Popular Direct (Internet Bank) Raises CD Rates

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Availability: Nationwide, internet bank

In early August, Banco Popular North America introduced its new internet bank, Popular Direct. At that time, I wrote about the new Popular Direct Savings account, which continues to earn 1.26% APY on deposits of $5k+.

At the end of last week, Popular Direct raised the rates on several CDs, with the 18-month. 2-year, and 5-year Popular Direct CDs being the most competitive. The minimum opening deposit for any Popular Direct CD is $10k, with no stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.05%$10k-Popular Direct5 Year Popular Direct CD
1.52%$10k-Popular Direct2 Year Popular Direct CD
1.40%$10k-Popular Direct18 Month Popular Direct CD
Accounts mentioned in this post. Rates as of December 8, 2016.

In the three months since these CDs debuted, there have been rate changes all within 5+/- basis points of the initial APY.

As stated on the CD Disclosure page, the Early Withdrawal Penalty reads as follows:

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 60 months, the fee is 730 days simple interest.

Bank Overview

Popular Direct’s website states,

All Popular Direct deposit products are offered by, and will be opened through, Banco Popular North America (BPNA). BPNA is a Member FDIC institution and a New York state chartered bank.

Banco Popular North America (FDIC Certificate # 28934) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 5.53% (excellent) based on June 30, 2016 data. In the past year, BPNA has increased its total deposits by $682.42 million, an excellent annual growth rate of 14.24%. Please refer to our financial overview of Banco Popular North America for more details.

BPNA is also the holding institution for E-LOAN. When E-LOAN was launched in 2006, the initial rates being offered were quite competitive, but began to drop after the first three months. In the three months since this new internet bank was introduced, this is the first time Popular Direct's CD rates have deviated from E-LOAN's CD rates.

How the CDs Compare

When compared to the 151 similar length-of-term CDs tracked by DepositAccounts.com that are available to nationwide, Popular Direct Savings’ 18-month CD APY currently ranks fifth, regardless of minimum deposit.

Interest RateLength of TermCredit Union/Bank
1.60% APY16-Month Special CD ($250 min)Consumers Credit Union
1.51% APY15-Month CD Special ($500 min/$100k max)USALLIANCE Financial
1.40% APY18-Month Popular Direct CD ($10k min)Popular Direct

When compared to the 200 similar length-of-term CDs tracked by DepositAccounts.com that are available to nationwide, Popular Direct Savings’ 2-year CD APY currently ranks second, regardless of minimum deposit.

Interest RateLength of TermCredit Union/Bank
1.55% APY25-Month Special CD ($1k min)Veridian Credit Union
1.52% APY2-Year Popular Direct CD ($10k min)Popular Direct
1.51% APY29-Month CD ($1k min)Hughes Federal Credit Union

When compared to the 182 similar length-of-term CDs tracked by DepositAccounts.com that are available to nationwide, Popular Direct Savings’ 5-year CD APY currently ranks in the top seven, although it is the top-ranked 5-year CD offered by internet banks.

Interest RateLength of TermCredit Union/Bank
2.30% APY60-Month CD ($500 min)Mountain America Credit Union
2.16% APY60-Month CD Promo Rate (no min)Signal Financial Federal Credit Union
2.05% APY5-Year Popular Direct CD ($10k min)Popular Direct

The above rates are accurate as of 11/14/2016.

To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table, or our Rates Map page.

Comments
Bob
Bob (anonymous)   |     |   Comment #1
 I plan opening a CD account with Bank Popular Direct. The bank offers 1 year CD with interest rate 1.242% and corresponding APY 1.28%; 2 year CD with interest rate 1.44% and APY 1.52%; 3 year CD - 1.587% interest rate and 1.65% APY. Interest compounds daily.
https://www.populardirect.com/products/cd/cd-36
Can you explain how they calculated these APY's?
Popular Direct (New Internet Bank) Debuts 1.26% Savings Account

UPDATE 8/9/2016: According to CSR, all deposits ($5k minimum) earn 1.26% APY at this time.

Availability: Nationwide

I frequently have the opportunity to introduce DA readers to new products, specials, and rate increases. This is one of the rare occasions when I can introduce a new financial institution: Popular Direct, a new internet bank under the aegis of Banco Popular North America.

Popular Direct is offering a variety of CDs (which I will discuss in a separate blog post), and the Popular Direct Savings account, which according to all...

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