PurePoint Financial (PurePoint) is the newest member of the “short-term no-penalty CD club”, with the addition of its 13-month No-Penalty CD, earning 2.60% APY. Like all of Purepoint’s CD, the 13-month No-Penalty CD requires a $10k minimum deposit and has no stated balance cap.
PurePoint is also offering two other No-Penalty CDs: 11-month (2.15% APY) and 14-month (2.25% APY). Based on current rates, I’m not sure why anyone would consider opening either the 11- or 14-month.
PurePoint’s No-Penalty CDs appear to be structured the same as other no-penalty CDs that are available from other internet banks. The no-penalty feature applies only to a withdrawal of the entire balance and there are no time restrictions (except for an initial 7-day delay that is actually required by Regulation D). The PurePoint FAQ answer to the question, “How do I withdraw my money without a penalty?,” does seem to imply that partial withdrawals are allowed with penalty. However, PurePoint’s No-Penalty CD Guide states the following:
- You may withdraw your total balance beginning seven days after the day you fund your new CD without being charged a penalty. All other withdrawals will be subject to an Early Withdrawal Penalty, which may reduce account earnings.
- Partial withdrawals are not allowed.
The second part of the above FAQ provided a few details on how a customer would make an early withdrawal from the No-Penalty CD:
You can close your account and make a full withdrawal prior to maturity by logging into Online Banking and accessing your No-Penalty account details page. By expanding the Show More Details section, you will see an option to close your account.
The last quote indicates that closing a No-Penalty CD appears to be easy, with no call to CSR required. However, there's no mention on how long it takes.
PurePoint’s “Best Rate Commitment” applies to the No-Penalty CD.
When you fund your new CD within 10 days of a completed application, you will
receive our best rate offered during that 10-day period for the same product and term
Thanks to DA reader, solarado, for breaking the news of the No-Penalty CD in the Forum. All the thoughtful comments by a variety of other DA readers are greatly appreciated.
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.
Update 3/13/2020: All PurePoint Financial Centers have been closed. All account opening and account management must now be done online or by phone.
Opening a No-Penalty CD at PurePoint Financial can be done online or by phone (855.488.7873). While a No-Penalty CD can be opened at any of 22 Financial Centers listed below, the “Important Information” states,
Other rates may be available if account is opened in person at Financial Center.
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.
PurePoint is a unique type of internet bank, almost a hybrid between a brick-and-mortar institution and a pure internet bank. 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 clients 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.
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 2.35% (excellent), based on September 30, 2019 data. The Bank has an excellent capitalization level (13.96%), the result of holding $123.98 billion in assets with $17.31 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 $2.7 trillion.
How the 13-month No-Penalty CD Compares
As I pointed out in last week’s blog post about the no-penalty CD offered by Dime Community Bank, no-penalty CDs are not that common, and the longer the term, the more competitive the CD. When compared to other nationally available no-penalty CD, PurePoint Financial's 13-month No-Penalty CD APY offers the highest APY, the longest term length, but a higher minimum deposit.
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 2/25/2019.