Dedicated to Deposits: Deals, Data, and Discussion

Presidential Bank's Savings Account Rate Increase - 5.25%

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Presidential Bank (MD)
Update 8/29/09: Current rates: Premier Savings Account: 1.25% APY up to $35K, 0.75% APY over; Checking 1.00% APY up to $25K, 0.50% APY over.

Update 5/30/09: Current rates: Premier Savings Account: 1.75% APY up to $35K, 1.25% APY over; Checking PLUS Account: 1.50% APY up to $25K, 1% APY over.

Update 3/07/09: The current rates for the savings account are 2.60% APY up to $35K, 2.40% for over $35K.

Effective on October 23, Presidential Bank's Premier Savings Account rate will increase from 5.12% to 5.25% APY. The Internet Checking Plus remains the same at 4.50% APY. The last rate change at Presidential was on June 30th when the savings account rate was raised from 4.87% to 5.12% APY.

Presidential joins several other online banks with a competitive 5.25% APY. It's still far behind E-LOAN, but it keeps them in the game.

Note, the 5.25% APY only applies to balances up to $35K. Balances over $35K earn 3% APY. There's a $5K minimum to open. However, there's no longer a monthly fee if your balance falls below $5K.

A recent change at Presidential is the addition of an electronic funds transfer system where you can initiate ACH transfers to and from other banks. There's a good description of this service and ACH in general in their FAQ page. It's about time that Presidential added this service. However, it has too many limitations and fees (see update below). From the Presidential's description there's a $3.50 fee for a standard transfer out of your Presidential account to another bank. There's no fee for incoming transfers. In addition to fees, the standard transfers have a daily limit of $2K and a monthly limit of $5K. Standard transfers with a higher limit of $15K/day and $25K/month can be added (see above link for details). The speed of standard transfers also seems to be an issue. According to this FW thread standard transfers can take up to 6 days with 4 days in which the money isn't earning interest. The Premium transfers may be faster but these cost $7.50 per transfer for both ingoing and outgoing transfers.

Update 5/30/09: The fees and limitations have improved. According to Presidential's Funds Transfer Service Page: There is no charge for incoming or outgoing Standard transfers. Standard transfers have a daily limit of $15,000.00 and a monthly limit of $25,000.00.

For more info on the Premier Savings Account and the bank's high yield checking account, refer to this account comparison table.

Presidential Bank has been FDIC insured since 1985. It's rated as 4 out of 5 stars (sound) at Bankrate.com.

  Tags: Presidential Bank (MD)

Comments
5 Comments.
Comment #1 by Anonymous posted on
Anonymous
Their ACH transfers are painfully slow... so you can discount that out as a 'feature'

but kudos to them from the rate hike..

1
Comment #2 by Anonymous posted on
Anonymous
The savings account now has no minimum once opened. So you still need 5K to open the account, but then you can go to $1 (as I understand it) still earning full interest and paying no fees.

If anyone has any contrary info, please post it.

Thanks for a great info source -- this website that is.

1
Comment #3 by Anonymous posted on
Anonymous
I didn't feel comfortable with this company...i opened my account with eloan. had too many warnings that internet transactions are unsecured...almost like setting up you up for identity theft...just my opinion.

1
Comment #4 by Anonymous posted on
Anonymous
Their checking and savings accounts are great. The interest doesnt change often like the other banks. I have quite a few accounts with them and i am very pleased with their service. i highly recommend this bank.

1
Comment #5 by Alex (anonymous) posted on
Alex
They've just lowered their Savings to 4.9% APY and checking to 4.00% APY.

1