Review
Updated
Fact Checked
Eric McWhinnie
Third Federal Savings & Loan is a bank with a physical presence in Ohio and Florida, but you don't need to live near a branch to become a customer. The bank offers some excellent and unique products, especially when it comes to CDs and mortgages. It also offers other types of deposit accounts. Read our full Third Federal Savings & Loan review to find out if it's a good fit for you.
Third Federal
Bottom Line
Third Federal Savings & Loan has some products that don't quite stack up to the competition, but others that stand out. Its CDs are one example of an area where Third Federal shines, and its mortgage lending business has some excellent features and an excellent best-rate guarantee.
Pros
- Several unique CDs with competitive APYs
- Physical branches
- Excellent mortgage lender
Cons
- Savings account APYs not competitive
- No loans other than mortgages
- No credit cards
- Branches only in Ohio and Florida
Third Federal savings account
Third Federal offers a high-yield savings account product, but despite the name, the yield isn't terribly competitive with some of our top high-yield savings account products.
Third Federal High-Yield Savings Account
The Third Federal High-Yield Savings Account is the bank's sole savings account, and it has some of the features we like to see. It has no monthly fees and quick and convenient access to money. Plus, it has no limit on monthly transactions, something that most banks don't offer. And, you'll only need $10 to open an account.
On the other hand, for a "high-yield" savings account, it doesn't pay much interest. The account's interest rate is close to zero unless you have a balance over $100,000.
Show Best Offers Available in
Ratings Methodology
Rates as
of Apr 27, 2024
Third Federal High-Yield Savings Account
Member FDIC.
APY
Up to 0.70%
Rate info
Balances $10 to $99,999.99 earn 0.05% APY, balances $100,000+ earn 0.70% APY
Min. To Earn APY
$10
- No monthly fees
- $10 minimum opening deposit
- Unlimited transaction volume
- APY is extremely low
The Third Federal High-Yield Savings Account has no monthly fees, a low minimum deposit requirement, and unlimited transactions. However, it doesn't have an APY that is competitive with high-yield savings accounts offered by our top online banks.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
Show Best Offers Available in
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!
|
|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
|
N/A
|
|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.35%
Min. to earn: $0
|
New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
|
Third Federal CD accounts
Certificate of deposit, or CD accounts, is an area where Third Federal shines. It offers four different types of CDs, and some of them have highly competitive APYs.
Standard CDs
Third Federal Standard CDs are the lowest-paying of the bank's CD products. They have a $500 minimum opening deposit, and don't have APYs that are competitive with most other CDs on our radar. However, the following three specialty varieties make up for it and offer some interesting features. Be sure to check Third Federal's website for the most up to date rate and term offerings.
Special CDs
Third Federal offers some shorter-term CDs with special rates. These have maturity terms ranging from just seven days to 11 months, and offer APYs that are quite competitive, even with the top online banks. In addition to a couple of standard CDs with high APYs, there are 5-month and 10-month "raise your rate" CDs, which offer higher APYs for accounts with higher balances.
Retirement CDs
Third Federal offers CDs that are specifically designed to be held in retirement accounts (IRAs). These include CDs with 5-month, 10-month, 11-month, 29-month, and 49-month terms that have competitive APYs and a low $100 minimum deposit. If you're looking to save for retirement but don't feel comfortable with investing in the stock market, these can be an excellent alternative.
Bonus CDs
Last but not least, Third Federal's bonus CDs are perhaps its most unique CD product. These are offered in 3-year and 5-year terms, and offer a higher interest rate during the first year and a competitive APY for the rest of the term. This can be an excellent combination of an excellent near-term return in a high-rate environment, and a solid APY that is locked in for several years. These have a reasonable $500 opening deposit requirement.
Compare CD rates
As mentioned throughout the previous section, Third Federal CDs offer generally competitive interest rates, and that's especially true when it comes to the special, retirement, and bonus CDs. See how they compare to other CDs on the market.
Rates as of April 25, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Member FDIC.
| APY: 5.10% | Term: 10 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
| APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | |
|
| APY: 5.15% | Term: 9 Months | Min. Deposit: $1 | |
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
Third Federal checking account
Third Federal offers one checking account, which is called the Third Federal High-Yield Checking Account.
Third Federal High-Yield Checking Account
There's a lot to like about the Third Federal High-Yield Checking Account. It has a monthly service charge of $12, but this can be waived with $1,500 in total balances among all Third Federal deposit accounts. You'll have an ATM card to access your money, which can be done at any Fifth Third Bank ATM (Third Federal's ATM partner).
