The Federal Savings Bank Reviews: Checking, Savings, CD, and Money Market Accounts

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Updated on Tuesday, September 1, 2020

The Federal Savings Bank’s checking account options

Interest Checking

This account does earn interest — but sadly, not much.

APY

Minimum Balance Amount

0.10%

$100

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $9.99 if you don’t have a direct deposit into your account.
  • ATM fee: None
  • ATM fee refund: Your first two out-of-network ATM surcharge fees are reimbursed each month.
  • Overdraft fee: $25 per item.

If you’d rather earn interest on the money just sitting around in your checking account, The Federal Savings Bank will offer you a tiny amount of interest. We don’t recommend signing up for this account, however, if you can’t make at least one direct deposit into the account each month. Otherwise, you’ll pay a steep $9.99 monthly service fee.

Your debit card usage comes with the same limits as the Value Checking account. You can only use your card to make purchases up to $1,500 at a time, or withdraw up to $1,000 in cash from an ATM per day. If you want a paper statement for this account, you’ll also be charged a $3 monthly fee. Otherwise, you can always get the 18 months’ worth of statements online for free.

How to get The Federal Savings Bank’s Interest Checking account

If you have a U.S. mailing address and are at least 18 years old, you can open an account online in just a few minutes. You’ll need to provide a copy of your state-issued ID and your Social Security number, among other details.

SEE DETAILS Secured

on The Federal Savings Bank’s secure website

Member FDIC

ValueChecking

This basic checking account doesn’t offer any interest, but has no monthly fees either.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: None
  • ATM fee: None.
  • ATM fee refund: Your first two out-of-network ATM surcharge fees are reimbursed each month.
  • Overdraft fee: $25 per item.

If all you need is the ability to write checks and you don’t want to worry about any fancy schmancy rewards or hoops to jump through to earn interest or avoid fees each month, this account will do the trick. You can get statements online for free with this account. If you prefer paper statements instead, be prepared to shell out $3 per month for the privilege.

This account comes with a debit card, but it does have some limitations. For example, you can’t make any purchases over $1,500 in a single transaction with it. You also can’t withdraw more than $1,000 in cash per day from an ATM using your card.

How to get The Federal Savings Bank’s Value Checking account

It’s pretty easy to open an account online in just a few minutes as long as you have a U.S. mailing address and are at least 18 years old. You’ll need to provide your Social Security number and a copy of your state-issued ID.

SEE DETAILS Secured

on The Federal Savings Bank’s secure website

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How The Federal Savings Bank’s checking accounts compare

We do like the fact that you can earn interest with The Federal Savings Bank’s Interest Checking account. Oftentimes people let their money sit in a checking account while earning zero interest, which isn’t ideal.

However, the interest rate that The Federal Savings Bank offers is pretty poor. It is possible to find high-yielding checking accounts — such as these online checking accounts — that are also free. We recommend looking for a higher-earning account instead.

The Federal Savings Bank’s savings account

Savings Account

Don’t expect to get rich off of this account with its poor interest rate.

APY

Minimum Balance Amount

0.25%

$25

  • Minimum opening deposit: $25
  • Minimum balance to earn APY: $25
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: Your first two out-of-network ATM surcharge fees are reimbursed each month.
  • Overdraft fee: $25 per item.

Most banks tally up and credit interest payments to your account each month. This account, however, only does this quarterly, so don’t be worried if you don’t see any interest deposited into your account for two months in a row.

You also cannot make more than six transfers per month with this account, due to federal Regulation D guidelines. If you go over that limit, The Federal Savings Bank will charge you a $15 per-transaction fee.

How to get The Federal Savings Bank’s Savings Account

If you’re interested in opening this account, you can do so online if you’re at least 18 years old and have a U.S. mailing address. You’ll also need to provide your Social Security number and a state-issued ID as a part of the application process.

