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The Federal Savings Bank Review 2022

Updated December 2, 2022
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At a glance

4.5
Rating: 4.5 stars out of 5
Bankrate Score
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CDs

Rating: 5 stars out of 5

Checking

Rating: 4.9 stars out of 5

Savings

Rating: 3.9 stars out of 5

MMA

Rating: 3.6 stars out of 5

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Overview

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 looking for competitive rates who prefer to do their banking online, as TFSB has only two traditional retail branches where customers can withdraw and deposit funds and talk to bankers.

Highlights

  • Reward Checking
  • Top CD Rates
Compare offers
Bank logo
Member FDIC
Savings Account
3.85
%
APY
Rating: 4.5 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Bank logo
Member FDIC
Savings Account
3.75
%
APY
Rating: 4.5 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Bank logo
Member FDIC
Savings Account
3.60
%
APY
Rating: 4.5 stars out of 5
$0
Min. balance for APY
View offer Arrow Right

Overall

The Federal Savings Bank specializes in mortgages for homebuyers, but also offers deposit products and personal loans. The bank offers savers options to earn interest on everyday bank accounts like checking and savings.

Pros

  • Checkmark

    You can choose a fee-free checking or an interest-bearing account. Both have lots of good features, such as mobile and online banking and access to a person-to-person payment application.

  • Checkmark

    Customers have access to 43,000 surcharge-free ATMs nationally and 55,000 globally through the Allpoint Network.

  • Checkmark

    Yields on deposit accounts are attractive.

Cons

  • TFSB is not a great option for people who prefer branch banking, as it has only two retail branches, both in Illinois.

  • The money market rates aren't very favorable for savers with balances under $25,000, and there is a $10 monthly service fee if the average daily balance falls below $1,000.

The Federal Savings Bank bank products

3.9
Rating: 3.9 stars out of 5
Bankrate Score

The Federal Savings Bank savings overview

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.

Pros

  • Checkmark

    You’ll need just $25 to open a Statement Savings account.

  • Checkmark

    There’s no monthly service fee.

  • Checkmark

    The account comes with access to online and mobile banking.

Cons

  • You can get a rate that’s better than most big banks, but it tends to be behind most top online banks.

  • Interest is compounded and credited on a quarterly basis.

Compare Offer
Bank logo
Member FDIC
Savings Account
3.85
%
APY
Rating: 4.5 stars out of 5
InfoHover for more
$0
Min balance for APY

Bank experience

The Federal Savings Bank has only two retail banking locations, but offers a mobile app that rates well with users of Apple and Android devices. It provides a big surcharge-free ATM network. Using the Popmoney and Zelle payment platforms, it also allows person-to-person payments.

Deposit products may be managed online. Customers who are unable to visit a branch can also reach customer service over the phone for help with their banking needs.

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.

The bank was established in 2000 and is headquartered in Chicago. TFSB has only two retail banking branches, both in Illinois, but it provides home lending services in all 50 states to help customers achieve the American Dream.

Review methodology

With so many financial institutions to choose from, it can be hard to know who to trust. Bankrate’s ever-growing list of bank and credit union reviews is updated regularly. Our editorial team analyzes and reviews each institution across deposit products such as savings accounts, checking accounts, certificates of deposit (CDs) and money market accounts (MMAs). Banks are rated by important factors such as offered interest rates, fees, minimum balance requirements, access to funds and more.

We assign a score to each type of account and its features, weigh them carefully based on importance to account holders and determine an overall score. Read our full review methodology.