President & CEO Bruce Cleveland answered your question on Quote.com
September 20, 2000

Other Quote.com Online Chat Sessions

September 5, 2000
September 7, 2000
September 19, 2000


Do some banks offer financial software as part of their online bill pay package?
In the future, will we have a single place to do banking, pay bills, shop for cars, loans, etc...?
Will online bill pay allow customer to see the running total of their account?
What about bill paying services that aren't run through a bank?
Why to you pay more interest for your checking account than your savings account?
Besides bill payer, what other functions are unique to online banking?
Explain why your charge a fee for "Account Research" and "Statement Reconciliation"?
How do I make a deposit if I don't live in D.C.?
What about hidden ATM costs?
Will online banks be moving towards online investing?

Do some banks offer financial software as part of their online bill pay package?

We can’t speak definitively for other banks. However, Presidential’s bill-payer system operates over the Internet using your regular browser, without the need for any special software. We believe that most other banks operate in the same way.

Back to top

Is the way this all is going is to have a single place to do banking, pay bills, shop for car/house/college loans, everything? What's your take, Mr. Cleveland?

Your one-stop shopping list is limited to financial products and services. Therefore, it appears to us that the answer is generally "yes", many people we do everything financial at a single place or just a few places, online. Presidential already offers online just about everything you mentioned, because these products are either loans or deposit accounts, which are traditional banking products, or are essential online banking services, which we offer as an Internet bank. Most banks will probably end up offering about the same comprehensive list of products and services online, but it may take quite a while.

Back to top

I told a friend that the Internet would never be good for anything besides entertaining college students... How wrong was that? But now I'm on board, and hungry for info: will online bill pay allow customers to see the running total of their account? As opposed to just seeing the total owed at the end of the month?

I am not sure I understand your question exactly, but I will try to answer as best I can. The Bill-Payer system allows you to schedule recurring payments and make one of a kind payments online, any time. It will keep a register of all of the payments you have made under "payment history", but will not total those payments for you.

However, each payment you make is also immediately charged to your checking account in real time, and so you will be able to see your payments being deducted from your checking account, using our related PC Banking system. The PC Banking system shows you a list of all the recent activity in any of your bank accounts, and the current balance. It also permits you to move money between your Presidential accounts in real time.

You can use our Historical Statements system to view an online copy of any past statement for any of your accounts. These online statements look just like the statements you get in the mail, and they show the opening and closing balance in the account for the month, as well as the balance in your account after each individual transaction.

All of these services are free (except to get free Bill-Payer service, you must have an Internet Checking Plus account, otherwise there is a monthly charge).

Back to top

What about bill paying services that aren't run through a bank, such as the post office and OnMoney.com? What are your thoughts on using a nonbank entity for this account feature?

Presidential offers an online Bill-Payer service to any of our customers who desire it; for many of our customers it is free. However, it is entirely your choice, whether you want to use Presidential’s bill-payer system or a third-party system. Naturally, the third-party system will not be free. If you decide to use a third-party system, you should make sure you are dealing with a reputable, financially stable company. Third party bill-payer organizations are private companies, rather than federally insured banks, so you will not be protected by government banking regulation. They will be charging your account at Presidential or whatever other bank you use, by direct debit, before the payments they make on your behalf clear. Therefore, they will be holding some of your money in their own account while your payments clear. All reputable independent bill-payer companies establish a separate trust account to hold their customers’ funds while payments are clearing, so make sure your bill-payer company offers you this measure of protection. Beyond that, make sure you are confident that your bill-payer company is here to stay.

Back to top

I see on your website that you pay more interest for a checking account (Internet Checking) than for a savings account (Internet Statement Savings)... Isn't this the opposite of how most banks do it? Why do you do it this way? Due to the minimum balance?

