Quontic Bank High Interest Checking Remains Competitive

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Availability: High Interest Checking, 1.25% APY up to $1 million.

Availability: Nationwide through online application.

While New York-based Quontic Bank lowered the rate on its High Interest Checking to 1.25% APY a few days ago, the $1 million qualifying balance cap is still in effect. Qualifying balances above $1 million do not earn any interest, with non-qualifying balances earning 0.01% APY.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.01%-$1mQuontic BankHigh Interest Checking
Rates as of October 30, 2020.

Added to the product line in September 2019, Quontic’s rewards checking account (RCA) was originally called Amplify Interest Checking and earned 2.00% APY on qualifying balances up $1 million. Earlier this year, Quontic’s RCA experienced three things changes: a new name (High Interest Checking), the ACH requirement was been eliminated, and a lower rate of 1.50% APY on qualifying balances up to $1 million.

The only qualification requirement to earn the stated APY is at least 15 qualifying POS debit card transactions per statement cycle.

The High Interest Checking account has no monthly maintenance fee, eStatements are free, and the minimum opening deposit is $100. While there is no reimbursement for ATM fees, High Interest Checking customers can avoid “foreign” ATM fees by using any of,

55,000+ AllPoint® Network ATMs, 28,000+ MoneyPass Network ATMs,
7,000 SUM® program ATMs, or nearly 700 Citibank® branch ATMs.

Initial funding of a new High Interest Checking account can be done “from an existing Quontic Bank account, from an account at another bank, by ACH transfer, or by mailing us a check.” Once a High Interest Checking account is established, additional deposits can be made “through remote check deposit via our convenient Mobile App, by setting up direct deposit from your work, by mailing a check, depositing money via ACH, or by wire.”

High Interest Checking vs Online Savings Accounts

Now that most online savings account rates have fallen well below 1%, this RCA has become a very competitive alternative, but I’m concerned that the rate and/or balance cap won’t last. The only way Quontic can afford to pay this rate is from the interchange revenue generated by the debit card purchases. But that revenue only goes so far.

Let's assume a customer has $500k in a High Interest Checking account. That would earn $6,250 of interest annually. In comparison, the same $500k in a Marcus by Goldman Sachs High-yield Online Savings (0.60% APY) would earn $3,000. It takes a lot of debit card purchases to pay for an extra $3,250 of interest. Let’s assume Quontic gets 1% of interchange revenue for each debit card purchase. A customer would have to spend $325,000 annually with their debit card to pay for the interest. All that being said, I don’t have high hopes that Quontic will be able to be maintained the rate and/or balance cap.

Availability

Headquartered in New York City, Quontic Bank offers its product line online to all U.S. citizens/residents aliens, 18 years or older, who have a valid Social Security number.

Opening a High Interest Checking account can be done online, supposedly in “3 minutes or less.”

According to Quontic’s COVID-19 Business Continuity Plan,

  • In accordance with suggested public safety guidelines, Quontic Bank’s branch located at 31-05 Broadway, Astoria, NY 11106, will be closed as of March 17th until further notice.
  • Customers that need to conduct banking transactions in person can do so on an appointment-only basis by contacting us by phone, email, or filling out the form below.
  • Daily ATM cash withdrawal limits have been temporarily raised to $1,000 for your convenience.

Bank Overview

Quontic Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 5.56% (excellent), based on June 30, 2020 data. In the past year, the Bank has increased its total non-brokered deposits by $129.33 million, an excellent annual growth rate of 49.26%. Please refer to our financial overview of Quontic Bank (FDIC Certificate # 57807) for more details.

Quontic Bank is a young bank, which will be celebrating its eleventh anniversary at the end of the year. In late 2009, Steven Schnall, a New York real estate developer, bought the Long Island-based Golden First Bank, which was in financial trouble after only four years of being established. Schnall recapitalized the bank, brought in a new management team, and rebranded the institution as Quontic Bank. Currently the 57th largest bank headquartered in New York state, Quontic Bank has assets in excess of $1 billion.

At Quontic’s root is “ontic,” meaning real or factual existence. The truth is that there is an extraordinary diversity of circumstances in the real and factual existence of our customers’ lives. We believe banking needs to be adaptive to those circumstances, so we ask the Qualitative and Quantitative questions that enable us to do so. Hence Quontic – an adaptive form of “ontic.” We like how it sounds and what it stands for.

