Popular Direct’s 5-Year CD - Rate Leader for Internet Banks

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Availability: Nationwide, internet bank

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.28%$10k-Popular Direct5 Year Popular Direct CD
Accounts mentioned in this post. Rates as of January 22, 2017.

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.

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 5.99% (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 RateLength of TermCredit Union/Bank
2.50% APY60-Month CD ($500 min)XCEL FCU
2.28% APY5 Year Money Market Certificate ($1k min)PenFed Credit Union
2.25% APY60-Month Popular Direct CD ($10k min)Popular Direct
2.10% APY60-Month CD ($500 min)State Farm Bank

The above rates are accurate as of 1/5/2017.

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
Anonymous
Anonymous   |     |   Comment #2
I had a CD with xcel. Their customer service is poor. After I opened a CD i tried to open another a few months later. I was asked to send copies of my license and birth certificate which I did when I opened the 1st CD. I faxed and scanned and they told me the copies were not clear enough. After several back and forths I gave up. Once the CD matured I just closed my member ship and got a check in the mail for $5 and change. Enough easier to deal with CU's out there. Strange that they are lowing rates. Maybe they got a lot of funds coming in..
susan
susan (anonymous)   |     |   Comment #3
The penalty for early withdrawal appears to be 2 years of interest! I need to compare this to PenFed. I don't think their penalty is that bad.
Popular Direct (Internet Bank) Raises CD Rates

Update: Popular Direct has corrected its CD rate table, and the interest rates and APYs are now consistent. In addition, Popular Direct raised its 5-year CD rate (2.25% APY).

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...

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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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