4.00% Online Savings Account Guaranteed For 3 Months at 1st Constitution Direct
Update 3/27/10: They no longer list a 3-mo guaranteed rate. New customers now can qualify for the top rate of 1.50% APY. The standard rate for balances over $10K remains at 1.25% APY. For balances under $10K, the standard rate remains at 0.50% APY. Refer to the rate history at the bottom of the post.
1st Constitution Bank has an internet branch called 1st Constitution Direct with a promotion that beats the ones from HSBC and E-LOAN. It's called the Direct Super Savings Internet Special, and it's guaranteeing 4.00% APY for 3 months from the date of account opening. After the 3 months, the rate returns to the standard tiered rates (currently 3.25% APY for balances $10,000+ and 1.60% APY for balances under $10,000).
Below is a summary of this savings account and promotion based on the savings account overview page and my conversation with the bank's customer service representative (CSR):
- Available to people in any state (CSR)
- 4.00% APY applies for 3 months starting on date of account opening (overview)
- 4.00% APY applies to all balances even under $10K during the 3-month promo (CSR)
- After the promo, standard yield applies. Currently 3.25% APY ($10K+), 1.60% APY (under $10K)
- Minimum initial deposit of $100 (overview)
- No monthly service charges regardless of balance (overview)
- No checks or ATM card (CSR)
- Joint accounts are allowed (overview)
- POD beneficiaries are not allowed (CSR)
- Initial deposit done by ACH electronic funds transfer (FAQ)
- Two trial deposits and one debit are done as part of the account verification (FAQ)
- ACH electronic funds transfers are free (CSR)
- No limit on the number of links to external bank accounts (CSR)
- Additional links added by sending them instructions via their secure online mail (CSR)
- No limits to the number of ACH transfers except the 6 withdrawal limit that's required by law. (CSR)
- No limits to the amount of the ACH transfers (CSR)
- Credit pull is done in the application. CSR was not able to say if it's a hard or soft.
For those with less than $10,000, they also have the Direct Savings Account. This also has a 3-month promotional yield, but it's only 3.20% APY. After 3-months, the standard tiered rates apply (currently 3.05% APY for balances $3,000+ and 1.00% APY for balances under $3,000). Everything else seems to be the same as the Super Direct Savings Account.
Update 9/06/08: A reader mentioned that he received a 3-month extension on the this 4% promotion. If your promo period is coming to an end, you may want to ask for an extension.
1st Constitution has branches in several New Jersey cities. The bank has been FDIC insured since 1989 (FDIC Certificate # 27552). It has $475.3 million in assets and $378.8 million in deposits based on 3/31/08 data, and it has a 4 star rating (sound) at Bankrate based on 12/31/07 data.
Thanks to the reader who emailed me info on this special.
[Update 6/6/08: Added "4% for all balances" bullet in the list.]
Rate History:
03/27/10: new customer rate 1.50% APY, standard $10K+ 1.25%, standard under $10K 0.50%
02/04/10: 3mo promo 1.25% APY, standard $10K+ 1.25%, standard under $10K 0.50%
12/08/09: 3mo promo 1.50% APY, standard $10K+ 1.50% APY
11/12/09: 3mo promo 1.75% APY, standard $10K+ 1.75% APY, 1.30% APY under $10K
11/03/09: 3mo promo 2.00% APY, standard $10K+ 1.85% APY
09/23/09: 3mo promo 2.00% APY, standard $10K+ 1.95% APY
08/11/09: 3mo promo 2.05% APY, standard $10K+ 1.95% APY
08/05/09: 3mo promo 2.30% APY, standard $10K+ 2.25% APY
06/13/09: 3mo promo 2.50% APY, standard $10K+ 2.25% APY
04/28/09: 3mo promo 2.50% APY, standard $10K+ 2.05% APY
04/01/09: 3mo promo 2.75% APY, standard $10K+ 2.50% APY
03/18/09: 3mo promo 2.95% APY, standard $10K+ 2.50% APY
02/19/09: 3mo promo 3.00% APY
01/30/09: 3mo promo 3.50% APY
01/06/09: 3mo promo 3.75% APY
06/05/08: 3mo promo 4.00% APY, standard $10K+ 3.25% APY, 1.60% APY under $10K
I am surprised they would not allow a POD beneficiary, as you'd think they'd want as much money from a person as possible.
