Popular Direct is a new online bank (really just a new arm of Banco Popular North America or BPNA for short). They offer a bank account with an advertised rate of 1.26% APY deposits are insured by FDIC. Let’s take a look and see if there are any gotcha’s.
The Basics
- 1.26% APY, with a minimum deposit of $5,000 is advertised
- Interest compounds daily, credited to your account monthly on the last day of the month
- $4 monthly fee if your balance is under $500 on any day within a statement period
- $25 early account termination fee if the account is closed within 180 days
- $5,000 minimum opening deposit required
- You can ACH transfer money out of this account
- You can have a maximum of one external bank account linked
- 5 day hold on outgoing ACH transfers
- $5 per month inactivity fee if your account is inactive for 12 months
A full list of fees can be found here.
1.26% APY
On their savings disclosure page, they list five different interest rate tiers:
- $.01 – $4,999.99
- $5,000 to $24,999.99
- $25,000 to $49,999.99
- $50,000 – $99,999.99
- $100,000 +
For some reason, there isn’t actually any interest rate listed next to those tiers (I also tried to contact them and received no response). They also don’t guarantee that rate for any period of time. Popular Community Bank does offer another 1.26% APY account on their main website and this is guaranteed for six months (then it drops to the standard rate), but requires a $10,000 minimum deposit.
I suspect this is just a teaser rate as well and will drop after six months, but it’s possible they’ll keep it going for longer.
F.A.Q’s
Is it a soft pull?
Popular Community Bank is a soft pull and as these accounts are issued through them, this should also be a soft pull.
Can you fund with a credit card?
Our Verdict
There are other savings accounts (with no requirements) that offer an APY of up to 1.11% and rewards accounts (with requirements) that offer rates of up to 6%. This offer is pretty good for a basic savings account, but it’s not great if it’s just a six month teaser rate (you’d be better off just focusing on accounts with a sign up bonus instead). I’m a bit worried about the fact that the different tiers also don’t have interest rates assigned, I tried to contact Popular Bank but didn’t receive a response.
Feel free to share your thoughts and experiences in the comments below.
Hat tip to Deposit Accounts
I wanted to pitch in my 2 cents with John. I am the one who actually prompted this “high interest account” post in the first place, and I apologize!!!!! I transferred all my savings to this bank from another institution and closed out the old one, not understanding that THEY WILL NOT ALLOW YOU TO SWITCH THE EXTERNALLY LINKED ACCOUNT FOR 60 DAYS. I have to transfer $$ from savings to checking to pay bills, and told them as much. Despite my extenuating circumstances, upper management rejected my request for an exception. They will close the account out/issue a certified check within 180 days of opening for a $25 fee…but they need a signature card. I mailed mine in at the end of January, just received word that today, on 3/7, they are just now starting to open mail that arrived on 2/1. They are over a month behind. In the meantime, I can not close out the account (thereby accessing my $$) until they process that signature card. This bank is a joke. Please stay away.
5 day hold on ACH?
Haha, no.
All tiers are under the 1.26% rate for now. I just spoke with a rep.
I have to admit that the “mistake” the rep referred to leaves me a little less than willing to drop $5k or more into an account with these guys, which is too bad. They seem a little half-assed.
I had an account with Popular and closed it because they are very, very difficult to deal with. I even paid the $25 early term free WHICH I HAVE NEVER DONE IN MY LIFE JUST TO GET OUT! They are based out of Puerto Rico and very difficult to understand on phone too. (800) 377-0800, (888) 317-9062 X 4136 Lordes for additional help. Earlier this year they had $125.00 promo on Checking 2 easy requirements, but when they did not pay in allotted time frame had to call numerous times and then wait for it to eventually post. Charge $14.95 for checks. MM/Savings paid 1.26% but only til 4/14/16 (? Approx 3 mos. POPULAR BANK LIMITS:
Max incoming 20K /day & 60K/month
Max outgoing 10K/day & 30K/mo
3 transfers in or out daily and 6 transfers in or out monthly
They even charge $10.00 for INCOMING Wires. Their ACH trans out take 5-10 bus days to complete. If one decides to go with them watch closely. Link externally with one of your other banks that has high pull transfer amounts like Everbank ($50K per trans) so you can get your money out quickly…..with EverBank trans request by 7pm eastern and it will be there next morning. I was lucky to get out with only $25 sacrifice .
What did the rate drop down to after 3 months?
Nice post, as always. You may have a typo toward the bottom. You write:
“I’m a bit worried about the fact that the different tiers also don’t have tiers assigned.”
I think you may mean:
“I’m a bit worried about the fact that the different tiers don’t have RATES assigned.”
Thanks, fixed.