Popular Direct Pushes 5-Year CD To 3.50% APY

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Deal Summary: 5-year Popular Direct CD, 3.50% APY, $10k minimum deposit

Availability: Nationwide (internet bank)

Popular Direct recently raised the rate on its 5-year Popular Direct CD to 3.50% APY. Since the beginning of the year, there have been six rate increases, adding a total of 110 bps to the APY. The 5-year Popular Direct CD can be opened with a minimum $10k deposit and there is no stated balance cap.

Popular Direct has other competitive CDs. For a full list, please refer to our Popular Direct CD rate table.

Popular Direct’s harsh Early Withdrawal Penalty (EWP) has drawn criticism from some DA readers. As stated on the CD Disclosure page, the EWP reads as follows:

For terms equal to or greater than 60 months, the fee is 730 days simple interest.

Another negative aspect to the EWP is that it also applies to credited interest. According to the CD Disclosure:

Withdrawals of either credited interest and/or principal
prior to maturity will result in early withdrawal penalties.

The CD Disclosure page also states that interest is compounded daily and credited on the last day of the month. The automatic renewal grace period is 10 calendar days following the maturity date.

Funding a Popular Direct CD must done through an external account from another U.S. financial institution that has been “validated through the External Account function in Popular Direct Online Banking.” After linking the external account, you may not change it for 60 days. Each time you change the external account, it cannot be changed for another 60 calendar days.

Plus Savings Account

In May, Popular Direct brought back its Plus Savings Account (1.85% APY), as a replacement for the Exclusive Savings account, which had been added to the product line only five months earlier. Popular Direct likes to phase out established savings accounts to make way for new products. In the past two years, five savings accounts have been retired and replaced. With two rates increases in the past four months, the Plus Savings Account now earns 2.10% APY on balances of $5k+.

According to the Account Disclosure, the Plus Savings Account is structured exactly like its predecessor, but with a new name and new rate.

60-Day Freeze

I discussed this unpopular freeze in greater detail in a July blog post. The policy, which can be viewed by hovering your mouse over the “Apply Now” button, reads as follows:

Your security is important to us. That’s why, as of March 15, 2018, there will be a 60-day freeze on withdrawals for new accounts, starting with the date of account opening. Please note, your account will continue to earn interest during this time. Once the 60-day authorization period is complete, you may withdraw funds as needed.

ACH Transfers

On a more positive note, a colleague found it was very easy to initiate external transfers using their external transfer service, and the transfer limits are very high - up to $999,999 per day. The transfer service isn't available on their mobile app. He also mentioned that Popular Direct’s overall health was better than he imagined, with quite a bit of liquidity from insurance and FEMA payments to cover damage for last year’s hurricanes.

Availability

As an online division of Banco Popular North American, 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.

Opening any type of account, including the 5-year Popular Direct CD, must be done online.

Bank Overview

Popular Direct/BPNA has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 7.80% (excellent) based on June 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $629.45 million, an excellent annual growth rate of 10.48%. Please refer to our financial overview of Popular Direct/BPNA (FDIC Certificate # 34967) for more details.

BPNA was also the holding institution for the now defunct internet bank E-LOAN; on May 15, 2017, all E-LOAN deposit products became Popular Direct products. BPNA is currently the 11th largest bank headquartered in New York, with assets in excess of $9.4 billion and more than 231,000 customer accounts.

How the CD Compares

When compared to 182 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of $10k or less, Popular Direct’s 5-year Popular Direct CD APY currently ranks second.

Interest RateLength of TermCredit Union/Bank
3.51% APY60-Month Share Certificate ($1k min)United States Senate Federal Credit Union
3.50% APY5-Year Popular Direct CD ($10k min)Popular Direct
3.49% APY5-Year CD ($500 min)KS StateBank

When compare to only internet banks, the 5-year Popular Direct CD APY currently ranks first.

Interest RateLength of TermCredit Union/Bank
3.50% APY5-Year Popular Direct CD ($10k min)Popular Direct
3.30% APY60-Month CD ($1k min)First Internet Bank
3.15% APY60-Month High Yield Online CD ($500 min)Vio Bank

The above rates are accurate as of 10/24/2018.

