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Reviews, Small Business

Swift Capital Small Business Loan Review

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Swift Capital Small Business Loan Review

Swift Capital offers small businesses a simple and affordable way to borrow money quickly. It can wire $5,000 to $10,000 to a small business account within an hour. And it’ll lend up to $500,000 within 1 business days.

Swift Capital takes into account business cash flow to review applicants instead of relying solely on credit history to make a decision. If your business is in need of extra funds fast this is an option to consider because of the flexible eligibility requirements and easy application process. Here we’ll dive into the details of this loan and compare it to two other small business loan products.

Swift Capital Business Funding at a Glance

To qualify for Swift Capital you must have at least a 500 credit score. In addition, your business must be at least a year old with a minimum of $100,000 in annual revenue. According to Swift Capital, 4 out of 5 applicants are approved for funding so you have a good chance of borrowing money if you meet the basic requirements.

Loan terms are available for 3 to 12 months. Rates at Swift Capital start at 9.90% and are charged as a one-time fixed fee and applied to the funding advance. The lowest rate is only offered to businesses with superior credit. Once the loan is funded, payments are taken from your business checking account daily. Some businesses may qualify for a weekly payment plan. You can speak with an agent during the application process to discuss your payment options.

Swift Capital funding is backed by a Best Price Guarantee. If you receive a better offer with comparable terms from another lender before the loan is funded, Swift Capital will beat the other offer or pay you $500.

Fees and Gotchas

There’s no loan application fee, but there’s an origination fee of 2.5% that’s deducted from the loan amount before it’s deposited into your account. You won’t be penalized with a fee if you prepay the loan. However, Swift Capital also charges a minimum 9.9% premium fee upfront. So, prepaying the loan early may not negate the interest accruing during the loan.

Swift Capital promises access to $10,000 within an hour, but that’s after you turn in all of your paperwork including bank statements. Make sure you get your information in fast if you need money right away. The application process requires a hard pull. Consider how that will impact your credit score before requesting a quote.

Pros and Cons

So what are the pros and cons of Swift Capital funding?

If your business brings in steady income you can qualify even with a below average credit score. And as mentioned you can get both a small and large sum of money within a few days.

Payments are drafted from your business account each day, which is good for business cash flow according to Swift Capital. And although Swift Capital charges a closing fee of 2.5%, its fees are less than some of the other business loans on the market (we’ll discuss that later in this post).

The main downside of Swift Capital is its rate structure. There is an origination fee. While it’s great there isn’t a pre-payment penalty, you still get hit with a fee. And although the starting rate (9.9%) is reasonable, it’s quite possible that your rate will be much higher than that if you only meet the minimum eligibility requirements.

Swift Capital

Alternatives to Swift Capital Funding

Swift Capital funding has comparable terms to other small business loan products offered by Accion and LendingClub. But overall Swift Capital may charge you less in fees and offer quicker access to cash.

Accion will offer existing businesses between $500 and $50,000. Interest rates start at 8.99% with loan terms available from 6 to 60 months. Closing costs are between 3% to 5%. There’s also a $135 processing fee.

To qualify for an Accion loan you must have a credit score of 525 or above and have enough cash flow to make payments. Once you apply for an Accion loan you’ll receive a call to move forward with the application in 2 to 3 days. So you’ll likely get faster cash if you borrow from Swift Capital.

Accion

Lending Club offers rates as low as 5.9% on its business loans if you have excellent credit. You can borrow up to $300,000 for 1 to 5 years. The origination fee is 0.99% to 6.99%. Like Swift Capital your money from Lending Club can be deposited into your bank within a few days. In order to qualify for Lending Club your business must be at least two years old and have annual sales above $75,000.

Lending Club

Who Will Benefit Most from a Swift Capital Loan?

You’ll benefit from Swift Capital if you’re running a new business and you need a small amount of cash quickly. If your business is more mature, you have higher monthly sales and excellent credit, Lending Club is worth checking out or a variety of other loan providers.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor at taylor@magnifymoney.com

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Reviews

PNC Bank Reviews: Checking, Savings, CD, Money Market, and IRA Rates

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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PNC Bank is one of the oldest and largest banks in the country, founded shortly after the American Revolution. Although it is based out of Pittsburgh and its 2,600 branches are mostly located across the Eastern U.S., that doesn’t mean you’re out of luck if you’re in the western U.S.

PNC Bank offers a robust online banking platform with plenty of helpful features. But is it the right bank for you? How do its rates compare with those of other banks? Let’s walk you through the different types of PNC Bank account offerings.

It’s important to note that PNC Bank charges different rates across the country. To keep things consistent for comparison purposes, we’ll present you with the rates closest to their headquarters in Pittsburgh using the ZIP code 15222. To see rates for your local area, click here.

PNC Bank’s Virtual Wallet®

Wouldn’t it be great if you could get a super-easy holistic account package when you decide to switch banks? That’s what PNC Bank aims to offer with its Virtual Wallet® kit. It’s a complete set of accounts for everything you need to do, including:

  • Spend : An everyday checking account.
  • Reserve : A savings account for short-term goals, like a vacation or Christmas gifts.
  • Growth : A savings account for long-term goals, like a down payment on a house.

Virtual Wallet® accounts also come with different tiers of interest rates, depending on whether you meet certain qualifications. We’ll do a deeper dive on that later.

What’s really neat about PNC Bank’s Virtual Wallet® is that it comes with all sorts of tools to help you manage your money better. Within the checking account, you can take advantage of the following tools:

  • Calendar : Allows you to see scheduled bills and amounts due.
  • Online bill pay : Will pay your bills for you automatically on their due dates.
  • Danger Day : Shows you when you might run out of money for the month.
  • Spending Zone : Allows you to set up and track your spending in a budget.
  • Money Bar : Shows you how your money is divvied up: savings, scheduled for bills, or free to spend.

The Virtual Wallet® even makes it easier to save in Reserve and Growth savings accounts with the following features:

  • Punch The Pig : Gamifies your savings when you hit a pig icon to transfer money to your Growth account.
  • Wish List : Allows you to set up and track individual savings goals separately from each other.
  • Early closure fee: $25 if you close the account within 180 days of opening.
  • Savings Engine : Automatically puts money into savings when you’re paid, or if you pay a bill.

PNC Checking Accounts

PNC Bank’s checking accounts are, overall, pretty lackluster. The only advantage of using them is that you get access to the Virtual Wallet® account package, which actually does offer some nice money management tools. But you can still get access to budgeting tools and savings apps elsewhere that can do all the same jobs as the Virtual Wallet®.

The rewards structure for these checking accounts is confusing. There’s no way to know whether you’ll earn good rewards, since you have to log into a portal and manually activate them ahead of time. Furthermore, once you do earn those rewards points, you have to redeem them through another portal. Some checking accounts do come with discounts, but they’re mostly on more obscure banking products you probably aren’t going to use much anyway, like cashier’s checks or safety deposit boxes.

These accounts carry a lot of red tape and fees. They also don’t pay much interest, if any. If earning the highest interest rates possible (with the least amount of fine print and fees) is your goal, there are much better checking accounts elsewhere.

Read on to find out more about all of PNC’s checking account offerings:

Checking accounts with Virtual Wallet®

Virtual Wallet® Basic

A basic account for lower-income earners who want to use Virtual Wallet® features to manage their money.

If you’re looking to take advantage of PNC Bank’s Virtual Wallet® account package but don’t earn a huge income, this basic account is where you’ll want to start.

Just beware of fees; there are plenty that come with this product, including the following:

  • Minimum opening deposit : $25
  • Interest rate : The Spend account does not earn interest. The Reserve and Growth accounts earn 0.01% APY. If you meet qualifications (such as making at least five debit transactions per month from your Spend account), you can earn up to 0.10% APY with your Growth account.
  • Monthly account maintenance fee : $7
  • How to waive the account maintenance fee :
    1. Keep at least $500 in your Spend and/or Reserve accounts
    2. Have at least $500 direct-deposited into your Spend account
    3. Be 62 or older
    4. Provide proof of active enrollment in a qualifying education institution (expires six years after the account is enrolled in the student banking program).
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC ATMS.
  • ATM fee refunds:None.
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5. They will not charge you if you set up Overdraft Protection Transfer from your Reserve or Grow accounts.
  • Early closure fee : $25 if you close the account within 180 days of opening.

This checking account does come with a rewards program, but we’ll be honest: it is confusing.

To earn rewards points, you’ll need to log into the PNC Bank Rewards Portal to see and manually activate customized offers just for you, based on your spending history.

You can redeem your rewards through the online rewards catalog or receive cash back directly into your account. If you link up a PNC Points Visa credit card with your account, you can also earn 25 percent more rewards points for your purchases.

Because of the complexity of assessing the value of the rewards program before you sign up, we think that this is a nice bonus feature but not one you should base your decision on. If you’re looking for cashback rewards, there are many better, more transparent options for you.

If you decide to open a basic Virtual Wallet® account with PNC Bank, the process is relatively straightforward.

You can do it online, over the phone, or in a local branch if one is nearby. Simply provide some basic information (name, address, Social Security number and the like), have a government-issued photo ID ready, and a way to make an opening deposit with your existing bank’s routing and account numbers, or with a debit or credit card.


Virtual Wallet® with Performance Spend

A low-interest-earning account for those who earn a higher income and want to use the Virtual Wallet® package.

The Virtual Wallet® with Performance Spend works exactly like the basic Virtual Wallet® accounts, albeit with some extra threshold levels for higher rewards.

  • Minimum opening deposit : $25
  • Interest rate : 0.01% APY on balances over $2,000 for your Spend account or $1 for your Reserve account. Up to 0.35% APY on balances on your Growth account if you meet certain qualifications (such as making at least five debit purchases per month).
  • Monthly account maintenance fee : $15
  • How to waive the account maintenance fee :
    1. Keep at least $2,000 in your Spend and/or Reserve accounts
    2. Have at least $15,000 in another PNC Bank account or loan
    3. Have at least $2,000 direct-deposited into your Spend account each month ($1,000 for military members).
  • ATM fees : No charge at PNC Bank ATMs. It’s $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : Two refunds per statement. However, ATM surcharges from the originating financial institution ATMs may not be refunded.
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5. You won’t be charged if you set up Overdraft Protection Transfer from your Reserve or Grow accounts.
  • Early closure fee : $25 if you close the account within 180 days of opening.

The rewards program is structured the same way as with the basic Virtual Wallet package. You’ll need to log into a portal to view and activate different rewards offers for purchases you make. When you’ve accumulated enough rewards, you can redeem them for an unknown amount of cash back or other rewards.

