Update 6/6/20: Rate has been decreased to 1.35%
Update 10/21/19: Rate decreased to 2.15%. Probably time to move funds out, view the best high yield savings accounts.
Update 10/13/19: Rate decreased to 2.3% APY
Update 9/9/19: Rate decreased to 2.4% APY. Hat tip to reader Mikey
Update 8/30/19: Rate decreased to 2.50% APY.
Update 8/1/19: Rate increased to 2.55% APY. Hat tip to reader Mikey
Update 10/26/18: Rate has increased to 2.26% APY
Update 10/19/18: Rate has increased to 2.1% APY
Update 05/16/18: Rate has decreased from 2% APY to 1.85%
Offer at a glance
- Interest Rate: 2.55% APY
- Minimum Balance:Â $5,000
- Maximum Balance:Â None
- Availability:Â Nationwide
- Hard/soft pull:Â Soft pull
- ChexSystems: Unknown
- Credit card funding:Â None
- Monthly fees:Â $4, avoidable
- Insured:Â FDIC
The Offer
- Popular Direct is offering a 2.55% APY savings rate on their exclusive savings account. There are no requirements to earn the 1.85% rate other than a minimum balance of $5,000
The Fine Print
- All bank account bonuses are treated as income/interest and as such you have to pay taxes on them
Avoiding Fees
This account has a $5 monthly fee, this is waived as long as your balance is above $500. If the account is closed within 180 days there is also a $25 early account termination fee. You can find a full list of fees here.
Our Verdict
One of my predictions for 2018 was that deposit accounts would hit 2% and here we are. This is now the highest basic savings account rate by 0.15%. I personally don’t think there is much value in chasing basic savings rate increases like this, unless you have a lot of funds sitting around. That being said this is significantly better than a lot of the normal online banks (e.g Alliant/Ally etc) that are currently only offering 1.5% APY. I don’t see rates increasing much beyond 2% APY, but that will also depend on what the fed does. Another option is to just focus on rewards checking accounts that already offer up to 5% APY. As always please share your own datapoints and experiences with Popular Direct in the comments below. Previously they were offering a rate of 1.65% APY.
Hat tip to reader Mikey
