Dedicated to Deposits: Deals, Data, and Discussion

FirstFedDirect Savings Account Now 5.17%


Update 8/20/08: The savings account and CD rates have changed. Please check the bank's website for the latest rates.

FirstFedDirect increased the yield on its Internet Advantage Savings Account from 5.01% to 5.17% APY today. To earn this APY requires a balance of at least $1K. There are no monthly fees for low balances. The savings account is like a typical online savings account. Accounts can be opened online or by mail. However, you must live outside of California to apply.

The bank also raised the CD rates. The current APYs for the 3-month, 6-month, 9-month and 12-month CDs are 5.26%, 5.51%, 5.60% and 5.67%. There's a $10K minimum deposit. The early withdrawal penalty is 3 months of interest for terms under 1 year. The 1-year CD has a 180-day interest penalty.

I first reported on this account last December when First Federal Bank of California first launched this online bank. The rates have remained competitive. However, there hasn't been any improvements. For example, my complaint in December was the lack of any email address or telephone number on the website. I still can't find this info.

First Federal Bank of California is FDIC insured. The FDIC entry only includes the main bank's web address and not FirstFedDirect's, so I can't prove that FirstFedDirect is part of First Federal Bank. The bank has a 4 out of 5 star rating at for financial strength.

Comment #1 by Anonymous posted on
Looking for highest rates on a 6 month or 9 month CD with NJ Bank that compounds rates daily. Please advise???

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
There's a 7% 7-month CD with a $7K limit at a New Jersey Credit Union (see post).

I can't find any other good CD deals in New Jersey from my previous posts that are still available.

Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
I just noticed that World Savings has many branches in New Jersey. Their 5.76% 3/6-mo CD is still available through Saturday. Please refer to this post for more information.

Comment #4 by scott (anonymous) posted on
filled out the online Application and was all set to send them $100k.
Then I got the box asking if I agree to authorize an Equifax pull, I checked No and got the following message. We need to put pressure on bank to stop with the hard pulls. Tired of my credit report saying I have had to many inquires when they are all from opening deposit accounts

Disagreement Confirmation

You have indicated that you do not authorize Equifax to run an identity check.

Click 'Finish' at the bottom of the screen to return to the FirstFedDirect sm Home Page.

If you have questions:
Contact a FirstFedDirect sm Specialist at (888) 838-5460 or email us at

Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
Scott, thanks for the info. I'll be sure to mention this hard credit pull in future posts.

Some banks are slowly changing. I was informed a AmTrustDirect marketer that they've changed from a hard to a soft pull based on our feedback.

Comment #6 by queenSu (anonymous) posted on
I've had this account for an year..there website is not the best..but the interest rates now are quite major issues dealing with them..just link ur primary account to them and use ACH..

Comment #7 by Anonymous posted on
ChexSystems is used don't ask me how i know lol

Comment #8 by Anonymous posted on
sorry wrong posted on the wrong window. Im not sure if ChexSystems is used on ffd. etrades uses it.