The Performance Spend also adds in a few extra rewards: You get up to two ATM fee refunds per month. You’ll also get discounts on check designs, an annual safe deposit box rental,`free cashier’s checks, and higher rates on certain CDs and IRA CDs You do have the potential to earn slightly higher (but still paltry) interest rates on your savings accounts.


Virtual Wallet® with Performance Select

A low-interest-earning account for high earners who want to take advantage of Virtual Wallet® features.

This Virtual Wallet® package is built to be used by high-income earners. After all, you do not want to be paying a $25 monthly account fee, especially when you can get a much better rates at another bank.

  • Minimum opening deposit : $25
  • Interest rate : 0.01% APY on balances over $2,000 for your Spend account or $1 for your Reserve account. Up to 1.00% APY on balances over $1 on your Growth account if you meet certain qualifications (such as making at least five debit purchases per month).
  • Monthly account maintenance fee : $25
  • How to waive the account maintenance fee :
    1. Keep at least $5,000 in your Spend and/or Reserve accounts
    2. Have at least $25,000 in another PNC Bank account or loan
    3. Have at least $5,000 direct-deposited into your account each month.
  • ATM fees : None for PNC Bank ATMS and non-PNC Bank ATMS.
  • ATM fee refunds : Up to $10 per month in non-PNC Bank surcharges (i.e., the fees the ATM owner tacks on).
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5. They will not charge you if you set up Overdraft Protection Transfer from your Reserve or Growth accounts.
  • Early closure fee : $25 if you close the account within 180 days of opening.

The Performance Select package comes with added bonus perks. In addition to all the perks from the Performance Spending package, you also will have fees waived for more obscure services, such as Stop Payment and ATM statements. You’ll also be eligible for savings on home equity lines of credit and personal lines of credit, and up to $10,000 in identity theft protection reimbursement.

Overall, though, we’re left feeling underwhelmed by the bonus perks that this account offers for all of the requirements.

Bonus: New checking account offer

PNC Bank is currently offering sign-up bonuses with the Virtual Wallet® account package. If you open a new account and meet the requirements, you could be eligible for a lucrative sign-up bonus.

The bonus amount and the requirements depend on which account tier you open.

For a basic-level Virtual Wallet account, you’ll need to set up at least $500 of direct deposits into the account and make at least 10 purchases with your debit card. If you do those things, you’ll earn a $50 sign-up bonus.

The next level up is the Performance Spend account. To get the $200 sign-up bonus for this account, you’ll need to set up $2,000 of direct deposits and also make 10 purchases with your debit card.

Finally, you can earn a $300 sign-up bonus by opening a Virtual Wallet package with the Performance Select level. To earn this hefty bonus, you’ll need to schedule a $5,000 direct deposit into your account and make 10 debit card purchases.

PNC checking accounts without Virtual Wallet®

Performance Select Checking

A basic interest-earning checking account for high-income earners who don’t need all the fancy Virtual Wallet® features.

The Virtual Wallet® account package is nice for people who want an all-inclusive money management experience. But what if you’re a high-income earner who just wants a simple, no-frills checking account?

That’s where the base Performance Select Checking account comes in. It has the same fees, reward program, requirements and interest-earning structure as the Virtual Wallet®’s Performance Select, just without the extra two Reserve and Growth savings accounts.

Signing up for the Performance Select checking account is easy and takes just a few minutes. You can go to a local branch if you’re near one, call or sign up online. You’ll need that photo ID, a way to fund your new account, and all the basic info, like Social Security number.


Performance checking

A basic interest-earning checking account for medium-income earners who don’t want Virtual Wallet® features.

PNC Bank’s Performance checking account is its lowest-requirement interest-earning checking account. But with an interest rate of 0.01% APY that only applies to balances over $2,000, the amount of money you’ll earn with this account will be peanuts.

Furthermore, if you don’t meet all the same requirements (keeping at least $2,000 in your account, having $2,000 of direct deposits, or having $15,000 in another PNC Bank account or loan) as the Virtual Wallet with Performance Spend, you’ll have to pay a $15 monthly account fee.

This account does come with the same reward structure and banking discounts as the Virtual Wallet® with Performance Spend account, however. If this sounds like the right account for you, you can easily sign up online, via phone or by visiting a local branch.


Standard checking

A basic-reward checking account for lower-income or retired consumers.

If you’re not interested in taking advantage of PNC Bank’s Virtual Wallet® money management features but still want a reward checking account without all the red tape, the Standard account might be for you.

This non-interest-earning account, which carries the same fee, reward, and requirement structure as the basic Virtual Wallet® account package, is easy to sign up for. All you need is a photo ID, basic personal information and a way to fund your account. You can sign up in just a few minutes online, over the phone or at a local branch.


PNC Savings Accounts

While you can save money with PNC Bank’s savings accounts, they’re not an effective way to earn interest. Their rates are well below the national average of around 0.20% APY and there are many hidden fees that can trip you up if you aren’t a model customer.

The “S” is for Savings account for children is an exception if you’re looking to teach your youngsters about money, however. With its neat interactive interface and “Sesame Street” characters, it can get any child excited about savings.

That doesn’t mean it’s the best tool for the job, though. There are many other savings accounts that offer better rates for both you and your children.

Read on to learn more about PNC’s savings account offerings.

Standard savings

Low interest rates for a fee-heavy savings account.

PNC Bank’s basic savings account does technically earn interest — but that’s about all we can say about it. Though national savings account rates average around 0.19% APY, the best you can hope for with this account is 0.10% APY—-and only if you have more than $2,500 in your account and qualify for relationship rates.

To do this, you can set up a direct deposit into another account in one of the following amounts:

  1. $500 to a Standard checking account
  2. $2,000 to a Performance checking account
  3. $5,000 to a Performance Select checking account

Alternatively, you can also qualify for the higher rates by making at least five purchases with your PNC Bank credit or debit card.

If you’re not able to meet these requirements for the higher relationship interest rates, you’ll only earn a measly 0.01% APY on your savings. That’s as low as you can go while still technically saying it does earn interest.

Furthermore, there are many hidden-fee traps with this account. For example, if you don’t meet another set of requirements to waive the monthly account fee, you’ll pay a $5 monthly account fee.

  • Minimum opening deposit : $25
  • Interest rate : 0.01% APY on balances over $1.00
  • Relationship interest rate : 0.05% APY on balances between $1.00 and $2,499.99. 0.10% APY on balances over $2,500.
  • Monthly account maintenance fee : $5
  • How to waive the account maintenance fee :
    1. Keep $300 in your savings account
    2. Be under age 18
    3. Transfer at least $25 from this account to an Auto Savings account
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : None
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5.
  • Early closure fee : $25 if closed within 180 days of opening
  • Regulation D violation fee : You get six free transactions per month, as per Federal Regulation D. After that, you’ll pay $15 per transaction.

At least the bank does make it easy to open an account if you decide you want to go this route. You can do it online, over the phone, or at a local branch. You’ll need just a few minutes of your time along with a photo ID, basic personal information and a way to fund your new account.

“S” is for Savings

Fun savings tools for children, but don’t expect to teach them about earning interest.

It can be tough to teach young ones about money, but this savings account can help in a few ways. Children can set savings goals for things like a new bike or a toy.

When money is deposited into the account, children are presented with a visual of three buckets that they can choose to put the money in:

  1. Saving (for later)
  2. Sharing (to be given to charity or other people)
  3. Spending (to be spent right away)

Even cooler is an interactive learning center where young savers can learn about basic money management from “Sesame Street” characters.

These features are great for teaching basic financial concepts, except for one thing: how compound interest works. This account earns a rock-bottom interest rate of 0.01% APY. Since your child probably isn’t going to be saving hundreds of thousands of dollars in this account, he or she won’t really be able to see compound interest in action.

  • Minimum opening deposit : $25
  • Interest rate : 0.01% APY on balances over $1
  • Monthly account maintenance fee : $5
  • How to waive the account maintenance fee :
    1. Be under age 18
    2. Keep at least $300 in this account
    3. Transfer at least $25 from this account to an Auto Savings account each month
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : None
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5.
  • Early closure fee : $25 if you close the account within 180 days of opening.

Luckily, this account is pretty easy to open. All you need is a photo ID for yourself (not your child), a way to fund the account, and your child’s personal information. It only takes a few minutes to complete an application, which you can do online, in person at a local branch or over the phone.

PNC CD Rates

PNC Bank offers a diverse set of CDs, which is great because it provides you with the most flexibility for your personal situation. Not everyone is able or willing to use a one-size-fits-all CD.

The rates offered for these CDs fall well short of national averages, however. If you’re looking to maximize the amount of return for your money, there are many better options.

Read on for more on PNC’s CD offerings:

Fixed-rate CDs

Large amounts of cash needed for below-average returns.

To get started with a PNC Bank Fixed Rate CD, you’ll need a deposit of at least $1,000. The bank will notify you and give you a 10-day grace period when your CD term is due to allow you to decide what to do with it (withdraw, or renew?). If you do nothing, the CD will automatically renew with the same term.

Although PNC Bank does allow CDs with a deposit of as little as $1, there’s a hidden catch: deposit amounts between $1 and $999.99 are only available for CDs that are being renewed — which means you can’t start out at this level with your first deposit amount.

Furthermore, the rates offered for their CDs are again very low.

For example, the average national rates for a 1-year and 5-year CD are 0.63% APY and 1.56% APY with a $1,000 deposit, respectively. But PNC Bank? They’re just 0.13% APY and 0.60% APY, respectively—less than half the national average.

Standard CD rates

 

$1.00 - $999.99

$1k - $9,999.99

$10k - $24,999.9

$25k - $99,999.99

$100k - $499,999.99

$500k +

1 month

0.04%

0.05%

0.05%

0.05%

0.05%

0.05%

3 months

0.04%

0.05%

0.06%

0.07%

0.08%

0.09%

6 months

0.04%

0.06%

0.08%

0.10%

0.12%

0.14%

12 months

0.04%

0.13%

0.15%

0.18%

0.20%

0.22%

18 months

0.04%

0.18%

0.25%

0.28%

0.30%

0.35%

24 months

0.04%

0.25%

0.30%

0.35%

0.38%

0.43%

36 months

0.04%

0.30%

0.35%

0.38%

0.40%

0.45%

48 months

0.04%

0.50%

0.55%

0.65%

0.70%

0.75%

60 months

0.04%

0.60%

0.70%

0.90%

0.95%

1.0%

84 months

0.04%

0.90%

0.95%

1.05%

1.15%

1.25%

120 months

0.04%

1.10%

1.20%

1.30%

1.40%

1.50%

Promotional rates

$1.00 - $999.99

$1k - $9,999.99

$10k - $24,999.99

$25k - $99,999.99

$100k - $499,999.99

$500k +

9 months

0.04%

0.06%

0.08%

0.10%

0.12%

0.15%

Rates as of Nov. 10, 2017

  • Minimum deposit amount : $1,000
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : For CDs with terms between 3 months and one year, you’ll lose the amount of interest you would have earned. For CDs with terms over one year, you’ll lose six months’ worth of interest.

