UPDATE 3/22/2017: Late last week PurePoint Financial raised its 12-month and 18-month CD rates by 5 bps to 1.45% APY. This post was originally published on 2/23/2017.
Deal Summary: 12-Month CD, 1.45% APY; $10k minimum deposit. Online Savings, 1.25% APY, $10k minimum.
When I have the occasion to write about a new bank, “new” usually means opened in the recent past; in the case of PurePoint Financial, “new” means yesterday, literally. PurePoint Financial is an online division of MUFG Union Bank, N.A. (Union Bank) which itself is a subsidiary of Mitsubishi UFJ Financial Group, a bank holding company which is the 5th largest financial group in the world with total assets of over $2.4 trillion.
PurePoint Financial currently lists two products on the homepage of its new website: a 12-month CD (1.45% APY, $10k minimum) and the Online Savings Account (1.25% APY, $10k minimum).
|1.45%||$10k||-||PurePoint Financial||12 Month Online CD|
|1.25*%||$10k||-||PurePoint Financial||Online Savings|
|OTHER TIERS: 0.25% → Up to $10k|
PurePoint Financial also offers a few longer term CDs, but currently the rates are not as competitive as the 12-month CD. A full list of these CDs is available at our PurePoint Financial rate table.
As stated in the CD Product Guide, the Early Withdrawal Penalty reads as follows,
The Early Withdrawal Penalty assessed will equal 181 days of
simple interest at the rate being paid on the amount withdrawn.
The website has a fairly comprehensive FAQs page that will be helpful to anyone interested in this new internet bank. A few of the salient points that are of interest to many DA readers are as follows:
Deposits made to your PurePoint Financial account will begin to accrue interest as soon as they post to your account. For electronic deposits, this is usually 2-3 bank business days after the transaction was initiated.
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 quite interesting, because PurePoint Financial 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 to help 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.
Currently, there are seven up-and-running Financial Centers located in Florida (Aventura, Fort Lauderdale, Tampa), Illinois (Skokie), and Texas (Dallas, Plano, Southlake). Twelve more Financial Centers are scheduled to open between March and June in Florida, Illinois, New York, and Texas.
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. 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.
Thanks to DA reader, jcb194, for posting about this new internet bank in the DA forum.
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.
Opening an account with PurePoint Financial can be done online, by phone, or at any of the above mentioned Financial Centers.
As the new online division of Union Bank, PurePoint Financial operates under Union Bank’s FDIC Certificate # 22826. Union Bank/PurePoint Financial has an overall health rating of "A" at DepositAccounts.com, with a Texas Ratio of 5.44% (excellent), based on September 30, 2016 data. In the past year, the Bank has increased its total non-brokered deposits by $3.59 billion, an excellent annual growth rate of 4.3%. 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 $2.4 trillion.
How the CD Compares
When compared to the 204 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, PurePoint Financial’s 12-Month CD APY currently ranks first
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.45% APY||12-Month CD||PurePoint Financial|
|1.45% APY||12-Month Jumbo Share Certificate ($10k min)||Andrews Federal Credit Union|
|1.42% APY||12-Month CD Special||Connexus Credit Union|
How the Online Savings Compares
When compared to the 208 nationally available Savings Accounts tracked by DepositAccounts.com, PurePoint Financial’s Online Savings APY clearly tops the list.
|Interest Rate||Account Name||Credit Union/Bank|
|1.25% APY||Online Savings ($10k min)||PurePoint Financial|
|1.15% APY||High Rise Savings (no min)||Popular Direct|
|1.12% APY||UltimateSavings Promo ($10k min)||Northpointe Bank|
The above rates are accurate as of 2/23/2017.