Presidential matches and overtakes ED! 4.12%

Plexagon said: ramganesh said: my money is emigrating again!

To me, the restrictions that Presidential imposes aren't worth the extra percentage.

What restrictions are you talking about?

ramganesh said: there is a cap -
25K for checking
35K for savings.


If you are married... I was told by Presidential that you can open up two separate savings accounts. One account would have your name as the "primary"... the other account can have your spouse listed as the "primary". You can do this even if the account is "joint".

This should theoretically allow you to park up to 70k in savings there to get the 4.12%.

Does Presidential have free Push and Pull ACH service from this online saving account?

Yeah I can search FW for the answer or call Presidential, but I am being lazy today



jon

great rate, but the thing I didn't like about presidential was how I couldnt link it online to my BofA account which I already have set up to pay many of my online bills...

when I opened my account I thought Presidential was like ING and Emigrant where I could move money in and out of my BofA but they said I couldn't link it externally and could only move money from presidential savings to presidential checking, and for deposits and w/drawals w/o a presidential checking account into presidential savings they wanted me to snail mail them the check or snail mail the request to withdraw for free...

coupled w/ the lower percentage tier after $35K I don't really use presidential much other than parking money there up to the top tier limit...

Emigrant is getting most of my money since they work like ING (external linked accounts) but offer a higher interest rate..

link626 said: the 0.12% is not worth the trouble of getting a hard credit check, and going through their Terrorist screening process. (Yes, I am a terrorist. so....)

oh yeah, and the 35k cap too.

I agree, and the conveniences offered by Emigrant are worth 0.12% IMO.

agree w/greater restrictions, but to be precise, you are comparing apples and oranges--the checking, which matches, but does not exceed emigrant's rate, has a 1k min...but 25k cap...

actually my checking is WAY more convenient than emigrant and is at the same rate now. money goes in without me having to do anything. and i have far greater and instant access to that money through online billpay and check writing. i also never worry about interest rate at presidential. they have always done their customers right in that respect.

link626 said: the 0.12% is not worth the trouble of getting a hard credit check, and going through their Terrorist screening process. (Yes, I am a terrorist. so....)

oh yeah, and the 35k cap too.

Agree ... their screening process is not just illogically strict but plain stupid from a business sense ... I had to park a large sum of money from my real estate gains for a few months split among banks to keep under the FDIC limit ... ED, Wilmington and ING approved the accounts right away ... Presidential was the only ones to decline my account.

why dont people simply tell EMigrant to BEAT THEM!!!!!

qwe123 said: Emigrant is not idoit.

didYOUsearch said: why dont people simply tell EMigrant to BEAT THEM!!!!!huh? from many recent reports it seems Emigrant really listens to customer feedback

I could care less how flashy a bank website is. That being said...Citibank has a crappy setup to pay bills online etc.

You wonder when ED goes to 4.25%.....And I agree that Presidential is a pain and not worth the credit hit etc.

Rob

Do Paypal, USAA ACH count as Direct Deposit for Presidential?

c3 said (in part): The real value is Presidential's checking account. That has been my primary checking account for many years, and I'm nowhere near its branches. Once you have the checking account, the savings account allows you to keep more money there for instant transfers.

Please clarify. My understanding is that you can keep as much as you like in Premier Savings as long as you don't mind getting less interest for amounts over $35,000. Are you saying that if you have the checking account, the 4.12% will be paid on larger balances?

Is this the best savings rate anywhere? I expect it to be since it has a 5K minimum.

Is the 4.12% APY Presidential account worth it?(vs ED 4.0% APY)

Presidential(4.12% APY) has a cap of $35k for the high rate, so what is the difference in interest earned at Presidential(4.12% APY) vs ED(4% APY) for a year?

lets take a look....

$35,000 * .0400 = $1400 interest earned in a year at ED
$35,000 * .0412 = $1442 interest earned in a year at President - or does it?

Remember anything over $35,000 earns a lower rate. Your first interest payment would not earn the high rate because it is beyond the $35k limit.

So lets compute this a different way.

Assume you always want $35000(the max for 4.12% APY) in the account and you skim out the monthly interest payments(you loose the miracle of compunded interest that is used in determining APY) since they will not earn the higher rate because they take you over the limit.

APY assumes you Start with $XXX in the account and do not withdraw anything for the whole year You leave the interest payments in the account to earn interest the next month(again miracle of compounding interest).