If you do decide to open a Fixed Rate CD, you’ll need a bit more information than with a standard checking or savings account. You’ll need current personal and employment information, and a photo ID. You can apply online, at a local branch, or over the phone.

Ready Access CDs

A better option to earn higher interest rates and skirt around the rules of PNC Bank’s savings account.

CDs can be tough to invest with. On one hand, they offer higher rates than a savings account. But, if something comes up and you need the cash, you generally can’t withdraw it without paying an early withdrawal fee that could wipe out your earnings.

You can withdraw the money from this CD at any time penalty-free after the account has been open for at least seven days. These CDs will also automatically renew, meaning they’re a great option to store your emergency savings to earn a higher interest rate. In a worst-case scenario, you won’t be able to pull the money out within a brief seven-day period each year without incurring an early withdrawal fee.

Otherwise, it’s a great way to skirt around the rules and fees of their savings account while still earning a higher rate.

Term

APY

Minimum Balance Amount

3 months

0.05%

$1,000

12 months

0.15%

$1,000

Rates as of Nov. 10, 2017

  • Minimum deposit amount : $1,000
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : You will forfeit any interest earned.

You can open a Ready Access CD online, over the phone or in-person at a local branch. You’ll need a photo ID, employment and personal information, and a way to fund your new account.

Callable CDs

Higher rates that still underperform national averages with added fine print.

If the rates of PNC Bank’s Fixed Rate CDs left you feeling a bit underwhelmed, you do have an opportunity to earn a slightly higher rate with Callable CDs. Still these rates are around half of what national averages are for these CD term lengths.

The way it works is a little confusing. PNC Bank has the right to call back its CD if it decides the interest rate isn’t working in its favor. This just means that it’ll pay out what you’ve already earned instead of paying a higher interest rate for the full term length of the CD. It can only call back the CD after you’ve had it open for 12 months (for a 36-month Callable CD), or 24 months (for a 60-month Callable).

If this happens, you’ll get an advance notice of the actual “call date” of the CD. After this date, you’ll have 10 full days to decide whether you want to withdraw the cash or renew it into another CD. If you do nothing, the bank will automatically roll the funds over into a 12-month fixed-rate CD.

Term

APY

Minimum Balance Amount

36 months

0.50%

$10,000

60 months

1.10%

$10,000

Rates as of Nov. 10, 2017

  • Minimum deposit amount : $10,000
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : Six months’ worth of interest.

Getting a Callable CD is relatively straightforward, but you’ll need a few pieces of information. You can open an account over the phone, in person at a local branch or online. You’ll need a photo ID, employment and personal information, and a way to fund your new CD.

Variable-rate CDs

Earn fair rates through a changing interest rate environment.

You’ve probably heard all the kerfuffle surrounding the Federal Reserve changing interest rates. That can cause banks to change their own CD rates, and if you’re locked into a long-term CD, that change might not be in your favor.

Instead, PNC Bank offers an option for these scenarios. You can choose from just one term length — 18 months — and the interest rate you earn will be tied to the current price of a three-month Treasury Bill. Right now, as of November 2017, that’s running at 1.17% APY.

After the 18-month period is up, your variable-rate CD will renew into another CD of the same type.

  • Minimum deposit amount:$1,000
  • Interest compounded: Monthly
  • How interest is paid: Deposited into your CD account monthly
  • Grace period:10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties:You’ll lose six months’ worth of interest.

To open a Variable Rate CD, you’ll need a few things. You’ll need to provide personal information and employment history, as well as a photo ID. You can apply in person at a local branch, over the phone or online.

Step-rate CDs

Frequent access to your cash with an unknown earning potential.

If you want more frequent access to your money but don’t want to commit to a Ready Access CD, then a step-rate CD might be right for you. This CD is available in 36-month term lengths, which are further subdivided into six six-month terms.

Every six months you’re given a 10-day period where you can withdraw your cash penalty-free if you wish. If you choose to leave it in the account, the interest rate will be bumped up a notch each time.

The downside of this CD is that the lender won’t tell you what the interest rates for each step are until you sign up for an account. So, it’ll be a surprise!

  • Minimum deposit amount : $2,500
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : You’ll lose six months’ worth of interest.

To open a Step Rate CD, simply go online, call PNC Bank, or visit them in person if you live near a local branch. You’ll need to provide them with basic personal and employment information, and a photo ID.

PNC Bank Money Market Accounts

For most products, PNC Bank offers below-average rates. Its money market account is one exception — if you can meet the added requirements. Otherwise, you’ll earn measly rates and might actually lose money if you have to pay the monthly account fee.

The higher rates offered for customers who qualify are actually right on par with national averages. But, as with the rest of their products, you can still find better account rates and terms with other banks.

PNC Bank’s basic money market account isn’t anything to write home about on its own. But, if you can take advantage of the higher rates offered if you have a Performance Checking or Performance Select Checking account, you can actually earn decent returns on your savings.

To qualify for these higher interest rates, you’ll need to meet at least one of these other requirements in addition to having the extra checking account:

  1. Set up a monthly direct deposit amount ($2,000 to a Performance Checking account, or $5,000 to a Performance Select Checking account)
  2. Make at least five purchases a month with your PNC credit or debit card

Just be sure to watch out for the hidden fees, especially the monthly account maintenance fee. If you’re not able to keep $5,000 in your account, it’ll be a $12 fee each month.

  • Minimum opening deposit : $100
  • Maximum opening deposit : $10,000
  • Monthly account maintenance fee : $12
  • How to waive the account maintenance fee : Keep at least $5,000 in your account.
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : None
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5.
  • Early closure fee : $25 if closed within 180 days of opening
  • Regulation D violation fee : You get six free transactions per month, as per Federal Regulation D. After that, you’ll pay $15 per transaction.

Balance to earn interest

Standard APY

APY when linked to Performance Checking

APY when linked to Performance Select Checking

$1.00 - $9,999.99

0.03%

0.25%

0.60%

$10k - $24,999.99

0.09%

0.27%

0.60%

$25k - $49,999.99

0.11%

0.30%

0.70%

$50k - $99,999.99

0.13%

0.32%

0.80%

$100k - $249,999.99

0.15%

0.35%

0.85%

$250k - $499,999.99

0.15%

0.35%

0.85%

$500k - $999,999.99

0.17%

0.35%

1.00%

$1M and above

0.17%

0.35%

1.00%

Rates as of Nov. 10, 2017

To sign up for a PNC Bank Money Market account, you’ll need to apply either online, in person at a local branch, or over the phone. You’ll need a photo ID, and be able to provide bank account or credit card numbers to provide an opening deposit. Finally, you’ll also need to provide PNC Bank with basic personal information.

PNC IRA CDs

Unfortunately, PNC Bank falls short of the mark for Fixed Rate IRA CDs as well. The rates offered are measly compared with those of competitors, even when you look at the longest-running CDs with the highest deposit amounts. If you’re looking to grow your money, you can find better rates and terms for IRA CDs elsewhere.

Furthermore, there are fees to watch out for with this account. Unless you come to the table with a $2,000 minimum deposit, you’ll have to pay an annual account fee. If you ever want to transfer your money out of the bank, you’ll need to pay another fee. These fees could really eat into your already-tiny earnings.

Fixed-rate IRA CD account

Low rates for high-fee retirement savings.

This is one of the safest options around for growing your savings. PNC Bank offers multiple term lengths and rate tiers depending on how much money you want to invest and for how long.

Although it does offer IRA CDs in amounts from $1.00-$999.99, you actually can’t start your account with these. You can only renew existing IRA CDs in this amount, meaning that you’ll need to bring at least $1,000 to the table if you want to open an account.

  • Minimum opening deposit : $1,000
  • Annual custodian fee : $25
  • How to waive the annual custodian fee : Keep at least $2,000 in your account.
  • Interest compounded : Monthly
  • How interest is paid : Deposited into your CD account monthly
  • Transfer fee : $25 if transferring money to another PNC savings or checking account, or to another bank.
  • Grace period : 10 days to decide whether to renew or withdraw the CD
  • Early withdrawal penalties : For Fixed Rate IRAs with terms between three months and one year, you’ll lose the amount of interest you would have earned. For CDs with terms over one year, you’ll lose six months’ worth of interest.

Standard rates

 

$1.00 - $999.99

$1k - $9,999.99

$10k - $24,999.99

$25k - $99,999.99

$100k - $499,999.99

$500k +

6 months

0.04%

0.06%

0.08%

0.10%

0.12%

0.14%

12 months

0.04%

0.13%

0.15%

0.18%

0.20%

0.22%

18 months

0.04%

0.18%

0.25%

0.28%

0.30%

0.35%

24 months

0.04%

0.25%

0.30%

0.35%

0.38%

0.43%

36 months

0.04%

0.30%

0.35%

0.38%

0.40%

0.45%

48 months

0.04%

0.50%

0.55%

0.65%

0.70%

0.75%

60 months

0.04%

0.60%

0.70%

0.90%

0.95%

1.00%

84 months

0.04%

0.90%

0.95%

1.05%

1.15%

1.25%

120 months

0.04%

1.10%

1.20%

1.30%

1.40%

1.50%

Rates as of Nov. 10, 2017


Promotional rates

9-month fixed term

Fixed rate only

Fixed rate with Choice/Premium plan

Fixed Rate with Performance/Performance Select/VW Performance

$1.00 - $999.99

0.04%

0.24%

0.29%

Rates as of Nov. 10, 2017

If you’d like to open a fixed-rate IRA CD account with PNC Bank, you’ll need to block out about 15 minutes of time from your day. You can apply over the phone, online or in person at a local branch.

New IRA account offer

PNC Bank is offering a nice promotion when you sign up for a new IRA Account until Dec. 31, 2017. First, you’ll need to sign up to receive the sign-up bonus coupon. After that, you’ll need to call up PNC Bank or visit a local branch in-person to open your account. You cannot take advantage of this sign-up bonus by signing up for an account online.

You’ll also need a hefty deposit amount to be able to take advantage of this offer. You’ll earn the following sign-up bonus based on your deposit amount:

  • $50 sign-up bonus for a $20,000 deposit
  • $100 sign-up bonus for a $50,000 deposit
  • $200 sign-up bonus for a $100,000 deposit
  • $600 sign-up bonus for a $250,000 deposit
  • $1500 sign-up bonus for a $500,000 deposit

PNC Bank’s Student Virtual Wallet® Review

Great account package for young adults to learn money management skills.

