Posted by Chuck on February 15, 2019
High-Yield APY Accounts

Published on February 15th, 2019 | by Chuck

46

Susquehanna Community Bank 3.00% APY Introductory Savings Rate, 2.53% Afterward (Minimum $100,000)

Offer at a glance

  • Interest Rate: 3.00% introductory rate for 6 months, after that 2.53% APY (prime minus 3%)
  • Minimum Balance: $100,000
  • Maximum Balance: ?
  • Availability: Nationwide
  • Hard/soft pull: Unknown
  • ChexSystems: Unknown
  • Credit card funding: None
  • Monthly fees: None with $25,000 minimum balance
  • Insured: FDIC
  • Early Termination Fee: $10 if closed within 90 days

The Offer

Direct link to offer

  • Susquehanna Community Bank a 3.00% APY introductory rate for 6 months on their Eagle Premium Savings account.
  • After introductory period, rate will revert to Prime minus 3%, currently 2.53% APY.

 

The Fine Print

Terms

  • $100,000 minimum deposit to open account
  • $25,000 new money required
  • You may make unlimited deposits into your account

Avoiding Fees

  • $10.00 Maintenance Fee if balance falls below $25,000.00 on any day in the statement cycle.
  • $20.00 Excess Debit Fee will be charged for any withdrawal/debit in excess of ONE debit semi-annually (January 1-June 30 and July 1-December 31). DEBITS are defined as: Checks, ACH/Automated Clearing House, POS/Point of Sale, Telephone Transfer, Online & Mobile Banking Transfers and ATM Withdrawals. ONLY the monthly compounded interest may be withdrawn on a recurring basis without penalty.
  • Early account closing fee of $10 if closed within 90 days of account opening
  • Popmoney transfer fee of $.50/ transaction when initiated from Susquehanna Community Bank
  • Popmoney transfer limit of $5,000 per transaction

Our Verdict

For those with large cash balances, this account is the best available: it’s regular rate of Prime minus 3% seems to be the same or better than the other best rates available, and the introductory 3.00% rate is a sweet bonus (around $250 gain from the bonus rate per $100k deposited). I also like that they tie the rate to Prime which should mean that it increases  automatically as interest rates increase. Of course it’ll also decrease as rate decrease.

The big thing to keep in mind is the $20 Excess Debit Fee mentioned in the fine print which basically limits you to just one free withdrawal every six months, sort of like a no-penalty CD. You’d have to pull out all funds in one shot either by transferring to another account at the bank or with a transaction initiated from an external bank.

Hat tip to Depositaccounts



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Ben
Ben

Seems available in both taxable and IRA savings versions (DoC clipped the rates from the IRA version). Not often do we see good rates available for IRA cash.

Frank
Frank

That debit fee is scary. Likely can’t pull $100k in one shot so you could easily be faced with $100+ of fees to get your money back

O-Qua Tangin Wann
O-Qua Tangin Wann

Frank, looks like the best way to pull out your $100K+ would be via an ACH Pull from one’s external bank account, assuming one has an external account that allows a high daily ACH deposit limit.

Steve

“ONLY the monthly compounded interest may be withdrawn” sounds weird. But you left out some words at the end “on a recurring basis without penalty”. I’m still not sure what that means though.

Emporio
Emporio

Chuck Here are a couple of other important facts about the account which make this less attractive:
• Early account closing fee of $10 if closed within 90 days of account opening
• “Popmoney” transfer fee of $.50/ transaction when initiated from Susquehanna Community Bank
• Popmoney transfer limit of $5,000 per transaction

Since there is a limit of 1 ACH debit semi-annually then just setting up an external bank to “pull” funds out using the deposit verification method may use up or even exceed this withdrawal ACH debit limit when the external bank reclaims its micro deposits. If you want to withdraw more than $5K in the first 6 months without incurring the $20 excess transaction fee, you’d have to do a wire transfer which will cost $30/ outgoing transaction.

The only way to completely avoid any fees would be to leave your $100K sitting untouched in the account for 90+ days while only withdrawing the interest. In my opinion, the bank is not being transparent on the multitude of fees and restrictions with this account. For example, I had to call and speak to bank Operations to get the detail on the Popmoney $5K transfer limit and locate the schedule of fees. It’s a deceptive practice when this information is not being made readily available prior to the application process.

For fee schedule visit: https://www.scb.bank/wp-content/uploads/Deposit-Account-Common-Features-and-Service-Charge-Schedule-12-21-18-update-savings-wording-Eagle-Savings-new-money.pdf

O-Qua Tangin Wann
O-Qua Tangin Wann

It has been reported that 1) There is no hard credit pull. 2) If you ACH out to an external bank pushed from this Eagle account they only allow a measly $5,000 per day. 3) That you can only transfer the interest earned to another Susquehanna account. 4) That if you are dinged $20 due to the ACH Trial Deposit Withdrawals from your external bank you can call Susquehanna to get the fees refunded.

Ben2
Ben2

This means unlimited ACH pull?

