Maryland-based Presidential Bank was one of the first banks I ever wrote about. Not to date myself, but that was more than 13 years ago. Following the financial crisis, Presidential Bank hasn’t offered much in the way of outstanding rates, but seems to be making a comeback as an internet bank. That being said, none of products mentioned in this blog post currently have great rates, but given the recent increases in their APYs, they bear watching.
Money Market Plus Checking
The Money Market Plus Checking (MMPC) is a tiered-APY account, which earns 2.00% APY on balances between $100k and $250k. Balances above $250k earn 1.00% APY, with balances below $100k earning 0.25% APY.
Money Market Plus Checking accounts have an average daily balance requirement of $100,000.00 to earn the highest rate. Accounts that do not meet this balance requirement will earn a lower rate as disclosed on the Rates Schedule.
The MMPC requires a minimum $100k opening deposit. To avoid the $5 monthly service charge, a minimum $25k balance must be maintained. There is a limit of one MMPC per Tax ID number. As the name indicates there is checking writing available (standard six per month) and checks are supplied free of charge.
Presidential Bank’s Checkless Checking is a rewards checking account (RCA) that has no checks: all transactions are electronic. Qualifying balances up to $25k earn 1.75% APY, with qualifying balances above $25k earning 0.75% APY. The 1.75% APY is low for an RCA, but the 0.75% APY rate is higher than most RCA second-tier APYs.
|2.25*%||-||$25k||Presidential Bank (MD)||Checkless Checking|
|OTHER TIERS: 1.25% → $25k+|
- Minimum $500 direct deposit
- At least seven electronic withdrawals per month, including ATM, POS, ACH, and bill payments
The Checkless Checking requires a minimum $500 opening deposit and a $500 minimum balances to avoid the $5 monthly service charge.
The majority of Presidential Bank’s CD rates are not that impressive, but the 1-, 2-, 3-, and 5-year CDs have each gained 50 bps since May. The minimum opening deposit is $1k, with no stated balance cap.
As stated in the fine print on the CD page, the Early Withdrawal Penalty for the 5-year CD is 24-months interest on the amount withdrawn.
Opening a New Account
Accounts can be opened as individual, joint, custodial, or trust accounts. As stated on the online application,
By choosing "eCheck", when completing the new account application, Presidential will draft a physical check to transfer funds from another bank account in your name at any other bank, anywhere in the United States, to make your initial deposit. eChecks can only be used to draft funds from a checking account.
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.
Headquartered in Bethesda, Maryland, Presidential Bank was the first U.S. bank to offer its bank accounts via the internet (1995). Accounts can be opened U.S. citizens and resident aliens who have a valid Social Security number.
In addition to applying online, accounts can also be opened by snail mail. The internet application is available as a fillable PDF, which can be printed after completion and returned with the initial deposit.
Presidential Bank also has nine brick-and-mortar branches located in the District of Columbia, northern Virginia (6), and Maryland (2).
Presidential Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 9.82% (above average) based on June 30, 2018 data. The Bank has an excellent annual capitalization level (12.04%), the result of holding $528.08 million in assets with $63.58 million equity. Please refer to our financial overview of Presidential Bank (FDIC Certificate # 32363) for more details.
Presidential Bank was established in 1985 as the Presidential Savings Association by the founder of GIT Investment Funds of Arlington Virginia. 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 16th largest bank headquartered in Maryland, with assets in excess of $528 million.
How the Money Market Plus Checking Compares
When compared to the Money Market accounts tracked by DepositAccounts.com that are available nationwide, Presidential Bank’s Money Market Plus Checking APY currently ranks eighth, regardless of minimum balance requirement.
Looking for the best MMA rates, either nationwide or in your state? Please refer to our Money Market Accounts rates table page.
How the CD Compares
When compared to 182 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Presidential Bank’s 5-years CD Special APY currently ranks tenth.
The above rates are accurate as of 11/19/2018.
To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.