PNC Bank offers all the functionality and perks of its regular Virtual Wallet® package (Spend, Reserve, and Growth accounts) with added bonuses for students. One of these great features is parental alerts, so parents can also see, along with students, when the account balance is low.

This account package also comes with helpful financial education. It provides in-person financial education seminars if you’re lucky enough to have a local branch on your campus.

  • Minimum opening deposit : $25
  • Interest rate : The Spend account does not earn interest. The Reserve and Growth accounts earn 0.01% APY. If you meet qualifications (such as making at least five debit transactions per month from your Spend account), you can earn up to 0.10% APY with your Grow account.
  • Monthly account maintenance fee : None if you provide proof that you’re actively enrolled in an educational institution. Status expires 6 years from when you open the account.
  • ATM fees : No charge at PNC Bank ATMs. $3 for every domestic non-PNC Bank ATM transaction, and $5 for every international non-PNC Bank ATMS.
  • ATM fee refunds : Two per month. ATM surcharges (i.e., the extra fee the ATM’s owner tacks on) are not refunded.
  • Overdraft fees : $36 per charge, up to four charges per day. $7 per day for each day the account remains overdrawn. Any overdraft fees will be refunded if the overdrafted amount is less than $5. They will not charge you if you set up Overdraft Protection Transfer from your Reserve or Grow accounts.
  • Overdraft fee courtesy pay : Your first overdraft fee within 12 months of account opening will be refunded.
  • Early closure fee : $25 if you close the account within 180 days of opening.
    Opening an account is the same as for the regular Virtual Wallet® accounts. In addition, you’ll need some way to prove that you actually are a student for this particular account.

Overall review of PNC Bank

We’ll be honest. PNC Bank really does offer some neat money management tools, especially with its Virtual Wallet® and “S” is for Savings® accounts. These accounts come with seamless tools that help you to simplify your hectic financial life.

But that doesn’t mean these are the only places you can get these tools. Other financial products such as Mint or FamZoo can also do just about everything that the Virtual Wallet® does. You’ll have to do research and piecemeal these tools together to create a custom package for you, but it is possible to replace all the functionality of the PNC offerings with other products.

Furthermore, PNC Bank offers rock-bottom rates and super-high fees for most of its banking products. Unless you’re a model customer, these fees have the potential to wipe out your meager earnings.

Instead, you can search for higher-earning, more transparent checking and savings accounts elsewhere and finding your own budgeting and savings tools to help you manage your money. That way, you’ll have the best of both worlds: custom ways to simplify your finances and, with luck and due diligence, the highest-earning accounts possible.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Reviews, Strategies to Save

BB&T CD Rates and Review

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Trying to find BB&T CD rates
Source: iStock

As you may know if you’ve done a search for BB&T CD rates, their website is not a helpful place to turn for information. Beyond a basic overview of their CDs on their website stating that they have CDs with terms ranging from seven days to five years, they do not give details on their current rates. BB&T did not respond to email and phone inquiries from MagnifyMoney asking why the bank does not publish its CD rates online.

When we called their customer service number, a representative said BB&T’s CD rates change on a daily basis and said the best way to learn about CD rates is to call or visit a local branch.

So that’s what we did.

We called BB&T branches on Nov. 13 and, on the same day, compared their CD rates to other banks and the national averages. After conducting this research, it’s not surprising BB&T makes their CD rates hard to find — they’re terrible.

BB&T CD rates and products

BB&T offers CD terms ranging from as short as seven days to as long as five years. They have eight CD options, each with different investment goals.

7-day to 60-month

For short-term investments, BB&T offers CDs ranging from seven days to 60 months. These personal CDs offer a fixed rate of return along with the flexibility to focus on developing either a short- or long-term investment.

BB&T CD Term

APY

Minimum Deposit Amount

3 Months

0.03%

$1,000

6 Months

0.05%

$1,000

1 Year

0.10%

$1,000

18 Months

0.15%

$1,000

2 years

0.20%

$1,000

3 Years

0.40%

$1,000

4 Years

0.45%

$1,000

5 Years

0.50%

$1,000

Rates as of Nov. 13, 2017

Not only can you find better CD rates at other banks and credit unions for each of the terms BB&T offers, you can get those better rates with smaller minimum deposits. BB&T’s offerings are far from the best in every term length above — you can see some of the top options in our monthly roundup of the best CD rates.

With the seven-day to 60-month BB&T CDs, there are no penalty-free options for withdrawing your funds prior to the CD reaching maturity. The early withdrawal penalty is the lesser of $25 or 12 months of interest for longer-term CDs. So with smaller initial deposits, early withdrawal penalties will negate any interest you may have earned.

Can’t Lose

As the name of this CD implies, whether rates go up or down, you can’t lose. Well, actually, you can: The APY is so low, you’re almost certainly going to lose money to inflation.

At the 12-month mark of the CD’s term, you may make one withdrawal without paying any fees. So if the market rate is higher than what you’re currently getting, simply withdraw the money and reinvest at the higher rate.

If, however, the interest rate you’re receiving is better than what’s currently available, you also have the option of making a second deposit into the Can’t Lose CD, up to $10,000. This locks in the rate for the new investment amount for the remainder of the term. So whether rates go up or down, you’ll lock in the higher rate.

CD Term

APY

Minimum
Deposit Amount

Withdrawal
Penalties

30-month "Can't Lose"

0.25

$1,000

No penalty for one
withdrawal after 12 months

As of Nov. 13, 2017

Still, you can find many CDs with better APYs than BB&T’s Can’t Lose, whether you’re looking for a 12-month investment or longer.

Stepped Rate

Laddering is a way to stagger your CD investments so you’re able to take advantage of increasing rates. With the Stepped Rate option from BB&T, laddering is built into the CD product. The initial CD starts out at a lower rate and increases each year. For example:

Months

APY

12

0.30%

24

0.40%

36

0.55%

48

0.75%

As of Nov. 13, 2017

This product also allows you to make an additional deposit each year (up to $10,000). So if the interest rate you’re receiving is better than the market, you can invest more money into your existing CD to make a higher return. But if the current CD market is offering better rates than your existing CD, you can simply take advantage of that offer and still make a higher return.

In addition, you may make a withdrawal from what you initially deposited into your Stepped Rate CD after two years. So, again, if the market changes dramatically, you may withdraw your money with no penalty and reinvest in a better option.

Or you could create a CD ladder on your own, choosing CDs with better rates than BB&T’s — higher rates are certainly available.

Add-on

The Add-on CD option from BB&T offers a 12-month CD at 0.10% and an opening deposit of $100. You’ll need a BB&T checking account and a $50/month automatic deposit from your checking account into the CD. To get a personal account, you’ll just need to set up direct deposit or maintain a $1,500 balance.

CD Term

APY

Minimum
Deposit Amount

Withdrawal
Penalties

12-month Add-on

0.10%

$100

Greater of $25 or
6 months’ interest

As of Nov. 13, 2017

Home Saver

If you’re in the market for a new home, and you want to earn a little more interest on the money you’re saving, consider the Home Saver CD. Starting with as little as $100, you’ll be able to deposit money earmarked for your new home every month and earn 0.40% APY. With this CD, as long as you’re withdrawing the money for use toward the purchase of your new home, you won’t pay any penalties for the withdrawal. But you will need a BB&T checking account set up for a monthly deposit of $50 into your Home Saver CD.

CD Term

APY

Minimum
Deposit Amount

Withdrawal
Penalties

36-month Home Saver

0.40%

$100

No penalty for
home purchase

As of Nov. 13, 2017

College Saver

Similar to the Home Saver CD, the College Saver CD is meant for parents or students saving for college. It offers the benefit of starting at a higher APY (0.40%) with the flexibility of withdrawing the money up to four times per year to pay for the cost of attending school. As with the Home Saver, you’ll need to have a BB&T checking account with an automatic monthly deposit of $50. The College Saver offers terms of 36, 48, and 60 months.

CD Term

APY

Minimum
Deposit Amount

Withdrawal
Penalties

36-month College Saver

0.40%

$100

No penalty for
school costs

48-month College Saver

0.45%

$100

No penalty for
school costs

60-month College Saver

0.50%

$100

No penalty for
school costs

As of Nov. 13, 2017

Treasury

This CD offers the ability to make additional deposits of at least $100 into your CD at any time and one monthly withdrawal without penalty. The CD has a six-month term with a variable interest rate tied to the U.S. Treasury Bill — if the rate goes up, you’ll make more money, but if the rate declines, you’ll make less. Right now, rates start at 0.05% and adjust quarterly. Throughout 2016, Treasury Bill rates increased almost every month and have continued to rise in 2017, reaching 1.035% in August. So this is a great option if you have the $5,000 minimum deposit amount and want a short-term investment with the option to add or remove funds from the CD.

CDARS

CDARS stands for Certificate of Deposit Account Registry Service and protects your principal and interest by making sure your money is placed into multiple CDs across a network of banks to keep your CDs insured by the FDIC (maximum limit for each CD is $250,000).

Other things to know about BB&T CDs

Does BB&T allow customers to take advantage of rising rates once they’ve opened a CD?

BB&T has two CD options that allow you to take advantage of rising rates: the 30-month Can’t Lose CD and the 48-month Stepped Rate CD. Both allow you to make a withdrawal before the CD comes to maturity in case rates increase (terms apply). They also allow additional deposits in case rates drop and you want to invest more at the existing rate of your CD. However, the current rates on those products are very low, negating the value of their flexibility.

About BB&T

BB&T (Branch Banking and Trust Co.) is a North Carolina-based bank with locations in 16 states and the District of Columbia, including Alabama, Florida, Georgia, Indiana, Kentucky, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington and West Virginia.

BB&T offers a mobile app for both iOS and Android. While their website is easy enough to use, finding specific information, particularly about rates, is impossible. Their customer service number isn’t much help in that regard either, with most questions answered with a suggestion to visit a branch location. As a result, if you don’t live in an area with a branch, we don’t recommend using BB&T’s CDs. To find the BB&T branch closest to you, use their branch locator.

Pros and cons of CDs

A certificate of deposit (CD) may offer a higher return than you’ll get with your savings accounts, without the risk of loss that accompanies other investment options with higher return rates. The drawbacks associated with CDs are the inability to access your funds during the term of the investment without suffering a penalty and the risk of interest rates increasing while your money is locked into a CD for a specified term.

The bottom line: Are BB&T CDs right for you?

BB&T does offer some flexible deals to its customers, but in general, better CD rates can be found at both banks and credit unions with comparable terms. You can find them on our list of the best CD rates, which we update every month.

