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The Federal Savings Bank Review 2022

Published January 2022 by Libby Wells

AT A GLANCE
4.5

Bankrate Score

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Top CD rates

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.

  • CDs
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    5.0
  • Savings
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    3.9
  • Checking
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    4.9
  • MMAs
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    3.6
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    American Express National Bank

    Member FDIC

    Savings account

    0.60 % APY

    $ 1

    Min. balance for APY

    Goldman Sachs Bank USA

    Member FDIC

    CD

    2.00 % APY

    2yr

    Term

    $ 500

    Min. deposit

    Synchrony Bank

    Member FDIC

    CD

    1.85 % APY

    16mo

    Term

    $ 0

    Min. deposit

    Overall

    4.5

    Bankrate Score

    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.

    What we like

    • 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.

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

    • Yields on deposit accounts are attractive.

    What we don't

    • 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.

    CD rates

    5.0

    Bankrate Score

    OTHER CD OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    CD

    2.00 % APY

    2yr

    Term

    $ 500

    Min. deposit

    The Federal Savings Bank offers certificates of deposit with eight terms and reasonably attractive APYs. Rates are valid for funds not currently on deposit with TFSB.

    What we like

    • Longer-term CDs offer attractive rates.

    • You need only $500 to open a CD.

    • Access to mobile and online banking is available.

    What we don't

    • Advertised rates are only available to Illinois residents at this time.

    • You can get a higher yield with one of the bank’s jumbo CDs, but it’s a fairly insignificant boost.

    Savings accounts

    3.9

    Bankrate Score

    OTHER SAVINGS OFFERS YOU MAY LIKE
    American Express National Bank

    Member FDIC

    Savings account

    0.60 % APY

    $ 1

    Min. balance for APY

    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

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

    • There’s no monthly service fee.

    • The account comes with access to online and mobile banking.

    What we don't

    • 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.

    Checking accounts

    4.9

    Bankrate Score

    OTHER CHECKING OFFERS YOU MAY LIKE
    SoFi

    Member FDIC

    Checking account

    1.25 % APY

    $ 0

    To open

    $ 0

    To avoid fees

    At Federal Savings Bank, customers with the Value Checking account won’t have to pay a monthly service charge and can open an account with just $25. Checking customers have free access to more than 43,000 ATMs across the country, which is a nice perk.

    Interest Checking accounts will earn interest, but you’ll want to keep a daily balance of $1,000 or more to avoid a monthly service charge of $9.99. You can also have the fee waived each month with an ACH deposit.

    What we like

    • You can choose an account that works best for you, whether that’s a fee-friendly Value account or the Interest Checking account that requires a higher balance.

    • There’s no minimum balance requirement for the Value account.

    • Both checking accounts offer access to Popmoney and online bill pay.

    • Customers have surcharge-free access to tens of thousands of ATMs within the Allpoint Network.

    What we don't

    • The lack of a branch presence can be a major drawback for some customers.

    • Interest Checking account holders are hit with a $9.99 monthly fee unless they set up an ACH direct deposit.

    • There’s an $8 charge for a lost debit card, and you’ll have to pay $50 for an outgoing international wire transfer.

    Money market accounts

    3.6

    Bankrate Score

    A money market account pays you to save while allowing you some flexibility to withdraw or transfer funds. TFSB’s money market account pays more than many banks, but not as much as some online-only banks. There are five different balance tiers, but in order to earn the highest APY, you’ll need to have at least $100,000 in the account.

    What we like

    • Savers in the highest deposit tiers can get a competitive rate.

    • Online Bill Pay access is included.

    • You can write checks with this account.

    What we don't

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

    • If you go over the limit of six transactions per billing cycle, there’s a $15 fee per item in excess of the maximum allowed.

    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.

    Libby Wells Twitter Created with Sketch. @

    Libby Wells Twitter Created with Sketch. @

    Libby Wells is a part-time editor at Bankrate. Previously, she was Bankrate's chief copy editor and a credit card reporter. Libby spent most of her career as a newspaper journalist and has more than 30 years of experience as a writer and editor.