That last time I wrote about a CD offered by Maryland-based Presidential Bank was five years ago, when the bank began offering accounts on a nationwide basis. Since that time, Presidential Bank’s CD rates haven’t merited a blog post, but that changed this week with the addition of a 7-month CD Special. Earning a rate-leading 5.75% APY, the 7-month CD Special requires a $1k minimum opening deposit of new money, which is defined as “funds not currently held by Presidential Bank and must be from an external source of funds.”
Early Withdrawal Penalty
The 7-month CD Special is not included in the Early Withdrawal Penalty (EWP) table on the Account Portfolio page. According to CSR, the EWP for the 7-month CD Special is 90 days of interest on the amount being withdrawn, “whether or not such interest has actually been earned.” In other words, the principal will be reduced if a withdrawal is made within 90 days of account opening.
Availability and Account Opening
Headquartered in Bethesda, Maryland, Presidential Bank has a brick-and-mortar presence in Maryland, Virginia, and the District of Columbia, but offers its product line to all U.S. citizens/resident aliens (18 years or older) who have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) through an online application.
The account application is also 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 said irony is dead?), it cannot be submitted online.
Please complete the 4 page form below and follow the instructions for each section. Mail this form, along with your initial deposit, to the above address. Your email address is required for all Internet Account Applications.
Funding and Other Details
The following information is from the Presidential Bank website and a conversation with CSR.
- Funding* – Wire or check.
- Ownership – Individual, joint, or trust.
- Interest – Compounded daily/credited at maturity for CDs with a term of less than one year.
- Maturing Funds – Wire, check, or internal transfer. “Presidential requires a written request to close your CD. Please visit a branch or mail your request to include specific mailing or wire instructions and your signature”
- Beneficiaries – Unlimited with equal shares, and Social Security numbers are required.
- Grace Period – 7 calendar days before automatic renewal as a 6-month CD.
- Credit Check – ChexSystems.
*As stated in the CD FAQs
How do I make my opening deposit to my account opened via the Internet?
- By mailing us a check (please make the check payable to yourself, and write on the back of the check "For Deposit Only").
- By transferring money from an account at another bank via wire transfer. Note: Your bank may charge you a fee for this transaction. Prior approval by Presidential is required.
Presidential Bank has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 8.22% (excellent) based on June 30, 2023 data. In the past year, Presidential Bank’s total non-brokered deposits have decreased by -$118.13 million, a poor annual growth rate of -15.52%. 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 18 years ago. As the first U.S. bank to offer its bank accounts via the internet (1995), Presidential Bank is also one of the first banks in the U.S. to offer online account statements and real-time PC banking services.
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 $846 million and more than 14,500 customer accounts.
How the 7-Month CD Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and have minimum deposit requirements of $10k or less, no bank or credit union has a higher rate than currently offered on the Presidential Bank 7-Month CD Special. The following table compares the 7-Month CD Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 10/21/2023.
To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.