Popular Direct is an online-only bank. It is a subsidiary of Popular Bank, a full-service financial services provider that was founded more nearly 130 years ago. Popular Direct was launched in 2016 and offers high yield online savings accounts and certificates of deposit (CDs). This in-depth review can help you decide if its deposit accounts are right for your banking needs.
- Pros & Cons
- Company Overview
- No monthly fees on savings account
- Competitive rates on savings and CDs
- No ATM card access to savings
- High minimum deposit requirements
- Fee may apply if you close an account
- Year Founded 2016
- Official Website www.populardirect.com
- Banking Products Offered Savings, CDs
- Customer Service 24/7 Phone: 1-800-274-5696
Pros Explained
- No monthly fees on savings account: Although the savings account has a minimum opening deposit requirement, there are no monthly fees or minimum balance requirements once the account is open.
- Competitive rates on savings and CDs: Popular Direct offers competitive rates on both savings accounts and CDs.
Cons Explained
- No ATM card access to savings: Popular Direct does not offer ATM cards for its savings accounts. To gain access to your funds, you'll need to initiate an electronic transfer and wait for it to complete.
- High minimum deposit requirement:. The high minimum deposit requirements may prevent some potential customers from being able to open an account. You must have $100 for a savings account and $10,000 for a CD.
- Fee may apply if you close an account: If you close your savings account within 180 days, you may be charged a $25 fee. Additionally, early withdrawal penalties apply to CDs.
Who Is Popular Direct Best For?
is best for customers who want an online bank account to complement their existing banking relationship. It may be a good fit if you:- Are at least 18 years or older
- Have a checking account at another bank
- Are not looking to have one bank handle all of your deposit and lending needs
- Have larger balances to meet the minimum opening deposit requirement
- Are looking for a high-yield online savings account or CD
- Do not need immediate access to your funds
- Are able to deposit money electronically
What Does Popular Direct Offer?
As an online-only bank, Popular Direct has a limited selection of deposit products. Its accounts are not meant to replace your existing bank for daily transactions but can supplement your primary account with high-yield deposit products. It only offers:- Savings accounts
- CDs
Savings Accounts
The Popular Direct Select Savings account offers a high annual percentage yield (APY) with no monthly fees. To open an account, the minimum deposit is $100. There is no minimum balance required to earn interest. Once your account is opened, it must remain open for at least 180 days or you may incur a $25 fee.
Savings accounts are entitled to a combination of six transfers or withdrawals per month. Each additional withdrawal will cost $5.
POPULAR DIRECT SAVINGS ACCOUNTS | |||
---|---|---|---|
ACCOUNT NAME | MIN OPENING DEPOSIT | MONTHLY FEE | APY |
Select Savings | $100 | $0 | 5.15% |
CDs
CDs from Popular Bank have terms ranging from three months to five years. There is a minimum deposit of $10,000 required for all CDs. The bank does not offer higher rates for larger balances.
POPULAR DIRECT CD RATES | |
---|---|
TERM | APY |
3 months | 5.25% |
6 months | 5.30% |
12 months | 5.20% |
18 months | 4.90% |
24 months | 4.70% |
36 months | 4.55% |
48 months | 4.35% |
60 months | 4.30% |
If you need to terminate your CD before maturity, you will pay a penalty depending on the term length of the CD.
POPULAR BANK CD EARLY WITHDRAWAL PENALTIES | |
---|---|
TERM | PENALTY |
Less than 91 days | 89 days simple interest |
From 91 days to less than 12 months | 120 days simple interest |
From 12 months to less than 36 months | 270 days simple interest |
From 36 months to less than 60 months | 365 days simple interest |
Equal to or greater than 60 months | 730 days simple interest |