The Federal Savings Bank Review 2020

Published March 2020 by Libby Wells

AT A GLANCE
3.2
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Bankrate Score

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Bank Vault

Low Minimum Deposit

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Rewards Checking

The Federal Savings Bank is a good bank for consumers looking for a mortgage, especially if they are active-duty military or veterans. It’s also good for savers who prefer to do their banking online. It is not a convenient option for people who prefer branch banking, as it has only two traditional retail branches and deposits cannot be made at its 30-plus satellite offices.

  • CDs
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    3.1
  • Savings
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    3.8
  • Checking
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    4.0
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    2.0
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Goldman Sachs Bank USA

    Member FDIC

    CD

    1.00 % APY

    1 yr

    Term

    $ 500

    Min. deposit

    Goldman Sachs Bank USA

    Member FDIC

    CD

    1.00 % APY

    1 yr

    Term

    $ 500

    Min. deposit

    Simple

    Member FDIC

    Checking account

    1.00 % APY

    $ 0

    To open

    $ 0

    To avoid fees

    Overall

    3.2

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    Bankrate Score

    The Federal Savings Bank offers mortgages, personal loans and deposit products. The bank emphasizes mortgage lending, but the deposit products are worth considering for consumers who like to earn interest on everyday bank accounts like checking and savings.

    What we like

    • Yields on deposit accounts are better than most big banks.

    • Relatively low minimum deposit requirements to open bank accounts.

    • Checking accounts can earn interest.

    What we don't

    • Scarcity of branch offices not convenient for brick-and-mortar banking fans.

    • Yields on deposits are not as good as some online-only banks.

    CD rates

    3.1

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    Bankrate Score

    OTHER CD OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    CD

    1.00 % APY

    1 yr

    Term

    $ 500

    Min. deposit

    The Federal Savings Bank offers certificates of deposit with eight terms and varying APYs that are better than what some other banks offer. If you have new money, it also offers promotional rates for several CDs.

    What we like

    • CD yields are higher than many bigger traditional banks.

    • CD holders have access to online banking.

    • Low minimum deposit to open a CD.

    What we don't

    • You can find higher yields elsewhere.

    Savings accounts

    3.8

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    Bankrate Score

    You can open a Federal Savings Bank savings account online or at its two traditional retail branches in Chicago and Lake Forest, Illinois. Its mobile banking app allows you to manage the account and make deposits using check image captures.

    You only need to deposit $100 to earn the top APY; however, you can find higher yields elsewhere.

    What we like

    • Low minimum deposit to open an account.

    • No monthly maintenance fee.

    What we don't

    • There are online-only banks that pay higher yields.

    Checking accounts

    4.0

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    Bankrate Score

    OTHER CHECKING OFFERS YOU MAY LIKE
    Simple

    Member FDIC

    Checking account

    1.00 % APY

    $ 0

    To open

    $ 0

    To avoid fees

    At Federal Savings Bank, customers with Interest Checking accounts will earn interest and have free access to more than 43,000 ATMs across the country. You will want to keep a daily balance of $1,000 to avoid a monthly service charge, however.

    The bank also offers Value Checking accounts. While you won’t earn interest, you also won’t have to pay a monthly service charge for the account.

    What we like

    • Account holder has access to a large AllPoint ATM network.

    • Minimum deposit to open an account is fairly low.

    • The APY on the Interest Checking account is better than what most banks pay.

    What we don't

    • $1,000 balance required to avoid monthly service fee for the Interest Checking account.

    • Not a good choice for consumers who like branch banking.

    Money market accounts

    2.0

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    Bankrate Score

    A money market account pays you to save while allowing you some flexibility to withdraw or transfer funds. Federal Savings Bank’s money market account pays more than many banks, but not as much as some online-only banks. You will also have to deposit at least $100,000 to earn the highest APY the bank offers.

    What we like

    • APY is better than what many traditional banks offer.

    What we don't

    • There’s a monthly fee if your balance drops below $1,000.

    • High balance required to earn the APY.

    • It pays less than APYs offered by many online-only banks.

    Bank experience

    The Federal Savings Bank has a small number of physical locations, but it has a mobile app that rates well with users of Apple and Android devices and a big surcharge-free ATM network. Using the Popmoney and Zelle payment platforms, it also allows person-to-person payments. Although it focuses mostly on VA and FHA home loans, its deposit products pay decent yields and can be managed online.

    About The Federal Savings Bank

    The Federal Savings Bank is an FDIC-insured bank that is privately owned by veterans. Its emphasis is on mortgage lending, but the bank also offers deposit products that earn interest.

    Libby Wells Twitter Created with Sketch. @EAWELLS77

    Libby Wells Twitter Created with Sketch. @EAWELLS77

    Libby Wells, Bankrate's chief copy editor, has more than 30 years of experience as a writer and editor for newspapers, magazines and online publications in South Florida. She has spent most of her career at The Palm Beach Post and Palm Beach Daily News, but she also did a previous stint at Bankrate as the credit card reporter. Libby is a native of Kentucky and a graduate of the University of Kentucky, where she earned a bachelor's degree in journalism. She's an avid fan of the legendary UK Wildcats basketball team.