INTERNET ADVANTAGE SAVINGS ACCOUNTS
   
  FirstFedDirectsm’s Internet Advantage Savings Account is an interest bearing account which provides deposit and withdrawal flexibility. There is a minimum balance of $1,000 must be maintained in order to earn the Internet advantage Savings rate. Balances below the $1,000 minimum balance will earn interest at the then published Statement Savings Rate or service fee.
   
  Deposits
  There are no limitations on the dollar amount or numbers of deposits made to this account.
   
  Withdrawal/Transaction Limitations
  You many transfer funds from your linked FDIC-insured Checking Account (funding account) from your Internet Advantage Savings Account through FirstFedOnlinesm. Amounts withdrawn from an account will cease accruing interest on the business day of the withdrawal. Transfers are made through the Automatic Clearing House (ACH) and usually are processed in 2 to 4 business days. Transfers of funds are restricted to six per statement cycle.
   
  Interest
 

The interest rate and annual percentage yield are determined by the Bank’s Management and compounded daily on a 365/365 (366/366 leap year) basis. Check deposits will begin to accrue interest on the next business day. Interest is normally paid on a monthly basis.

This is a variable interest rate account; as such, the rate is subject to change daily, without notice, at the discretion of the Bank's Management.
   
  CERTIFICATE OF DEPOSIT ACCOUNTS
   
  A FirstFedDirectsm Certificate of Deposit is a fixed rate account with terms ranging from 3 months to 1 year. Interest rates are tiered, determined at the time of account opening and fixed for the term of the certificate. Opening deposit of at least $10,000 must be new funds, not transferred from other First Federal Bank of California accounts. Maximum per household aggregate of $1 million for all new CDs opened. No institutional/corporate funds accepted. The Annual Percentage Yield (APY) is fixed for the length of the term of the account.
   
  Interest
 

The interest rate and annual percentage yield on these accounts are fixed and will be paid until maturity. The daily balance method is used to calculate the interest on these accounts. This method applies a daily periodic rate to the principal in the account each day. Interest begins to accrue on the first business day your deposit is posted to your account and will be paid at least quarterly, or at maturity, whichever occurs first. If interest is credited to the account, it will compound quarterly. A withdrawal of principal will reduce earnings.

Interest can be paid directly to the account, sent to you monthly or quarterly in a check, or transferred to another account. If you choose to have interest paid at maturity, interest does not compound and the account will earn simple interest.
   
  Maturity
 

For accounts with terms longer than 59 days, a notice will be mailed approximately 30 days prior to the maturity date. There is a seven day grace period, which begins the day following the maturity date, where funds can be transferred to another account or withdrawn. Interest accrues during the grace period at the current rate for a similar term.

For accounts with terms 59 days or less, there is no grace period and the account automatically renews on the day after the maturity date.
   
  Automatic Renewal
  This account shall be automatically renewed for the minimum renewal term for this type of account following the initial maturity date or the maturity of any renewal term. The account will be automatically renewed unless (1) the balance is withdrawn on the day after a maturity date, or the balance is withdrawn within the seven day grace period; or (2) at least fifteen days prior to any maturity date, the Bank gives written notice to the accountholder that this account will not be renewed. In such latter event, upon maturity the account will either be extended for such additional term and at such rate of interest stated in the notice, or the account will be converted to a regular savings account and receive interest at the rate then paid on regular savings accounts.
   
  Deposit/Withdrawals
 

Withdrawals or deposits are not permitted during the term. There are no restrictions to the number of deposit or withdrawal transactions permitted during the seven day grace period following the maturity date.

Upon maturity (the day after the maturity date) you may request a withdrawal or closure of the account by calling a FirstFedDirectsm Associate at (888) 838-5460 or by sending a written request to:
   
 

First Federal Bank of California
Fulfillment Services
P.O. Box 471
Santa Monica, CA 90406-9960
   
  The withdrawn funds will be transferred electronically by ACH back to the original funding account or another account in a financial institution in your name. You may not withdraw funds by any other means. Amounts withdrawn from an account will be deducted from the account balance and cease accruing interest on the business day of the withdrawal. The funds will generally be available in your other account within 2 to 3 business days.
   
  Early Withdrawal Penalty
 

In the event of any withdrawal of principal from this account prior to any maturity date, the early withdrawal penalty is as follows: (1) if the term is 90-364 days, 90 days interest at the account rate, whether earned or not, on the amount withdrawn; (2) if the term is one year or greater, 180 days interest at the account rate, whether earned or not, on the amount withdrawn.

Any withdrawals which reduce the account balance below the $10,000 minimum balance requirement, or any change in term or rate of interest, will be considered a withdrawal of the entire account balance and shall be subject to the early withdrawal penalty.

Early withdrawal penalties shall be deducted from the amount withdrawn or the remaining account balance.

This penalty will not be imposed for a withdrawal of principal following the death or adjudication of incompetence of any accountholder, or if an accountholder is disabled (as defined by relevant law).

Interest credited may be withdrawn at any time without penalty; however, for any renewal term, interest in the account at the commencement of such renewal term shall be deemed to be principal and only interest for the renewal term may be withdrawn without penalty. If the account or any portion of the account is withdrawn within 7 days of the maturity date, interest shall be paid at the established rate of interest to the date of withdrawal without penalty.
   
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