Online CDs | First Foundation Bank (2024)

FAQs

Is it safe to get a CD from an online bank? ›

CDs from online-only banks can be just as safe as CDs from brick-and-mortar banks, as long as the online bank is federally insured and takes basic security measures.

Founded in 2007, First Foundation is an FDIC-insured bank that includes both an online presence and 31 branch locations across California, Florida, Hawaii, Nevada, and Texas.

And most banks, online and traditional, use strong encryption, multifactor authentication and require strong passwords to protect customers' personal information. Because they don't have branch buildings to maintain and have lower staff costs, online banks typically pay higher interest rates on deposits.

Our external transfer limits are $100,000 per day/settlement period, and up to $250,000 per rolling 30-day period.

Certificates of deposit (CDs) are perfectly safe places to stash your cash whether they're purchased online or at a brick-and-mortar bank as long as you follow a few rules. Make sure the money in your CD is federally insured against losses by either the Federal Deposit Insurance Corp.

Banks and credit unions often charge an early withdrawal penalty for taking funds from a CD ahead of its maturity date. This penalty can be a flat fee or a percentage of the interest earned. In some cases, it could even be all the interest earned, negating your efforts to use a CD for savings.

“First Foundation remains in a strong financial position,” said Scott F. Kavanaugh, President and CEO. “Our liquidity position remains healthy and our prudent approach to risk management has enabled us to navigate recent industry dynamics.

Foundation Bank - Is First Foundation Bank at risk? First Foundation Bank maintains a strong stance on risk management. With exceptional credit quality and capital strength, the bank consistently exhibits leading metrics in the industry, supported by a solid business model.

It is also the 134^th largest bank in the nation. It was established in 2007 and as of December of 2023, it had grown to 514 employees at 30 locations. First Foundation Bank's money market rates are 11X the national average, and it has a C+ health rating.

Are CDs safe if the market crashes? Putting your money in a CD doesn't involve putting your money in the stock market. Instead, it's in a financial institution, like a bank or credit union. So, in the event of a market crash, your CD account will not be impacted or lose value.

Why is my CD losing money? ›

Inflation erodes the purchasing power of your money over time, and if your CD's interest rate isn't keeping up with inflation, you're essentially losing money. For example, if your CD earns a 2% annualized return but inflation is running at 3%, you're actually losing 1% of your purchasing power every year.

Generally, CDs with longer terms tend to offer savers higher interest rates and APYs, though banks may offer special promotional CDs with higher rates and shorter terms.

Keeping your money and information safe is a top priority for First Foundation Bank. When you use Zelle within our mobile app or online banking, your information is protected with the same technology we use to keep your bank account safe.

First Foundation Bank is well-capitalized and all accounts are FDIC insured.

Because the transaction overdraws your account by $20, your account will be assessed the overdraft fee of $35 according to our overdraft fee policy.

The first thing you should look for in a financial institution is FDIC insurance. If a CD issuer is insured by the FDIC (or NCUA, in the case of credit unions), your CD deposit is safe up to $250,000, no matter what happens to the underlying institution.

While it's unlikely, a certificate of deposit (CD) could lose money if you withdraw funds before you've earned enough interest to cover the penalty charged. Typically, CDs are safe time deposits that guarantee an interest rate for the term that you agree to keep money at a financial institution.

A certificate of deposit (CD) is a product that offers an interest rate payment in exchange for the customer agreeing to leave the lump-sum investment with a bank for a specific period of time. Standard CDs are insured by the Federal Deposit Insurance Corp. (FDIC) for up to $250,000, so they cannot lose money.