We need to use 1/12 of the APR for our calculation (see APR vs APY article )
Presidential lists the account as 4.04%APR/4.12%APY - interest paid monthly

$35,000 * (.0404APR/12months) = $117.83/month
$117.83 * 12months = $1413.96/year

So what is the true difference of $35,000 with ED at 4.0% APY vs. $35,000 with Presidential at 4.12% APY for one year?

$1413.96 - $1400 = $13.96/year

To me, $13.96/year($1.16/month) is not worth all the hassle of opening a presidential account.

BTW, I assume you could take the monthly $117.83 interest from presidential and deposit it in ED and earn a little more, but I am too lazy to bother with those calculations.

expert5186 said: jensenjp said:
$35,000 * .0400 = $1400 interest earned in a year at ED
$35,000 * .0412 = $1442 interest earned in a year at President - or does it?

So what is the true difference of $35,000 with ED at 4.0% APY vs. $35,000 with Presidential at 4.12% APY for one year?

$1413.96 - $1400 = $13.96/year


There is a max difference of $42 a year between the 2 rates given $35k deposit with interest swept away or transferred to a presidential checking account each month. Your $13.96 amount assumes that interest will just sit there and bump the account over $35k. Also the #s are the theoretical maximums, most people on here won't have exactly $35k in the account. If they have more, ED is the way to go. If they have less, then it's likely presidential which has xfer capability to checking and one of the best bill payers.

Yes this math was assuming the maximum - as I used $35000.
I was only interested in opening a SAVINGS account.
I did note in the original post you could move the interest payments each month in to anouther account to earn interest, and that I was too lazy to do the math to see how much the interest payments depositied monthly elsewhere would be after a year.

The $42/year theoretical difference comes from computing the with APY(4.0% vs 4.12%) - not having interest swept away - read my post carefully. You can not earn the $42 difference with Presidential Savings because of the $35,000 limit on the 4.12%APY.

That is way I used the APR of 4.04%/12months - which is the true rate the bank uses to compute how much interest they owe you each month. 4.04%/12 = .0033666 or .33666% monthly percentage rate. I used this rate to compute the monthly interest payment on $35,000 and multiplied the monthly payment by 12 months.

A point for all the readers was watch out for account maximums/limits(such as presidential) and APY vs APR. When you are at the max of an account, you need to remember you can not earn the APY.

I also did the little math exercise to prove to my self that ~$14 a year difference(to ED 4.0% APY for the same $35000) is not worth the hassle of opening a presidential account(at least to me).

tooshy said: There is probably no point moving funds from ED to Presidential. ...
If you're going to keep more than 5K in savings anyway, then opening at Presidential rather than ED makes sense...For me, the reasoning behind having Emigrant Direct savings as well as both Presidential Checking and HYS account is twofold:

1. The $35k limit on the HYS highest tiered rate justifies having ED available for the overflow.
2. The ease with which I can transfer funds real-time between the two PB accounts justifies having both of them.

Add to this, that both FIs are extremely competitive rate-wise and it makes sense for me to have all three.

-z

zender said: tooshy said: There is probably no point moving funds from ED to Presidential. ...
If you're going to keep more than 5K in savings anyway, then opening at Presidential rather than ED makes sense...For me, the reasoning behind having Emigrant Direct savings as well as both Presidential Checking and HYS account is twofold:

1. The $35k limit on the HYS highest tiered rate justifies having ED available for the overflow.
2. The ease with which I can transfer funds real-time between the two PB accounts justifies having both of them.

Add to this, that both FIs are extremely competitive rate-wise and it makes sense for me to have all three.

-zI'm paying down free floats, so I'll have less than 35K in Presidential for some time. I don't know why but I'm less willing to ride free floats these days. And I hope I'll have the gumption one of these days to buy a commodity fund or gold with the liquid cash in Presidential or if not then buy CDs again should the yield curve return to normal. But I don't see a day where I would keep more than 35K in savings....am I missing something? Unless you trade in stocks

tooshy said: ...gumption one of these days to buy a commodity fund or gold with the liquid cash in Presidential or if not then buy CDs again should the yield curve return to normal. But I don't see a day where I would keep more than 35K in savings....am I missing something? Unless you trade in stocksInteresting, I'm looking into gold as an addition to my investments also. Trying to decide between actual bullion or a mutual fund investing in gold.

The extra cash is really a temporary thing, although it's been turning into something almost semi-permanent. I do trade, but have recently converted much to cash and am waiting to either get back into the securities market or to possibly buy additional real estate if I can ever find anything I like that is somewhat fairly valued.

-z