How the High Interest Checking Compares

Since reward checking with maximum qualifying balances of $1 million and above are rare, I decided to include savings accounts in the comparison. Also, rather than making a comparison based on APYs/maximum qualifying balances, the following table uses the potential maximum earnings as a determinant. When compared to the High Yield Rewards Checking Accounts and Savings Accounts that are available nationwide, Quontic Bank’s High Interest Checking account offers the second greatest potential in annual earnings for a $1 million balance.

The above rates are accurate as of 9/14/2020.

To look for the best Reward Checking Account rates, both nationwide and state specific, please refer to our High Yield Reward Checking Account Rates Table page.

Related Pages: New York checking accounts, reward checking accounts, nationwide deals

Comments
P_D
  |     |   Comment #1
I'm not sure I would want to have an account at a bank with an "F" capitalization rating even without the POS debit card requirement... especially since this bank is in NYC which is currently boarded up and under siege with real estate defaults skyrocketing.
Mikey1
  |     |   Comment #2
I learned in a telephone conversation with Quontic that there is NO access on their end to initiate any ACH transaction for the first 90 days other than the initial funding. In other words, if you use their app there is no ability to add and use external banks for 3 months. Therefore, any debits other than via debit card usage or checks need to be initiated from the external bank. After the 90 days have passed the daily ACH limit to transfer out if initiated at Quontic is $7,500.
stevenschnall
  |     |   Comment #3
Hi P_D, I appreciate the observation, but please allow me to provide context. Quontic was one of the few community banks which stepped up in a meaningful way to help the smallest of small business owners with PPP loans to help them through COVID. We facilitated the funding of $800 million of such loans. These loans, while technically on our balance sheet, were pledged to the Fed and thus have zero impact on our capital ratios. It seems as though depositaccounts.com's algorithm does not account for that fact. When factoring out PPP loans, appropriately, we are extremely well capitalized with a near 10% tier 1 capital ratio. Moreover, our loan quality is extremely high. In fact, only 3% of our loans are in COVID related forbearance at this time. S. Schnall/Quontic Bank
111
  |     |   Comment #4
stevenschnall - Thanks for the comment. Since you're in the banking industry, do you have any idea whether the Bauer or the Weiss rating algorithms are programmed or configured in a similar way? (I don't believe they have released their 2nd quarter data yet, as has depositaccounts.com.) Going forward, it will be interesting to know whether some of the the "raters" have included a special cut-out for PPP loans and others have not, and the rationale used in each case.
alan1
  |     |   Comment #7
re Comment #4 -- Bauer's 2nd quarter ratings for banks have been available for quite a while; their 2nd quarter ratings for credit unions were released last week.

"Bank star ratings are based on 06/30/2020 financial data; credit union star ratings are based on 06/30/2020 financial data."
https://www.bauerfinancial.com/star-ratings/

And I join you in thanking stevenschnall for his comment.
P_D
  |     |   Comment #6
Thank you stevenschnall, excellent rebuttal which in the larger picture highlights the hazards of relying on publicly available information to make investment decisions. Public disclosure rules do not always equate to informed investment decisions.

Having worked in Manhattan for 15 years in finance, I am saddened to see what is happening there now. I wish you and your bank much success.
alan1
  |     |   Comment #8
re Comment t#6 - - I agree with thanking stevenschnall, but for rather different reasons. According to Comment #6, stevenschnall's comment "highlights the hazards of relying on publicly available information to make investment decisions."

I believe stevenschnall's comment highlights the importance "of relying on publicly available information to make investment decisions." The amount of a financial institution's PPP loans is important information, and it is available to the public. In fact, the information is available to the public precisely because of the "Public disclosure rules" which are denigrated in Comment #6.

I think the "hazards" in this case involve reliance on privately compiled letter (or numerical) grades, not on "publicly available information" as claimed in Comment #6. The publicly available information (which, in this case, is disclosed pursuant to governmental mandates) is not a "hazard." I find that information very useful. I find the privately compiled letter and numerical grades, based on non-public formulae, of much less value (and, in some cases, "hazardous") for my purposes as a CD investor.
P_D
  |     |   Comment #9
Wow alan1. I agree with you!

