Presidential Bank's Savings Account Rate Increase - 5.25%

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 Online Bank