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

Review Updated
Matt Frankel, CFP®
Author: 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 Motley Fool Money 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 for the Motley Fool ("Ask a Fool") that is syndicated in USA Today, and his work with Motley Fool Money has also been syndicated to MSN and Yahoo! Finance. He has been regularly featured on Fox Business 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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Ashley Maready
Reviewer: Ashley Maready
Ashley Maready
Ashley Maready
Writer and Editor

Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Eric McWhinnie
Fact 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 that our product ratings are not 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.
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

  • 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 Motley Fool Money rates bank accounts.

Is Third Federal Savings & Loan right for you?

Third Federal Savings & Loan is a good choice for you if:

  • You want to open a CD with a competitive APY.
  • You want loyalty perks and benefits, such as discount APRs on home equity loans and discounted closing costs on purchase mortgages.
  • You want online banking and real-world physical locations with bank branches in Ohio and Florida.

Bank fees

Third Federal Fee Charge
Monthly service fee $12 for Interest Checking Account; can be waived with $1,500 average daily balance or $1,500 total balances
ATM withdrawal fee $2 per ATM withdrawal after the fourth withdrawal per statement cycle
Overdraft fee $36
Stop payment request $36
Incoming wire transfer fee $15
Outgoing wire transfer fee $25 per wire transfer within the U.S.
Data source: Third Federal Savings & Loan

Savings account

The Third Federal Interest Savings Account is a tiered savings account with slightly higher yields for larger balances. This account requires only a $10 minimum deposit to open, has no monthly fees, and no limit on monthly transactions -- a nice perk that most banks don't offer.

But even the best rate from this savings account is not competitive with the best high-yield savings accounts.

Ratings Methodology
Rates as of Dec 20, 2024

Third Federal Interest Savings Account

Member FDIC.
APY
up to 0.30% Rate info Circle with letter I in it. Balances $10 to $99,999.99 earn 0.05% APY, balances $100,000+ earn 0.30% APY
Min. To Earn APY
$10
  • No monthly fees
  • $10 minimum opening deposit
  • Unlimited transaction volume
  • APY is not competitive

The Third Federal Interest Account has no monthly fees, a low minimum deposit requirement, and unlimited transactions. It has a tiered APY system, 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
3.80%
Rate info Circle with letter I in it. 3.80% annual percentage yield as of December 28, 2024. Terms apply.
Min. to earn: $0
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

up to 4.00%²
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!¹
3.80%
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 Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A

Certificates of deposit

Certificate of deposit, or CD accounts, is an area where Third Federal shines. It offers five 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, some of Third Federal's other CD varieties make up for it.

Be sure to check Third Federal's website for the most up-to-date rate and term offerings.

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Third Federal Standard CD
Third Federal Standard CD
MINIMUM DEPOSIT $500
Read Review
3 Mo. APY 6 Mo. APY 1 Yr. APY
2.00% 3.00% 1.50%

  • Third Federal offers some shorter-term CDs with special rates. These have maturity terms ranging from just seven days to 39 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 "raise your rate" CDs, which offer higher APYs for accounts with higher balances.

  • Third Federal offers CDs that are specifically designed to be held in retirement accounts (IRAs). These include CDs with 5-month, 19-month, 29-month, and 39-month terms that have competitive APYs and minimum deposits as low as $500. If you want CDs to help provide steady income in retirement, these could be worth including in your investment account.

  • Third Federal's Bonus CDs are perhaps its most unique CD product. These are offered in six-month, three-year and five-year terms, and offer a higher interest rate during the first part of the CD term, and a lower, but still competitive, APY for the rest of the term. This unique type of CD can give you an excellent combination of higher near-term returns in a high-rate environment, and a solid APY that is locked in for several years. Third Federal Bonus CDs have a reasonable $500 opening deposit requirement.

  • If you believe that interest rates are going to fall in the future, Third Federal's Rising Rate CDs could be a good choice. This unique type of CD has a three-year term, and lets you get a higher APY with each passing year -- the APY in year two is higher than year one, and the APY in year three is even higher than year two. This CD only requires a minimum deposit of $500, and if you can commit your cash for three years, this Rising Rate CD could be worth considering.

Compare CD rates

Rates as of Dec. 18, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.00% Term: 1 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Member FDIC.
APY: 4.25% Term: 10 Months Min. Deposit:  $2,500
Open Account for

On Secure Website.

