Deal Summary: 3-Year Popular Direct CD, 1.90% APY, $10k minimum
It’s been almost nine months since Banco Popular North America introduced its newest internet division, Popular Direct. At the end of last week, Popular Direct raised the rates on its long-term CDs, with the 3-year Popular Direct CD being the most competitive. The minimum opening deposit for any Popular Direct CD is $10k, with no stated balance cap.
Since August 2016, there have been four rate increases for the 3-year CD, adding a total of 35 basis points to the APY.
As stated on the CD Disclosure page, the Early Withdrawal Penalty reads as follows:
For terms equal to or greater than 36 months, the fee is 365 days simple interest.
My first blog post about Popular Direct was devoted to the new Popular Direct Savings account, which initially earned 1.26% APY on deposits of $5k+. In January, DA readers reported that the interest rate on their existing Popular Direct Savings accounts had fallen to 1.15% APY, and that the Bank no longer listed the account (or its rate) on its website. Rather than publicly noting the lowered rate on the existing Savings account, Popular Direct began offering a new account, High Rise Savings (1.15% APY), in December 2016. If you still have the old Popular Direct Savings account, please leave a comment about your current rate.
While the account name (and the rate) may have changed, the basic constructs of the account remain the same.
- Minimum opening deposit is $5k
- $4 monthly service fee if the balance on any day is below $500.
- $25 early closing fee if account is closed within 180 days of opening.
- $5 monthly dormancy fee if there has been no activity for 12 months.
- Withdrawals only allowed via an external account, internal transfer to another Popular Direct account, or ACH.
- $5 fee for each additional debit exceeding the limit of six per statement cycle.
- Deposits only allowed via an external account, internal transfers to another Popular Direct account, ACH, or Popular Direct mobile app.
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 3-year Popular Direct CD, must be done online.
Popular Direct/BPNA 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, the Bank 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 Direct/BPNA (FDIC Certificate # 28934) 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. Within a few months of its debut, Popular Direct’s CD rates began to deviate from those of E-LOAN, and Popular Direct’s latest rates increases have only furthered the gap.
How the CD Compares
When compared to the 202 similar length-of-term CDs tracked by DepositAccounts.com that are available to nationwide, Popular Direct’s 3-year CD APY currently ranks second, regardless of minimum deposit.
|Interest Rate||Length of Term||Credit Union/Bank|
|2.00% APY||36-Month E-Certificate of Deposit ($500 min)||First Central Savings Bank|
|1.90% APY||3-Year Popular Direct CD ($10k min)||Popular Direct|
|1.85% APY||38-Month CD Special ($500 min)||Third Federal Savings and Loan|
The above rates are accurate as of 3/27/2017.