Forbright Bank Offers New Rate-Leading 9-Month Online CD
About six months ago, Maryland-based Forbright Bank (Forbright) began a restructuring of its CDs product line. The first change was the introduction of four Online CDs with terms of 12-, 24-, 36-, and 60-months. Forbright recently added a fifth Online CD – a 9-month CD earning a rate-leading 5.75% APY. The minimum opening deposit is $1k, with no stated balance cap.
Early Withdrawal Penalty
As stated in the Online CD FAQ page, the Early Withdrawal Penalty (EWP) reads as follows:
If your account has an original maturity of less than 24 months, a penalty equal to three (3) months interest will be charged to your account.
As written, the EWP is not exactly precise – three months interest of what? CSR explained that partial withdrawals are not allowed; CDs can only be closed early, with the three months interest penalty applying to the entire CD balance.
Availability and Account Opening
Headquartered in Chevy Chase, Maryland, Forbright Bank (formerly known as Congressional Bank) has a brick-and-mortar presence in Montgomery County (Maryland) and Fairfax County (Virginia), but a portion of its CD product line is available nationwide through an online application.
Opening a 9-month Online CD can only be done online. Forbright has streamlined its consumer CD product line, removing CDs that could be opened in branch. Forbright continues to offer business CDs with term ranges (e.g, 12-17 months) that are still available in-branch.
Your completed application will be reviewed in 1 to 2 business days. We’ll send you an email to the email address you provide letting you know the status or if additional information is needed.
Funding and Other Details
The following information is from the Forbright Certificates of Deposit FAQs page and a conversation with CSR.
- Funding – Plaid (recommended) or ACH.
- Ownership – Sole owner, joint owners, revocable trust, and Payable On Death beneficiary(ies).
- Interest – Compounded daily and credited monthly. Interest can distributed on a monthly basis, either mailed by check or sent by ACH.
- Maturing Funds – ACH.
- Beneficiaries – Unlimited, percentages can be assigned, Social Security numbers are required.
- Grace Period –10 calendar days before automatic renewal.
- Credit Check – Soft pull.
DA reader, SYC, mentioned the Forbright Online CD FAQ page in a Forum post. The FAQ page has such detailed explanations, it should be called the “How To Do It All” page. I recommend reading the FAQs if you are seriously interested in opening a CD.
Bank Overview
Forbright Bank has an overall health grade of "C+" at DepositAccounts.com, with a Texas Ratio of 14.29% (above average) based on June 30, 2022 data. In the past year, the Bank’s total non-brokered deposits decreased by -$1.63 billion, a poor annual growth rate of -35.74%. Please refer to our financial overview of Forbright Bank (FDIC Certificate # 57614) for more details.
Originally known as Congressional Bank, Forbright Bank is celebrating its 20th anniversary. John R. Lane, a former Colombo Bank executive and Congressman, founded the institution in 2003 with $10 million, which was raised in 38 days. In January 2016, the Bank acquired American Bank (Rockville, MD), strengthening its presence in Montgomery County and the District of Columbia. According to a March 2023 press release,
Forbright Bank is fully mission-aligned around sustainability and decarbonization. It was the seventh U.S. bank to become a signatory to the U.N. Principles for Responsible Banking. By 2025, more than half of the Bank’s portfolio will go toward clean energy projects and sustainable businesses. Recently, the Bank lead financing for two solar parks in Puerto Rico to support the island’s goal of transitioning 40% of its energy to renewable sources. And Forbright Inc’s Green Bond resulted in nearly 12,000 metric tons of estimated annual carbon equivalent emissions avoided last year.
Forbright Bank is currently the third largest bank headquartered in Maryland, with assets in excess of $6.6 billion and nearly 26,000 customer accounts.
How the 9-Month Online CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on the Forbright Bank 9-month Online CD. The following table compares the 9-month Online CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
The above information and rates are accurate as of 10/19/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
