PurePoint Financial is the latest bank to increased its savings account rate to 1.60% APY. In February, I first wrote about Union’s Bank’s new online division, PurePoint Financial. At that time, PurePoint Financial had unveiled its initial offerings – an Online Savings Account and four online CDs. The Online Savings Account rate was raised today by 20 bps to 1.60% APY on balances of $10k or more; balances less than $10k continue to earn 0.25% APY. The minimum opening deposit is $10k.
|1.60*%||$10k||-||PurePoint Financial||Online Savings|
|OTHER TIERS: 0.25% → Up to $10k|
This is the third time PurePoint Financial has increased its savings account rate. The last time was on November 10th when the rate increased from 1.30% to 1.40% APY. One positive sign is that each rate increase is getting larger. The first rate increase on August 4th was 5 bps. The second rate increase on November 10th was 10 bps, and now this new rate increase is 20 bps.
This new rate increase puts PurePoint Financial’s savings account with or near the rate leaders of online savings and money market accounts. Only two banks are offering a higher savings account rate, and no banks are offering a higher money market rate. PurePoint Financial joins three other internet banks to offer 1.60% APY on their savings accounts or money market accounts.
Thanks to DA readers RichL40T and Striker for mentioning this news in the DA Forum.
Online Savings Account Details
Below are the account details I learned last year when speaking to a PurePoint Financial CSR. I believe these are still valid. I did speak with a CSR today and verified that these online fund transfer features are still valid:
There were a couple pieces of important information I couldn’t find on the website, namely dollar amount limits on online fund transfers, and details about POD accounts. According to a very helpful CSR, there is a limit of $250k per transfer, and a $1 million limit per a rolling 30-day period, which applies to both incoming and outgoing transfers. Up to 10 external accounts can be linked.
CSR also stated that beneficiaries can be added, but only after the account is established. The owner of the account has to log into the online banking system to add the beneficiaries. PurePoint Financial does not require Social Security numbers for any beneficiaries.
Local Offers Include 1.75% APY Savings Account & 2.50% APY 24-Month CD
PurePoint Financial is offering higher rates to residents of states with Financial Centers. As I described in past posts, PurePoint Financial is a hybrid of internet banking and brick-and-mortar banking. The bank has several Financial Centers in a few major metro areas of the country. These Financial Centers are not “bank branches,” and as such, do not accept cash deposits. Staff members just assist customers in opening accounts, answering questions and updating personal information and beneficiary details.
You can currently see two of the local offers on PurePoint Financial’s website by entering a Florida, Texas, New York or Illinois zip code (states where they have Financial Centers). These two local offers include a 1.75% APY on the Online Savings Account for a $10k minimum balance and a 2.00% APY on the 1-year CD for a $10k minimum deposit. I had to call for the 24-month local CD offer. I was told it has a 2.50% APY, which makes it an especially good deal.
According to PurePoint Financial’s website, these local deals “are exclusively offered through our Financial Centers in this state or by phone to local residents by calling 1-855-488-PURE (7873).”
UPDATE: PurePoint Financial is now requiring customers to visit a Financial Center to qualify for the higher CD and savings account rates. PurePoint Financial's local offers page now says "Rates valid for accounts opened in person at a Financial Center."
PurePoint Financial’s Nationally-Available CDs
PurePoint Financial used to offer competitive nationally-available CD rates when it first launched last year, but that has changed. All four of their CDs (with terms of 12, 18, 24 and 36 months) have rates that are now far below the rate leaders. If you don’t qualify for the local CD rates, you might want to stick with just the savings account. You can view the latest rates in the CD section of our PurePoint Financial hub page.
UPDATE: On 2/16/18, PurePoint Financial increased rates considerably on its CDs with terms of 12, 18 and 24 months. You can view the latest rates in the CD section of our PurePoint Financial hub page.
PurePoint Financial CD Details
Just like the savings account, CDs have a minimum opening deposit of $10,000. Below are a few excerpts of the important CD features mentioned in PurePoint Financial’s CD Guide:
The Early Withdrawal Penalty assessed will equal 181 days of simple interest at the rate being paid on the amount withdrawn.
All or partial withdrawals prior to maturity may be subject to an Early Withdrawal Penalty. You can withdraw interest paid during the current term of the CD without incurring an Early Withdrawal Penalty.
You have 10 calendar days beginning on the maturity date to withdraw funds without penalty. If you withdraw all of your funds during the grace period, your account will not earn interest after the maturity date.
Compounding and Crediting: Interest will be compounded on a daily basis. Interest will be credited to your account on a monthly basis. You may elect to have interest transferred to your PurePoint Financial savings account or to your external linked account; otherwise, interest will be paid by crediting your certificate of deposit account.
According to PurePoint Financial’s FAQs, to make a withdrawal from your CD, you’ll have to request the withdrawal by phone. You can also send a letter, but a CSR will call you prior to completing the request.
Another important FAQ says that they offer “individual, joint and personal trust accounts. PurePoint doesn’t currently offer business or brokerage accounts.”
As an online division of Union Bank, PurePoint Financial is headquartered in San Francisco and offers its product line to all U.S. Citizens and Permanent Residents. Union Bank 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.
Florida – Aventura, Coral Gables, Fort Lauderdale, Palm Beach Gardens, Palm Harbor, St. Petersburg and Tampa
Illinois – Glendale Heights, La Grange, and Skokie.
New York – New York City, Scarsdale
Texas – Dallas, Houston (2), Plano, Southlake, Sugar Land and The Woodlands
Note, new financial centers are coming soon to Boca Raton, FL; Brooklyn, NY; and Chicago, IL
As the online division of Union Bank, PurePoint Financial operates under Union Bank’s FDIC Certificate # 22826 and shares its financial history.
Union Bank/PurePoint Financial has an overall health rating of "A" at DepositAccounts.com, with a Texas Ratio of 2.96% (excellent), based on September 30, 2017 data. The Bank has an excellent capitalization level (14.51%), the result of holding $118.55 billion in assets with $17.2 billion in equity. Please refer to our financial overview of Union Bank/PurePoint Financial 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 208 Savings Accounts that are nationally available, PurePoint Financial’s nationally-available Online Savings APY currently ranks third. The Online Savings Account that’s available to residents in states where they have Financial Centers ranks first.
The above rates are accurate as of 1/24/2018.