The Federal Savings Bank 5-Year Promo CD APY Is Near Market-Leader
Chicago-based The Federal Savings Bank (TFSB) has ended the month by significantly increasing the rate of its 5-year Promotional CD. Following the addition of 182 bps, the 5-year Promotional CD current offers a near market-leading 5.12% APY. The 3-year Promotional CD APY was recently upped to 5.17%, following a more modest increase of 17 bps. Either Promotional CD can be opened with a $5k minimum opening deposit of new money, which is defined as “not currently on deposit with The Federal Savings Bank,” or with funds from a CD renewal.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.33% | $5k | - | The Federal Savings Bank | 3 Year Promotional CD - New Money | |
| 4.07% | $5k | - | The Federal Savings Bank | 5 Year Promotional CD - New Money |
As stated in the “Additional Information on CDs” section on the TFSB CDs page, the Early Withdrawal Penalty (EWP) reads as follows:
2-, 3-, and 5-Year CD penalty is 365 days’ worth of interest.
Availability and Account Opening
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 of the two full-service Illinois branches, which are located in Near West Side Chicago and Lake Forest.
Funding and Other Particulars
The following information is from TFSB website and a conversation with CSR.
- Funding* – ACH, wire, or check.
- Ownership – Individual, joint, or trust.
- Interest – Compounded daily/credited monthly and can automatically be transferred to a TFSB checking/savings account.
- Maturing Funds – “We can only mail a bank check, no wires or ACH method is available.”
- Grace Period – 10 calendar days before automatic renewal.
- Beneficiaries – unlimited, equal shares, Social Security numbers not required.
- Credit Check – ChexSystems
*The online application lists two options: fund now or fund later. If you choose “fund now,” you must fund through ACH. If you choose “fund later,” you have 14 days to fund the CD through ACH, wire transfer, or by check.
Bank Overview
The Federal Savings Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 5.23% (excellent), based on June 30, 2023 data. In the past year, TFSB’s total non-brokered deposits decreased by -$93.94 million, a poor annual growth rate of -17.59%. 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 49th largest bank in Illinois, with assets in excess of $1 billion.
How the 5-Year Promotional CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and have minimum deposit requirements of $10k or less, one bank and two credit union have higher rates than currently offered on The Federal Savings Bank 5-Year Promotional CD. The following table compare the 5-Year Promotional CD to the two highest-rate CDs from credit unions and the two highest-rate CDs from other banks.
The above information and rates are accurate as of 11/28/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
Will they still be around come Jan-Mar 2024, when all my stuff matures and will need re-deployment?
I think at least somewhere, and possibly in increased numbers (despite Ken's apparent doubts).
;)
Ladder & it won't matter. Oh, wait...