California-based First Foundation Bank (First Foundation) is currently offering 2.40% APY on its Online Savings account. The minimum opening deposit is $1k of new money, which is defined as “not funds from existing First Foundation Bank accounts.” End-of-day balances of $1k and above earn 2.40% APY, with balances below $1k earning 1.00% APY.
|2.40*%||$1k||-||First Foundation Bank||Online Savings Account - New Money Only|
|OTHER TIERS: 1.00% → Up to $1k|
There is no rate guarantee. As is common for any new online savings account, only time will tell if it will remain competitive over the long run.
Annual Percentage Yield (APY) is accurate as of 8/23/2019, subject to change without notice
The opening online deposit must be made from an external U.S. checking/savings/money market account or by check. There are three way to make subsequent deposits:
- The First Foundation Mobile app check deposit feature.
- Transferring funds from an external account using online banking or mobile app.
- In-branch at any of 20 branch locations.
The fee-free Online Savings account comes with a free ATM card and eStatements. An Online Savings account can be accessed by using the “Sign In” button at the top right of First Foundation’s home page.
Thanks to DA reader, Tom, for reporting on this online savings account in the comments.
Headquartered in Irvine, California, First Foundation offers its Online Savings account to all U.S. citizens and resident aliens with a valid Social Security number through an online application only.
While opening an Online Savings account can only be done online (“in five easy steps”), subsequent transactions can also be done at any of 20 full-service branches located in Northern and Southern California (18), Las Vegas, and Honolulu.
Existing First Foundation clients can open an Online Savings account, but the online application must be used.
For those skeptical of those new savings accounts from those new fintech companies, you might appreciate this excerpt from First Foundation Bank's online savings page:
We are a bank, not a fintech unicorn
First Foundation Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 2.51% (excellent) based on June 30, 2019 data. First Foundation has an above average capitalization level (9.80%), the result of holding $6.27 billion in assets with $614.05 million in equity. Please refer to our financial overview of First Foundation Bank (FDIC Certificate # 58647) for more details.
First Foundation Bank was established in 2008, but its roots trace back to 1990 when the Keller Group (headed by Rick Keller, current First Foundation Chairman) was providing wealth management services to clients in Orange County, California. According to First Foundation CEO, Scott F. Kavanaugh,
As the needs of clients became more complex, First Foundation sought additional support to offer clients true, comprehensive wealth management. In 2007, we started a bank and added it to the existing asset management platform. We would later add trust services, legacy planning, consulting, and insurance services.
First Foundation has grown to become California’s 22nd largest bank, with more than $6.2 billion in assets.
How the Online Savings Compares
When compared to 211 nationally available Savings Accounts tracked by DepositAccounts.com that do not require a large minimum balance, First Foundation Bank’s Online Savings APY currently ranks second.
|Interest Rate||Account Name||Credit Union/Bank|
|2.75% APY||Fitness Savings (12,500+ steps)||FitnessBank|
|2.40% APY||Online Savings||First Foundation Bank|
|2.30% APY||High Yield Savings||BrioDirect|
The above rates are accurate as of 10/14/2019.
To search for the best Savings Accounts rates, either nationwide or state-specific, please refer to DA’s Savings Account Rates page.