PurePoint Financial Online Savings Rate Jumps
DA reader, WheelinDealin, noted in a Forum post today that PurePoint Financial (PurePoint) has raised the rate on its Online Savings account. Balances of $10k and above now earn 1.90% APY, while balances below $10k continue to earn 0.25% APY. The Online Savings account can be opened with a $10k minimum deposit.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 1.90*% | $10k | - | PurePoint Financial | Online Savings | |
| OTHER TIERS: 0.25% → Up to $10k | |||||
Since it was introduced in February 2017, the Online Savings’ APY trailed behind the online savings and money market rate leaders. With today’s increase of 15 bps, that scenario has changed: only Virtual Bank currently offers a higher rate (eMoney Market, 2.01% APY).
Online CDs
PurePoint also increased the rates on all its Online CDs today, adding between 10 and 45 bps. As DA reader, SYC, pointed out, the 36-month Online CD 3.00% APY is the most competitive of the four Online CDs. A $10k minimum deposit opens any PurePoint CD and there are no stated balance caps. In the past 15 months, PurePoint’s CDs have offered competitive rates and have been regularly featured in DA’s bi-weekly CD Rates Summary.
As stated in PurePoint’s “Guide to Our Certificates of Deposit,” the Early Withdrawal Penalty (EWP) reads as follows:
The Early Withdrawal Penalty assessed will equal 181 days of
simple interest at the rate being paid on the amount withdrawn.
This is a mild EWP for the 3% 3-year CD. You can see how this CD when closed early compares to the shorter-term CDs by using our Early Withdrawal Penalty Calculator.
FAQs
PurePoint’s FAQs are quite detailed and provide a large amount of information, including,
We offer individual, joint and personal trust accounts.
PurePoint doesn’t currently offer business or brokerage accounts.
How many external linked accounts can I set up?
You may link up to 10 external accounts per customer from other financial institutions to your PurePoint accounts.
What can I do at a Financial Center?
Open saving accounts and CDs
Update your personal information (such as home or mailing address), beneficiary details, and other information related to your account.
The last quote about Financial Centers is noteworthy: PurePoint represents a new model of internet banks, almost a hybrid between brick-and-mortar institutions and “pure” internet banks. The Financial Centers are not “bank branches,” and as such, do not accept cash deposits. Staff members just assist customers in opening accounts and answering questions. The intent appears to be helping those individuals who are worried or uncertain about internet banks by providing a tangible resource, i.e., a building filled with people who will interact with them face-to-face.
Thanks to DA readers, SYC and WheelinDealin, for their Forum posts this morning about PurePoint Financial’s latest rate increases.
Availability
As an online division of Union Bank, PurePoint Financial is headquartered in New York City and offers its product line to all U.S. Citizens and Permanent Residents. Union Bank, which is headquartered in San Francisco, is a subsidiary of UnionBanCal Corporation, a bank holding company formed by the merger of The Bank of California and Union Bank in the late 1990s.
Opening an account with PurePoint Financial can be done online, or at any of 22 Financial Centers located in,
Florida – Aventura, Boca Raton, Coral Gables, Fort Lauderdale, Palm Beach Gardens, Palm Harbor, St. Petersburg, and Tampa
Illinois – Chicago, Glendale Heights, La Grange, and Skokie.
New York – Brooklyn Heights, New York City, and Scarsdale
Texas – Dallas, Houston (2), Plano, Southlake, Sugar Land, and The Woodlands.
Bank Overview
As the online division of Union Bank, PurePoint Financial operates under Union Bank’s FDIC Certificate and shares its financial history.
Union Bank/PurePoint Financial has an overall health rating of "A" at DepositAccounts.com, with a Texas Ratio of 2.63% (excellent), based on December 31, 2017 data. The Bank has an excellent capitalization level (14.54%), the result of holding $118.54 billion in assets with $16.83 billion in equity. Please refer to our financial overview of Union Bank/PurePoint Financial (FDIC Certificate # 22826) for more details.
We designed PurePoint™ Financial to empower our clients to save more. And while we're a new brand, we’re not new to banking. As a division of MUFG Union Bank, N.A., we share in the rich 150-year history of serving clients in the United States. Our global parent company, Mitsubishi UFJ Financial Group (MUFG), is the 5th largest financial group in the world with total assets of over $2.59 trillion.
How the Online Savings Account Compares
When compared to the 218 Savings Accounts that are nationally available, PurePoint Financial’s Online Savings APY currently ranks second, regardless of minimum deposit requirement.
To compare the top Savings account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.
How the Online CDs Compare
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and require a minimum deposit of $10k or less, PurePoint Financial's 36-month Online CD APY ranks first.
When compared to the similar length-of-term CDs> tracked by DepositAccounts.com that are available nationally and require a minimum deposit of $10k or less, PurePoint Financial's 24-month Online CD APY ranks second.
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and require a minimum deposit of $10k or less, PurePoint Financial's 18-month Online CD APY ranks second.
When compared to the similar length-of-term CDs> tracked by DepositAccounts.com that are available nationally and require a minimum deposit of $10k or less, PurePoint Financial's 12-month Online CD APY ranks fourth.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
The above rates are accurate as of 5/30/2018.
The PurePoint service I most like is that they pay interest immediately on funds transferred at their website via ACH, from outside the bank, into my account. This means they are paying interest on money not yet even in the bank! The outcome is no days of lost interest, and even between one and four days of double interest. That is not bad at all.
Also, you can only ACH funds from this account to the CHECKING account you originally used to open the account. You're allowed to open another external CHECKING account six months after establishing the savings account---that's the limit. What if you found a 4% three year CD and wanted to move the money quickly by ACH to the other financial institution? You're out of luck. So, despite Dollar Savings Direct 1.80% interest rate [which is no longer the rate leader], there are many better savings account available. I'm planning to move everything out of the account at the end of the month except $10.
I too find the ACH account restrictions at DSD an irritation. Are you going to move funds out at month end because DSD will not credit you with partial interest earned mid-month?
Thanks.
I can't see NorthPointe allowing its deposits to disappear if banks like PurePoint raise rates beyond 2.05% APY over the next 12 months. I have accounts at both places now.
It is in the above regard that I have found PurePoint a straight shooter, and not at all one of banking's roach motels. And, to me at least, that is a very important aspect of my banking activity. I do not want to be forced to jump through hoops when I need access to my funds. Period. OK, so what about Northpointe? I dunno. I have yet to put Northpointe to the test. Time will tell. I'm hoping for the best.