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The Federal Savings Bank Review 2023

Updated September 14, 2023
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At a glance

3.6
Rating: 3.6 stars out of 5
Bankrate Score
Caret Down

CDs

Rating: 2.8 stars out of 5

Checking

Rating: 4.6 stars out of 5

Savings

Rating: 3.4 stars out of 5

MMA

Rating: 2.4 stars out of 5

About Bankrate Score

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

  • Top CD Rates
Compare offers
Info
Bank logo
Member FDIC
Savings Account
4.50
%
APY
APY
Info
As of 9/25/2023
Rating: 5 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Promoted offer: No account fees & earn up to $250 w/ direct deposit. Terms apply.
Bank logo
Member FDIC
Savings Account
5.10
%
APY
APY
Info
As of 9/25/2023
Rating: 4.7 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Promoted offer:
Bank logo
Member FDIC
Savings Account
5.05
%
APY
APY
Info
As of 9/25/2023
Rating: 4.9 stars out of 5
$5000
Min. balance for APY
View offer Arrow Right
Promoted offer: CIT Bank, a division of First Citizens, 125+ years of experience.

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

    Customers have access to 55,000 ATMs.

  • Checkmark

    Competitive yields are available on the bank’s promotional CDs.

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 banking products

3.4
Rating: 3.4 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 need to deposit $100 to earn the top APY; however, you can find much higher yields elsewhere. You’ll need at least $25 to open the bank’s Statement Savings accounts.

Pros

  • Checkmark

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

Cons

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

  • You don’t earn interest on balances below $100.

  • See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

    The Federal Savings Bank
    APY
    APY
    Info
    National average APY
    How do we get this data?
    Info
Compare Offer
Info
Bank logo
Member FDIC
Savings Account
4.50
%
APY
APY
Info
As of 9/25/2023
Rating: 5 stars out of 5
Info
$0
Min balance for APY
View offer Arrow Right
Promoted offer: No account fees & earn up to $250 w/ direct deposit. Terms apply.

Bank experience

The Federal Savings Bank has only two retail banking locations, but it offers a mobile app that rates well with users of Apple and Android devices. It provides customers a big surcharge-free ATM network. You can also use the Zelle payment platform to send money to others.

About The Federal Savings Bank

The Federal Savings Bank (TFSB) 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.