bank rates

Savers Don’t Choose PNC For Its CD Rates

A new J.D. Power study on how people shop for a bank suggests few savers decide where to put their money based on a bank’s interest rates.

PNC has just one above-average CD rate at 0.50% APY for 12 monthsPeople are most likely to choose a financial institution based on advertising and branch convenience.

That’s good news for places like PNC Bank, which offers some pretty paltry CD rates.

PNC, however, is among the banks that are “aggressive” when it comes to advertising and promotions, according to the study.

But don’t expect to be rewarded for choosing PNC Bank. Even having a relationship with the Pittsburgh-based bank won’t get you a decent CD rate.

A performance or performance select checking account brings only one of its terms above average: the 12-month CD, which pays 0.50% APY with a $1,000 minimum deposit. That’s only 0.05% more than what strangers who walk in off the street earn.

It does beat the average annual yield offered by big banks and thrifts for 12-month CDs, but that’s really no reason to brag. The 0.48% average APY is the lowest it’s been since Bankrate.com began tracking rates in October 1983.

On the other hand, the top nationally available 12-month CD rate on the CD Rates Leaderboard is 1.45% APY.

PNC Bank’s current promotion is a 9-month CD offering a 0.45% APY relationship rate, which doesn’t compare well, either.

Some of its other relationship rates:

3-month CD rate is 0.15% APY versus an average rate of 0.20% APY. (Leaderboard leader is 0.80% APY.)

6-month CD rate is 0.25% APY versus an average rate of 0.30% APY. (Leaderboard leader is 1.15% APY.)

24-month CD rate is 0.50% APY versus an average rate of 0.73% APY. (Leaderboard leader is 1.75% APY.)

36-month CD rate is 0.70% APY versus an average rate of 1.05% APY. (Leaderboard leader is 2.17% APY.)

60-month CD rate is 1.25% APY versus an average rate of 1.71% APY. (Leaderboard leader is 3.00% APY.)

Convenience, a factor listed in the J.D. Power study, is the only reason we can think of why anyone would buy a certificate of deposit from PNC Bank, which has about 2,500 branches in 15 states and the District of Columbia.

Getting a decent rate of return certainly wouldn’t be a factor here.

For a better investment, find the top CD rates from scores of other banks in our extensive database.

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Comments (3)
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3 Existing Comments
  1. Kathy at Bankaholic said:
    on March 16th at 08:40 pm

    Nothing’s changed on these rates as of March 16, 2011.

  2. Kathy at Bankaholic said:
    on March 27th at 08:53 am

    All of these rates are still on the books as of March 27, 2011.

  3. Kathy at Bankaholic said:
    on May 26th at 06:27 am

    The 9-month offer has ended, but the other rates are the same as of May 26, 2011.