Federal Funds Investment Program

Maryland Financial Bank (MFB) offers a fed funds investment option for our customers. Funds held in a demand deposit account over a targeted balance can be invested overnight. The interest rate of return is set daily and is competitive with other overnight investment options.

Demand Deposit Accounts

MFB offers a demand deposit account which can also serve as a conduit to our fed funds investment program. End of day balances over a pre-determined balance are swept into our Federal Funds Investment Program. There is a monthly charge for account maintenance and for our sweep program. Account charges can be offset, in full or in part, by earnings credits provided based upon DDA balances.

Certificates of Deposit

MFB, based upon the Bank’s funding needs, does offer Certificate of Deposit accounts. These time accounts can vary in term and interest rate. Terms may be as short as 30 day or a long as several years. Interest rates are set based upon market rates and the Bank’s ALM goals. Interest can be credited monthly or at maturity and can be paid by check or added to the account. Substantial interest penalties may be imposed for withdrawals made prior to maturity.

Funds Transfers

MFB has the capability to transfer funds electronically. Outgoing transfer requests are made the same business day if the requests are received by 5:00 pm. Incoming funds transfers are processed the same day the funds are received. There is a service charge for each transfer processed, incoming and outgoing. However, this service charge may be offset, in part or in full, based upon the earnings credit received on the customer’s DDA.