If you’re a resident of Hawaii, you have no shortage of financial institutions to choose from. One of the top contenders for Hawaii’s best banks is Territorial Savings Bank.
For over 100 years, Territorial Savings Bank has been helping customers manage and grow their wealth through products and services like checking accounts, credit cards, and IRAs.
If you want to learn more about Territorial Savings Bank, check out our in-depth review below to find out if they’re the best bank for your needs.
What Is Territorial Savings Bank?
In 1921, Territorial Savings Bank (TSB) was founded as the Kaimuki Building & Loan Association to provide personal financial services to their Hawaiian customers. They eventually grew to encompass both personal and business banking products and services to meet the needs of their ever-growing community.
Today, Territorial Savings Bank offers a wide range of FDIC-insured deposit products, such as checking and savings accounts, and non-FDIC-insured investment products, such as annuities and mutual funds.
They are headquartered in Honolulu and currently operate 29 branch locations across the islands of Oahu, Maui, Kauai, and Hawaii. In July 2009, they became a publicly-traded company and are traded on the NASDAQ Global Select Market under “TBNK.”
Territorial Savings Bank: Checking Accounts
Territorial Savings Bank offers three different checking accounts to meet the needs of their customers: Hawaii’s Best Checking, Basic Checking, and Student Checking.
1. Hawaii’s Best Checking
The Hawaii’s Best Checking account is the most popular checking account option according to Territorial Savings Bank.
With this account, you’ll earn interest on your balance, which will help boost your overall spending power. You’ll also receive a Visa Check Card equipped with uChoose Rewards, which allows you to earn points on qualifying purchases.
You can open an account with just $100 and must maintain a minimum daily balance of $100 to avoid a minimum balance fee. This fee can be waived with a direct deposit or through the Club 55 program.
2. Basic Checking
Territorial Savings Bank’s Basic Checking account is a no-frills, non-interest-bearing account that is perfect for those seeking a simple banking experience.
With a minimum opening deposit of only $25 and no minimum balance or maintenance fees, this account offers affordability from the start. You can also enjoy free check writing and a complimentary Visa Check Card equipped with uChoose Rewards.
This account also features online banking and mobile banking to ensure you have access to your account at all times.
3. Student Checking
As the name implies, the Student Checking account is specifically designed to cater to the unique needs of students. With a minimum opening deposit requirement of $25, this account is especially accessible for students managing their finances on a budget.
This account stands out from other student accounts by providing students the opportunity to earn interest on their balance. It also offers a robust digital experience for students who want to manage their finances entirely from their laptop or smartphone.
Like the other checking accounts, the Student Checking account comes with a complimentary Visa Check Card equipped with uChoose Rewards to earn rewards on qualifying purchases.
Territorial Savings Bank: Savings Account
Territorial Savings Bank offers tremendous options for savers with five different account types. Their savings accounts cater to everyone from children to holiday shoppers to students.
1. Statement Savings
The Statement Savings account is the most popular savings account at Territorial Savings Bank.
This account is available to customers ages 15 and older. It requires a minimum opening deposit of $10 and must maintain a minimum average monthly balance of $100 to avoid the maintenance fee and earn interest. While Territorial Savings Bank does not disclose the interest rate of the account, interest is compounded daily and credited quarterly to the account.
Customers can enjoy online and mobile banking as well as free quarterly statements to track account activity.
2. Passbook Savings
The Passbook Savings account is designed for members who prefer a traditional, in-branch experience. It is ideal for those who like to keep a tangible record of their deposits and withdrawals and provides a passbook for tracking transactions.
This account only requires a minimum opening deposit of $10 and must maintain a minimum average monthly balance of $100 to avoid the maintenance fee and earn interest. For Passbook customers, transactions are limited to electronic deposits/checks and in-branch deposits and withdrawals.
The account’s passbook is required for all withdrawals.
3. Keiki Savings
The Keiki Savings account is made for children ages five to 17 and provides an excellent opportunity to instill the importance of saving from an early age.
This account only requires a minimum opening deposit of $10, which makes it accessible to young savers. Interest is compounded daily and credited quarterly to help savings grow over time. When you open the account, young savers receive a delightful “Keiki’s Starter Pack”, complete with a piggy bank, coloring book and crayons, and a coin purse.
When the child reaches adulthood, the account with convert to a regular Passbook Savings account.
4. Student Savings
While the Keiki account is designed for minors, the Student Savings account is designed for college students ages 18 and older.
With a modest $10 minimum opening deposit, the account is perfect for students who want to start saving on a budget. Notably, there is no minimum balance requirement while the account holder is attending college, which allows for more financial flexibility during school years.
5. Christmas Savings
The Christmas Savings account offers a proactive and financially responsible way to save for holiday shopping. The account is open for enrollment from November 1 to February 15, which allows individuals to start planning well in advance of the holidays.
After making a $10 minimum opening deposit, savers can contribute to the account all year. The funds will grow with interest until November when the funds are made available.