O-Qua Tangin Wann
O-Qua Tangin Wann

Someone new has reported that they were told by some other employee that Susquehanna does not impose an ACH limit pushed out. So, we now have 2 conflicting reports. (I hope the 2nd report about ACH pushes is the accurate information, of course.)

Emporio
Emporio

It’s rare for banks to have limits for ACH transfers initiated from an external bank. The question is would you bank with an institution like Susquehanna which imposes the aforementioned fees and restrictions? Personally I’d take a lower APY over a subpar banking experience with major liquidity restrictions but a high teaser rate.

doc
doc

I agree. This reeks of a bank that’s having liquidity problems. Why else make it hard for people to get their money? It’s not like the bank has to pay interest on money that’s not there. Plus, the 100k minimum is so ridiculous on its face. Basically, they intend to fee you to death, until you’re under the threshold, and you get nothing.

Anytime you see multiple red flags like this… don’t do it. It’s not worth the hassle.

James
James

Couldn’t you open a checking account and transfer funds there

ra
ra

Add “Freedom Checking.” No fees. Basically it’s a 3% 6-month no penalty CD, except for the $10 fee to close within 90 days.

Robert
Robert

Do you have a link to the Freedom Checking for the 6 month no penalty CD?

Schmekel
Schmekel

What “ra” is posting is:

“Add ‘Freedom Checking’. No fees

Basically [Eagle Premium Savings account is].a 3% 6-month no penalty CD, except for the $10 fee to close within 90 days.”

Ben2
Ben2

I was told ACH had to be initiated from a external bank.
And there are no limits.

You could pull the whole amount in one shot.

This bank does not do ACH transactions from their side; per the representative.

No need to add the checking account.

O-Qua Tangin Wann
O-Qua Tangin Wann

Ben2, there are reliable reports that they do allow ACH’ing directly from Susquehanna, however with a very small limit. You are correct that the better way to go is to initiate all ACH transactions from one’s external bank. The only negative is that most external banks will initially do a deposit/withdrawal of tiny amounts to verify the account. With Susquehanna only permitting one free debit per 6 months, the ACH Test W/D will count as a debit. That would require a call to Susquehanna to request they don’t count the test withdrawal(s).

(Of course it could turn out that the info the rep told you is accurate and that they don’t allow any ACH’ing directly from Susquehanna, and that the others reporting they not only do allow ACH’ing out but that someone has already tested their ACH system to obtain the accurate daily limit is wrong.)

Alexey Smirnov
Alexey Smirnov

Please delete

Alex
Alex

From their rep:
If you link your Eagle Premium Savings account on another website that will require test debits to his your Susquehanna Community Bank account, these debts will count towards the Excess Withdrawal limitation on the account.

O-Qua Tangin Wann
O-Qua Tangin Wann

Alex, this is a very important issue, as you know, since they will charge $20 for every debit after the 1 free per 6 months is used up.

A rep told someone else that they will waive the ACH Trial Debits if you call and ask. I would recommend that you ask a different rep one more time. Please report back if you do.

Alex
Alex

I plan to open a Freedom checking account (seems no fees, no minimums) and transfer money there first to be safe and not get any fees.

Alex
Alex

Does anyone know when you open a new account with them how they verify an external account from which they are going to make an ACH pull for the initial funding? It seems to be different than with other banks.

ra
ra

They verify with a single withdrawal under $1.00. You enter that amount and then they pull the money the next day.

Disappointed
Disappointed

Good product on its face but the bank fails to disclose material provisions restricting access to the funds. Bank management represented that the one debit allowed each six months without fee is limited to $5,000 as that is the maximum ACH amount that can be transferred in one day. Bank management further represented that the only way to get more out at one time is to wire transfer (for a fee), initiate ACH from destination account (subject to their limitations) or close the account. Bank management confirmed that none of those restrictions is disclosed anywhere in writing. Bank management also represented that they do not consider the offer as an “online savings” account but as a promotion for their existing brick an mortar customers, who could then make unrestricted transfers between their other hosted accounts. Bank management represented that this was a new offer for their “small local” bank and indicated that they would address the material non-disclosures and transfer restrictions at their next risk meeting. Bank management was very forthcoming and cooperative. This would be a great product from a very customer oriented bank if the transfer restrictions were made comparable to competing “online savings” account offerings.

O-Qua Tangin Wann
O-Qua Tangin Wann

Thank you, Disappointed, for your posting. You wrote regarding withdrawing money: “…initiate ACH from destination account (subject to their limitations).” The question is: What exactly would their limitations for ACH withdrawals initiated at external banks be?

Disappointed
Disappointed

Bank management represented that they did not limit the dollar amount of transfers initiated from an external account, that would be subject to limitations of the bank from where the transfer was initiated, but their fee-free limit of one debit each six months would still apply.

O-Qua Tangin Wann
O-Qua Tangin Wann

Thank you very much, Disappointed. That’s good news. So, that means if one has an external bank that offers high ACH limits, such as PurePoint, as one example, all of the money from Susquehanna could be pulled out at once where the maximum fee would be just $20 if the one free debit per 6 months was already exceeded.