(Make a note of the date. The historical record must not be deprived!)
Choice
  |     |   Comment #10
Technically on the balance sheet, so the public should ignore them? Accountants must be wrong...got it. Q. What percentage of those PPP loans will not be forgiven and will not be repaid? Isn’t that really the question?  Or why the pledge...b/c of the capital position?
Reader1
  |     |   Comment #11
Choice, The PPP loans will be repaid either by the borrower OR by the SBA either as loan forgiveness or, in the case of default, under the SBA guarantee. So, technically, the bank's risk is minimal.
Choice
  |     |   Comment #12
15% skin in the game as I recall
#13 - This comment has been removed for violating our comment policy.
Choice
  |     |   Comment #16
PD... as I recall in your banking experience you never had occasion to look at the litigation log/summary while there...bet on it...banks will squeeze more if not prohibited by SBA
Reader1
  |     |   Comment #14
#12, No skin in the game. PPP loans are 100% guaranteed by the the SBA regardless of the amount. This was a temporary increase from the usual 85% for amounts up to $150K and 75% for amounts over $150K.
Choice
  |     |   Comment #15
Reader1. Are there the usual personal guarantees for normal SBA loans? Permitted or prohibited?
Choice
  |     |   Comment #17
I have found SBA guidance on “waiver” of the guarantee requirement, but no prohibition which would seemingly be a non-starter with 100% SBA guarantee to the FI
Reader1
  |     |   Comment #18
Choice, no personal guarantee or collateral was required for any PPP loan. The banks could not impose such a requirement. Furthermore, the banks were not allowed to charge any loan origination or processing fees to the borrowers and were compensated by the SBA at rates ranging from 5% to 1% depending on the loan amount. Additionally, agents such as lawyers and accountants could not charge fees to their clients for helping with their PPP loan applications and were directed to ask the lending institutions for a share of their compensation! Some larger banks did not pay and were sued by some agents.
Choice
  |     |   Comment #19
Excellent! Thank you very much!
Quontic Bank Offers Competitive CDs, Checking and Money Market
Deal Summary: 5-year CD, 1.65% APY; High Interest Checking, 1.50% APY up to $1 million; Money Market, 1.46% APY, $150k+, 1.36% APY, $5k-$150k

Availability: Nationwide through online application.

When I added New York-based Quontic Bank’s 5-year CD (1.65% APY) to yesterday’s CD Rates Summary, I decided an overview blog post would be appropriate. The three most competitive products currently offered by Quontic Bank are its High Interest Checking account, Personal Money Market account, and 5-year CD.

High Interest Checking

Added to the product line in September 2019, Quontic’s rewards checking account...

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Quontic Bank's Personal Money Market Has Competitive Rates
Availability: Personal Money Market, 2.20% APY ($100k+), 2.10% APY ($5k+), 1.85% APY (up to $5k), $500 minimum opening deposit.

Availability: Nationwide through online application.

For just over a year, New York-based Quontic Bank’s Personal Money Market rates have been very competitive. Rates started to fall in September, but the cuts have been smaller than most online savings and money market accounts. The Personal Money Market account is currently offering 2.20% APY on balances of $100k+. The other tiered APYs include 2.10% ($5k-$100k) and 1.85% (up to $5k).

...
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Quontic Bank's Amplify Interest Checking Earns 2.00% APY Up To $1M
Availability: Amplify Interest Checking, 2.00% APY up to $1 million when requirements are met.

Availability: Nationwide through online application.

New York-based Quontic Bank’s rewards checking account, Amplify Interest Checking, now earns 2.00% APY on qualifying balances up $1 million. Qualifying balances above $1 millon do not earn any interest, with non-qualifying balances earning 0.01% APY.

The Amplify Interest Checking account was unveiled in early February, with an intial 1.85% APY. The rate was increased to 2.00% APY about a week ago.

Qualification Requirements

  • At...
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Quontic Bank's 12-Month CD (2.85% APY) Available Nationwide
Availability: CDs – 12-month (2.85% APY), 24-month (2.90% APY), $1k minimum deposit

Availability: Nationwide through online application

As I noted in yesterday’s CD Rate Summary, rate cuts have been widespread, resulting in a reshuffling of the rate leaders. Topping the 1-year nationally available category is a name that may not be that familiar: Quontic Bank. Quontic has been offering the same rates on its 12-month CD (2.85% APY) and 24-month CD (2.90% APY) since the beginning of the year. Although remaining static, these rates have...

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Competitive CD Rates at Quontic Bank in New York - Local Only

Quontic Bank is offering several competitive mid-term and long-term CD and IRA CD rates. These include a 1.51% APY 2-year CD, a 1.76% APY 3-year CD, a 2.01% APY 4-year CD and a 2.27% APY 5-year CD. Minimum deposit is $1,000. These rates are listed in the bank's rate sheet as of 2/8/2012.

It's a small bank with two branches in Great Neck and Astoria, New York. It appears that a branch visit is required to open an account.

The bank has an overall health score at DepositAccounts.com of 5 stars (out...



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