Member FDIC.
APY: 4.25% Term: 6 Months Min. Deposit:  $500
Open Account for

On Secure Website.

Checking account

Third Federal offers one checking account, which is called the Third Federal Interest Checking Account. This account has a monthly service charge of $12, but this can be waived with a $1,500 average daily balance, or $1,500 in total balances among all your 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).

Most checking accounts don't earn any interest, so it's worth noting that Third Federal Interest Checking is an interest-earning account (just like it says in the name). But this account offers an extremely low APY -- up to 0.05% APY based on the balance.

Ratings Methodology
Rates as of Dec 20, 2024

Third Federal Interest Checking Account

Member FDIC.
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 Interest 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')
Open Account for Discover® Cashback Debit

On Discover Bank's Secure Website.

up to 1.10%
Min. to earn: $1
High APY when you complete 10 or more qualifying debit card purchases each month

Customer experience

Third Federal prides itself on offering excellent customer service. Rating agency Bauer Financial has named the bank a five-star institution for over 35 years in a row.

One unique part of the Third Federal customer experience is the bank's Loyalty Perks program. Customers are automatically enrolled in this program, which offers a 0.25% interest rate discount on home equity loans, $250 off mortgage closing costs, and other benefits (mostly related to mortgages). Third Federal also offers a unique Lowest Rate Guarantee -- if you can find a lower rate on a purchase mortgage or home equity loan product, Third Federal will beat it, or pay you $1,000.

Customer reviews

The bank holds an A+ rating from the Better Business Bureau, although it is not BBB accredited. Third Federal also has a 4.8 out of 5 stars average based on nearly 1,100 mortgage customer reviews posted to its site.

Like most banks, Third Federal does not get perfect 5-star ratings on online review sites like BBB.org and Trustpilot. But its rating averages on these sites are higher than that of many major national banks.

  • Better Business Bureau rating: 2.05 out of 5
  • Trustpilot rating: 2.9 out of 5

The Third Federal Savings & Loan Customer Care team can be contacted via phone at 1-844-798-7784. This customer service phone line is available Monday through Thursday from 8:30 a.m. to 5:00 p.m. EST, Friday from 8:30 a.m. to 6:00 p.m. EST, and Saturday from 8:30 a.m. to 1:30 p.m. EST. Customers can also contact Third Federal via secure messaging through the online banking platform, or request a call from a loan representative.

Mobile app

The Third Federal mobile app lets you manage your money anytime, anywhere with advanced digital banking tools. Some of the Third Federal mobile app's key features include mobile check deposit, account management, money transfers, online bill pay, and more.

Third Federal's mobile app gets high ratings for iOS and Android, with no apparent dropoff in performance based on device. Customers seem to enjoy using this banking app.

  • App Store rating: 4.8 out of 5 stars
  • Google Play rating: 4.5 out of 5 stars

Physical locations

Third Federal Savings & Loan has a total of 41 physical locations, which includes 37 full-service branches and four lending offices, in Ohio and Florida. It issues loans in 26 states plus Washington, D.C. Third Federal also offers surcharge-free access to hundreds of ATMs through its partnership with Fifth Third Bank.

How does Third Federal Savings & Loan compare?

If you're not sure if Third Federal Savings & Loan is the right fit for your banking needs, here are two other banks to consider. Both of these other institutions offer high APYs on CDs and savings accounts, and a wide range of financial services like loans.

Third Federal vs. SoFi®

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 (member FDIC) 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.

Third Federal vs. Capital One

Like Third Federal, Capital One is a hybrid of a branch-based bank and an online financial institution. However, some Capital One products are better than those offered by Third Federal, such as its Capital One 360 Performance Savings account, which has one of the top APYs on our radar. Capital One also offers excellent CDs, a fee-free interest-bearing checking account, and more.

FAQs

  • Third Federal Savings & Loan is a member FDIC. This means your money is safe from bank failure -- your deposits are protected by FDIC insurance, up to $250,000 per depositor, per account ownership category.

  • Yes, Third Federal is legit. Even though it has "savings & loan" in its name, Third Federal is a bank, with branch offices, a well-rated mobile banking app, and protection of FDIC insurance just like many other big-name national, regional, and community banks throughout the U.S.

  • Third Federal Savings & Loan offers a range of APYs on CDs, and exact CD rates will be based on the CD term and balance. Check Third Federal's website for the most up-to-date CD rate and term information.