Forbright Bank Review: Pros, Cons and Alternatives

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Forbright Bank is a mission-driven bank that offers digital and branch banking services in Maryland and Virginia. Online customers can open a high-interest savings account and Certificates of Deposit (CDs) with terms of 9 to 60 months.

What sets Forbright Bank apart from most financial institutions is its focus on sustainability. For example, it finances projects that combat climate change, such as solar loans for homes, repairing wind turbines and affordable housing.

For this Forbright Bank review, we'll focus on their online deposit products and let you know how they compare.

• Digital and branch banking (Maryland and Virginia)
• Mission-oriented bank with a focus on sustainability
• High-yield savings account with competitive APY

What is Forbright Bank?

Based in Maryland, Forbright Bank was founded in 2003. It offers a full range of products at its four branches, including checking accounts, money market accounts, savings and retirement accounts, credit cards and loan products. Online customers can open high-yield savings accounts and CD accounts.

What does it offer?

Forbright Bank offers a variety of personal and business banking products at its branches (four in total), including checking, money market, savings accounts, retirement accounts, credit cards and loan products. Online customers can open high-yield savings accounts and CD accounts.

Growth Savings Account

Forbright Bank offers a high-interest savings account called Growth Savings. It is currently 5.30% The APY is very competitive compared to leading online banks and there are no monthly maintenance or withdrawal fees and no minimum deposit.

You cannot access the account with a debit card, which means you cannot make ATM withdrawals. However, you can make unlimited monthly transfers to a current account of your choice. Note that while the account does not require an opening balance, it will be closed for security reasons if you have a zero balance for 21 days.

Certificates of Deposit (CDs)

Forbright offers five CDs with terms ranging from 9 months to 5 years. You can open a CD in person at a Forbright branch or on the bank's website. The minimum deposit amount for all CDs is $1,000. Current APYs and terms are as follows:

To open a CD account, you must be at least 18 years old and provide the following information: a valid ID, a social security number, your current home and email address, and the details of the financing bank.

Are there any fees?

Forbright Bank does not charge any monthly maintenance fees for its Growth Savings Account. There are also no fees for opening a CD account. However, if you withdraw your CD funds early, you will incur the following penalty fees:

• For terms of less than 24 months, a 3-month interest rate applies.
• For terms of 24 months or more, a 6-month interest rate applies.

How does Forbright compare?

Forbrights
5.30% The APY is comparable to other leading online banks and much higher than the average bank. The CD yields, while not class-leading, are respectable. BrioDirect is a pure online bank that offers the same 5.30% APY, but CD terms are limited.

Ally Bank is a full-service online bank that offers far more products (online) than Forbright or BrioDirect. If you're looking for accounts beyond savings accounts and CDs, it's an excellent choice, although the APR on savings accounts is only 4.20%.

How do I open an account?

You can apply for a Growth Savings Account with Forbright Bank online in just a few minutes. First, select “Apply Now” on the savings account landing page. Once your account is approved, you can deposit funds using Forbright's secure third-party transfer system.

Is it safe and secure?

Forbright Bank is a member FDIC institution (Certificate No. 57614), which means that eligible deposits are insured up to FDIC limits. In addition, the bank has a 4 out of 5 star rating from Bauer Financial, an independent bank rating service.

However, the bank did not receive a consent order from the FDIC until May 2024. According to this article from Banking Dive, the FDIC was concerned about the bank's reliance on “non-core financing” and raised concerns about liquidity risk.

How do I contact Forbright Bank?

You can contact Forbright Bank by phone, email, or in person at a branch. If you need support with the Growth Savings Account, you can call 1-800-550-0159 during business hours (Mon. through Fri., 8:00 a.m. to 8:00 p.m. EST). You can also email customersupport@forbrightbank.com.

Is it worth it?

If you are already a customer of a Forbright Bank branch, the Growth Savings Account is a great choice because you can manage the account online and earn a high annual interest rate without having to deal with another bank. It is 5.30% The APY is among the highest available and you don't have to worry about fees.

However, the FDIC has (recently) raised concerns about Forbright's liquidity risk, which is something to consider when looking for a place to store your hard-earned money. Other online banks have more to offer, so if you're concerned about risk, you may want to look elsewhere.

Check out Forbright Bank here >>

Features of Forbright Bank

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