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Security Federal Bank review: South Carolina and Georgia bank with rewards bank accounts and solid CD rates

Submitted by Tech Insider on June 23, 2022 - 5:32pm

Security Federal Bank logo on a green pattern background with gold coins
Security Federal Bank is a community development financial institution in South Carolina and Georgia.


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Overall bank rating

Feature Insider rating (out of 5)
Savings 3.5
Checking 4
CD 3.75
Money market account 3.5
Trustworthiness  5
Total 4

Pros and cons

Pros Cons
  • Certified as a community development financial institution and serves the local community

  • Free checking account

  • High interest rates on CDs compared to other brick-and-mortar banks

  • Kasasa checking accounts and savings account 

  • Possible to waive monthly service fees

  • Branches available only in select cities in GA and SC
  • Low interest rate on savings and money market account
  • Monthly service fees on savings and money market account

Security Federal Bank Regular Savings Account

The Security Federal Bank Regular Savings Account could be a good option if you usually keep at least $100 in your savings account. By meeting this requirement, you'll waive the $5 monthly service fee and earn interest. 

If your priority is earning a high interest rate, the Security Federal Bank Saver might be worth exploring.

Security Federal Bank Classic Personal Checking Account

The Security Federal Bank Classic Personal Checking Account is a solid free checking account. It doesn't charge any monthly service fees, and you may make two free withdrawals at out-of-network ATMs per month without being charged by Security Federal Bank. If the ATM provider charges you a fee, you won't be reimbursed by Security Federal Bank, though. 

Security Federal Bank CD

Security Federal Bank may be appealing if you'd like to open a CD. The bank only requires $500 to open a CD, and you'll earn a solid interest rate compared to other brick-and-mortar banks.

The only downside to opening an account is that the CD early withdrawal penalties may be high depending on which term you choose. 

Security Federal Bank Money Market Account

The Security Federal Bank Money Market Account might be a decent choice if you plan to keep at least $100,000 in your account so you can earn Security Federal Bank Money Market Account and waive the account's monthly service fee. 

Otherwise, the Security Federal Bank Regular Savings Account will likely be a better choice since it pays a Security Federal Bank Regular Savings Account if you have $100 or more in your account.

Security Federal Bank regular accounts vs. Kasasa accounts

Kasasa is a financial services company that works with local financial institutions to offer special perks on bank accounts, like high interest rates or cash back. 

Security Federal Bank has four Kasasa bank accounts — Kasasa Cash Checking, Kasasa Cash Back Checking, Kasasa Tunes Checking, and Kasasa Saver.

These accounts have zero monthly service fees. Below, we've also outlined why each account stands out and the requirements you'll need to fulfill to earn these perks.

If you prefer a more straightforward bank account, you might like the Security Federal Bank Regular Savings Account or Security Federal Bank Classic Personal Checking Account instead.

Account Standout feature Monthly requirements
Security Federal Bank Cash Checking Account Earn 1.25% APY on an account balance under $10,000
  • At least 1 ACH credit or debit transaction
  • At least 12 debit card purchases
  • Sign up for online statements
Security Federal Bank Cash Back Checking Account Earn 2% cash back on debit card purchases (up to $6 per month)
  • At least 1 ACH credit or debit transaction 
  • At least 12 debit card purchases
  • Sign up for online statements
Security Federal Bank Kasasa Tunes Checking Get refunds for iTunes, Amazon, or Google Play purchases (up to $10 per month)
  • At least 1 ACH credit or debit transaction
  • At least 12 debit card purchases
  • Sign up for online statements
Security Federal Bank Saver Earn 0.50% APY on an account balance under $50,000
  • Only available if you have a Kasasa Cash or Kasasa Cash Back checking account
  • At least 1 ACH credit or debit transaction 
  • At least 12 debit card purchases
  • Sign up for online statements

How Security Federal Bank works

Security Federal Bank is a community development financial institution with 17 branches and 18 ATMs in South Carolina and Georgia. 

Customer service is available by phone 8:30 a.m. to 6 p.m. ET Monday through Wednesday, 8:30 a.m. to 7 p.m. ET on Friday, 9 a.m. to 4 p.m. ET on Saturday, and 1:30 p.m. to 4 p.m. ET on Sunday.

