No TOD Beneficiary for PNC Online Savings Account

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Topic Author
petulant
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No TOD Beneficiary for PNC Online Savings Account

Post by petulant » Fri Jan 03, 2020 10:57 am

For a few months we've used the high yield savings account from PNC. We live outside of PNC's main areas in the East Coast, so they offer a high yield savings account that is competitive with major online-only banks on the interest rate. Although DW and I are young, I am making sure we get started early with appropriate estate strategies like setting TOD beneficiaries on bank accounts. This is our main emergency/liquidity savings account, so it does and will continue to hold a significant balance where it is important to use TOD.

I did find a few threads where people had similar problems with Capital One 360. I also found threads where Ally Bank does allow a TOD beneficiary.

Does anybody know why PNC would not allow a TOD beneficiary? And does anybody have any more information on the status of other online/high yield savings accounts whether they allow TOD beneficiaries, such as a favorite online bank that stays generally competitive on interest rates?

Thanks.

mervinj7
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Re: No TOD Beneficiary for PNC Online Savings Account

Post by mervinj7 » Fri Jan 03, 2020 11:19 am

petulant wrote:
Fri Jan 03, 2020 10:57 am
Does anybody know why PNC would not allow a TOD beneficiary? And does anybody have any more information on the status of other online/high yield savings accounts whether they allow TOD beneficiaries, such as a favorite online bank that stays generally competitive on interest rates?

Thanks.
I don't know about PNC but Capital One does allow beneficiaries on many types of accounts. However, they wouldn't allow us to open a new Performance Savings account in the name of our living trust.

https://www.capitalone.com/support-cent ... eficiaries

Topic Author
petulant
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Re: No TOD Beneficiary for PNC Online Savings Account

Post by petulant » Fri Jan 03, 2020 11:23 am

Interestingly the PNC agent called me a bit later and told me they now can allow TOD beneficiaries for all online-only states except California and Louisiana. So my own personal issue is probably resolved, although it highlights one of the challenges of interfacing with people that lack branches in your area.

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HueyLD
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Re: No TOD Beneficiary for PNC Online Savings Account

Post by HueyLD » Fri Jan 03, 2020 11:28 am

PNC does allow POD on savings accounts.

See this account disclosure.

https://www.pnc.com/content/dam/pnc-com ... counts.pdf

Topic Author
petulant
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Re: No TOD Beneficiary for PNC Online Savings Account

Post by petulant » Mon Jan 13, 2020 10:48 pm

So, after a couple rounds of calls, PNC took the personal information of our beneficiaries and then sent a polite letter telling us they don't support TOD beneficiaries in our state for the high yield savings account. So the original problem is confirmed.

It's not the first bizarre issue I've had with PNC online banking, so we'll be moving.

I believe Ally allows TOD beneficiaries and has a competitive interest rate. Any other suggestions?

Alan S.
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Re: No TOD Beneficiary for PNC Online Savings Account

Post by Alan S. » Mon Jan 13, 2020 11:14 pm

American Express Savings allows TODs.

With any of these on line accounts, once you have the TOD added you should check your account at least a couple times a year (or certainly as soon as your health deteriorates) since these designations can be lost by the processing system during system updates etc. Similar to employer plans when the plan administrator is changed.

123
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Re: No TOD Beneficiary for PNC Online Savings Account

Post by 123 » Mon Jan 13, 2020 11:38 pm

Problems with beneficiary designations are not limited to bank accounts. There have been threads in the past about Vanguard not allowing beneficiaries on joint accounts. If you had an individual account Vanguard allowed beneficiaries but not on joint accounts. The logic is assumed to be along the line of if it is a joint account the joint owner is the expected beneficiary. Of course that logic doesn't address the possibility of the simultaneous death of both joint account holders.
The closest helping hand is at the end of your own arm.

Topic Author
petulant
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Re: No TOD Beneficiary for PNC Online Savings Account

Post by petulant » Sun Jan 19, 2020 12:43 pm

Thanks for the responses. I moved over to Ally. Everything seems to be going well.

Big Dog
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Re: No TOD Beneficiary for PNC Online Savings Account

Post by Big Dog » Sun Jan 19, 2020 12:53 pm

oops, deleted

Alan S.
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Re: No TOD Beneficiary for PNC Online Savings Account

Post by Alan S. » Sun Jan 19, 2020 1:49 pm

HueyLD wrote:
Fri Jan 03, 2020 11:28 am
PNC does allow POD on savings accounts.

See this account disclosure.

https://www.pnc.com/content/dam/pnc-com ... counts.pdf
The disclosure provision for POD accounts does not limit them to individual accounts. Referrals are made to the "last owner to die". PNC is a PA based company as is Vanguard. A recent thread regarding Vanguard's declination of TODs on joint account made mention of the possibility of PA statutes contributing to their policy. But PNC does not appear to share this concern, adding another indication that Vanguard's policy is internal driven and does not result from PA statutes.

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