Third Federal offers some decent products, but whether it is a good option for you will depend on your preferences, requirements and circumstances. While it does offer some decent APYs on deposit products, you do need to meet the minimum deposit or balance requirements.
Additionally, there is only one savings account option. However, Third Federal does have an interest bearing checking account, which does facilitate moving all of your banking activities under one roof.
Where Third Federal really shines is its lending products. It has garnered a superb reputation for its rates and lending products. So, if you’re interested in more than a new savings account or a CD, Third Federal could be a good option for you.
- Impressive CD Rates
- Offers Retirement Accounts
- Lending Transparency
- No Monthly Service Fees
- Limited Product Line Up
- Relatively Low Savings Rate
- ATM Fees
- Hefty CD Early Withdrawal Fees
Does the bank cover all states?
Third Federal operates in many states, but it is not available nationwide. The list of states where Third Federal operates includes Florida, Ohio, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Virginia, Washington, Wisconsin, and Washington D.C.
Can I open only a CD account?
Yes, there are no requirements to have any other type of account to be able to open a Third Federal CD.
What are the requirements to open a Third Federal account?
As with all U.S financial institutions, you will need to provide your personal details including your full name, address, date of birth and Social Security Number. Third Federal may also need to verify your identity with a copy of your driver’s license, passport or other government issued photo ID.
Table Of Content
Money Market Account
Third Federal Savings
Third Federal has just one savings account, which is a high yield account. This can be opened as an IRA account or a regular savings account. In either scenario, the account has no limit on monthly transactions, no monthly fees and you can enjoy easy access to your funds. However, the APY is lower compared to the other savings account in the market.
The account has a low $10 minimum initial deposit, but the account has a tiered APY, with higher rates accessible for those with larger balances. For example, to qualify for the tier 2 APY, you need to have a minimum of $25,000 in the account, while tier three requires $100,000. Bear in mind that to qualify for even the base level of interest, you need to maintain at least a $10 balance.
The interest on your account is compounded daily and paid monthly, posting to the account approximately on the 26th of each calendar month.
High Yield Savings – Tier 1
High Yield Savings – Tier 2
High Yield Savings – Tier 3
Third Federal CDs
Third Federal offers a number of CD products, with terms of three months to 72 months. With the exception of the retirement CDs, there is a minimum $500 deposit requirement. Standard CDs currently offer 3.00% – 4.00%, with the competitive rate offered for the three-month CD.
There are also Third Federal Special CDs, with various terms ranging from three months to 59 months. These CDs offer higher rates even with shorter-term CDs. Third Federal also has two bonus CDs, with either a 36 month or 60 month term. These CDs offer a very competitive rate. While the rates are competitive, they re still lower than the top CD rates today.
Early Withdrawal Fee
1 month of interest
3 months of interest
6 months of interest
6 months of interest
12 months of interest
18 months of interest
18 months of interest
Upon maturity, there is a seven day grace period to make changes to your account. You can add further funds, make withdrawals or close out the account without any penalties. However, if you do need to access your funds before maturity, you will incur an early withdrawal penalty. This is calculated according to the original term of your CD.
For CD terms of 91 days or less, the penalty is one month of interest. This increases to three months of interest for terms of 92 days to one year, and six months of interest for CD terms of one to three years. However, the early withdrawal penalty is a hefty 12 months of interest if your CD has a term of three to four years and 18 months of interest if your CD term is four years or longer.
Third Federal has one checking account option, but it is an interest-bearing, high-yield checking account. The account has three tiers, which all require a $10 minimum deposit. To qualify for the tier one APY, you’ll need to maintain a balance of at least $10.
The Tier two APY is available if your balance is at least $5,000, and the Tier Three APY requires $25,000 or more.
High Yield Checking – Tier 1
High Yield Checking – Tier 2
High Yield Checking – Tier 3
The account does have a $12 monthly service fee, but this can be waived if you have an average daily balance of at least $1,500 in the account or a combined $1,500 plus balance across all of your Third Federal deposit accounts.
