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Third Federal CD Rates

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We maintain strict editorial integrity in our writing and assessments. This post contains links from our advertisers, and we may receive compensation when you click these links. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone. | Advertiser Disclosure
Third Federal 60-Month CD
3.00% APY

Third Federal offers an array of high-yield certificate of deposit (CD) accounts. You can open a CD with term lengths ranging from 6 months to 72 months (seven years). The longer you invest, the higher your interest rate. Currently, Third Federal offers a seven-year CD with a fixed-interest rate of 3.05%, which is right up there with some of the best CD rates we’ve examined. The minimum deposit for all of the firm’s CDs is also relatively low at $500. In addition, Third Federal offers Special CDs with competitive interest rates and options designed specifically for retirement savings. But it's important to note that interest rates may change depending on the location where you open your CD. For purposes of this article, we will be referring to current interest rates and terms that would apply to customers opening an account in New York, N.Y.

Standard CDs

With just $500, you can open one of Third Federal standard CDs. These CDs have interest rates that can compete even with those tied to special or premium options offered by other banks. 

As long as your CD has a term length of more than 179 days, interest will compound and be credited quarterly. This means it may not compound as strongly as it would with other banks with the same rates. However, you can withdraw your credited interest penalty-free as you please.

Term CD Minimum Deposit APY  
6 Months $500 0.50% Compare CD Rates
12 Months $500 2.25% Compare CD Rates
18 Months $500 1.00% Compare CD Rates
24 Months $500 1.00% Compare CD Rates
30 Months $500 1.00% Compare CD Rates
36 Months $500 1.50% Compare CD Rates
48 Months $500 2.00% Compare CD Rates
60 Months $500 2.85% Compare CD Rates
72 Months $500 2.90% Compare CD Rates

Special CDs

Third Federal also offers Special CDs with higher interest rates for select term lengths. You can open one for terms stretching from 30 days to 39 months. The table below describes rates in detail. 

Special CD Minimum Deposit Rate  
30 Day Rolling CD $500 1.85% Compare CD Rates
3 Month Special CD $500 2.15% Compare CD Rates
12 Month Special CD $500 2.25% Compare CD Rates
37 Month Special CD $500 2.75% Compare CD Rates

Retirement CDs

If you’re nearing retirement and looking for ways to better protect the nest egg you’ve built, you may be interested in Third Federal’s retirement-focused CDs. These options combine the peace of mind that comes with locking in a fixed interest rate with the tax advantages of individual retirement accounts (IRAs), Roth IRAs, SEP IRAs and KEOGH Plans

With an IRA CD, for example, your earnings will grow tax-deferred.

Retirement CD Minimum Deposit Rate  
12 Months $100 2.25% Compare CD Rates
18 Months $100 1.00% Compare CD Rates
24 Months $100 1.00% Compare CD Rates
30 Months $100 1.00% Compare CD Rates
37 Months $100 2.75% Compare CD Rates
48 Months $100 2.00% Compare CD Rates
72 Months $100 2.90% Compare CD Rates

60-Month CD Interest Rate Comparison

Compare Third Federal to Other Competitive Offers

Overview of Third Federal CDs

Third Federal offers CDs with impressive interest rates that big banks, especially those with brick-and-mortar locations, can rarely beat. In addition, it’s also easier to open a CD account with Third Federal than it is at other banks as its minimum opening balance rests at a low $500. 

The bank also lets you withdraw credited interest penalty-free on most CDs. Once your term ends, also known as the period of maturity, your CD will automatically renew under the same terms but with the interest rate in effect at the time of renewal unless you instruct the bank otherwise. At maturity, you have a seven-day grace period to withdraw your money penalty free before the CD gets renewed. 

Taking your money out of your CD before it matures, however, would result in an early withdrawal penalty. At Third Federal, early withdrawal penalties are handed out as follows. 

  • For CDs with terms of 91 days or less: loss of 1 month’s interest 
  • For CDs with terms from 92 days through 1 year: loss of 3 months’ interest
  • For CDs with terms between 1 year and 3 years: loss of 6 months’ interest 
  • For CDs with terms between 3 years and less than 4 years: loss of 12 months’ interest 
  • For CDs with terms of 4 years or more: loss of 18 months’ interest

If your account balance drops below $500 or the applicable minimum balance, the interest rate on the remaining balance will be reduced to that of the bank’s lowest interest-bearing savings accounts at the time. 

When it comes to Retirement CDs, you won’t be charged an early withdrawal penalty under the following circumstances:

  • You’ve reached age 59.5 and the withdrawal is a regularly scheduled distribution under tax law.
  • The withdrawal is a required minimum distribution (RMD) pursuant to federal tax law.

Nonetheless, early withdrawal penalties can slice a serious chunk off your savings. So make sure you invest in a CD you can commit to. If you want easier access to your savings, you can explore the best money market accounts (MMAs) on the market. 

How Much You Earn With Third Federal Certificate of Deposits Over Time?

If you substantial deposit into a Third Federal CD and you don’t touch your money until the term ends, you should be able to walk away with a pretty sizable return. The following table provides estimates of what your savings could look like based on deposit amount, CD term length and interest rate.

Initial Deposit 6 Month Standard CD 24 Month Standard CD 72 Month Standard CD
$500 $501.25 $510.05 $593.56
$2,500 $2,506.24 $2,550.25 $2,967.78
$5,000 $5,012.48 $5,100.50 $5,935.57
$10,000 $10,024.97 $10,201 $11,871.14 

How Third Federal CDs Rates Compare to Other Banks'

Third Federal CD rates can definitely compete with its brick-and-mortar counterparts and even online-only entities at points. As you can see from the table below, the interest rate on Third Federal’s 72-month CD overshadows some Chase CD rates. Third Federal can also compete with rates offered by Ally Bank, which is known for offering rates that rival even those of the best savings accounts. But keep in mind that some banks compound interest differently and that can have a dramatic effect on your savings. Chase also requires a larger minimum deposit of $1,000 and Ally offers stronger APYs with bigger balances. The following applys to the smallest minimum balance for each bank. 

 CD Account  Third Federal  Chase  Ally
6 Month  0.50%   0.02%  1.00%
1 Year 2.25%   0.02%  2.75%
3 Year  1.50%  0.95%  2.50%
5 Year  2.85%    1.01%  3.00%

Should You Get a Third Federal CD Account?

If you can comfortably commit to one of the term lengths Third Federal offers, you should be able to find a suitable option to meet your short-term savings goals. If you’re close to retirement, you may also be interested in the variety of retirement-focused CDs Third Federal offers. Most banks we’ve examined offer IRA CDs, but Third Federal takes it a few steps further by offering CD options with the benefits of Roth IRAs, KEOGH plans and SEP IRAs.

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