SEE DETAILS Secured

on The Federal Savings Bank’s secure website

Member FDIC

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How The Federal Savings Bank’s savings account compares

You’d expect The Federal Savings Bank to have a decent savings account available. Unfortunately, that’s not the case. The interest rate offered on this account is very, very low. There are many better options out there for earning a much higher interest rate, starting with these top online savings accounts. We would recommend these accounts any day of the week over The Federal Savings Bank’s own savings account.

The Federal Savings Bank’s CD rates

Promotional CDs

These CDs are only available if you’re depositing “new” money into the account.
New Rates

Term

APY

14 months

1.60%

2 years

2.45%

4 years

2.75%

5 years

1.50%

Renewal Rates (after the CDs above have matured)

Term

APY

14 months

1.50%

2 years

2.35%

4 years

2.65%

5 years

1.50%

  • Minimum opening deposit: $10,000
  • Minimum balance amount to earn APY: $10,000
  • Early withdrawal penalty: Seven days’ worth of interest, but only if you withdraw the money within the first six days after the CD is opened. After that, it depends on your CD’s term length:
    • For the 14-month CD, you’ll pay 180 days’ worth of interest.
    • For all the other CDs, you’ll pay 365 days’ worth of interest.

If you’ve got deep pockets and that money isn’t currently held at The Federal Savings Bank, you can take advantage of this opportunity to open a new CD. This offer is only available to “new money,” so if you already keep that cash in a bank account with The Federal Savings bank, you’re not eligible for this offer.

You can receive your interest in one of three ways. You can have it rolled back into the account each month to earn compounding interest, or you can have the interest paid out via check or deposited into your primary account at The Federal Savings Bank each month. However, if you opt for monthly interest payments, you may earn less than the actual APY stated above.

When these CDs mature, they’ll automatically renew at the “renewal rates” listed above. If you’d instead prefer to withdraw the money or deposit it into a different CD, you do get a 10-day grace period to withdraw the money penalty-free.

How to get The Federal Savings Bank’s Promotional CDs

You can apply for these CDs online. As a part of the application process, you’ll need to provide a copy of your state-issued ID and your Social Security number.

SEE DETAILS Secured

on The Federal Savings Bank’s secure website

Member FDIC

CDs

The Federal Savings Bank doesn’t offer many options for CD term lengths.

Term

APY

6 months

0.35%

18 months

0.75%

3 years

0.90%

5 years

1.35%

  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: If you make an early withdrawal within the first six days, you’ll pay a penalty of seven days’ worth of interest. After that, it’ll depend on the CD’s original term length:
    • For the 6 month CD, you’ll pay 90 days’ worth of interest.
    • For the 18 month CD, you’ll pay 180 days’ worth of interest.
    • For the 3 and 5 year CDs, you’ll pay 365 days’ worth of interest.

One of the nice things about these CDs is that you get a choice in how interest payments are handled. The default mode is having them rolled back into the account, and you’ll earn the most interest this way. However, you can also choose to receive monthly interest payments deposited into your primary The Federal Savings Bank account, or via check. However, if you opt for monthly interest payouts, you won’t earn the full APY rate stated above.

When your CD matures, it’ll automatically be rolled over into another CD of the same term length. If you’d instead prefer to withdraw the money, you do have a 10-day grace period after the CD has renewed to make any changes.

How to get The Federal Savings Bank’s CDs

If these CDs catch your fancy, you can open them online in as little as 10 minutes assuming you’re at least 18 years old and have a mailing address in the U.S. You’ll need to provide a copy of your state-issued ID and your Social Security number in the application.

SEE DETAILS Secured

on The Federal Savings Bank’s secure website

Member FDIC

Jumbo CDs

You get more term length options for these CDs, but it’ll actually pay you a smaller interest rate.

