First Foundation Bank Announces New "Liquid CD"

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Higher Earnings than Money Market Funds with the Ability for Early Withdrawal

Liquid CDs are relatively new to the market and not widely available

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First Foundation Bank announced today that it is offering investors a way to capture a higher rate than money markets combined with the liquidity of penalty-free withdrawals.

The Irvine-based community bank's new Private Access 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," said Scott Kavanaugh, First Foundation Bank CEO. "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 that is not currently invested in the stock market or real estate, Kavanaugh said. Plus these CD's 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," he said. "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 is 10 percent of the Private Access Liquid CD balance or $100,000, whichever is lower. To avoid penalties, withdrawals must be at least seven days apart.

No withdrawal may 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. This is one more way we are meeting our client's financial needs," said First Foundation President Dave Rahn.

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.

Private Access Liquid CDs will automatically renew after the term unless the investor contacts First Foundation to renegotiate or close the account. Liquid CDs are limited to personal accounts and nonprofit organizations and may not be used to fund an Individual Retirement Account.

First Foundation is offering an introductory interest rate of 1.75% (APY 1.764%). This rate compares very favorably to most money market accounts and is only slightly less than the rates paid on our traditional (no withdrawal) CD's. All deposit interest rates are subject to change without notice.

For more information, call First Foundation's Private Banker at 949-202-4100.

About First Foundation Bank

First Foundation Bank is a federally chartered bank that offers FDIC-insured deposit accounts, business, personal and commercial lending, insurance services and trust management. It is an affiliate of First Foundation Inc., a private financial firm that offers seamless banking, estate planning, wealth management, philanthropic consulting and trust services. For more information, please visit

Media Contacts:
Vanessa Showalter

Genevieve Anton

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