Should you apply for the Public Savings Bank OPEN SKY Secured VISA Card? Read through this Public Savings Bank OPEN SKY Secured VISA Card review to decide if this card is the best credit card for you.
Public Savings Bank is located in Huntingdon Valley, Pennsylvania but also has Internet banking available for its clients. They have been in business for over 80 years and offer personal banking, business banking, premium financing, and lending services. In addition to their banking services, they offer the Secured Black credit card which quite naturally falls into the secured credit cards category.
Benefits of the Public Savings Bank OPEN SKY Secured VISA Card
Since there are no income requirements for the Public Savings Bank OPEN SKY Secured VISA Card nor is your credit taken into consideration, you are almost guaranteed acceptance for the card. Once you have the card, you can use it to establish credit and create a positive credit history because Public Savings reports your payment history to all three main credit bureaus (click here to get your free credit report along with a subscription to a credit monitoring service). Your credit limit is based on your security deposit, which can be a minimum of $200 all the way up to a maximum of $1,500.
Furthermore, you get the benefit of peace of mind with $0 fraud liability and customer support is available twenty four hours a day, seven days a week. Included with your benefits are travel and emergency assistance as well as auto rental insurance. Your secured Public Savings Bank card can be accepted by every merchant that accepts Visa as it is surprise surprise a Visa credit card!
The Deposit Account
In order to obtain a Black Card, you need to make a deposit to secure the card. To do this, simply open an account with Public Savings Bank for the amount you want to establish as your credit limit. The account you open will be insured by the FDIC.
The FDIC (Federal Deposit Insurance Corporation) insures your money that you deposit into a covered financial institution. If your money is at home under the mattress, it is not covered. However, if it is in a savings or checking account in a bank that is FDIC insured and that bank goes bankrupt, your money, including interest earned, will be returned to you.
The maximum limitation per bank used to be $100,000 but has recently been increased to $250,000. This increase in insurance is temporary and will desist at the end of 2013. Checking accounts, savings accounts, and CDs (Certificates of Deposit) are all added together for a single owner to account for the $250,000 limitation. Joint owners are allowed $500,000. If you need to insure more than the allowed amount, you need to open up additional accounts at different FDIC insured banks. The exception to this combined account rule is the IRA (Individual Retirement Account), which is considered as separate ownership and therefore insurable by itself for up to $250,000.
Some CDs that are in excess of $250,000 may be covered if your bank is one of the banks in a CDARS network. CDARS (Certificate of Deposit Account Registry Service) is a network of banks that work jointly to keep CD balances below the FDIC limit by placing multiple deposits among multiple banks.
For example, if a client has $350,000 in a CD at one bank, only $250,000 is insurable. However, if the bank is in the CDARS network, then that bank would keep $200,000 and deposit the remaining $150,000 into another bank of the CDARS network. The client’s CD will show the entire $350,000 on his one account, but the money is technically split up into separate banks for dollar amounts that are insured by the FDIC. Promontory Interfinancial Network, LLC started this network and it is endorsed by the American Bankers Association.
The FDIC, which is a government agency that is funded by financial institutions, covers all insured deposit accounts as mentioned above. However, it does not cover annuities, bonds, mutual funds, stocks, or life insurance.
The Cost of the Public Savings Bank OPEN SKY Secured VISA Card
Although there are no annual fees for the Public Savings Bank OPEN SKY Secured VISA Card, there is a onetime application fee of $70. The variable rate is the current day’s prime interest rate plus an additional 7.99% However, unlike some other secured cards, this one comes with a grace period of twenty-five days, which means you will not be charged interest provided you pay your balance in full before the due date.
When it comes to secured cards, always choose a bank that deposits your money into a FDIC insured account. Application fees are standard, although they vary in price, but those are only paid one time up front. To save money, choose a card that does not have annual fees. Although your goal should be to pay the balance in full and promptly every month, a no interest or low interest secured card can be beneficial in the event you need to make payments on the card.
To apply for the Public Savings Bank OPEN SKY Secured VISA Card, click on the button above now! (Or click here to compare credit cards from many different companies!)