The account has check writing privileges and it is provided with a debit card. You can also use the card with any Fifth Third ATM without incurring any surcharges for withdrawal for the first four transactions per month. After this, ATM withdrawals will incur a $2 transaction fee.
Overall, this a decent checking account, but you can get more features on bank checking accounts.
Third Federal Lending Products
As we touched on in the introduction of this article, Third Federal is best known for its lending products and associated rates. The catalog of lending products includes:
- Mortgages: Third Federal offers mortgages for new purchases and refinancing. There are fixed and adjustable rate products, jumbo loans and mortgages with no MI and 5% down.
- Home Equity Loans: Third Federal has home equity lines of credit, adjustable and fixed rate home equity loans, along with its “fixer upper” home equity loan, which is designed to help homeowners to pay for repair costs.
Pros and Cons
As with all financial institutions, there are both positives and negatives associated with Third Federal. It is important to be aware of the pros and cons before making a decision about whether a bank is the right choice for you.
Impressive CD Rates
Limited Product Line Up
Offers Retirement Accounts
Relatively Low Savings Rate
No Monthly Service Fees
Hefty CD Early Withdrawal Fees
Third Federal offers a decent selection of CDs with many offering impressive rates.
While some of the standard CDs offer just above the national average rate, the special CDs can stand up favorably in comparison with other financial institutions.
Third Federal has a number of retirement account products, making it ideal for those planning their long term financial future.
This bank takes pride in not only offering highly competitive lending rates, but offering lending transparency. Third Federal is very straightforward about any fees or charges that will apply to your account.
Unlike some banks, Third Federal does not impose a monthly service fee on its savings account.
If you’re interested in a bank with a choice of different savings or checking accounts, you’re likely to feel disappointed with the Third Federal product line up.
Unless you have a massive balance, you can’t access great savings rates. There are a number of online banks and credit unions that offer higher savings APYs without any balance requirements.
While you can withdraw cash from Fifth Third ATMs, after four withdrawals in any statement period, you will incur a surcharge. So, if you like dealing in cash, you could end up racking quite a few fees.
Although early withdrawal fees are common for CDs, Third Federals are a little on the hefty side, particularly if you have a longer term.
Third Federal Customer Service
As it is fairly typical with banks and financial institutions, Third Federal does not have a great reputation for its customer service. There are a number of negative comments on the BBB website criticizing the professionalism of the support team.
Additionally, Third Federal does not have a 24/7 helpline. While the website has quite a comprehensive FAQ section, the only round the clock option to try to get a resolution for any issues is via the website. This means that you will need to wait for a response, which can be a little frustrating.
How to Open a Third Federal Account
Third Federal does allow potential to open accounts online without needing to visit a branch. You can complete the account opening procedure in a few simple steps:
- Navigate to the Product Page: On the Third Federal website, you’ll find the banking products under the “Savings” header on the top bar. This includes the checking account. You will need to navigate to the appropriate product page and then if you’re ready to proceed, click the orange “Open Now” button.
- Complete the Application Form: As is standard with most online bank account applications, you will need to complete all of the mandatory fields including your full name, address, date of birth, Social Security Number and contact details.
- Fund Your Account: Third Federal accounts have a minimum initial deposit requirement, so the final stage of the application process is to fund your new account.
- Check In: Once you submit your application, Third Federal will review it. However, at any point, you can log in and check the status of your new account.
About Third Federal
Third Federal is an Ohio based bank with a history dating back to 1938. While the bank is best known for its low lending rates, with a guarantee to beat any home equity rate or you’ll receive $1,000, it also offers a number of savings products. So, here we’ll delve into Third Federal in greater detail.
Yes, you can open accounts via the Third Federal website.
Third Federal only has approximately 38 physical branches and these are limited to Florida and Ohio. Outside of these two states, you are likely to struggle to access a physical Third Federal location.
Third Federal does have FDIC insurance. This means that your funds are protected up to the federal limit in the event that the bank fails. The current limit is $250,000 per depositor.