Popular Direct is an online-only banking division offered by New York-based Popular Bank, the United States banking subsidiary of Popular, Inc. Popular, Inc. is a publicly traded, full-service bank and is one of the 50 largest U.S. banks by assets.
Popular Direct offers high-yield deposit accounts for savers across the U.S., Puerto Rico, and the Caribbean.
All rates and fees are current as of May 31, 2024, and are subject to change.
Popular Direct
Savings accounts: | Open with as little as $100 |
CD rates: | Earn up to 5.30% annual percentage yield (APY) |
Pros
- Savings account and CDs boast APYs well above 4%—significantly higher than national averages.
- Range of CD terms from 3–60 months, giving savers the power to choose which term works for them and their savings goals.
Cons
- Savers will need to deposit $10,000 to open a CD account. This could be a challenge for newer savers.
- Only offers one high-yield savings account and CDs. It does not provide a checking account, money market account (MMA), or other type of deposit account.
Who is Popular Direct good for?
Popular Direct offers industry-leading APYs on both its savings and CD accounts, making it an ideal option for someone concerned with maxing out their interest earnings. Popular Direct could be a good fit if you have a large emergency fund you want to store in one place. You can even use Popular Direct to create a CD ladder, as it has plenty of terms to work with.
Who shouldn’t use Popular Direct?
Popular Direct has a very high minimum deposit for its CDs: $10,000. It also has high early withdrawal penalties. If you don’t have that much cash to store away or think there’s any chance you might need to withdraw money from your CD early, Popular Direct isn’t the bank for you.
While its savings account has a high APY, it doesn’t allow unlimited withdrawals. Without the option for a checking account, this means you can’t use Popular Direct for paying bills or writing checks.
Popular Direct rates and products
Popular Direct offers just two types of accounts, CDs and a high-yield savings account option. It does not currently offer a checking account.
Savings accounts
The Popular Direct high-yield savings account is a good way to earn extra interest on your money. Its 5.15% APY is one of the best high-yield savings accounts on the market. Read this primer on high-yield savings accounts to see if an account like this is the best fit for you.
You’ll need to make a $100 minimum deposit, but there are no monthly fees or minimum balance requirements to worry about. Interest compounds daily and is deposited on the last day of the month.
This account limits you to six withdrawals per statement cycle, but that’s standard for savings accounts. Popular Direct doesn’t charge a fee for excessive withdrawals, but it does reserve the right to close your account.
For the first 70 days after opening your account, you’ll only be allowed to link one external account to your Popular Direct savings—meaning you can’t receive or send automated clearing house (ACH) deposits from any other account.
With this savings account, you do not have check-writing or debit card access. You can only make withdrawals through an external account, internal transfer, or ACH.
Popular Direct savings rates compared to current top rates*
While Popular Direct is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:
Certificates of deposit
Popular Direct also has some of the best CD rates on the market, with the ability to earn up to 5.30% on short terms. However, one drawback is the large, $10,000 minimum deposit, which puts these accounts out of reach for smaller savers.
As with all CDs—here’s a primer on CDs if you need more context—Popular Direct requires you to leave your money deposited for the entirety of the set term. If you want to take it out early, you’ll pay early withdrawal penalties.
Popular Direct’s early withdrawal penalties can be quite harsh. For example, if you choose a three-month CD and close it early, your penalty will be 89 days of interest—whether you decide to close the account in the first or last month. Either way, you’ll lose all of the interest you’ve earned, plus part of the principal to cover the rest of the fee.
These CDs renew automatically at the end of the term at the current applicable rate. If you want to close the account, you have a 10-day grace period to do so after the maturity date.
Other services Popular Direct offers
In addition to its deposit accounts, Popular Direct offers:
- Calculators: Popular Direct also offers CD and savings calculators to help customers choose the best term for them and determine how much they should save.
- Digital banking tools: Popular Direct customers can transfer funds between internal and external accounts, deposit funds remotely, access e-statements, and more.
The Popular Direct platform and customer support
Popular Direct offers a suite of digital banking tools. Customers can access their accounts and do all of their banking online or from the Popular Direct mobile app.
The Popular Direct App is available for download on the Apple App Store and Google Play, although the app currently has a rating of a bit over 1 star on both storefronts.
Customers who want to connect with a Popular Direct customer service representative can do so by calling the customer care center Monday through Friday between 7:30 a.m. and midnight Eastern time as well as weekends between 9 a.m. and 6 p.m. ET. Representatives are not available on Federal Reserve holidays. You can also contact the bank via mail or online through the secure messaging portal.
Is Popular Direct secure?
We couldn’t find any recent data leaks or breaches at Popular Direct. However, its parent company, Popular Bank, had a data security incident in April 2019. Some customer names and Social Security numbers were exposed, and the company provided complimentary credit monitoring services to affected consumers.
Popular Direct uses secure sockets layer (SSL) technology to protect all data you enter on its site. It also uses multifactor authentication (MFA), challenge questions, and pictures or phrases to keep hackers and bots out.
Popular Direct user reviews
Unfortunately, many users have negative things to say about Popular Direct. The main complaint is the intense verification process after opening an account. Popular Direct states it may send you a secure message for additional documentation, and if you don’t send it within 10 days, it will close your account. This exact scenario happened to a Reddit user who missed the email notification, resulting in them having their funds inaccessible for 11 days.
On the positive side of things, reviews state they appreciate the high APYs and friendly customer service. Several have noted that as long as you read the disclosures before creating an account, you’ll know exactly what to expect.
Compare Popular Direct alternatives
Is Popular Direct right for you?
Popular Direct is a good choice for someone primarily concerned with earning high interest on their savings. Its CDs are an excellent way to tuck away money you won’t need for a while, and its high-yield savings account is great if you know you’ll need occasional access to cash. However, if the lack of a checking account and online-only service puts you off, you’d be better off with an alternative.
Frequently asked questions
Is Popular Direct FDIC-insured?
Yes. All of the deposits made into your Popular Direct account are insured by the FDIC up to the applicable maximum amount allowed by law for each deposit ownership category.
How do I contact Popular Direct bank?
Customer service representatives can be contacted by calling Popular Direct’s customer care center at 1-800-274-5696.
Is Popular Direct an online-only bank?
Yes. Popular Direct operates online and does not have any physical branches.
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