PurePoint Financial Raises Online Savings Rate To 2.35% APY
When PurePoint Financial (PurePoint) raised the rate on its Online Savings account in September, I suggested that “we may not see another savings rate hike this year.” That statement was based on the correlation between the recent Fed rate hikes and the three previous Online Savings rate increases*. PurePoint proved me correct this morning by adding 20 bps to the Online Savings account – the first rate increase since September.
Balances of $10k and above now earn 2.35% APY, while balances below $10k continue to earn 0.25% APY. A $10k minimum deposit is required to open an Online Savings account.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 2.35*% | $10k | - | PurePoint Financial | Online Savings | |
| OTHER TIERS: 0.25% → Up to $10k | |||||
Introduced in February 2017, the Online Savings APY trailed behind the online savings and money market rate leaders for more than a year. That changed in late May 2018 when 20 bps were added, boosting the Online Savings APY to near the top of the rates table. Another 25 bps were added in September 2018, but the APY began to lose its edge in the last quarter of the year, as other banks and credit unions continued to raise savings rates. Today’s rate increase has made the Online Savings APY more competitive, but still lagging behind the current rate leaders.
*The following chart shows the last four Online Savings account rate increases and how they coincided with the Fed rate hikes in the past year.
FAQs
PurePoint’s FAQs are quite detailed and provide a large amount of information on a variety of subjects, 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 – a hybrid of 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 who are worried or uncertain about internet banks by offering providing something familiar: a building filled with people who will interact with them face-to-face.
Thanks to DA reader, WheelinDealin, for the Forum post on PurePoint Financial’s latest rate increase.
Availability
As an online division of MUFG Union Bank (Union Bank), PurePoint Financial is headquartered in New York City and offers its product line to all U.S. citizens and permanent residents. Headquartered in San Francisco, 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.
Opening an Online Savings account with PurePoint Financial can be done online or by phone (855.488.7873). While an Online Savings account 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.
Financial Centers
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, New York City, and Scarsdale
Texas – Dallas, Houston (2), Plano, Southlake, Sugar Land, and The Woodlands.
Bank Overview
As an 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, 2018 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. We are backed by the strength and stability of Mitsubishi UFJ Financial Group (MUFG), the 5th largest financial group in the world with total assets of over $2.7 trillion.
How the Online Savings Account Compares
When compared to 216 Savings Accounts that are nationally available, PurePoint Financial’s Online Savings APY currently ranks sixth, regardless of minimum deposit requirement.
| Interest Rate | Account Name | Credit Union/Bank |
|---|---|---|
| 2.50% APY | High Yield Statement Savings ($5k min/$1m max) | EBSB Direct |
| 2.45% APY | Savings Builder ($25k min/no max) | CIT Bank |
| 2.40% APY | MySavings Account (no min) | MySavingsDirect |
| 2.35% APY | Online Savings ($10k min) | PurePoint Financial |
The above rates are accurate as of 1/4/2019.
To compare the top Savings account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.
Inability to link more than ten accounts is PurePoint's only shortfall. It's a real PITA. But it is surely not sufficient reason to avoid an otherwise amazing, first class, banking experience.
My complaint about the links: If you delete one of your ten linked accounts (say you closed the account to chase rates elsewhere), you can only add another if you call PurePoint and tell them that, yes, you really did want to delete the linked account.
This can occur at any financial institution if they do not like what they find on your ChexSystems report. For anyone to whom this has happened, if you have a "stellar credit history" and have been denied an account for "no discernable reason", it might be a good idea to request from ChexSystems a copy of your report. There is no cost.
I have thought for a while to try to work with PurePoint to clear whatever obstacle stood in the way of getting approved for an account ... because they do have very good rates and a good reputation. But then I decided that it's just too risky for me to have accounts at a bank that initially denied me.
Purepoint has very generous inbound/outbound external transfer limits. I wish I had so much money that their limits were an actual constraint.
Purepoint is the most professional financial institution I've ever dealt with. Customer service and online banking are absolutely top notch ... and I've dealt with Penfed and Alliant.
Citi and HSBC have the worst customer service I've ever experienced.
Based on this, I decided to move all but $10,000 our of the account. The same thing happened again. I really should close the account as I'm not using it as I don't trust them to move money out when I need it. Granted I was moving large sums of money both times but I've never had that much trouble with any other bank ever, even when moving large sums.