At Presidential, we do indeed have a rather contrarian point of view on this issue. Most banks pay higher rates of interest on accounts that are superficially better for the bank. We pay a higher rate of interest on unlimited checking accounts, which are better for the customer but more costly for us to service, because we are seeking core customers who will make us their primary bank and remain with us for a long time We are willing to pay a higher rate to reward customers who will value us as their main bank and maintain a stable relationship with us. The minimum balance requirement is not a significant factor in this policy. We pay high rates on a variety of checking accounts, some with lower minimum balances than others.

Back to top

Besides bill paying what other features are there that are unique to online banks?

Online banks have the opportunity to offer a variety of services, via the Internet, that a bank that isn’t online simply can’t offer. In addition to comprehensive online information about our products and services, Presidential currently offers: PC Banking real time transaction lookup, online transaction searches, real time transfers between accounts, online historical statements, an online lookup of canceled check images, secure e-mail communication, online bill-payer service, online new account opening, and online mortgage and car loan applications. We also have an extensive array of deposit account and loan products and services for business customers. Additional products and services will be coming soon.

Back to top

On your website, under schedule of fees, you have a fee for "Account research" at $15/hour, minimum of $5. What does this pertain to? If I have an account at Presidential and a mistake outside my control was made, will I get charged this research fee to have it investigated and my account correctly credited? And what about the "Statement reconciliation" ($15/hr, min $5) fee?

You have been doing your homework on our web site. The Internet makes this a lot easier, doesn’t it?

From time to time customers will conclude that we have made some kind of mistake in their account. Often it is the customer who is mistaken, but some customers are very persistent in pursuing these claims, even when the claim is not true. If we have actually made a mistake, then of course we will correct it immediately and even credit the customer with any interest that has been lost. And, of course, if we do make a mistake, we never charge the customer to research the problem.

However, if it turns out that we must spend significant amounts of time researching a customer claim that proves to be baseless, or to do research on a customer’s account where the customer does not claim that we made a mistake but just needs extensive information, then we reserve the right to charge the customer for the employee time involved. These charges do not apply to routine customer inquiries, but only when significant research of old information or complex activity is required.

Statement reconciliation is a service that we do not need to provide very often. However, occasionally a customer will become confused about his or her account balance and actually ask us to reconcile the account. To do this, we need to receive a copy of the customer’s check book register. We then use our own records of deposits made and checks and other debits paid to calculate a reconciled balance for the customer. For this service we charge the same hourly and minimum charges as we would charge for account research.

Back to top

How do I make deposits to my account (other than electronic) if I don't live in DC?

Make your deposits by mail. E-mail us, and we will be glad to send you a supply of mail deposit envelopes. You will already have your deposit slips in the back of your check book.

Back to top

What about the hidden ATM costs? Since all of the transactions will be electronic, what if I want to speak with someone? Will I be charged?

At Presidential there are no "hidden" ATM charges. We will not charge any fees to your account when you use your ATM card. However, you must be aware that many other banks impose surcharges when you use their ATMs. But these fees are charged by them, not us. We consider our telephone customer service center to be an important part of our Internet banking service. We will never charge you to talk to us. Your call via our "800" number is free (inside the U.S.), and we will welcome your call. Our customer service people are there to help you. Feel free to call and ask questions, even if your don’t have an account yet, at 1-800-383-6266.

Back to top

What’s up with deregulation? Will online banks be moving toward online investing, too?

It appears inevitable to us that more and more banks will move to offer online investment services. Presidential has had an affiliated securities brokerage firm for many years, and we will be expanding its online services to our customers in the near future.

Back to top


Deposit Products | Loan Products | Investments| Electronic Banking | About Presidential | News | Home


PPresidential Bank reminds you that email@presidential.com is NOT a secure means of communication. Please refrain from including personal information such as account numbers, Tax ID/Social Security numbers, passwords, etc. We encourage you to maintain contact with us through our new Secure Email service, located within Personal Online Banking. Help us keep YOUR personal information PRIVATE!

email@presidential.com (General Inquiries) or Secure Email available through Personal Online Banking
© 1995 - 2010 Presidential Bank, FSB
last updated 10/08/2012 lmm
Member FDIC