First Foundation Bank Boosts Online Savings Account Rate
California-based First Foundation Bank (First Foundation) has increased the rate on its Online Savings Account to 4.85% APY on all balances. The minimum opening deposit is $1k of new money. According to the FAQs, an Online Savings account “cannot be funded through existing First Foundation Bank accounts.”
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.25% | $0 | - | First Foundation Bank | Online Savings Account - New Money | |
| 4.25% | $0 | - | First Foundation Bank | Online Money Market Account - New Money |
FYI – there is no Rates page on First Foundation’s website. Current rate and balance details can be found in the fine print of the Online Savings landing page.
A Little Background
While First Foundation debuted the Online Savings in the autumn of 2019, the Online MMA was added to the product line about eight months ago, with an initial 3.10% APY. Three weeks later, the Online MMA rate was increased to 3.60%, matching the Online Savings account rate increase. The Online MMA and Online Savings rates moved in tandem until the end of January 2023. Since that time, the Online Savings added 65 bps in two rate increases, while the Online MMA APY remained constant at 4.20%, becoming less competitive.
Following information applies to both the Online Savings and Online MMA. The primary difference between the two accounts is that the Online MMA offers check writing.
As stated on the excellent and comprehensive FAQs page,
You can use our ACH funding option to fund your account up to $150,000. If you would rather fund your account later, we will send you a welcome packet with instructions on other ways to fund your account. You can fund your account by check, wire, initiating a transfer from your other bank, mobile deposit, or by bringing cash into one of our branches.
There are three ways 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 30 branch locations.
Online Transfer Limits and Other Details
According to the FAQs,
What are the online transfer limits?
Our external transfer limits are $100,000 per day/settlement period, and up to $250,000 per rolling 30-day period. The transfer settlement period is 3 full business days, over which time any additional transfers will be considered a part of the same $100,000 daily limit. Each time external transfers fully settle, the portion of the daily limit that was being utilized will be reset for use again.
If you have multiple accounts at First Foundation Bank, there is no limit to the amount of internal transfers you can process between your accounts.
The fee-free Online Savings and Online MMA offer a free ATM card and eStatements. In addition, the Online MMA has unlimited check writing, which is the only real difference between the Online Savings and Online MMA. In the past, there was an excess transaction fee of $20 per item, but First Foundation continues to honor the Fed’s Regulation D pause. There is an $20 early closure fee if an Online Savings/Online MMA is closed within 90 days of opening.
While there are fees for incoming and outgoing wire transfers,
For the first 60 days after your Online Savings or Online Money Market account is opened, First Foundation Bank will waive any incoming wire fees [$10 domestic, $15 international].
An Online Savings/Online MMA can be accessed by using the “Sign In” button at the top right of the First Foundation home page.
Beneficiaries can be added after an Online Savings/Online MMA has been opened by calling 888.405.4332 or at [email protected].
DA reader, redfarm, provided some helpful information in a recent Forum post about the Online Savings account including,
- No banking fees
- We do not run a credit check. Security questions are generated from public record for Identification purposes.
- Interest compounds daily and posts at month end.
DA readers, tycho and redfarm, addressed the important issue of rate increases for existing accounts, particularly since First Foundation specifies “new money” every time the Online Savings account rate is upped.
tycho: Does anyone know why they advertise this rate as "New Money Only" ? Unlike CIT, they have always honored the rate increases automatically on my existing account.
redfarm: First Foundation has always automatically raised my online savings account interest when the bank raises its rates.
FYI – the new money requirement only applies to the initial deposit when opening a new Online Savings account.
Availability and Account Opening
Headquartered in Irvine, California, First Foundation offers its Online Savings/Online MMA to all U.S. citizens/resident aliens (with a valid Social Security number) through an online application only.
While opening an Online Savings or Online MMA can only be done online (“in five easy steps”), subsequent transactions can also be done at any of 30 full-service branches located in Northern and Southern California (20), Florida (7), Dallas, Honolulu, and Las Vegas.
Existing First Foundation clients are eligible to open an Online Savings account, but the online application must be used.
Bank Overview
First Foundation Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.43% (excellent) based on December 31, 2022 data. In the past year, First Foundation has increased its total non-brokered deposits by $276.26 million, an excellent annual growth rate of 3.16%. 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.
Following the December 2021 acquisition of First Florida Integrity Bank, First Foundation is currently the 13th largest bank headquartered in California, with assets in excess of $11.9 billion and more than 60,000 customer accounts.
How the Online Savings Account Compare
When compared to the nationally available Savings Accounts tracked by DepositAccounts.com that do not require a large minimum balance and are not limited by small balance caps, the First Foundation Bank Online Savings Account APY currently rank sixth.
The above information and rates are accurate as of 5/11/2023.
To look for the best rates on liquid bank accounts, both nationwide and state specific, please refer to our Money Market Accounts Table and Savings Accounts Table.
