Forbright Bank Review: Pros, Cons, And Alternatives

Forbright Bank is a mission-driven bank offering digital and branch banking services in Maryland and Virginia. Online customers can open a high-yield savings account and certificates of deposit (CDs) with terms ranging from 9 to 60 months.

What sets Forbright Bank apart from most financial institutions is it’s focus on sustainability. For example, it finances projects that fight climate change. This includes solar residential loans, wind turbine repairs, and affordable housing.

For the purpose of this Forbright Bank review, we’ll focus on its online deposit products, and let you know how it stacks up.  

What Is Forbright Bank?

Maryland-based Forbright Bank was founded in 2003. It offers a full product lineup through its four full-serve branches, including checking, money market, savings, and retirement accounts, credit cards, and lending products. Online customers can open high-yield savings and CD accounts.

What Does It Offer?

Forbright Bank offers several personal and busineess banking products through its full-serve branches (four in total), including checking, money market, savings, and retirement accounts, credit cards, and lending products. Online customers can open high-yield savings and CD accounts. 

Growth Savings Account

Forbright Bank offers a high-yield savings account, called Growth Savings. It’s current 5.30% APY is very competitive with leading online banks, and there are no monthly maintenance or withdrawal fees, and no minimum opening deposit. 

You cannot access the account with a debit card, which means no ATM withdrawals. However, you can make unlimited monthly transfers to a checking account of your choice. Note that while the account doesn’t have a opening balance requirement, if you have a zero balance for 21 days, it will be closed for security reasons.  

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 website. The minimum deposit amount for all CDs is $1000. Current APYs and terms are as follows: 

To open a CD account, you must be 18 years of age or older and provide the following information: A valid ID, an SSN, your current residential and email address, and funding bank details. 

Are There Any Fees?

Forbright Bank does not charge any monthly maintenance fees on its Growth Savings account. There are also no fees to open a CD; however, if you withdraw your CD funds early, the following penalties will apply: 

• A 3-month interest charge applies to terms less than 24 months. 
• A 6-month interest charge applies to terms of 24 months or longer. 

How Does Forbright Compare?

Forbright’s
5.30% APY is comparable with other leading online banks, and it’s much higher than the average bank. It’s CD yields, while not class leading, are respectable. BrioDirect is an online only bank offering the same 5.30% APY, but it’s CD terms are limited. 

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

How Do I Open An Account?

You can apply for a Forbright Bank Growth Savings Account within a few minutes online. Start by selecting “Apply Now” from the Savings Account landing page. Once your account has been approved, you can deposit funds via Forbright’s secure third-party transfer system. 

Is It Safe And Secure?

Forbright Bank is an FDIC-member institution (Cert #57614). This means that eligible deposits are insured up to FDIC limits. Additionally, the bank has a 4 out of 5 star rating from Bauer Financial, an independent bank rating service.

However, the bank received a Consent Order from the FDIC as recently as May 2024. According to this Banking Dive article, the FDIC was concerned about the bank’s reliance on “non-core funding”, and expressed concerns about liquidity risk. 

How Do I Contact Forbright Bank?

You can contact Forbright Bank by telephone, email, or by visiting a branch in-person. If you require support for its Growth Savings Account, you can call 1-800-550-0159 during business hours (Mon. to Fri., 8 a.m.-8 p.m. EST). You can also email customersupport@forbrightbank.com. 

If you are an existing Forbright Bank branch customer, its Growth Savings Account is a solid choice as you can manage the account online and earn a high APY without having to deal with another bank. It’s 5.30% APY is one of the highest available, and there are no fees to worry about. 

That said, the FDIC has expressed concern (recently) about Forbright’s liquidity risk, which has to be a consideration when shopping around for a place to store your hard earned money. Other online banks have more to offer, so if you have any concerns surrounding risk, you’re better off looking elsewhere. 

Check out Forbright Bank here >>