Is Colorado Federal's Premier Savings Account Worth the $50K Minimum?

You've probably seen a lot of high-yield savings accounts floating around, but some come with strings attached that aren't always obvious at first glance. Today, let's talk about one from Colorado Federal Savings Bank. They're offering what looks like a solid rate on their Premier Savings account, but there's a pretty significant hurdle to clear before you can earn it. I dug into the official details so you know exactly what you're getting into.

The Big Catch: That $50,000 Requirement

The headline rate of 4.05% APY is certainly attractive, especially compared to the national average. But here's the crucial detail: you must maintain a balance of $50,000 to earn it. If your balance dips below that, you'll likely earn a much lower rate on the entire balance (the bank's standard High Yield Savings account offers 4.00% APY with just a $1 minimum).

This isn't a 'tiered' rate where you earn a good rate on the first $10,000 and a great rate on the rest. It's an all-or-nothing proposition. The account also has no stated monthly fees, which is a plus, but that high minimum is the real gatekeeper.

Who Exactly Can Open This Account?

This offer has a strict eligibility rule that's easy to miss. It's exclusively for new customers. According to the bank's terms, a 'new customer' is someone who hasn't had a savings account with Colorado Federal Savings Bank in the past 60 days.

If you apply and they determine you're not eligible, your application will be canceled. It's worth calling their customer service at 1-877-484-2372 if you're unsure about your status. This rule makes it a one-time deal for most people.

Practical Stuff: Accessing Your Money and Fine Print

Like most savings accounts, this one limits how often you can take money out. You get six withdrawals per monthly statement cycle. Go over that, and you'll be hit with a $25 fee for each extra transaction. That can quickly eat into your interest earnings, so it's best to treat this as a true savings account, not a transactional one.

Also important: the rate is variable. The 4.05% APY is accurate as of October 9, 2025, but it can change at any time after you open the account. The bank states funds are accessed via ACH transfer, so don't expect a debit card or check-writing capabilities.

So, Is This a Good Deal For You?

It really depends on your situation. If you have a lump sum of $50,000 or more sitting in a checking account or a lower-yielding savings account, and you're sure you won't need to touch it frequently, moving it here could make sense for the extra yield. The FDIC insurance provides safety.

However, you have to ask yourself a few questions. Is locking up $50k for a variable rate worth it? Could you find a comparable or better rate elsewhere with a lower minimum? There are other high-yield accounts and even some short-term CDs that might offer more flexibility or better terms for different balance levels. Always shop around.

Bottom Line

• The 4.05% APY is solid, but requires a steadfast $50,000 minimum balance.
• This account is a hard pass if you've had a savings account with this bank in the last two months.
• Respect the six-withdrawal limit to avoid $25 fees that negate your interest.
• Compare this offer against other high-yield accounts and CDs before committing a large sum.

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