Popular Direct (Internet Bank) Ups 3-Year CD Rate

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Deal Summary: 3-Year Popular Direct CD, 1.90% APY, $10k minimum

Availability: Nationwide, internet bank

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.90%$10k-Popular Direct3 Year Popular Direct CD
Accounts mentioned in this post. Rates as of May 27, 2017.

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.

Savings Account

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.15%--Popular DirectHigh Rise Savings Account
Accounts mentioned in this post. Rates as of May 27, 2017.

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.

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 3-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 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.

The above rates are accurate as of 3/27/2017.

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
ChasR
ChasR   |     |   Comment #1
I clicked on "CD Disclosures" and immediately was reminded why I don't like this bank's CDs: posted interest withdrawals are subject to the EWP. I'll look elsewhere.
RichReg
RichReg   |     |   Comment #2
Just an F.Y.I., ..Eloan savings division is being "absorbed" by Popular Direct.

Just received this email:
"As a valued eloan® customer, we’d like to share with you vital information about changes in your account. Effective May 15, 2017, your current eloan® account will be converted to a Popular Direct account. Popular Direct is the direct online channel owned and operated by Banco Popular North America (BPNA), the same banking institution that maintains your eloan® account. "
JimR
JimR   |     |   Comment #3
Problems with CD interest checks and Beneficiary designation.
This bank can't seem to get its act together pertaining to my account
Intelligence is severely lacking within this organization and they act like they have never had any viable banking experience.
They don't deserve good customers like myself who attempt invest with them!
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