Ben
Ben

I verified an external account.

I did not get charged anything for the two withdrawals.

I think PurePoint limits transfers to 250K, not meaning to ding PurePoint, I like that bank

O-Qua Tangin Wann
O-Qua Tangin Wann

Ben, that is good news you’re reporting regarding that so far you have not seen a $20 charge for the 2nd ACH test withdrawal. I hope it stays that way, and that the charge doesn’t simply post when the monthly statement period closes.

(I agree with you that there is a lot to like about PurePoint, I have an acct. with them as well. I just wish they’d hurry up and raise their savings account rate to 2.5%. Of course they might not do it.)

Phil
Phil

Purepoint offers a 2.6% no penalty cd now

Alex
Alex

For this savings account:
An ACH pull from an external account initiated in their internet banking costs $1.5 (3 business days). An ACH push to an external account costs $3 (next business day) or $1.5 (3 business days).
You can link some external accounts only using your other’s bank online credentials without trial deposits.

Philipp
Philipp

Purepoint offers a 2.6% no penalty CD now…anyone dealt with Purepoint yet?

Kent
Kent

I tried opening that CD at PurePoint. Online application wouldn’t go through, CS didn’t know why despite confirming I’d be approved over the phone. PITA, gave up.

Philipp
Philipp

I know nobody cares about this….but look at their response….I would stay away from that mickey house bank…..what you think Thank you for contacting us regarding our Eagle Premium Savings Account. Q: Do I get charged for the two withdrawals? A: It depends on the source of the ACH: The initial “test” transactions will only be credits into the Eagle Premium Account, so they would not count towards the Excess Withdrawal limitation. For example, the customer wants to transfer $250,000.00 into the new account and selects funding during the online application. The initial test deposit with debit the customer’s other bank and credit SCB for $0.50. Once the customer confirms the withdrawal at the other bank, the remainder of the deposit will process ($249,999.50). There will be no fees assessed so nothing would need refunded. However, if the customer is linking their SCB account to another bank’s external transfer service and that bank initiates “test” debits to their SCB account, those would count toward the “Withdrawal limitation.” There is now way to avoid it because an ACH debit is an ACH debit on our system. The customer could request that the fee be waived, but that would be a branch/Steve Y decision. You could also guide him in the direction of a wire transfer to SCB; however normal incoming wire fees would be assessed. Unless chosen to be waived. I’m not sure how often he is planning to transfer money into SCB or if he is just trying to get the initial deposit in. Q: What is the maximum dollar amount initiated from an external account, that would be subject to limitations of the bank from where the transfer was initiated, but your fee-free limit of one debit each six months would still apply. A: Limits for ACH transfers initiated by other Banks, we have NO limits on what we can receive here at Susquehanna Community Bank. The Online Banking External Transfer feature you referenced that allows you to initiate ACH entries does have an incoming and outgoing initiation limit of $5,000.00 per day per transaction if you choose a 3-day delivery option. If the 1-day delivery option is chosen, the limit is $2,500.00. You can choose the timeframe for the transfer; either 1 day or 3 day. Per transaction fees would apply based on the option chosen; $3.00 for a 1-day transfer and $1.50 for a 3-day transfer. Here… Read more »

Philipp
Philipp

am I missing anything?

Philipp
Philipp

Just to let everyone know…this 3% special will expire on the 3/30….I did not open this account…just did not feel secure enough for some reason…

midas89
midas89

Philipp, I did not get any negative feelings at all when I opened up my 3% Susquehanna account. And I still don’t have any concerns today. I have not had any issues at all, and everything went very fast and smoothly. With the Fed not going to raise rates for quite some time, I am glad I opened up the Susquehanna account. In 6 months, you read that Susquehanna says they’ll pay U.S. Prime Rate minus 3%. We’ll see what that amounts to at that time, of course. (If it was today, the rate would be 2.53% APY as you saw above the comment section.)

Ben
Ben

I got 6 months at 3%
closed my account, put my money elsewhere paying more.
no fees no fines what so ever

midas89
midas89

Ben, where did you put your Susquehanna money? (My 3% is up at end of September and I wanna find a place to move the $, but fear wherever I move it to will not stay “more than Susquehanna.”

Scott S.
Scott S.

How did you close the account? My 6 months is up and want to get my money out. Did you call or write a letter?

midas89
midas89

Scott S., using their Contact Us Online Form at their main page, I sent a message requesting to close my account. (I had already zeroed my balance by pulling the money out using my external bank doing an ACH.) Susquehanna emailed me and said they would send me a PDF file via secure email. I signed that form and emailed it back, also via their secure email. They got it right away and closed my account. All this was done within an hour’s time today.

Of course, you can also call them, if you’d like.

scott s.
scott s.

Awesome, thanks for the info. Just sent them a message so hopefully mine goes as smoothly as yours did.

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