Update 4/25/14: The term of this special CD has been reduced from 39 months to 29 months.
Third Federal Savings & Loan is offering a competitive CD special. It has a 1.50% APY with a 39-month term. There’s also a special 19-month CD with a 1.00% APY. Minimum deposit is $500. These special rates are listed in the bank’s CD page as of 4/16/2014. According to the bank's disclosure, the early withdrawal penalty for the 39-month CD is 12 months’ interest. That’s a harsh penalty.
Third Federal has a long history of offering competitive 6-year CDs. but the 6-year CD rate is currently only 1.75% APY which isn’t anything to get excited about.
There’s an online application which can be accessed by clicking on the "buy now" link that’s to the right of each CD in Third Federal’s rate table. According to the application’s FAQ, you can fund the CD with an electronic transfer (ACH) or by mailing a check. Maximum deposit for an ACH transfer is $100,000, and the maximum deposit by check is $500,000. IRA CDs cannot be opened online.
When I called Third Federal last year, I was told the CDs are nationally available. I’m afraid I wasn’t impressed with the helpfulness of the Third Federal CSRs. They didn’t seem experienced with CDs.
It would probably be easier to open the CD at one of Third Federal offices. Third Federal branches are located in Ohio and in South Florida (both on the east and west coast).
Don't confuse Third Federal with Fifth Third. They're two different banks.
Third Federal is a sizable bank with more than $11 billion in assets. It has an overall health grade at DepositAccounts.com of a B+ with a Texas Ratio of 10.57% (excellent). Please refer to our financial overview of Third Federal for more details. The bank has been a FDIC member since 1938 (FDIC Certificate # 30012).
How This CD Rate Compares
The highest 36-month CD rate that’s nationally available and that doesn’t require a checking account is 1.66% APY at Melrose Credit Union.
Another option to a CD with a term around 3 years is to go with a top 5-year CD that has a mild early withdrawal penalty. Barclays is one good option. It has a 5-year CD with a 2.25% APY and an early withdrawal penalty of 6 months of interest. If you decide to hold this CD only until 3 years, the effective yield after the penalty would be 1.88%. You can compare other CDs and other early withdrawal penalties in our Early Withdrawal Penalty Calculator.
The above rates are accurate as of 4/16/2014.
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.