fund CDs.

Note: ACH funding exclusion is new since I wrote about TFSB in April 2020.

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

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.

Availability

Headquartered in Chicago, The Federal Savings Bank offers its product line on a nationwide basis to U.S. 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 TFSB full-service Illinois branches, which are located in Near West Side Chicago and Lake Forest.

Bank Overview

The Federal Savings Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 3.86% (excellent), based on June 30, 2020 data. In the past year, TFSB has increased its total non-brokered deposits by $189.79 million, an excellent annual growth rate of 84.49%. 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 51st largest bank in Illinois, with assets in excess of $1.1 billion.

How the Promotional CDs Compare

When compared to 164 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of $10k or less, The Federal Savings Bank’s 18-Month Promotional CD APY currently ranks first.

When compared to 212 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of $10k or less, The Federal Savings Bank’s 3-Year Promotional CD APY currently ranks third.

When compared to 192 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of $10k or less, The Federal Savings Bank’s 5-Year Promotional CD APY currently ranks first.

The above rates are accurate as of 9/21/2020.

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

Related Pages: Chicago CD rates, 1-year CD rates, 5-year CD rates, nationwide deals

Comments
The Federal Savings Bank 5-Year CD Has Modest Rate Increase
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Availability: Nationwide through online application.

Through the end of September 2019, Chicago-based The Federal Savings Bank (TFSB) offered 3.30% APY on its 5-year Promotional CD, making it one of the most competitive nationally available 5-year CDs. The 3.30% APY took a nosedive, losing 130 bps in two rate drops in late 2019. A recent (and modest) 5 bps rate increase has nudged TFSB’s 5-year Promotional CD 2.05% APY closer to the current rate leaders. The...

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Availability: 5-year Promotional CD, 3.30% APY, $10k minimum deposit, new money.

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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.”

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