Ralph Miller
Ralph Miller |

Ralph Miller is a writer at MagnifyMoney. You can email Ralph here

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Pay Down My Debt, Personal Loans, Reviews

PNC Personal Loan Review

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

personal loan_lg

Updated November 08, 2017
With about 2,800 branches in 19 states and the District of Columbia, PNCis the fifth largest bank in the United States. It’s primarily located in the eastern half of the US, with most of its branches and its headquarters being in the northeast.

If you’re looking for a personal loan from a trustworthy, familiar source, PNC might be your answer. It offers an unsecured personal loan on par with most lenders, as well as a secured loan that allows up to $100,000 to be borrowed.

Most traditional banks haven’t been able to compete with online-only lenders in the personal loan space, so let’s see how PNC compares.

Personal Loan Details

PNC has three personal loan options – secured and unsecured installment loans, and a line of credit. For the purpose of this review, we’ll be focusing on the installment loans.

Most online lenders only offer unsecured loans. In case you’re not sure of the difference:

  • Secured loans require an agreement to let your creditor use your assets as collateral in the event you default on your loan. This protects the creditor as it can sell your assets and recoup the cost of the loan.
  • Unsecured loans are the exact opposite – there’s no collateral involved. There’s less risk for the borrower and more for the creditor.

While secured loans seem to take the creditor’s side, the bonus is they often have more favorable terms because creditors are taking on less risk. You may have access to better interest rates or more money.

A simple example of a secured loan is a mortgage loan. Your home (property) is used as collateral. If you don’t pay your mortgage, your mortgage lender can seize the property and sell it.

Now that you know what it means to have a secured or unsecured loan, we’ll take a look at the differences between the details.

PNC’s unsecured personal loan allows you to borrow between $1,000 and $25,000 on a variety of terms: 6 months, and 1, 2, 3, 4, and 5-year options are available.

PNC’s secured loan allows you to borrow much more – between $2,000 and $100,000. The collateral required for this loan is non-real estate (a vehicle, for example).

Both the unsecured and secured loans have fixed interest rates.

Unfortunately, you can’t check APRs or sample payments for secured loans online, and when we called, we were told they vary based on your credit. They were unable to give any APR range.

The APR for unsecured loans varies by the loan amount:

  • For a $5,000 loan, the APR ranges from 9.49% – 21.99%
  • For a $10,000 loan, the APR ranges from 6.74% – 19.24%
  • For a $15,000 loan and up, the APR ranges from 5.99% – 18.49%

A payment example: if you borrow $20,000 on a 5-year term with an APR of 7.74%, your monthly payment will be $403.04.

The Pros and Cons

Applying for a personal loan with a bank is typically a bit more time consuming than applying with an online-only lender. This is because banks are thorough with the documentation they request.

However, PNC states the application should take no longer than 15 minutes online.

Unfortunately, if you’re looking at the secured loan option, you can’t apply online. You can only apply by phone, or in person at a branch. You can apply online with the unsecured loan option.

PNC’s APRs are also quite high, especially for the loan amounts. Many online-only lenders are offering better rates starting in the 5% range.

An additional negative might be that PNC only offers fixed rates. While variable rates aren’t stable, they’re usually lower than fixed rates. If you’ll have the ability to pay the loan off soon after it’s disbursed, having the lower variable rate can be beneficial.

If you fall on hard times, there’s a possibility that PNC will allow you to defer your payments, but this is reviewed on a case-by-case basis.

PNC urges borrowers to contact the bank at the first sign of trouble – before their payment is due.

Application Process and Documents Needed to Apply

If you’re applying for an unsecured loan, you can easily apply online and be done within 15 minutes. PNC recommends having the following information ready:

  • Your photo ID
  • Annual income, plus any other sources of income you have
  • Employer information (if you’ve been working there for less than 2 years, have your previous employer information as well)
  • Address/proof of residence (if you’ve been living there for less than 2 years, have your previous address ready)
  • If you’re applying with a co-applicant, you’ll need the same information for them
  • If you’re applying for a personal loan to consolidate debt, you’ll need account statements as PNC needs to know your account number, monthly payment, and outstanding balance

PNC’s application is straightforward, and it also has a checklist available for you on the application in case you need to reference it.

PNC will use a hard credit inquiry when applying for a loan with them.

Who Qualifies for a Personal Loan With PNC?

To have the best chances of being approved for a loan with PNC, you need very good and established credit, along with a reasonable debt-to-income ratio. Your loan terms greatly depend on these two factors. Being a customer with PNC doesn’t increase your chances of getting approved.

Just a note – if you choose the secured loan and want to use your vehicle as collateral, it must be less than 8 years old and have less than 80,000 miles on it.

Who Benefits the Most from a Personal Loan With PNC?

Borrowers looking for a larger loan amount would benefit from the secured personal loan with PNC.

SoFi is the only other personal loan lender offering that much money, and while the loan is unsecured, it doesn’t have any physical locations. If you feel more secure applying in-person and receiving assistance from a trusted bank, you might prefer to go with PNC.

However, most borrowers will benefit from going elsewhere to get an unsecured personal loan.

The Fine Print

There is no prepayment penalty for either loan, so you can pay your loan in full at any time.

There’s no origination nor annual fee for the unsecured personal loan.

When called, a PNC representative wouldn’t disclose any other fees associated with the loan (late fees, returned payment fees, etc.).

Transparency

Since there is so little information on its website about the secured loan, it was important to find out as many details as we could from a call.

Unfortunately, the PNC representative that answered the call wasn’t very helpful. The most she could offer was that the loan rates and terms were dependent upon credit, and that the credit score and debt-to-income ratio of an applicant was extremely important.

When asked about late fees for the loan, she said “another department” handles that, and was unable to transfer the call to the appropriate personnel, as you need to have a loan with PNC before fees can be discussed.

This was rather disappointing. Most lenders are open to discussing these details with potential borrowers – fees can make a huge difference when considering loan options. To be one of the few lenders unwilling to discuss fees and rates beforehand kicks PNC’s transparency down a notch.

PNC

APPLY NOW Secured

on PNC’s secure website

Alternative Personal Loan Solutions

As mentioned, SoFi* is the closest competitor as it allows borrowers a maximum of $100,000 as well. The minimum you can borrow is $5,000. Most personal loan lenders have limits of around $25,000 – $35,000.

SoFi offers fixed rates and variable rates, while PNC only offers fixed rates for its installment loans. SoFi’s fixed APR ranges from 5.49% – 14.24%, and its variable APR ranges from 5.19% – 11.34%, if you’re enrolled in autopay (with a cap of 14.95%).

There are no fees associated with SoFi’s personal loan except for a late fee, which is 4% of the amount due or $5 – whichever is less.

You can borrow funds on 3, 5, or 7-year terms, and personal loans are available in 46 states, including the District of Columbia.

SoFi also offers unemployment protection. If you lose your job through no fault of your own, you can apply for payment assistance.

SoFi uses a soft credit inquiry when you first apply to get your rates, which means your credit score won’t be affected. If you choose to move forward with the loan, a hard credit inquiry will be used.

SoFi

APPLY NOW Secured

on SoFi’s secure website

If you’re looking for good alternatives to PNC’s unsecured loan, take a look at Earnest. You can borrow between $2,000 and $50,000 on a 1, 2, or 3-year term.

There are no hidden fees associated with Earnest’s personal loan, and it’s offered in 23 states plus the District of Columbia.

You’ll need a minimum credit score of 720 to be eligible for approval with Earnest, and a minimum of 700 to be approved with SoFi, but both lenders take other factors into account, unlike PNC. Your employment history, education, and salary matter as well.

*referral link

It Pays to Shop Around

While it would be convenient to have the first lender you apply with be the best solution, that’s not always the case, even with a trusted lender like PNC. Personal loans from bigger banks are falling by the wayside as online-lenders are offering much better rates and terms. Do yourself a favor and shop around to get the best rates, even if you have a prior relationship with the bigger names out there. If you shop around within a 30-day window, your credit won’t take a big hit.

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*We’ll receive a referral fee if you click on offers with this symbol. This does not impact our rankings or recommendations. You can learn more about how our site is financed here.

Erin Millard
Erin Millard |

Erin Millard is a writer at MagnifyMoney. You can email Erin at erinm@magnifymoney.com

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Auto Loan, Reviews

The 6 Best Auto Loans for Buying a Used Car

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Source: iStock

Shopping for used cars can be tricky. Not only are you trying to avoid buying a lemon, you are looking for just the right model year, mileage, and price.

While all of these variables can make car shopping stressful, there are a couple of things you can do to simplify the process.

First, decide exactly how much you can afford to spend on a used car. Look at your budget and determine the absolute maximum your monthly payment can be. Also be aware of your total debt payments when compared to your income. Generally speaking, the total of all your debt payments – auto loans, student loans and mortgage – should not exceed 50% of your income. Make sure to factor your auto payment into the calculation.

Next, shop online for the best used-auto loan rates and get preapproved for the most attractive offer for which you are eligible. In order to strike the best deal possible on your used auto, it is best to walk into the dealership with financing already in hand.

Once you get to the dealership and find the car you want, negotiate the price of the car before telling the salesperson that you are approved for financing.

[Borrow Before You Buy a Car]

How To Apply

When shopping online for a used auto loan, the application process is very similar to that of a brick-and-mortar bank, but more streamlined. In general, be prepared with:

  • Your contact information: Name, address, phone number, email address
  • Vehicle information (if known – required for lenders that do not offer online preapproval) Make, model, mileage, VIN, dealership information.
  • Financial Information: employment information, gross income and expenses

The Best Auto Loans for Used Cars

LendingTree

With LendingTree, you can fill out one short online form and see real interest rates and approval information instantly. There are hundreds of lenders on LendingTree ready to compete for your business.

It is important to note that some lenders will do a hard pull on your credit and this is normal within the auto lending space. Keep in mind that multiple hard pulls will only count as one pull, so the best strategy is to have all your hard pulls done at one time.

Disclosure: LendingTree is the parent company of MagnifyMoney.

LendingTree

LEARN MORE  

LightStream

LightStream offers auto loans for used cars online with APRs ranging from 2.49% to 8.84%. It’s terms range from 24 to 84 months, it can finance up to $100,000, and it charges no origination fee. It does offer the ability to obtain preapproval online, before setting foot in a dealership, and if you are approved, you could receive funds into your bank account in as little as 1 business day. The funds can be used on any vehicle, from any dealership, with no restrictions concerning the year, make, model, or mileage of the vehicle you buy.

The 2.49% APR is dependent upon enrolling in AutoPay. If you choose not to enroll in AutoPay, your rate will be 0.50% higher, starting at 2.79%. While rates from LightStream start at 2.49%, they do depend upon the amount financed, and the financing term.

Because LightStream offers no telephone customer support, it offers a guarantee that you will love its service, from start to finish. If you aren’t completely satisfied with your experience, $100 will be deposited into your account, provided you fill out a questionnaire about your experience within 30 days of closing on your loan.


