Popular Community Bank (PCB) is offering promotional rates on its CD Specials. The minimum opening deposit is $1k of new money, which is defined as “funds not coming from an existing Popular Account.”
|2.35%||$1k||-||Popular Community Bank||5 Year Special CD|
|1.90%||$1k||-||Popular Community Bank||3 Year Special CD|
|1.70%||$1k||-||Popular Community Bank||25 Month Special CD|
|1.65%||$1k||-||Popular Community Bank||21 Month Special CD|
If you do not live within PCB’s market area and are interested in any of these CD Specials, Popular Direct (the newest online division of Banco Popular North America) offers comparable rates nationwide, although the minimum deposit for any of their CDs is $10k.
As stated in the Online Account Disclosure, the Early Withdrawal Penalty reads as follows:
For terms less than 91 days, the fee is 89 days simple interest;
for terms equal to or greater than 91 days but less than 12 months, the fee is 120 days simple interest;
for terms equal to or greater than 12 months but less than 36 months, the fee is 270 days simple interest;
for terms equal to or greater than 36 months but less than 60 months, the fee is 365 days simple interest;
for terms equal to or greater than 60 months, the fee is 730 days simple interest.
Headquartered in New York City, Popular Community Bank’s market area includes the greater New York Metropolitan area, Northern New Jersey, and South Florida. According to PCB’s online application, residents within the market area who have a valid Social Security number are eligible for open an account.
Opening a CD can be done online, or at any of 50 full-service branches located in South Florida (10), Northern New Jersey (6), and the New York boroughs of The Bronx, Brooklyn (9), Manhattan (29) and Queens (5).
Popular Community Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.63% (excellent) based on December 31, 2016 data. In the past year, PCB has increased its total non-brokered deposits by $855.23 million, an excellent annual growth rate of 17.68%. Please refer to our financial overview of Popular Community Bank (FDIC Certificate # 34967) for more details.
When I mentioned PCB’s new CD rates to a colleague, her response was, “What about Puerto Rico’s bankruptcy?” On Wednesday, Puerto Rico officially began restructuring its debt load of $70 billion in a bankruptcy court, and coincidentally, PCB will have a new CEO on July 1. American Banker, a daily trade newspaper and website, featured a conversation with PCB’s outgoing CEO and the new CEO, Ignacio Alvarez, in its May 5, 2017 issue. Normally I would just quote a snippet, but viewing the entire article requires a subscription, so I’m including a couple of the article's introductory paragraphs.
The San Juan-based company has mostly protected itself from direct losses, having scaled back for years on government debt. Puerto Rico on Wednesday filed for the largest-ever local-government bankruptcy, unable to repay roughly $70 billion in debt.
Still, Popular faces the daunting prospect of diminished growth on its home turf over the long term. As Puerto Rico has struggled with a steady outmigration from the island and a poverty rate of over 45%, Popular has depended on its U.S. operations in New York and South Florida for asset growth.
How the CDs Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the Bank’s market area, Popular Community Bank’s 21-month CD Special APY currently ranks first, regardless of minimum deposit requirements.
|Interest Rate||CD Length of Term||Bank/Credit Union|
|1.65% APY||21-Month CD||Popular Community Bank|
|1.60% APY||15-Months Share Certificate Special||NASA Federal Credit Union|
|1.55% APY||18-Month CD||Sperry Associates Federal Credit Union|
The other three Special CDs are not as competitive as the 21-month Special CD, with each ranking in the top seven of comparable length-of-term categories available within the Bank’s market area.
The above rates are accurate as of 5/18/2017.