The bank's mobile app has 4.6 out of 5 stars in the Google Play store and 4.8 out of 5 stars in the Apple store. 

Security Federal Bank is FDIC insured. Up to $250,00o is safe in an individual bank account. 

Security Federal Bank trustworthiness and BBB rating

Security Federal Bank hasn't been involved in any recent public controversies.

We also share ratings from the Better Business Bureau, which assesses businesses based on responses to customer complaints, honesty in advertising, and transparency about business practices. Security Federal received an A+ rating from the BBB. 

A good BBB rating doesn't necessarily mean your relationship with a business will be perfect. You may want to talk to current customers or read online customer reviews to see if Security Federal Bank is right for you.

The role of community development financial institutions

Community development financial institutions, or CDFIs, serve low-income and disadvantaged communities. Banks and credit unions have to undergo certification by the US Department of Treasury's Community Development Financial Institutions Fund and meet specific requirements to address banking barriers.

In 2020, Security Federal Bank participated in the Paycheck Protection Program and helped provide $127 million in PPP loans to 2,800 small businesses impacted by the COVID-19 pandemic.

The brick-and-mortar bank is also partnered with over 15 local non-profit organizations, including the Affordable Housing Coalition of South Carolina and Aiken County Habitat for Humanity. 

Security Federal Bank vs. Synovus Bank

Synovus Bank is available in the same states as Security Federal Bank. See how the two brick-and-mortar banks compare.

Security Federal Bank logo

The Synovus Bank Logo.

Locations

GA and SC

Locations

AL, GA, FL, SC, and TN

Standout feature

Kasasa bank accounts

Standout feature

Free checking account with Synovus Plus eligibility

Security Federal Bank Regular Savings Account Synovus Personal Savings Account

Both banks have free checking accounts, so your best option might depend on which perks you prefer.

Synovus Bank has the Synovus Plus program, which offers perks like higher interest rates on savings accounts and a free out-of-network ATM fee reimbursement each month.

You may qualify for Synovus Plus if you open the Synovus Free Checking Account. To earn perks, you must have a minimum monthly deposit of $5,000 in your checking account or a balance of at least $25,000 across all your Synovus accounts.

Security Federal Bank has Kasasa checking and savings accounts. To get rewards from the bank's rewards checking accounts or high-yield savings account, you must do the following each month: make at least 1 ACH credit or debit transaction, complete at least 12 debit card purchases, and sign up for online statements. To open the Kasasa Saver account, you'll also need to open a Kasasa Cash or Kasasa Cash Back checking account first. 

Security Federal  Bank vs. First Horizon Bank

See how Security Federal Bank stacks up to another Southern bank: First Horizon Bank

Security Federal Bank logo

First Horizon Bank Member FDIC logo

Locations

GA and SC

Locations

AL, AR, TN, FL, GA, LA, MS, NY, NC, SC, TX, and VA

Standout feature

Kasasa bank accounts

Standout feature

Free checking account with no overdraft transfer fees

Security Federal Bank Regular Savings Account First Horizon Bank Traditional Savings Account

Choosing between these two banks will likely depend on the accounts you'd like to open.

You might lean more toward Security Federal Bank if you're searching for rewards bank accounts. Security Federal Bank has four Kasasa bank accounts.

Meanwhile, First Horizon Bank might be a better choice if you'd like a straightforward checking account that makes it easy to avoid common bank fees. The First Horizon Bank FirstView Checking Account doesn't charge monthly service fees and offers free overdraft protection. In comparison, the Security Federal Bank Classic Personal Checking Account charges a fee for utilizing overdraft protection.

Frequently asked questions

Is Security Federal Bank FDIC insured? 

Yes, Security Federal Bank accounts are FDIC insured. You may keep up to $250,000 in individual bank accounts or $500,000 in joint bank accounts, and your money will be secure. 

Where is Security Federal Bank located?

Security Federal bank locations serve residents in Georgia and South Carolina. You'll find branches in the following cities:

  • Aiken, SC
  • Augusta, GA
  • Clearwater, SC
  • Columbia, SC
  • Evans, GA
  • Graniteville, SC
  • Irmo, SC
  • Lexington, SC
  • North Augusta, SC
  • Ridge Spring, SC
  • Wagener, SC
  • Warrenville, SC
  • West Columbia, SC
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