News & Press Releases

Irvine's First Foundation Bank: New Wave In Investment

Susan Belknapp, OC Metro

September 9, 2009

The liquid CD program yields higher earnings than money market funds with ability for early withdrawal.

Irvine-based First Foundation Bank launched is offering investors a chance to ride the crest of higher rates than money market funds without the crash of early withdrawal penalties with its new Private Access Liquid CD program.

The liquid CD provides a competitive interest rate and yield, compounded daily, and allows investors to make up to four withdrawals without penalty with a minimum balance of $50,000.

"Liquid CDs are relatively new to the market and not widely available," says Scott Kavanaugh, CEO, First Foundation Bank. "Only a handful of financial institutions in Orange County offer it and we're now one of them."

The Private Access Liquid CD is tailored to an investor with a significant amount of money, who is not currently invested in the stock market or real estate. The CDs are insured by the FDIC up to the maximum of $250,000 per eligible depositor.

"They want to earn more than the typical low rates earned on money market accounts while maintaining some liquidity of their holdings," says Kavanaugh. "Like many investors, they're still uncertain about where the economy and the market are headed, so they still wary of investing in stocks. But they want to have cash readily available if the right longer term investment opportunity presents itself."

Investors may make up to four withdrawals without penalty during the term of the Private Access Liquid CD so long as the balance remains at least $50,000. The minimum withdrawal amount is 10 percent of the balance or $100,000, whichever is lower. To avoid penalties, withdrawals must be at least seven days apart and no withdrawal can be made until the account has been open for seven days.

"Now our clients can have the peace of mind knowing they are earning a competitive fixed interest rate for 12 months and the comfort that they can withdraw funds without penalty if an unexpected event occurs in their lives," says Dave Rahn, president, First Foundation Bank. "This is one more way we are meeting our client's financial needs."

The minimum opening deposit is $50,000 and a minimum balance of $50,000 must be maintained. No additional deposits may be added during the term of the Liquid CD.

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