Updated November 17, 2015
If you’re looking for a savings account with a high promotional interest rate, the Palladian PrivateBank Savings Account might be the right choice for you.
About the Palladian PrivateBank Savings Account
The Palladian PrivateBank Savings Account is an online savings account that provides a promotional interest rate of 1.30% for 6 months, then a non-promotional variable APY on the entire account balance. It’s stated as 1.10% in the comparison table, but 0.90% in the fine print. Interest is compounded daily but credited to your account on a monthly basis. Account holders are limited to six withdrawals per month, which is standard for all savings accounts.
However, there are quite a few restrictions on the account. The account requires a $1,000 minimum initial deposit. You also must be a U.S. Citizen with a current U.S. address.
Deposits and Withdrawals
Deposits can be made through an internal transfer for existing account holders of the PrivateBank, an ACH debit from another financial institution, or a cashier’s check or personal check mailed to The PrivateBank. Initial account funding must be received within 10 days from the date of completing the application. Check deposits also have a 10-business day holding period.
Withdrawals are limited. Accounts holders can have a check sent to the address on file by calling customer service or sending a written request to the bank. Account holders can also call or write to initiate a transfer to a Palladian PrivateBank checking account. Withdrawal requests made within the first 90 days of account opening will be sent back to the originating account via ACH if they were initially funded by ACH.
Many other online banks offer much simpler ways to deposit and withdraw funds through mobile banking and online transfers.
How Does the APY Compare?
The promotional APY of 1.30% is one of the highest interest rates available in the market, even in comparison to other online savings accounts. As promotional interest rates can provide an even higher return, the Palladian PrivateBank Savings Account is a great way to earn interest for your savings.
The Application Process
If you’d like to apply, the application can be completed online. The account application does request information such as your Social Security number, driver’s license number with date of issue and date of expiration, and employment information to verify your identity. Some states do not have the date of issue printed on their licenses, but customer service can help you fill in the information if necessary. This process is a bit longer than other online savings accounts, but still doesn’t take too long to complete.
Beware of the Fine Print
The Palladian PrivateBank Savings Account does have a number of fees not seen in all online savings accounts. These fees include:
- A $25 fee for closing your account within 90 days of opening
- $10 per month fee for dropping below the minimum balance
- $10 per automatic transfer to cover an overdraft
- $35 per item for an NSF and Overdraft fee
- $10 per day for each day that your account is in overdraft
The closed account fee is uncommon among savings accounts. There are also online savings accounts available that do not charge for automatic transfers.
- 1.30% APY promotional rate for six months, which is high for online savings accounts
- The 1.10% or 0.90% APY variable interest rate after the promotional period is still competitive.
- No online withdrawal requests. Withdrawals must requested by phone or mail, and are only through check or transfer to PrivateBank checking account.
- A change your mind fee of $25 if you close your account within 90 days of opening
- Overdraft fees
- Minimum account balance fees
- Minimum deposit required to open account
- Hold of 10 business days on check deposits
- APY is variable and may change after account opening
Comparing the Palladian PrivateBank Savings Account
While the Palladian PrivateBank Savings Account does have competitive interest rates, there are other online savings accounts that offer high interest rates with less restrictions and fees. You can find a list of the best savings accounts here.
A High Interest Account with Restrictions
If you want to earn a high interest rate on funds you don’t need easy access to, the Palladian PrivateBank Savings Account might be a good fit for you.