Territorial Savings Bank: CD Accounts
Territorial Savings Bank’s Certificate of Deposit (CD) is an appealing savings option for those seeking a higher rate and are comfortable forgoing access to their funds for a fixed term. This CD accommodates a range of customers with a minimum opening balance of $1,000 and terms ranging from three to 60 months.
While the CD is a secure and predictable savings tool, it’s important to remember that a penalty will be imposed for early withdrawals to emphasize the commitment to the agreed-upon term.
Territorial Savings Bank: MMA Accounts
Territorial Savings Bank does not offer money market accounts (MMA) for personal banking customers. They do, however, have an MMA for business banking customers.
Territorial Savings Bank offers a range of products for personal and business banking customers. These products include:
- Credit cards
- Personal loans
- Life insurance
- Accidental death and dismemberment insurance (AD&D)
- Investment services
- Business checking and savings
- Business loans
- Business credit cards
There are several features that Territorial Savings Bank offers to give their customers the best banking experience possible. These features include:
- Online and Mobile Banking: Through their secure and digital-friendly platforms, Territorial Savings Bank offers customers a way to manage their accounts, check balances, transfer money, and even deposit checks.
- Zelle: With their Zelle integration, Territorial Savings Bank is able to facilitate fast and secure peer-to-peer money transfers directly through the mobile app. This means you won’t have to download a separate app in order to split a bill or give your kids an allowance.
- Video Education Center: Territorial Savings Bank emphasizes customer education through its Video Education Center. This resource serves as a valuable tool for customers to deepen their understanding of financial topics and money management.
- Foreign Currency Exchange: If you travel a lot for work, you can exchange your foreign currency for American dollars at any Territorial Savings Bank location. They offer competitive exchange rates and efficient service to ensure customers can access the currency they need.
Pricing and Fees
Compared to the national average, Territorial Savings Bank offers relatively few fees. They offer no monthly fee options for most of their checking and savings accounts, which can reduce the financial load of having a new account.
However, it’s worth noting that Territorial Savings Bank does not readily disclose its rates on its website, so it’s difficult to know going in how much you’ll pay for products, services, and infractions. Here are some of the fees that you can expect from Territorial Savings Bank.
Minimum Balance Fee
One of the ways banks make money is by charging monthly fees, particularly on accounts with low deposits. Territorial Savings Bank has minimum account balances on two of their accounts: Hawaii’s Best Checking and Statement Savings. If you fail to meet the minimum account balance of $100, you will be charged a monthly fee.
Unfortunately, Territorial Savings Bank does not disclose on its website the amount of the minimum balance fee. You can expect to pay around the national average, which is $3.21.
Most banks and credit unions offer overdraft protection on their checking and savings accounts. However, Territorial Savings Bank does not offer any information about overdraft protection on its website. It’s unclear if they offer overdraft protection, so you will likely have to pay an overdraft fee if you make a purchase that overdraws your account. The national average overdraft fee is $35, so you can expect to pay somewhere around that amount for each instance of an overdraft.
For those ready to join Territorial Savings Bank, the process is straightforward. However, it does require visiting a branch location because they do not offer new account openings online.
Start by deciding which account you want to open. You will likely need to choose between one of their checking and savings accounts, so review the details of each account to choose the best option for you. Be mindful of minimum opening deposits to ensure that you have the necessary amount to start your financial journey with Territorial Savings Bank.
When you’re ready to open an account, visit one of Territorial Savings Bank’s 29 branches to fill out an application. Bank applications typically require you to provide personal information and government documents to verify your identity and prevent fraud.
After Territorial Savings Bank approves your application, you will be required to make an opening deposit. Once your funds clear, the account will be ready to use. From here, you can set up online and mobile banking, Zelle, and any other features you would like to utilize.
It is unusual for Territorial Savings Bank to offer promotions on their products or services. To stay abreast of any promotions, keep an eye on their website and social media channels.
Territorial Savings Bank places high importance on keeping their customers’ personal and transaction information safe. They pair state-of-the-art encryption technology, multi-factor authentication, and digital security measures to make sure customer information stays out of the hands of unauthorized users.
As a large financial institution, Territorial Savings Bank has a lot of systems and software in place to protect sensitive data that is transmitted between customers and the bank’s servers. This includes encryption technologies, firewalls, and more.
Furthermore, Territorial Savings Bank uses multi-factor authentication (MFA) to allow users to access accounts. This protocol adds another layer of protection by requiring customers to provide multiple forms of identification before gaining access to their online accounts.
Finally, Territorial Savings Bank protects customers’ deposits by adhering to industry regulations and norms. They are a member of the Federal Deposit Insurance Corporation (FDIC), which means that every depositor is protected up to $250,000 in case the bank goes under. This is another way you can feel secure in banking with Territorial Savings Bank.
No matter where you bank, there are moments when you need to get in contact with someone for assistance. Territorial Savings Bank offers a few ways of getting help with your account: on the phone, in the branch, or through a Contact Us form.
