Popular Direct's 5-Year CD Leads Internet Banks

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Deal Summary: 5-year Popular Direct CD, 3.05% APY, $10k minimum deposit.

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.05%$10k-Popular Direct5 Year Popular Direct CD
Rates as of July 18, 2018.

A significant issue with Popular Direct CDs is the harsh Early Withdrawal Penalty (EWP). 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 downside related 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.

Thanks to DA reader, iamaroc, for his continued Forum posts on Popular Direct products.

Exclusive Savings

UPDATE 5/17/2018: the Exclusive Savings account is no longer being offered. Popular Direct has brought back its Plus Savings Account, which currently earns 1.85% APY.

In mid-January, Popular Direct introduced its new Popular Direct Exclusive Savings account with a 1.50% APY. Popular Direct phased out its Plus Savings Account to make way for the Exclusive Savings, which is the fourth savings account added to the product line in about two years. The Exclusive Savings is currently earning 2.00% APY, following two rate increases in the past three months.

According to the Account Disclosure, the Exclusive Savings is structured exactly like the Plus Savings Account, just with a new name and new rate.

The Account Disclosure for the Plus Savings Account contains the same information (listed below) as the disclosure for the Exclusive Savings.

  • 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.

The following information from an earlier blog post is still in effect.

  • There is an ACH transfer service that customers can log into and initiate a transfer to/from outside accounts.
  • Initiating ACH transfers is fee-free.
  • There is a $10k maximum for incoming and outgoing transfers.
  • Only one external account can be linked and it cannot be changed during the first 60 calendar days following the linking.
  • The hold period for ACH deposits is five days.

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 7.81% (excellent) based on December 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $621.17 million, an excellent annual growth rate of 10.91%. 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 E-LOAN; on May 15, 2017, all E-LOAN deposit products became Popular Direct products. BPNA is currently the 12th largest bank headquartered in New York, with assets in excess of $9.1 billion and more than 233,000 customer accounts.

How the CD Compares

When compared to the 192 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.

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

The above rates are accurate as of 5/16/2018.

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
gregk
gregk   |     |   Comment #1
Ho-hum now, Ken. No one's bothering to even comment. Show us another 4% 5 year and it might be noteworthy.
Lone Star
Lone Star   |     |   Comment #2
No comments?
Probably due to the fact that 16 out of 37 reviews are 1 star!
111
111   |     |   Comment #3
Perhaps, but all in all - most of us would rather have a "wide net" cast for all offers, as Ken does, after which he analyzes and validates these offers with his usual expertise. Then, we have the responsibility to decide what makes sense for us. Such is the nature of life in a free economy.
Bogie
Bogie   |     |   Comment #4
Right 111, exactly what Ken's site is all about. The information is presented to us. Then it's up to us as individuals to decide what is the best course of action to take.

I have found this to be the most comprehensive and most frequently updated site concerning interest rates that there is, thanks to Ken.
RJM
RJM   |     |   Comment #6
Im not sure if I posted a negative review or not but I was pretty mad after finding out all of their "issues". And there are many.

But I have a lot of money in their 2% savings. And I can only transfer it to one credit union for now. I am unclear if I can add accounts after 60 days or I have remove the old one or what?

Still, after I got it out of my system, Its been ok. Not many others paying 2% on a savings. And I'm not moving it for 2.05%.
DCGuy
DCGuy   |     |   Comment #11
The Exclusive Savings Account (2%) is no longer available.
RJM
RJM   |     |   Comment #18
I just logged in and my account is still showing 1.98/2.00%. I hope they don't try cutting my rate.
Ann
Ann   |     |   Comment #16
RJM: "I am unclear if I can add accounts after 60 days or I have remove the old one or what?"

The blog post: "Only one external account can be linked and it cannot be changed during the first 60 calendar days following the linking."

Pretty lame arrangement. Link your other accounts to Popular from the other company's side only.
RJM
RJM   |     |   Comment #19
Never thought of that.

Sarcasm kicks in from time to time.
Anonymous
Anonymous   |     |   Comment #7
Yes, 5 years with that huge EWP would require at least 4% in this environment to be a good deal.
#5 - This comment has been removed for violating our comment policy.
deplorable 1
deplorable 1   |     |   Comment #12
Meanwhile they shaft savings account customers yet again by dropping their 2% rate to 1.85%. This way they can hike it back up to 2% in May after the next FED rate hike(for new customers only) and pretend they hiked their rate. This is like when department stores mark everything up 20% just before their 20% off sale. Women fall for this all the time.............."but honey it was on SALE!" lol
anonymous
anonymous   |     |   Comment #13
Deplorable 1, it looks like a lot of men fell for the 2% savings account, so succumbing to marketing tricks might be an equal opportunity problem. :)
deplorable 1
deplorable 1   |     |   Comment #15
Well I fell for Emigrant Direct(multiple times), Bank Purely, Everbank, The other Popular Direct savings. So it's definitely not a gender thing. I don't mind a little rate chasing but this is getting a bit much. This is by design I can just see these bankers sitting around and trying to figure out the next bait and switch game and laughing at us savers.
111
111   |     |   Comment #17
Let's not forget UFB - the poster child of zigzag rates, as far as I'm concerned. That bank is one of the many reasons why I started checking depositaccounts.com regularly.

At least some of this finagling by banks has to do with getting their overall deposit ratios up to "acceptable" levels (meaning - by the FDIC, OR by investors, or both).
anonymous
anonymous   |     |   Comment #20
I still have EmigrantDirect but refuse to consider DollarSavingsDirect.

I think I should reward the banks more that raised their rates on old accounts back to decent levels ... FNBO for example.
Kirkland
Kirkland   |     |   Comment #14
Popular always has too large of an early withdrawal penalty on their CD's and so I am not surprised that they yanked the 2 % rate and be wary of a bank that penalizes you if you take your credited interest. Banesco is now not allowing you to take the credited interest either. It was like pulling teeth to get my CD redeemed from Banesco recently. They did not want to return my money! Stay away.
Anonymous
Anonymous   |     |   Comment #21
5 year brokered CDs at 3.2% from Fidelity. Why bother with this?
#22 - This comment has been removed for violating our comment policy.
Bogie
Bogie   |     |   Comment #23
@21, Why not?

Some people would prefer all their CDs accessed through one account rather than a half dozen or more individual accounts at various banks and CUs.
Anonymous
Anonymous   |     |   Comment #24
Right, that's what I'm saying. If you can get a higher rate and only have one login to remember, why bother putting money in Popular at a lower rate?
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