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
The one you can currently open is Popular Direct Select Savings. T&C and Rate are also different for different account types (i.e. current Select Savings doesn’t have minimum $500 balance or any monthly fee, compared to Exclusive and Ultimate).
Legacy Exclusive Savings T&C:
https://www.populardirect.com/pdfs/513_Popular_Direct_Exclusive_Savings_Account_Disclosure.pdf
Rate: Not sure, someone with this account type can confirm.
Legacy Ultimate Savings T&C:
https://www.populardirect.com/pdfs/513-PopularDirect-UltimateSavings-AccountDisclosure.pdf
Rate: 0.90%
Current Popular Direct Select Savings T&C:
https://www.populardirect.com/pdfs/513-PopularDirect-SelectSavings-AccountDisclosure.pdf
Rate 0.75%
I am on the old Exclusive Savings account. Logged in today to see rate is currently 0.60% and will be closing the account now as it’s clear the bank doesn’t want me as a customer.
Great post by the way,
Alex!
mine is 0.5% now..
1.35 now
Rate reduced to 1.50% from link
Reduced to 1.65% from link
What is the minimum balance you need to retain with Popular Direct? Because of their constant shady reduction in interest rate, I just want to keep the minimum balance in the account until the 180 days are up and close them out. My money can be used better elsewhere.
My understanding is $500 or more for no fee (the $5k min was initial funding to open). Rate as of today, 4/26/20, is showing 1.7% where I’m seeing ~1.75% max at competitors so not a huge difference though rates are changing daily across the board.
Rate decreased to 1.90% (11/1/19 update). Worst example of bait and switch (high flying banners touting 2.55% just nine weeks ago) that I’ve ever seen. Proceed at your own risk.
Agreed. Gonna start taking my money from them. Tired of this bait and switch crap for 4 consecutive weeks. Just gonna leave the minimum there until I can close them.
Same here. Wasted opening in August at 2.55% and they’ve had no fewer than 5 rate cuts since then to current 1.9%…that’s a lot in a short time and 15 BP less than fed rate cut during same period. Now they’re only in line w/many others who don’t have BS like only allowing one external acct and waiting 70 days before you can initiate transfer from external source. Sadly have to keep 500 to avoid 4/mo fee for 6 mos to avoid $25 early closing and 5K to earn the paltry 1.9%. Pursuing First Foundation: 2.4% min 1K no max to earn rate.
WOW! Another drop! Just dropped from 2.27% to 1.98%. Can’t believe this bank is at sub-2% now.
Still showing 2.15% for me
Apparently there’s two different account types and one of them is the one I have with the lower rate. They won’t convert the account to the higher interest earning account.
https://www.doctorofcredit.com/popular-direct-2-apy-savings-account-no-requirements-5000-minimum-balance/#comment-806561
And now my account shows 1.74%. Abandon ship!
Now 2.15% as of 10/21/19. Opened in August at 2.55%. Classic bait and switch. Leaving a minimum balance in the account to finish out the six month requirement, will NEVER bank with them again regardless of the offer. Never.
I know what you mean and am very frustrated. After all those rate cuts, I was surprised that it was still at 2.55% in August. I signed up for the classic bait and switch when the rate was at 2.55% and the last 2 months have been nothing but cuts to the savings rate. I am getting ready to move some of my money just due to unnecessary BS. Since I just signed up for the account like 1.5 months ago, I will have to keep this open to finish out the 6 months.
Dropping to 2.15% starting 10/21/2019
https://www.populardirect.com/products/savings/popular-direct-ultimate-savings
Dropped to 2.30%
https://www.populardirect.com/products/savings/popular-direct-ultimate-savings