You can contact the Territorial Savings Bank customer service team by phone at (808) 946-1400. They do not list customer service hours for phone assistance. You can also fill out a Contact Us form on their website, www.TSBHawaii.Bank. They do not offer direct messaging assistance.
Pros and Cons
Here are our picks for the top pros and cons of banking with Territorial Savings Bank.
- Competitive CD rates: Territorial Savings Bank offers competitive rates on their CDs, which provides customers with the opportunity to earn higher returns on their savings.
- Low fees: The bank prides itself on maintaining low fees, so customers can manage their accounts and conduct transactions without incurring excessive charges.
- Strong mortgage products: One of the most popular products offered by Territorial Savings Bank is their mortgage loan. They offer a range of options and favorable terms for home financing to empower customers to shop for their dream home.
- No MMA for personal banking customers: One drawback of banking with Territorial Savings Bank is the absence of money market accounts (MMAs) for personal banking customers. This limits the range of account options available to those seeking higher interest rates and liquidity.
- Limited geography: Territorial Savings Bank is limited to customers living in the state of Hawaii. This greatly restricts access for people who don’t live on the islands.
Alternatives to Territorial Savings Bank
The place where you store your money is an important decision, and it’s critical to consider multiple options before opening an account and becoming a regular customer. Here are some similar alternatives to Territorial Savings Bank that are worth considering.
First Hawaiian Bank
As the name implies, First Hawaiian Bank is the oldest bank on the Hawaiian islands. Since they opened in 1858, they have grown to 46 branch locations across the state and have expanded their banking products to include deposits, investments, insurance, and more. Like Territorial Savings Bank, they have low fees and minimum balance requirements. However, First Hawaiian Bank offers money market accounts (MMAs), which Territorial Savings Bank does not have.
Hawaii Federal Credit Union
If you are interested in joining a federal credit union instead of working with a bank, Hawaii Federal Credit Union is a great local option. Hawaii FCU is like a bank in many ways, but they differ in mission. While banks are for-profit institutions, Hawaii FCU is a nonprofit financial cooperative. They seek to serve their members by offering lower rates and better terms on deposit products, loans, and more. If you’re looking for great CD and mortgage rates, Hawaii FCU is a great alternative to Territorial Savings Bank.
Central Pacific Bank
Central Pacific Bank is a very comparable bank to Territorial Savings Bank. Both banks have a similar number of branches and asset sizes. They also both lack a money market account (MMA) product, which can limit your options when it comes to deposit accounts with higher rates. What sets Central Pacific Bank apart is that it’s a mission-based organization. They began as an organization to help immigrants gain a foothold in the community, and they are still dedicated to supporting local causes. For example, they partnered with Meals 4 Maui to help locals affected by the wildfires get locally sourced, nutritious food.
Frequently Asked Questions
Where is Territorial Savings Bank located?
Territorial Savings Bank has 29 convenient locations across the state of Hawaii. Their branches are located on the islands of Oahu, Maui, Kauai, and Hawaii.
Is Territorial Savings Bank FDIC insured?
Yes, Territorial Savings is a member FDIC bank.
How do I get a mortgage through Territorial Savings Bank?
To get a mortgage through Territorial Savings Bank, you will need to work with one of their mortgage lenders or officers. They will work with you to find you the right terms and rates for your home financing.
Is Territorial Savings Bank Best for Your Needs
Territorial Savings Bank is a natural choice for anyone looking for a solid, medium-sized to large bank in the state of Hawaii. From their competitive CD rates to their commitment to low fees, the bank prioritizes customer satisfaction and account accessibility. While the geographic limitations will naturally restrict their customer scope, their strength lies in their personalized service, strong community ties, and focus on fostering financial success for their customers.
Territorial Savings Bank is an excellent choice for people looking for low-fee accounts, such as students and people seeking a no-frills checking and savings account. They are not an ideal choice for non-Hawaiian residents or those seeking a money market account (MMA) product.
The BankBonus editorial team has analyzed dozens of banks to provide our readers with thoroughly informed and accurate reviews. We evaluate digital financial platforms, online banks, regional banks, and national banks across several metrics.
Our assessment of each bank factors in these considerations:
- Product lineup: We review the types of accounts, loans, and services offered by each bank, as well as the number of accounts.
- Fees and pricing: We also consider each institution’s fees, including monthly maintenance fees and other service charges.
- Account features: To compare banks, we take a close look at the features, limits, and capabilities each one has to offer.
- Interest: Along with these features, we consider whether or not the bank offers interest-bearing accounts and compare their rates to industry averages.
- Brand reputation: The bank accounts we recommend have been carefully vetted to ensure they are legitimate, secure, and backed by FDIC insurance.
- User experience: Additionally, we consider the ease of use and availability of resources on each bank’s website and factor in reviews of the mobile app from the Apple App Store and Google Play Store.
- Branch and ATM access: To gauge convenience, we also look at each bank’s branch and ATM availability and consider their ATM reimbursement policies.
- Customer service: In our review process, we also explore banks’ customer service channels, hours of availability, and third-party reviews.