In late December, Popular Direct increased its 5-year CD rate by 20 basis points to 2.25% APY. The last time Popular Direct had significant CD rate hikes was in early November. I decided to wait for the resolution of the CD rate listing issue that occurred in December before reporting on this 5-year CD. Popular Direct is now listing correct interest rates and APYs on its website. This 5-year CD has an interest rate of 2.226%. The interest is compounded daily resulting in a 2.25% APY. Minimum deposit is $10,000.
As stated on the CD Disclosure page, the Early Withdrawal Penalty reads as follows:
For terms equal to or greater than 60 months, the fee is 730 days simple interest.
Last August, Popular Direct was launched as an internet bank of Banco Popular North America. In addition to CDs, it offered a savings account that paid 1.26% APY with a minimum opening deposit of $5k. In early December, Popular Direct introduced a new savings account called High Rise Savings that pays 1.15% APY. The original savings account is no longer available to new customers.
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 5.99% (excellent) based on September 30, 2016 data. In the past year, BPNA has increased its total non-brokered deposits by $1.02 billion, an excellent annual growth rate of 21.06%. 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.
How the CD Compares
When compared to the 84 similar length-of-term CDs tracked by DepositAccounts.com that are available from banks nationwide, Popular Direct’s 60-month CD APY currently ranks first, regardless of minimum deposit. When the comparison includes credit unions with easy membership requirements, Popular Direct’s 60-month CD APY currently ranks sixth.
|Interest Rate||Length of Term||Credit Union/Bank|
|2.50% APY||60-Month CD ($500 min)||XCEL FCU|
|2.28% APY||5 Year Money Market Certificate ($1k min)||PenFed Credit Union|
|2.25% APY||60-Month Popular Direct CD ($10k min)||Popular Direct|
|2.10% APY||60-Month CD ($500 min)||State Farm Bank|
The above rates are accurate as of 1/5/2017.