Many reward checking accounts (RCAs) haven't been keeping up with the rising rates. Consequently, their rate advantage over online savings accounts have waned. The RCA from Maryland-based Presidential Bank, called Advantage Checking, is one that has been keeping up with the rising rates.
In mid-2020, Presidential Bank replaced its RCA, Checkless Checking, with the Advantage Checking account. While keeping much of the Checkless Checking structure, the new Advantage Checking offered higher APYs. The Advantage Checking initial 2.25% APY on qualifying balances between $500 and $25k remained in effect until two months ago when it was raised to 3.00% APY. An additional 75 bps were added last week, giving the Advantage Checking the second-highest APY available on all nationally available RCAs.
|3.75*%||$500||$25k||Presidential Bank (MD)||Advantage Checking|
|OTHER TIERS: 3.00% → $25k+|
What makes the Advantage Checking truly unique is its newly improved and very competitive second tier APY: 3.00% on all qualifying balances above $25k. When compared to online savings account rates, the 3.00% APY compares well. Non-qualifying balances earn 0.10% APY.
Monthly Qualifying Requirements
There are only two monthly qualifying requirements, and both are waived for the first month the account is open.
- Minimum $500 direct deposit
- At least seven electronic withdrawals per month, including ATM, POS, ACH, and bill payments
The Advantage Checking account can be opened with a minimum $500 deposit, and the $5 monthly service charge can be avoided by maintaining a $500 minimum balance. There is no charge for the first three checks written per month, but there is a $3 charge for each check thereafter. The first check order is provided at no cost. A free Visa® Debit Card with the CardValet app with be issued after a completed signature card is received by snail-mail. Nationwide ATM fees will be reimbursed up to $8 per month, if qualifying requirements are met. Presidential participates in the Allpoint® and STARsf® Surcharge-Free ATM Networks.
Opening a New Account
Accounts can be opened as individual, joint, custodial, or trust accounts (with or without EIN). As stated on the online application,
By choosing "ACH," when completing the new account application, Presidential will electronically debit funds from another bank account in your name at any other bank, anywhere in the United States, to make your initial deposit. The debit account must allow electronic debits and must be a checking or savings account
New Account funding via ACH is FREE. Begin earning interest the same day your account is opened. ACH deposits received by 12:00 noon ET on a business day are credited on the same day. Use ACH to start earning interest FASTER!
Online applicants may also elect to mail in their initial deposit with the signature card printed out after the online application is submitted. However, no interest is earned until the initial deposit is received.
New accounts can also be funded from a current Presidential account.
Thanks to DA reader, vlad, for the Forum post about the Advantage Checking account.
Headquartered in Bethesda, Maryland, Presidential Bank was the first U.S. bank to offer its bank accounts via the internet (1995). Two years later, Presidential was one of the first banks to offer online account statements, followed by real-time PC banking services. Presidential offers its Advantage Checking accounts to U.S. citizens and resident aliens who have a valid Social Security number.
An Advantage Checking account can be opened online or by snail mail. The application is available as a fillable PDF, which can be printed after completion and returned with the initial deposit by snail-mail. Even though this hard-copy form is titled “Internet Account Application” (who ever said irony is dead?), it cannot be submitted online.
Accounts may also be opened by mail. Simply click "Apply via mail" below, print out and complete the new account application, and mail it in with your initial deposit.
New accounts may also be funded from a current Presidential account.
You can enter the information online before printing the form for convenience (there is no security risk in doing this, and you cannot submit this form online).
If you prefer a brick-and-mortar experience, Presidential Bank also has ten full-service branches located in the District of Columbia, northern Virginia (6), and Maryland (30).
Presidential Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.33% (excellent) based on June 30, 2022 data. Presidential Bank has an excellent capitalization level (11.22%), the result of holding $867.94 million in assets with $97.39 in equity. Please refer to our financial overview of Presidential Bank (FDIC Certificate # 32363) for more details.
Presidential Bank is one of the first banks I ever wrote about, some 17 years ago. Established in 1985 by the founder of GIT Investment Funds of Arlington Virginia, the Bank was originally known as the Presidential Savings Association. Presidential’s growth was jump-started from 1992 to 1997 by “purchasing performing loans acquired from failed commercial banks and thrifts.” The 2008 mortgage crisis provided Presidential the “opportunity to more than double the size of its mortgage lending group.” Presidential Bank is currently the twelfth largest bank headquartered in Maryland, with deposits in excess of $761 million and more than 14,500 customer accounts.
How the Advantage Checking Compares
Rather than comparing APYs, I’ve chosen to compare potential annual earnings on a $50k deposit. When compared to the nationally available High Yield Rewards Checking Accounts tracked by DepositAccounts.com, Presidential Bank’s Advantage Checking currently offers the highest potential annual earnings.
|Annual Earnings||APYs||Account Name||Credit Union/Bank|
|$1,687||3.75%/3.00%||Advantage Checking ($25k max)||Presidential Bank|
|$1,500||3.00%/0.00%||Momentum Checking with Rewards ($50k max)||Oklahoma Central Credit Union|
|$830||4.00%/0.10%||High Interest Checking ($20k max)||Elements Financial|
|$815||4.00%/0.05%||High Yield Checking ($20k max)||Ideal Credit Union|
The above rates are accurate as of 11/1/2022.
To search for the best Reward Checking Account rates, both nationwide and state specific, please refer to our High Yield Reward Checking Account Rates Table page.