PenFed

Pentagon Federal (PenFed) Credit Union offers rates from 2.49% to 3.99% on used auto loans up to $100,000. It will finance terms of 36 to 72 months and charges no origination fee. Rates are dependent upon the amount financed, and the terms financed for, as shown in the chart below:

APR as low as*

Term

Loan Amount

Approx.
Loan Pmt.($20,000 Loan)

2.49% APR

36 months

$500 to $100,000

$577.14

2.74% APR

48 months

$7,500 to $100,000

$440.39

3.49% APR

60 months

$10,000 to $100,000

$363.75

3.99% APR

72 months

$15,000 to $100,000

$312.81

Because PenFed is a credit union, you will need to join in order to apply for an auto loan through it, but anyone can join by making a one-time donation to Voices for America’s Troops ($14) or National Miliary Family Association ($15). Also important to note is that even though the loan is entirely online, PenFed does not offer online preapproval.

In order to apply, you’ll need the following information about the vehicle you will be purchasing:

  • Year
  • Make
  • Model
  • Mileage
  • VIN
  • Dealer or private party information

Once approved, the loan proceeds will go directly to the vehicle’s seller, rather than into your bank account.


Capital One

Capital One offers auto loans with rates ranging from 3.24% to 4.14% and terms from 36 to 72 months. It can finance up to $40,000, and has no origination fee. Capital One also offers online preapproval through its Auto Navigator. You can then use the funds at any of 12,000 approved dealers. Proceeds from the loan will be sent directly to the seller, rather than deposited into your bank account.

Rates are dependent upon the financing terms, and subject to credit approval, as seen in the chart below:

Financing Type

36 or 48 or 60 mos

66 or 72 mos

Purchase New Vehicle

APR as low as

3.24%

3.24%

Purchase Used Vehicle(Dealer)

APR as low as

3.64%

4.14%


NEFCU

NEFCU is a credit union offering auto loan for used cars with rates as low as 2.240% for used vehicles. It can finance up to $70,000 for 12 to 84 months with no origination fee. NEFCU does not offer online preapproval.

NEFCU offers a $300 coupon offer valid at select dealers on your new or used auto.   You can apply online, at a branch or by telephone by calling 1-800-99-NEFCU. Your rate will be determined by creditworthiness, loan amount, year of the vehicle, and loan term, as per the rate chart.

In order to apply for an auto loan from NEFCU, you must be a member. You are eligible for membership with NEFCU if you:

  • Live in Nassau and/or Suffolk Counties
  • Work in Nassau and/or Suffolk Counties
  • Worship in Nassau and/or Suffolk Counties
  • Attend school in Nassau and/or Suffolk Counties
  • Regularly conduct business in Nassau and/or Suffolk Counties
  • Family Sponsorship – An existing NEFCU member can sponsor in an immediate family member (mother/father, brother/sister, child, grandparent or grandchild) or any household member
  • Membership is not open to individuals who live, work, worship, attend school and do business exclusively in East Hampton, Southampton and Shelter Island.
  • If you have any questions on membership or eligibility, please contact us at 516.561.0030 or at 800.99.NEFCU outside LI/NYC or send an email to info@myNEFCU.org. 

Navy Federal Credit Union

Navy Federal Credit Union offers auto loans for used cars with rates as low as 1.99% with terms of 12 to 96 months. It can loan up to $100,000 and charges no origination fee. Navy Federal Credit Union does offer online preapproval.

Rates from Navy Federal Credit Union are determined by the car’s model year, as well as the loan term, as seen in the chart below:

Auto Loan Rates

As of: November 7, 2017, 1:00 AM EST

Loan Type

up to 36 mos.
APR as low as*

37-60 mos.
APR as low as*

61-72 mos.
APR as low as*

73-84 mos.
APR as low as*

85-96 mos.
APR as low as*

New Vehicle

1.99% 

2.39% 

2.69% 

4.09% 

4.89% 

Late Model Used Vehicle

1.99% 

2.79% 

3.49% 

Used Vehicle

3.79% 

3.99% 

5.29% 

In the rate chart, new vehicles are year models 2016, 2017, and 2018 with 7,499 miles or less, and the minimum loan amount is $30,000 for terms 85-96 months. Late model used vehicles are described as 2016, 2017, or 2018 models with 7,500 – 30,000 miles. Used vehicles are vehicles (up to 20 years old) with 30,001 miles or more.

In order to apply for an auto loan from Navy Federal Credit Union, you must become a member. You are eligible if you are Active Duty Army, Navy, Marines, Air Force, Coast Guard, Army or Air National Guard, a member of the Delayed Entry Program, a Department of Defense (DoD) Officer Candidate/ROTC, a DoD Reservist, or a retiree from any of these service branches. You are also eligible as a civilian if you are a DoD civilian employee, a U.S. government employee assigned to a DoD installation, a DoD contractor, or a DoD retiree. Finally, if you are the immediate family member of anyone eligible to join, you are also eligible to become a member.

After loan approval, the proceeds will be sent directly to the dealership, rather than deposited into your bank account.


 You Should Shop Around

Often concerns arise about the effect of shopping around for auto loans on your credit score. However, all inquiries within a 30-day period count as one inquiry on your credit report, so as long as your shop used auto loan rates within a 30-day period, those inquiries will only have a minimal impact on your credit score

Check other auto loan offers here.

Gretchen Lindow
Gretchen Lindow |

Gretchen Lindow is a writer at MagnifyMoney. You can email Gretchen at gretchen@magnifymoney.com

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Auto Loan, Reviews

LightStream Auto Loan Review

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

LightStream Auto Loan Review
Updated November 06, 2017

Automobile shopping can be stressful. Besides trying to find just the right car for you or your family, there is the additional stress of finding the right price, the right financing, as well as factoring a monthly payment into your budget.

But with more online-only banks offering auto loans at extremely competitive interest rates, the auto loan game is changing. Today, your best bet is to obtain financing before setting foot in a dealership so you have a budget to stick to and you know exactly what your monthly payment will be.

The Offer

LightStream offers both secured and unsecured auto loans from $5,000 to $250,000 and rates as low as 2.49%. LightStream can get money in your account in as little as one day in some cases, and always with no fees whatsoever.

How To Apply

You can complete your LightStream auto loan application online, but you must 1) acknowledge receipt of LightStream’s Statement on the Use of Electronic Records, 2) agree to receive electronic records, and 3) agree to use electronic signature to sign your loan documents.

In order to apply, you will need:

  • The purpose, term and amount of desired loan
  • Your name
  • Your address
  • Phone number
  • Social Security number
  • Employment information
  • Annual income
  • Total amount of assets and equity in your home

During business hours, LightStream will email you regarding your application. If you are approved, you will be able to then go online, electronically sign your loan agreement, provide any additional information, as well as choose your funding and due dates. The funds will be transferred to your bank account on the funding date that you chose, on the same day in some cases.

To qualify, you must have either excellent or good credit. LightStream lists the following as criteria for excellent credit:

  • Five or more years of significant credit history.
  • A credit history with a variety of account types such as major credit cards (for example, Visa, MasterCard, Amex), installment debt (vehicle loans) and mortgage debt if applicable.
  • An excellent payment history with no delinquencies or other problems repaying debt obligations.
  • A proven ability to save evidenced by some or all of the following; liquid assets (stocks, bonds, bank deposits, etc.), cash down payments on real estate, retirement savings, and little, if any, revolving credit card debt.
  • Stable and sufficient income and assets to easily repay current debt obligations and any new loan with LightStream.

Good credit is essentially the same criteria as excellent credit, as seen above, but with fewer than 5 years of credit history.

Satisfaction Guarantee

LightStream does not provide any phone customer support for loans. Instead, it offers email support in an effort to keep costs low. Because the lack of phone support is unorthodox, it offers a $100 guarantee within 30 days if you aren’t satisfied with your loan experience. If you are not satisfied and wish to claim the $100 guarantee, you must contact customer service within 30 days of your loan and fill out a questionnaire.

The Fine Print

Your APR will be based on creditworthiness, loan amount, and loan term, as seen in the chart below for an auto-loan on a new car:

Loan Term(months)

Loan Amount

24-36

37-48

49-60

61-72

73-84

$5,000 to $9,999

3.49% - 5.74%

4.34% - 6.34%

4.54% - 6.54%

5.44% - 7.44%

N/A

$10,000to $24,999

2.49% - 4.94%

3.19% - 5.19%

3.19% - 5.19%

4.04% - 6.04%

N/A

$25,000 to $49,999

2.49% - 4.94%

3.19% - 5.19%

3.19% - 5.19%

4.04% - 6.04%

4.64% - 6.64%

$50,000 to $100,000

2.49% - 4.94%

3.19% - 5.19%

3.19% - 5.19%

3.84% - 5.84%

4.54% - 6.54%

Rates as of November 7, 2017 – New Auto Purchase

Rates in the chart above are shown inclusive of a 0.50% AutoPay Discount. If you choose not to enroll in AutoPay, your rate will reflect a 0.50% increase. AutoPay payments will come directly out of your bank account. Otherwise, you can choose to pay by invoice, which must be returned by mail. You cannot make payments at a SunTrust Bank branch.

LightStream does not charge any closing or disbursement fees. It also does not charge fees for prepayment. You can prepay principal on your loan by logging into your online account.

Pros

  • Rates as low as 2.49%
  • Can borrow as little as $5,000 or as much as $250,000
  • You can borrow for a new or used car
  • Terms from 24 to 84 months
  • No prepayment penalties
  • No closing or disbursement fees
  • Secured and unsecured loans

Cons

  • APRs as high as 9.04%
  • APR will increase 0.50% if you don’t enroll in AutoPay
  • Excellent or good credit required for financing

How It Stacks Up

If a low APR is your priority, consider looking into an auto loan from Capital One. It offers APRs from 3.24% to 3.24% and terms of 36 to 72 months on new vehicles.  There is no origination fee, but it only offers loans up to $40,000, with the option to get pre approval online before shopping.

New England Federal Credit Union is another option for an auto loan with used auto loan rates as low as 2.240% and terms from 12 to 96 months on new vehicles and 84 months on used cars. NEFCU can loan up to $70,000 with no origination fee, but there is no option for pre approval.

LightStream offers a fairly straightforward auto loan experience whether you’re buying a new or used auto with low rates, long terms, and no fees for closing, disbursement, or prepayment. As with any loan, make sure that you are getting the lowest rate possible, as even one percentage lower can save you thousands of dollars in interest.

Finally, make sure that you can afford the monthly payment. Auto loan terms are getting longer, and you do not want to have an auto loan payment that is more than you can afford for 6+ years.

