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Third Federal Savings & Loan Review: A Standout for CDs and Mortgages

Review Updated
Matt Frankel, CFP®
By: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

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.

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Our Banking Expert

Eric McWhinnie
Check IconFact Checked Eric McWhinnie
Eric McWhinnie
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.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

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.

Offer image for
Member FDIC.

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.

Ratings Methodology
Rates as of Jun 28, 2024

Third Federal High-Yield Savings Account

Read Review
Member FDIC.
Read Review
APY
Up to 0.70% Rate info Circle with letter I in it. 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.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
up to 4.60%
Rate info Circle with letter I in it. 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!
4.25%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of June 28, 2024
Min. to earn: $1
N/A

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 June 7, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.70% Term: 1 Year Min. Deposit:  $2,500
Open Account for Discover® Bank CD
APY: 5.25% Term: 1 Year Min. Deposit:  $1
Open Account for
APY: 5.10% Term: 9 Months Min. Deposit:  $1
Open Account for

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.

Ratings Methodology
Rates as of Jun 28, 2024

Third Federal High-Yield Checking Account

Read Review
Member FDIC.
Read Review
APY
Up to 0.05% Rate info Circle with letter I in it. 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.

Compare checking accounts

We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.

Account APY Promotion Next Steps
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')
up to 1.10%
Min. to earn: $1
High APY when you complete 10 or more qualifying debit card purchases each month
0.40% (up to 3.30%)
Rate info Circle with letter I in it. 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
Cash in on up to a $500 bonus† and up to 3.30% APY* with a new Rewards Checking account. Just use promo code RC500 before July 31.

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.