Presidential Bank Introduces Rate-Leading 7-Month CD Special


Deal Summary: 7-month CD Special, 5.75% APY, $1k minimum deposit, new money required.

Availability: Nationwide through online application.

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 According to CSR, the EWP for the 7-month CD Special is 90 days of interest on the amount being withdrawn, “whether or not such interest has actually been earned.”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.

Opening a 7-month CD Special can be done online or at any of the ten full-service branches located in the District of Columbia, northern Virginia (6), and Maryland (3).

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.

    Bank Overview

    Presidential Bank has an overall health grade of "B" at, 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 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.

    Related Pages: Washington CD rates, 1-year CD rates, nationwide deals

    Previous Comments
      |     |   Comment #1
    M & T Bank currently has an 8-month CD at 5.75%, the 15-month at 5.50%.
      |     |   Comment #2
    Yes, attractive short-term Certificates abound for right now.

    But with 10 year Treasuries presently just shy of the 5% threshold, it's a travesty how laggard long-term CD rates have been in reflecting this.  I suspect needy depositors are handing over their funds for much less than they should, and calculating FI's thereby getting away with murder.  As someone (Ken?) said here recently somewhere, under similar conditions some time ago, PenFed responded with 5 & 7 year CD's well over 6%.  And no, 111, it's not FI's worrying the current run-up in rates is just another Fed "head-fake", but rather greed manifesting itself under fundamentally changed conditions.
      |     |   Comment #3
    "greed manifesting itself under fundamentally changed conditions."

    I never understood this concept. If a bank can buy something for $1, how is it greed that they don't offer $2 for it instead? When was the last time you went to a store to buy something, walked up to the register and said "Hey I know this is selling for only $5 but I'm going to give you $10 because I'm not greedy?"
      |     |   Comment #5
    You're the same guy who groused about paying some skyrocketing price for a cereal box, but which other posters quickly provided evidence of being offered for half what you were paying at other outlets.

    Looks like you were that very contemptible shopper in your example.

    Apart from that, if you're an FI and have hugely hiked your loan rates but barely budged in your similar maturity deposit yields, I call it  "greed".  For you that's an admirable quality, but for me a failure of social responsibility tht makes civil society possible.
      |     |   Comment #4
    I've been buying CDs for many many years and before the fed started it's QE if the 10 year yield was at 5% you would be able to find 5 year CDs at a half point above the 10 year far the only place that I have found that offers that rate is Advancial credit union at 5.4% ..... so I don't think it's greed, I would look at the fed and the feds balance sheet instead.
      |     |   Comment #6
    gregk#2 it's nothing short of fear driving others into the fixed market and gregk are you blind or joking around all I see is inflationat every turn. I was just in Kroger today and noticed Oscar Mayer beef hotdogs were on sale 2 for $10 but the regular shelf price is now a hefty 8.99/pkg otherwise and dont even think of going to the deli ham is $13/lb same stuff just a short time ago was 8.99. I also did a pickup at Walfart I buy my mother these cheap sparkling flavored waters by equate(Walmarts house brand) for those that dont settle for anything other perrier or some other high and ****y's brand. Now yes eggs came down a bit to a 1.50ish/dozen but butter if not on sale has now plateaued at 4-5/lb I get 4 1lb for I think the last time at Sam's around $13 same butter I at least use to get at 1.99 or less. Now Ribsteaks or roasts are out of this world I wanna see at Holidays this year Market street for the last few years ran them at 4.88/lb if I went in tonight I couldn't touch anything that resembles a Rib steak for less than 12.99 or better and I'm in Texas we grow the **** things literally right in my backyard. I'm not gonna toot my horn cause I get pinched nice way of saying raped just like everyone else going through the check out line but I mentioned a few years back that this was something that no one that I believe is presently on D.A. has ever witnessed well to this fellow investor/reader the chickens are coming home to roost so like I did quote those years ago best be dusting off those wheelbarrows cause I believe that this is here to stay a while longer and with that hoohaw at the wheel of our printing presses it's like follow the leader we be in for a bumpy ride with those others raising rates while the others are throwing $$$ at every tom dick and harry with their hand out there is no end to the madness
      |     |   Comment #10
    What's your BP & Cholesterol Duck? You really do need to change your diet.
      |     |   Comment #7
    nice rate. still waiting for 7%. but while i'm biden my time, I think im gonna go with a 6% CD w/credit human.
      |     |   Comment #8
      |     |   Comment #9
    Sorry, not good enough.
    Need 7 1/4%.
    But I sure do hope that Credit Human 6% lasts into November...
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