Third Federal Savings & Loan Review 2023: A top mortgage lender with surprisingly high CD rates

Third Federal is a leading provider of conventional home mortgages and lends in 25 states, plus D.C. The company also has branch offices in Ohio and Florida, as well as a network of surcharge-free ATMs located throughout Ohio and Florida. Third Federal has been rated 5 stars (superior) for strength and stability by Bauer Financial for 35 years.

All rates and fees are current as of June 26, 2023 and are subject to change. 

Third Federal Savings and Loan offerings 

Whether you’re looking for a basic checking account, money market account, high-yield savings or certificate of deposit, Third Federal Savings & Loan has a variety of deposit account products to meet your needs.

Checking accounts 

Third federal currently offers one checking account option. Although it is referred to as a high-yield checking account, the APY is no match for some of the best free checking accounts available nationally. Still, it offers a low minimum balance and the monthly fee can be waived by meeting certain requirements.

• High-Yield Checking Account
  • APY: 0.05%
  • Minimum opening deposit: $10
  • Minimum balance to earn interest: $10
  • Fees:
    • Monthly maintenance fee: $12 (waived if you maintain an average daily balance of $1,500 in your high-yield checking account or $1,500 in total balances across all your Third Federal deposit accounts)
    • ATM fee: $2.00 for each ATM withdrawal over four per monthly statement cycle

High-yield savings account 

For customers who want to earn more on their savings, Third Federal offers a high-yield savings account with tiered rates. 

• High-Yield Savings Account
  • APY:
    • Tier 1 (minimum to obtain APY: $100,000): 1.00%
    • Tier 2 (minimum to obtain APY: $25,000): 0.10%
    • Tier 3 (minimum to obtain APY: $10): 0.05%
  • Minimum opening deposit: $10
  • Fees:
    • Monthly maintenance fee: None

Money market accounts 

Similar to its savings option, Third Federal also has a money market account option that rewards higher balances with higher rates.

• Money Market Account
  • APY:
    • Tier 1 (minimum to obtain APY: $100,000): 1.00%
    • Tier 2 (minimum to obtain APY: $25,000): 0.10%
    • Tier 3 (minimum to obtain APY: $10): 0.05%
  • Minimum opening deposit: $10
  • Fees:
    • Monthly maintenance fee: None

Certificates of deposit

Third Federal has extensive CD offerings to meet the needs of depositors, with terms ranging from three months to 72 months. In addition to traditional CDs, there are also a handful of special terms and rates, as well as bonus CDs.

• CDs
  • APY:
    • 3-month: 3.50%
    • 6-month: 0.50%
    • 10-month special: 3.65%
    • 12-month: 1.50%
    • 18-month: 1.50%
    • 19-month special: 3.70%
    • 24-month: 1.50%
    • 29-month special: 3.80%
    • 30-month: 1.50%
    • 36-month: 1.50%
    • 36-month bonus: 5.50% in year 1, 3.50% thereafter
    • 39-month special: 4.00%
    • 48-month: 1.50%
    • 49-month special: 4.00%
    • 59-month special: 4.00%
    • 60-month: 1.50%
    • 60-month bonus: 36-month bonus: 5.50% in year 1, 3.50% thereafter
    • 72-month: 1.50%
  • Minimum deposit: $500 ($100 for retirement CDs)
  • Fees:
    • Early withdrawal fee (based on term length):
      • 91 days or less: loss of 1 month’s interest
      • 92 days through 1 year: loss of 3 months’ interest
      • More than 1 year, but less than 3 years: loss of 6 months’ interest
      • At least 3 years, but less than 4 years: loss of 12 months’ interest
      • 4 years or more: loss of 18 months’ interest

Other services Third Federal Savings & Loan offers 

Third Federal is known as a top mortgage lender. In addition to deposit accounts, the bank offers the following mortgage products: 

• Mortgage refinancing: Third Federal has many refinancing options, including fixed-rate, Smart Rate ARMs, and jumbo loans.
• Mortgage purchase: Prospective homebuyers can also get financing for a purchase, including both fixed and adjustable rate mortgages. Third Federal offers mortgage preapproval, as well as no private mortgage insurance with at least 5% down.
• Home equity: Existing homeowners can borrow against their home equity via a home equity loan or line of credit (HELOC).

The Third Federal Savings & Loan platform and customer support 

Third Federal Savings & Loan offers secure online banking so that customers can manage their accounts from anywhere. It also offers a mobile app, which has a 4.8 star rating on the Apple store and 4.2 star rating on Google Play.

Customer care can be reached by calling 1-844-798-7784. Representatives are available Monday through Thursday from 8:30 am to 5:00 p.m. ET, Friday from 8:30 am to 6:00 p.m. ET, and Saturday from 8:30 a.m. to 1:30 p.m. ET. You can also send a secure message via the online banking platform.

Pros and cons of Third Federal Savings & Loan

If you’re thinking about becoming a customer of Third Federal, consider these pros and cons first.

Frequently asked questions

Is Third Federal bank legit?

Yes. Third Federal Savings & Loan has been in operation for more than 85 years. It also has an A- rating from the Better Business Bureau.

Who owns Third Federal Savings & Loan?

Third Federal’s parent company is TFS Financial Corporation, a federally chartered stock holding company.

Is Third Federal Savings & Loan FDIC insured?

Yes, Third Federal is insured by the FDIC up to the limit of $250,000 per depositor.