Find other auto loan options here.

Gretchen Lindow
Gretchen Lindow |

Gretchen Lindow is a writer at MagnifyMoney. You can email Gretchen at gretchen@magnifymoney.com

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Featured, Personal Loans, Reviews

Marcus Personal Loan Review: Goldman Sachs Takes on Online Lenders with Exclusive New Loan

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

woman working on laptop

Updated November 06, 2017

Goldman Sachs officially made its debut in the personal lending market this week with Marcus, its long-awaited online lending platform. With Marcus, the 147-year-old investment bank will offer consolidation loans up to $30,000 to credit-worthy consumers.

Goldman Sachs began to expand its audience from the super-wealthy to the average consumer earlier this year when it launched an online savings account with a super low $1 deposit. Named for founder Marcus Goldman, Marcus will offer the average American a way to “save money over high-interest credit cards,” the company says. If this works for the megabank, it could lead to similar changes in the industry, challenging the dominance of credit card issuers.

Another reason this is a big deal: Goldman has a big advantage over Silicon Valley competitors when it comes to funding. As a deposit-gathering bank, Goldman can raise FDIC-insured deposits. But Goldman also has deep relationships with institutional investors who might want to purchase consumer loans. Companies like Prosper use Goldman to help them fund their loans: now Goldman will be competing with its own customers. Plus it has the power of a well-established brand behind it. Marcus could be a major disrupter for developing online personal loan businesses.

In this Marcus by Goldman Sachs review, we will explain:

  • Who’s eligible for a Marcus loan
  • How to see if you’re prequalified
  • How to apply, how long it will take, and what documents you will need
  • The terms of the loan offers
  • Pros and cons

Who’s Eligible for a Marcus Loan

First you need the “secret” code

Marcus is super exclusive right now. You can only apply if you got a special code in the mail from the firm inviting you to use it. The bank says it’s doing that to get feedback on the service for now, but will offer Marcus to a broader audience in a few months. If you don’t have a code, you can sign up to be the first to know when Marcus expands its service. Also, you can’t apply just yet if you live in Maryland, but the bank says they are working on it.

So, if you received a code in the mail, and you live in one of the qualifying 49 states, you can go to Marcus.com and apply to see your offers for loan amounts and interest rates. The rate you get (6.99% – 23.99%) will depend on your creditworthiness and the length of the term of the loan. The fintech firm bases the amount of your loan offer on your creditworthiness, information in your application, and the company’s review of your ability to pay back the loan.

Healthy credit

Goldman says they are looking to service consumers with “prime” credit scores. That distinction usually lands someone at about 660 or higher on the FICO scale. The higher your credit score, the better your chance of being approved.

Having too many recent credit inquiries on your credit report could raise a red flag to their underwriters. Note: A soft pull, like the one used by Marcus to prequalify, will not count as a hard inquiry on your credit report. Although not reported, we expect that Marcus will have credit policy requirements on top of the credit score minimum. For example, people who have missed payments recently will likely be rejected, regardless of their credit score. Marcus will be a way for people with good credit scores to get a lower interest rate.

Debt-to-income ratio under 40%

You can get denied if your debt-to-income ratio is too high. For example, if your total monthly payments (including rent/mortgage and all items on your credit bureau) are more than 40% of your income, you would likely be denied.

If it’s above 50%, you might have a hard time getting approved for credit by most lenders. The ratio is calculated with the monthly payments that show up on your credit report, and other debt that shows up on your bureau. If your total monthly bills are $500, and your total monthly income is $2,500, you would have a 20% debt-to-income ratio.

A job

You must be employed and be able to verify your income to get approved for a Marcus loan.

Marcus will also consider other factors in your loan application, such as your intended use of the loan, to determine how much you’ll be offered. The bank will likely have its own combination of rules and scoring to determine your final offer.

How to See if You’re Prequalified

If you want to avoid a hard pull on your credit report, see if you prequalify for a Marcus Loan here. It is considered a soft pull on your credit and won’t harm your score. Later on in the process — if you decide to get the loan — you’ll get a hard pull on your credit score.

How to Apply

The Marcus site’s layout makes it super easy to apply for a personal loan. Of course, the first step would be inputting that special code you got in the mail. After that, it’s similar to other loan applications.

Step 1: The basics

First up, fill out the basic information in the online application. You’ll be prompted to fill out basic personal and financial information such as your name, address, income, etc. to determine if you qualify. You’ll also be asked for information about how much you’d like to borrow, what you’ll use the money for, among other questions about the loan. The soft pull occurs after you submit that information.

online application for personal loan

Step 2: Choose from your offers

If you qualify for a Marcus loan based on the information you submitted, you’ll be presented with a list of options for loans, rates, and terms.

Step 3: Submit

If you decide to proceed with the loan, you then have to complete a few more steps. At that point, you’ll add information to verify your identity such as your full Social Security or tax I.D. number or be asked for government-issued photo identification and additional information as necessary. Marcus might also ask for documents to verify your income such as recent pay stubs, bank statements, or a W2. This is when the hard pull happens, which will impact your credit score.

screen-shot-2016-10-14-at-3-06-06-pm

Terms

Marcus offers debt consolidation and credit consolidation loans up to $30,000 with an annual percentage rate (APR) that can be low as 6.99% and as high as 23.99%.

You can borrow the money for 2 to 6 years.

There are no fees, and your rate will be fixed for the life of the loan.

You can use a debt consolidation loan to pay off credit card debt, medical bills, or financed purchases such as rings, cars, or furniture. You cannot use a Marcus loan to refinance an existing student loan.

Pros & Cons of Marcus

Pros:

No origination fee. Because Marcus forgoes an origination fee — a fee you’d pay to receive the loan— the APR is your interest rate, even if you pay it off before the full term has expired. That’s unlike competitors like Lending Club and others that charge origination fees. If you pay an origination fee and end up paying off the loan ahead of time, your actual APR will be higher than stated.

No late fees. If you miss a payment, you won’t be charged a fee, but you will add on to the life of the loan and add more interest, and your final payment will be larger. This doesn’t save you from hurting your credit score, however. Your late payments will be reported to a credit agency, and will negatively impact your score. Eventually, after missed, partial, or late payments, your loan may default, and that will also impact your credit score.

Defer payments after a year of good behavior. If you’ve made payments on time for a full year, Marcus gives you the option to defer one payment. Marcus will also waive your interest payment for that month. The payment will extend your loan by one month, at which point you’ll pay the interest on it. If you miss a payment or make one late payment, you will lose access to the payment deferral feature for the life of your loan.

Cons:

Marcus is exclusive. At this point, Marcus is extremely exclusive, so you need to be invited to use it to try it out and see if you qualify. You also can’t sign up for it if you live in Maryland.

Lower APR with a balance transfer card. If your goal is to pay down credit card debt, you might be able to find a low or 0% APR balance transfer card and pay less overall. If you don’t have much debt, a balance transfer may be a better option.

Lower APR with SoFi and LightStream. If you want a personal loan without an origination fee, there are other options. SoFi and LightStream do not charge origination fees. They also offer APRs as low as 5.49% and 2.49%, respectively, and both top out around 15% on the high end compared to 22.9% with Marcus. With SoFi, you can check your rate without hurting your credit score. Just be warned: LightStream (which is a division of SunTrust Bank) does not offer soft pull functionality.

Make sure to compare your offer from Marcus with offers from SoFi and LightStream, as you could possibly end up with a lower APR overall. The downsides here would be that LightStream requires a minimum 680 FICO score, so it could be a bit more difficult to qualify for a loan. They also use a hard pull to determine your eligibility. Also, SoFi might take longer than the speedy 1-2 business days that Marcus promises to get your money to you since they have to connect you with other individuals.

Don’t get distracted by “no fees.” It’s easy to get pulled in by the promise of “no fees, ever,” but you should definitely still shop around because you might find a lower rate or better terms.

Several alternatives to Marcus exist to apply for a personal loan. We have compiled a list of the best personal loan companies here.

Every personal loan company has its own pricing model, which means you could get very different interest rates from different companies. It is in your best interest to shop around for the best rate before making a decision.

Some of the best alternatives today include SoFi and LightStream because of the many reasons mentioned above. Competitors such as Santander, Discover, and Best Egg or credit unions like SAFE Credit Union and Affinity, may give you a better offer as well depending on the information you provide. Some may have an origination fee, but use a lower credit score threshold to qualify applicants, or they might offer you a better APR.

Final verdict:

We believe that the growth of personal loans is great news for consumers. For people drowning in high-interest credit card debt, a low rate on a structured personal loan could offer significant savings. Marcus is good news for consumers. Goldman Sachs is using its access to low-cost funding as a way to challenge the big credit card companies. Their no-fee, low-interest rate loan could be a great way for consumers to consolidate debt. Unfortunately, it’s pretty difficult to gain access to the platform right now since it’s so exclusive, but we expect that to expand over time.

You can learn more about us and how we make money here.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at brittney@magnifymoney.com

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Earning Interest, Reviews

Discover Bank CD Rates Review

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Discover
Most people know Discover as a credit card company, but it also operates an online bank and offers some of the best rates and terms on checking and savings accounts and certificates of deposit (CDs).

If you’re looking for CDs in particular, Discover is currently considered one of the best CDs due to their customer service and digital tools.

Discover Bank CD rates

CD term

Annual Percentage Yield (APY)

Minimum deposit amount

3 months

0.35%

$2,500

6 months

0.65%

$2,500

9 months

0.70%

$2,500

12 months

1.50%

$2,500

18 months

1.55%

$2,500

24 months

1.65%

$2,500

30 months

1.70%

$2,500

3 years

1.76%

$2,500

4 years

1.85%

$2,500

5 years

2.25%

$2,500

7 years

2.30%

$2,500

10 years

2.35%

$2,500

Rates as of Nov. 3, 2017

How do Discover Bank CD rates compare?

While Discover Bank CD rates aren’t always the highest available, they are consistently among the top offers across all terms. However, you may be able to find a similar or even better rate with a CD that has a lower minimum deposit than Discover’s. Currently, several nationwide banks offered a 12-month CD at a rate higher than Discover’s 12-month CD APY, while requiring a lower minimum deposit. For example, at the same time the above rates were available at Discover, there were 12-month CDs with rates as high as 1.65% APY with a minimum deposit of $500.

It’s always great to go for the highest interest rates possible, but keep your CD investing strategy in mind. If you’re investing in CDs using the ladder strategy, it might be easier to keep everything in one bank since you’ll be switching in and out of CDs frequently.

Discover also stands out from its competition in the CD space with its mobile app and 24/7 U.S.-based customer service. If you value such features, keep those particulars in mind when weighing Discover CD rates against others’.