While interest isn't a standard feature among checking accounts, it's important to point out that despite having the phrase "high-yield" in the name, the Third Federal High-Yield Checking Account offers an extremely low APY.
Show Best Offers Available in
Ratings Methodology
Rates as
of Apr 27, 2024
Third Federal High-Yield Checking Account
Member FDIC.
APY
Up to 0.05%
Rate info
Balances $10 to $4,999.99 earn 0.01% APY, balances of $5,000 and up earn 0.05%
Min. To Earn APY
$10
- Monthly fee can be waived
- Money access at Fifth Third Bank ATMs
- Low APY for an interest-bearing account
- $12 monthly fee if balance requirement not met
The Third Federal High-Yield Checking Account has a monthly fee that's fairly easy to waive, but there are competitors with far better APYs.
Checking account comparison
We recommend comparing checking account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
Show Best Offers Available in
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0%
Min. to earn: N/A
|
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
|
|
|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.50%
Rate info
You can earn the maximum savings APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
Cash bonus up to $300 with direct deposit set up (see details when you click 'Open Account')
|
|
Rating image, 4.25 out of 5 stars.
4.25/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.40% (up to 3.30%)
Rate info
To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
|
Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
|
Third Federal customer service and experience
Third Federal prides itself on offering excellent customer service. Rating agency Bauer Financial has named the bank a five-star institution for over 25 years in a row. The bank holds an A+ rating from the Better Business Bureau, and has a 4.8 out of 5 stars average based on nearly 1,100 mortgage customer reviews posted to its site.
Third Federal relationship benefits
Third Federal customers are automatically enrolled in the bank's Loyalty Perks program, which offers some excellent benefits. For example, members get a 0.25% interest rate discount on home equity loans, $250 off mortgage closing costs, and other benefits (mostly related to mortgages).
Alternatives to Third Federal
There are some areas where Third Federal shines, but it isn't great for everyone.
SoFi Bank
SoFi could be a better fit if maximizing interest income from checking and savings accounts is a priority. The bank offers a combination SoFi Checking and Savings that pays a competitive APY on savings balances and a significantly higher APY on checking balances than Third Federal. The maximum APY requires direct deposit, but SoFi has an excellent user-friendly platform with a variety of other products, such as brokerage accounts and several types of loans.
Capital One Bank
Like Third Federal, Capital One is somewhat of a hybrid between a branch-based bank and an online financial institution. However, some of its products are superior to those offered by Third Federal, such as its Capital One 360 Performance Savings account, which has one of the top APYs on our radar. It also offers excellent CDs, a fee-free interest-bearing checking account, and more.
Is Third Federal right for you?
Third Federal Savings & Loan is best suited for customers who want high-yield CDs or who are looking for a mortgage lender with excellent customer service and unique products.
Other products by Third Federal
In addition to all of the deposit accounts already discussed, Third Federal offers a few other products.
- Retirement accounts (Traditional/Roth/SEP-IRA)
- Money market accounts
Third Federal Savings & Loan mortgages
- Purchase mortgages: Third Federal offers most of the standard mortgage products, but also has some unique loans, such as a no-PMI loan with 15% down (usually 20%). The bank also has excellent rate transparency with a table of its current interest rates on its website. If you find a lower rate, Third Federal will beat it or pay you $1,000.
- Mortgage refinancing: Third Federal has several types of refinancing loans, including low-closing-cost options, jumbo loans with low interest rates, and more. Plus, Third Federal services all of its loans, so you won't have to worry about being transferred to another institution for loan servicing.
- Home equity loans: Third Federal offers both home equity loans and HELOCs.
Our bank and credit union methodology
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
Our Banking Experts
Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Fact Checked
Eric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.
Share This Page
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. SLM is an advertising partner of The Ascent, a Motley Fool company. Synchrony Financial is an advertising partner of The Ascent, a Motley Fool company. Ally is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Matt Frankel has positions in Ally Financial and American Express. The Motley Fool has positions in and recommends Axos Financial, Charles Schwab, Goldman Sachs Group, PNC Financial Services, and Target. The Motley Fool recommends Barclays Plc and Discover Financial Services and recommends the following options: short June 2024 $65 puts on Charles Schwab. The Motley Fool has a disclosure policy.