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 minimum opening deposit is $10k of new money, which is defined as “funds not currently on deposit with The Federal Savings Bank.”
The Early Withdrawal Penalty is no longer listed on the Deposit Rates page, but is still in effect.
For CDs with a maturity of 730 days or more, the penalty will equal to 365 days of 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.
According to the FAQs attached to the online application,
Q. How long will it take for my account to be credited when using the ACH funding option?
A. This normally depends on the cut off times established by your ACH funding bank.
Unlimited beneficiaries (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.
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.
Both TFSB full-service Illinois branches (Near West Side Chicago and Lake Forest) have temporarily closed their lobbies to the general public. An appointment can be made by calling 877.788.3520.
The Federal Savings Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.29% (excellent), based on December 31, 2019 data. In the past year, TFSB has increased its total non-brokered deposits by $80.34 million, an excellent annual growth rate of 44.67%. 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 70th largest bank in Illinois, with assets in excess of $604 million.
How the Promotional CD Compares
When compared to 161 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 third. When compared only to banks (excluding credit unions), it ranks first.*
The above rates are accurate as of 4/16/2020.
To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.
*We are continually working to keep our rates up-to-date, but there have been just too many rate cuts for us to process quickly. For the time being, please be aware that the rates listed at DepositAccounts.com may not reflect the latest rates published by the banks and credit unions.