Without the POD beneficiary, I absolutely would not deposit more than $100,000.
The fall back rate of 3.25% is about what you'd get at WaMu.
Don't know if it is worth doing this for 3 months right now, as one can get 4% at Alliant CU.
Now, if Alliant lowers their rate, it might be worth the 3 months at 1st Constitution Direct.
Thanks
I noted this change in the post.
Is there a fee to close the account? anyone able to link countrywide saingslink acounts?
Re: Direct Super Savings Internet Special, and it's guaranteeing 4.00% APY for 3 months from the date of account opening
1)Any idea how long this 4.00% APY for 3 months promo will be available? 2)Is the 3months from date of online app or date of funding?
3)Any account opening or refer a ffriend bonuses?
4)Please email a link to the schedule of fees.
5)Is there a fee to close the account? 6)Can I fund & link countrywide savingslink acounts?
Re: Direct Super Savings Internet Special, and it's guaranteeing 4.00% APY for 3 months from the date of account opening
1)If my spouse & I open 3 Direct Super Savings Internet Specials 1 joint for $200000.00, 2 single $100000.00 , we'd be fully covered, except for accumulated by FDIC, correct
&
2)WOULD WE EARN THE 4.00% APY for THE 3 months promo PERIOD ON THE TOTAL $400000.00?
3) OR is there a cap on the balance that earns the 4.00% APY for THE 3 months promo?
Thx
Hopefully they will get there act together ... but so far im not impressed with there customer relationship skills
Does anyone know if they a hard or soft pull?
The only negative is that they pick your User Name for you (it is a numerical user ID), and they won't allow you to change your user name or pick your own easy-to-remember one.
I hate this!
The only way you can handle your account is via Online access, so your user name is very important. They should let you pick your own user name.
Their customer service is good. The account creation process is fine.
1- On 7/24 they debited my bank (1 day after request). On 8/3 the money will be available to me (10 days later).
2- On 7/30 they debited my bank (again, 1 day after transfer request). On 8/7 this money will be available to me (9 days later).
This is absurdly long! And even worse, it is possible I am earning no interest during these 10 day periods! If true, I will leave them. I will re-post once I hear back re this.
1- Accts are considered new for the first 30 days. ACH transfers for 'new' accts are available after 7 business days.
2- After 30 days, ACH transfers are available after 5 business days.
3- You do earn interest as soon as it hits your 'ledger', but the money is still not avail until the timeframes above.
Please note, they are quick to transfer out of your bank acct (1 day after request).
The first problem I had was with the disclosure statement, I was not able to click to accept it because I did not have the latest version of Adobe Reader. I hate Adobe, I don't use their products very often but when I need to I always seem to have an outdated version of their software that no longer works properly. I downloaded the latest bloated version of Adobe Reader and was then able to process the disclosure agreement.
A few days later I received an email with information to login to my account, when I tried to login I received the following message: "Unable to process request. Try again later". I called Customer Service, someone answered right away, she tried to help me while I was on the phone with her but was unable to find the problem. She said she would pass it on to the tech dept. The next day I received an email stating "In reference to your log in issue, please log in using a different computer. The computer you are currently trying to use may have software blocking the access". Since I only have one computer at home I figured I should try using a different browser instead of Internet Explorer 6.0, I dowloaded and installed Mozilla Firefox and was able to use it to login to my account. The problem must be with a setting in Internet Explorer, if anyone else had this problem and figured out how to resolve it please let me know.
Money movement is severely restricted.
Customer service is defensive and misleading.
AVOID 1ST CON!
After 3 months:
Balances of $9,999 or under earn 1.30% apy.
Balances $10,000 to $250,000 earn 1.75% apy.