Term

APY

3 months

0.25%

6 months

0.40%

1 year

0.70%

18 months

0.80%

2 years

0.85%

3 years

0.95%

4 years

1.10%

5 years

1.40%

  • Minimum opening deposit: $100,000
  • Minimum balance amount to earn APY: $100,000
  • Early withdrawal penalty: You’ll pay seven days’ worth of interest on any CD, regardless of term length, if you withdraw it within the first six days. After that, your penalty will depend on your term length:
    • For the 3 month CD, you’ll pay 30 days’ worth of interest
    • For the 6 month CD, you’ll pay 90 days’ worth of interest
    • For the 1 year CD, you’ll pay 180 days’ worth of interest
    • All other CD terms will charge 365 days’ worth of interest

These CDs work in the same way as The Federal Savings Bank’s regular CDs, except for two things. You need a larger deposit size, and unfortunately, you are penalized with a smaller rate for a larger deposit. This is very odd — typically, banks offer a higher interest rate for a jumbo CD, but that’s not the case here.

But if you decide to plug ahead, you can expect a few options for dealing with interest payments. You can have interest re-deposited into the CD, deposited into your primary account at The Federal Savings Bank, or sent to you via check each month. A word of caution, though: the APY stated above assumes you leave the interest on deposit, so withdrawing it means you’ll actually earn less.

Your CD automatically renews as another jumbo CD once it matures. You do get a 10-day grace period to make any changes to the CD or withdraw the money.

How to get The Federal Savings Bank’s Jumbo CDs

You can open these CDs online in just 10 minutes if you’re at least 18 years old. You’ll need to provide some identifying details as a part of the application process, such as your Social Security number and a copy of your state-issued ID.

SEE DETAILS Secured

on The Federal Savings Bank’s secure website

Member FDIC

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How The Federal Savings Bank’s CD rates compare

The only CDs worth a sniff at The Federal Savings Bank are its Promotional CDs. Even then, we’d hesitate to open a CD account here, because you can still earn much better CD rates elsewhere.

We also don’t like the fact that there aren’t many different term lengths offered unless you commit to a Jumbo CD. If you have a deposit that large, you’d really want to max out the interest rate you earn, and these CDs just aren’t the way to do it.

The Federal Savings Bank’s money market account

Money Market account

This is The Federal Savings Bank’s highest-yielding liquid account, but it still doesn’t offer a great rate.

APY

Minimum Balance Amount

0.15%

$1,000-$9,999.99

0.20%

$10,000-$24,999.99

0.30%

$25,0000-$49,999.99

0.40%

$50,000-$99,999.99

0.60%

Over $100,000

  • Minimum opening deposit: $1,000
  • Minimum balance to earn APY: $1,000
  • Monthly account maintenance fee: $10 if your account balance drops below $1,000
  • Overdraft fee: $25 per item.

If The Federal Savings Bank’s savings account didn’t pique your interest, this money market account offers higher rates. Unfortunately, you do need a larger deposit to open this account — at least $1,000 in order to establish the account, earn interest, and avoid the monthly fee.

This account does not come with an ATM card, but you can write checks from this account as long as you pay to order them after your first box of free checks (the cost will depend on the design of the checks you select).

You can only make six transfers per month with this account. Anything else past that will be charged a $15 “excess per item fee.” Finally, if you want paper copies of your account statement, you’ll have to pay a $3 monthly fee.

How to get The Federal Savings Bank’s Money Market account

If you’re interested in this account, you can apply for it online. It’ll only take a few minutes, and you’ll need to provide your Social Security number and a state-issued ID, among other details.

SEE DETAILS Secured

on The Federal Savings Bank’s secure website

Member FDIC

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How The Federal Savings Bank’s money market account compares

Unfortunately, The Federal Savings Bank misses the mark again with its money market account. While it’s nice that you can earn a higher interest rate for a larger deposit amount, even the highest tier doesn’t come close to the current highest-yielding money market accounts. We suggest skipping this account as well in favor of one that earns a better interest rate.

Overall review of The Federal Savings Bank’s banking products

The Federal Savings Bank does have some products that might interest you — namely, its promotional CDs. But even these highest-earning accounts don’t compare all that well with the top performers in each of these account’s classes.

We also aren’t a fan of its checking or savings account because the interest rates are so low that you’ll hardly earn anything. Instead, we recommend skipping The Federal Savings Bank in favor of other banks with better terms and higher interest rates. Unfortunately, The Federal Savings Bank would probably do better as The Federal Home Loan Bank than its currently-named iteration.

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