To search for the best CD rates, both nationwide and state specific, please refer to our CD rates table.

Related Pages: New York savings accounts, Miami savings accounts, savings accounts, 5-year CD rates, nationwide deals, Internet banks

Comments
jjflyman
jjflyman   |     |   Comment #1
Fidelity has had 5y@3.5% on their brokerage CD's for weeks.
I am frustrated by the slowness of banks to incorporate the last rate rise into their CD and saving's rate. They sure like to string it along.
klink
klink   |     |   Comment #2
I think financial institutions are taking a wait and see attitude with the up-coming elections. I also believe that the short term route is the way to go for now. My 2 cents.
Umm
Umm   |     |   Comment #6
You say that as if the companies offering the brokerage CDs are something other than banks.
Nothing
Nothing   |     |   Comment #8
And, Klink, some offer different rates in different parts of the country...banks do this all the time at B&M locations and then offer higher rates thru b-houses...due diligence is required to get best rates
RJM
RJM   |     |   Comment #3
I am still planning on closing my popular account on 11/1. My 6 months ended this month but one loses interest if closing the account in mid month according to the rep I spoke with. I only have the minimum left to avoid fees. $500.

The entire experience left a bad taste in my mouth.
BreakfastCDs
BreakfastCDs   |     |   Comment #4
I agree, I'm leaving in November too. Too much policy drama. Never going back again. Also can't believe they charged me $7.50 fee for a rejected ACH pull from an external bank. Apparently they don't want any external pulls, but external money push deposits are fine.
RJM
RJM   |     |   Comment #5
I have not had any rejected pulls except from a pull from AA which Popular rejected back when they unilaterally decided to put a hold on my account without telling me first. Neither charged me a fee but AA coded it as a tax seizure which had me worried for awhile there.
DCGuy
DCGuy   |     |   Comment #10
What goes in, doesn't come out (AKA roach motel).
SANTAFE
SANTAFE   |     |   Comment #9
I MADE THE MISTAKE OF A MID-MONTH WITHDRAWAL FROM POPULAR WHICH COST ME INTEREST. I GUESS I WAS EXPECTING SO MANY HOOPS TO MAKE THE WITHDRAWAL I DIDN'T STOP TO THINK WHAT WOULD HAPPEN TO THE INTEREST ACCRUED MONTH-TO-DATE.
cca
cca   |     |   Comment #11
I don't see anything about if they accommodate IRA accounts. Thoughts?
RJM
RJM   |     |   Comment #12
I called early this morning and got the closure started. Entering my account number and pin was a waste of time because it did not transfer to the rep. I hate all the steps involved to get a rep on the phone but Ally has similar BS involved.

The bottom line for me is after what Popular did to me and others, they are going to need to be WAY above market for me to even consider using them again.

The transfer is going to my linked Ally account. But they did it, not me. I am unclear if I could have done it all online without talking to a rep or not.

As mentioned, there was no early closure fee because the account had been open 6+ months.
If you are already down to $500, the potential lost interest for closing in mid month is only about 47 cents. Might not be worth waiting for for many.
#13 - This comment has been removed for violating our comment policy.
Popular Direct Ups Plus Savings Rate
Deal Summary: Popular Direct Plus Savings, 2.00% APY, $5k minimum. Popular Direct CDs – 1-year (2.50% APY), 2-year (2.95% APY), 3-year (3.00% APY), 4-year (3.05% APY), and 5-year (3.25% APY), $10k minimum deposit.

Availability: Nationwide (internet bank)

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Availability: Nationwide (internet bank)

A year ago, Popular Direct 5-year Popular Direct CD was earning 2.35% APY; as of yesterday, the rate is 3.05% APY. In a series of five rate increases, the APY has added 75 bps since early May 2017. The minimum deposit for the CD is $10k, with no stated balance cap.

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Availability: Nationwide (internet bank)

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Availability: Nationwide (internet bank)

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Availability: Nationwide (internet bank)

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