What you need to know about Discover Bank’s CDs

Discover Bank is very transparent in terms of fine print. It’s not difficult to understand what’ll happen with your money after you invest it. We’ll cover the basics here about what you need to know to invest in Discover Bank’s CDs.

How to open a CD

It’s very simple to open up a CD with Discover Bank. Go to their CD webpage and click on the orange “Open an Account” button near the top right of the page. You can then choose which accounts you’d like to open. Select “CD,” choose a CD term and enter how much you’d like to deposit.

You’ll then need to complete the application by providing your name, address, date of birth, phone number, Social Security number, employment status and possibly even your driver’s license. Once your application is complete and accepted, you’ll need to fund the account.

APPLY NOW Secured

on Discover’s secure website

How to fund the CD

You’ll need to fund it within 45 days of submitting your application, which you can do in one of three ways:

  • Transfer funds from another bank account over the phone. (You can only do this when you first fund your account.)
  • Transfer funds from another bank via online transfer.
  • Write a check to yourself and send it to the following address:Discover Bank
    P.O. Box 30417
    Salt Lake City, UT 84130

The minimum deposit amount for each of Discover Bank’s CDs is, as the chart above indicates, $2,500. Once you open a CD, you can’t deposit more money later, so it’s a good idea to make sure you have all the cash you want to invest before you open the account.

Withdrawing funds from the CD

When you want to withdraw money from your CD, the biggest thing to consider is whether that CD has matured yet, or finished its term.

If your CD has not matured, you’ve got options: You can take the interest out penalty-free at any time, or you can withdraw the principal (or the money you deposited) at any time as long as you pay an early-withdrawal penalty. This penalty varies depending on the original term of your CD:

  • less than one year: three months’ worth of simple interest
  • one year to less than four years: six months’ worth of simple interest
  • four years: nine months’ worth of simple interest
  • five years to less than seven years: 18 months’ worth of simple interest
  • seven years or longer: 24 months’ worth of simple interest

If your CD has finished its term, you can withdraw your money penalty-free, allow the CD to renew or roll it into a CD of a different term length. (More on that in a bit).

Earning interest on a Discover CD

Your CD will start earning interest on the same business day that you fund the account. The interest will be added to your account once each month, however.

When it comes to what to do with your interest, you have two options: The default option is to allow it to compound within the CD (meaning you’ll earn interest on that interest), or you can have it automatically deposited each month into another Discover bank account.

What happens once the CD matures?

You’ll get a heads-up notice about a month before your CD matures so you can decide what to do with the money. You have two main options: Either reinvest it into another CD (of the same term length or a different term length), or withdraw the money from the CD and put it into another account (such as a checking or savings account, or perhaps a CD at a different institution).

If you don’t let Discover know what you want to do with the maturing CD, the CD will automatically renew into another one of the same term length. You have a nine-day grace period after your CD automatically rolls over to make any changes or withdrawals penalty-free.

The bottom line

As far as big-name banks go, Discover offers great CD products. Wells Fargo, for example, only offers interest rates as high as 1.55% APY on a $5,000 deposit for a 58-month CD. Chase Bank offers even lower maximum rates — an abysmal 1.05% APY, and only if you can commit a minimum of $100,000 for 10 years.

If you’re the kind of person who likes to keep your finances in one place, Discover also has great credit cards, as well as competitive online savings and checking accounts. No matter how long you’re considering putting money in a CD, Discover is worth a look. Even if it doesn’t have the best available rate, it’s usually within several basis points of the top offerings and well above the average APY.

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Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Earning Interest, Reviews, Strategies to Save

Review of Chase Bank’s CD Rates

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Review of Chase CD rates
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Chase Bank is a consumer and commercial bank operated by JPMorgan Chase & Co., an international business firm dating back to 1799 that currently has $2.6 trillion in assets and operations worldwide. The bank, insured by the Federal Deposit Insurance Corporation (FDIC), has 5,100 branches and 16,000 ATMs across the United States. Its products include credit cards; checking, savings and CD accounts; and auto and home equity loans.

But Chase’s CDs are the subject of this article; they can be opened at a branch or completely online at term lengths ranging from one to 120 months.

How Chase CD rates compare with those of other banks

We compared Chase’s CD offerings with entries on our current list of the Best CD Rates for November 2017. On the positive side, you’ll need less money to qualify for a Chase CD than you might at other banks. Chase allows customers to open their CDs with a minimum deposit of $1,000, which is slightly lower than qualifying amounts at some other institutions. Chase CDs are also open to applicants who do not bank with Chase, in contrast with the practices of some banks and credit unions that require member checking or savings accounts.

However, Chase CD rates are far from the most competitive rates out there. You can easily get find better APY rates at other institutions, particularly for one-year CDs. If you decide to go with Chase, look into so-called “relationship rates” with a higher APY. Relationship rates are offered to customers who link their CDs to a Chase personal checking account.

On a 12-month CD for under $10,000, for example, you’ll currently draw twice the percentage rate offered on the standard CD.

As mentioned, a minimum of $1,000 is required to open a Chase CD account, and interest is compounded daily. Depending on the term, your earned interest may be paid monthly, quarterly, semi-annually, annually — and at maturity.

Here’s an overview of the rates Chase currently offers on its CD products. All rates were reviewed at Depositaccounts.com, another LendingTree-owned company, and are current as of Nov. 3, 2017.

CD term

APY

Min. deposit amount

1-Month

.01%

$1,000

2-Month

.01%

$1,000

3-Month

.01%

$1,000

6-Month

.01%

$1,000

9-Month

.01%

$1,000

12-Month

.01%

$1,000

15-Month

.01%

$1,000

18-Month

.05%

$1,000

21-Month

.05%

$1,000

24-Month

.05%

$1,000

30-Month

.05%

$1,000

36-Month

.05%

$1,000

42-Month

.10%

$1,000

48-Month

.10%

$1,000

60-Month

0.25%

$1,000

84-Month

0.25%

$1,000

120-Month

0.70%

$1,000

Source: DepositAccounts.com, Nov. 3, 2017

Chase CD relationship rates

Chase CD relationship APY rates are extended to customers who have a linked Chase checking account. You can apply online and if you use a transfer from your account to open the CD, the account can be opened the same day. The minimum deposit is, again, $1,000.

CD term

$0 - $9,999

$10K - $24,999.99

$25K - $49,999.99

$50K - $99,999.99

$100K - $249,999.99

$250K+

1-Month

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

2-Month

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

3-Month

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

6-Month

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

9-Month

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

12-Month

0.02%

0.02%

0.02%

0.02%

0.05%

0.05%

15-Month

0.05%

0.15%

0.15%

0.15%

0.20%

0.20%

18-Month

0.15%

0.25%

0.25%

0.25%

0.30%

0.30%

21-Month

0.15%

0.25%

0.25%

0.25%

0.30%

0.30%

24-Month

0.15%

0.25%

0.25%

0.25%

0.30%

0.30%

30-Month

0.15%

0.25%

0.25%

0.25%

0.30%

0.30%

36-Month

0.15%

0.35%

0.35%

0.35%

0.40%

0.40%

42-Month

0.25%

0.45%

0.45%

0.45%

0.50%

0.50%

48-Month

0.25%

0.45%

0.45%

0.45%

0.50%

0.50%

60-Month

0.35%

0.55%

0.55%

0.55%

0.60%

0.60%

84-Month

0.35%

0.55%

0.55%

0.55%

0.60%

0.60%

120-Month

0.90%

1.01%

1.01%

1.01%

1.05%

1.05%

Source: DepositAccounts.com, Nov. 3, 2017

Here’s a sample comparison between the APY on standard and relationship CDs on new accounts. To calculate on earnings at maturity, we assumed an account balance of $5,000.

Chase standard CD APY

Earnings at maturity

Chase relationship CD

Earnings at maturity

12 months at 0.01%

$.50

12 months at 0.02%

$1.00

24 months at 0.05%

$5.00

24 months at 0.15%

$15.01

48 months at 0.10%

$20.03

48 months at 0.25%

$50.19

120 months at 0.70%

$361.23

120 months at 0.90%

$468.67

Important information about Chase CDs

Fees

There are no monthly service fees, however there are $15 fees for inbound domestic and international wire transfers (waived if from another Chase account) and outbound domestic wire transfer fees. Accounts can be opened online. Deposits of more than $100,000 must be opened at a Chase branch office.

Non-Chase customer access

You do not need to have a Chase checking or savings account to open a standard Chase CD account. You’ll need to provide a Social Security number, driver’s license and contact information. Deposits must be made from a checking or savings account through your existing bank.

Maturity date and grace period
Law requires banks to alert consumers before the maturation date on CDs. Chase considers the maturity date as the last day of the term. It offers a 10-day grace period on all CDs with terms 14 days or longer. During the grace period, you can withdraw the funds without penalty or roll over the account to another term.

Automatically renewable CDs versus single-maturity CDs

Account holders have the option of opening an automatically renewable or single-maturity CD account.

With an automatically renewable CD, the account renews on the maturity date for the same term as the original one, making the new maturity date the last day of the new term. The standard rate will apply unless the owner qualifies for a relationship CD.

The single-maturity CD does not automatically renew and earns no interest following the maturity date. You may want to see if Chase is offering any promotional rates during the 10-day grace period if you plan to invest in another Chase CD using a ladder strategy.

Earning interest on a Chase CD

Interest on Chase CDs begins to accrue on the first business day of deposit into your account and is calculated on a daily balance, 365 days a year. Paid or credited interest can be withdrawn during the term or at maturity without incurring penalties. For maturities of more than one year, interest will be paid at least annually, according to the bank. If the CD matures and automatically renews, the interest in the account is rolled over into the new principal.

Early-withdrawal penalties and fees
According to Chase, early-withdrawal penalties are deducted from your principal and do not exceed the total amount of earned interest. The penalty is 1 percent of the amount withdrawn if the term of the CD is less than 24 months. The early-withdrawal penalty is 2 percent for terms of 24 months or more.

Chase CD early-withdrawal penalties can be waived upon:

  • Death of a CD owner
  • Disability of a retirement CD owner
  • Retitling of a CD
  • A court ruling that the CD owner is incompetent

The bottom line:

Chase’s CD rates are likely best for customers who link the CD to their personal checking accounts because they can qualify for those juicier relationship rates. The rates improve for longer terms and larger deposit amounts. Chase’s online tools allow you to apply for relationship CDs and track your investments. The minimum amount to open a standard CD account ($1,000) is on par or slightly lower than those required by other institutions. Overall, the APY rates are not as good as you can get from some competing banks and credit unions.

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You can find a range of CDs offering the best rates at MagnifyMoney.

Gabby Hyman
Gabby Hyman |

Gabby Hyman is a writer at MagnifyMoney. You can email Gabby here

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