Posted by William Charles on April 2, 2018
Savings Accounts

Published on April 2nd, 2018 | by William Charles

129

Popular Direct – 2.26% APY Savings Account [No Requirements, $5,000 Minimum Balance]

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: 2.1% APY
  • Minimum Balance: $5,000
  • Maximum Balance: None
  • Availability: Nationwide
  • Hard/soft pull: Soft pull
  • ChexSystems: Unknown
  • Credit card funding: None
  • Monthly fees: $4, avoidable
  • Insured: FDIC

The Offer

Direct link to offer

  • Popular Direct is offering a 1.85% 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

 



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Tom
Tom

Any experiences with this bank? is it a soft pull only?

Bad
Bad

The article says “Hard/soft pull: Unknown”

Emporio
Emporio

I certainly wouldn’t apply before finding out the answer to the hard or soft pull question. I sent the bank a message with this question and will post the answer here when I hear back.

Emporio
Emporio

Here’s the bank’s response on the hard pull Q: “We do not perform a credit pull while opening Popular Direct accounts.”

james
james

looks like this is a product of Banco Popular

Arnaud
Arnaud

1 year CD are already at 2.15% so I bet it will continue a little

Lrdx
Lrdx

Beware, the account also has an inactivity fee after 12 months..

Matt
Matt

anyone able to get through the information page? keeps saying “fix errors” but it’s in my occupation field and there’s nothing wrong with it, so…

Matt
Matt

update: works if you put engineer…can always change it later.

but looks like no credit card funding. there’s an option for “credit card advances” but it still takes you to a page where you input a routing and account number.

Lisa J
Lisa J

“Annual Percentage Yield (APY) offer is available only for new Popular Direct Exclusive Savings account opened effective as of 4/2/2018.”
So they won’t raise the rates for existing accounts. That’s not good.

Steve
Steve

They also have early termination fee. I’ll pass.

Lrdx
Lrdx

People at Depositaccounts report they get automatic rate increase.

Thelement
Thelement

No mention anywhere of ATM fees or most other relevant fee structures beyond wire stuff and early termination. Suspicious.

Lisa J
Lisa J

Anyone know how long ach take with this bank?

Nick
Nick

Applied on Monday with no hard pull. Verified trial deposits to confirm transfer from Schwab savings to populardirect today, they say estimate is 2 days transfer.

Ken
Ken

Have you tried linking to Mint yet?

Lisa J
Lisa J

Are you able to do the transfer from Schwab side? I red you can only link one bank from popular direct side. Not sure if that’s still true.

Ken
Ken

Get yourself a good hub account and manage all your accounts from the hub account.

Nick
Nick

Funds transfered 4/6. I have not linked to mint as I don’t use it. Did not attempt transfer from Schwab.

Yu
Yu

When did the fund get into Popular Direct? In other words, how long does it take if you initiate the transfer from Popular Direct?

zjts
zjts

on what dates were the funds withdrawn from Schwab & what date deposited into popular? tia

Sam
Sam

This looks like its separate from Popular Community Bank?

shaky02dd
shaky02dd

I think that’s right. I indicated I was already a customer and tried to verify that with my PCB account number, no dice.

jay lee
jay lee

So they don’t actually fund the account until we complete the trial deposit verification?

qmc
qmc

makes sense… keeps them from pulling money from somebody else’s acocunt.

Justin
Justin

They don’t list their daily and monthly inbound and outbound limits. I sent a message to customer service and will post beck here once they reply. How fast you can move mkney in or out should always be a consideration when choosing one of these and perhaps should be a criteria in “offer at a glance”

Ken
Ken

That’s irrelevant. You should be linking your external account to Popular (and all other banks) and pushing and pulling from the linked account. This is best practice when it comes to bank account churning.

https://www.doctorofcredit.com/hub-accounts-ach-transfers-capabilities-fees-limits-across-financial-institutions/

icemule1
icemule1

Are you saying that even if this bank has ingoing and outgoing limits, they are overriden if the pull is done through the other bank?

Ken
Ken

Yes. This is how it is for every bank I’ve ever used. Initiate the ACH from external bank and you can push/pull whatever you want.

Lisa J
Lisa J

William Charles how much extra interest would you have to earn per year before you’d consider opening the account?

LNK
LNK

That I would like to know from the author William Charles l too..
The comment about not to chase let me think whether I should open one too.. (personally I think the comment should be omitted since if I didn’t see that comment I probably will just open one)

But after some calculation it seems we are talking about $200-$300 extra interest per year if I consolidate some of my Ally No Penalty CD to this one, so I guess it is worth the trouble.

az
az

Your
Application
Thank you for your interest in opening a new account.
Unfortunately, we cannot process your application. For assistance, please navigate to our public website and choose the option to Contact us.

Bill M
Bill M

FYI — You cannot change your External Account during the first 60 days after linking it. Thereafter, anytime you change your External Account you must wait 60 days to change it again.

Ken
Ken

If you’re using a hub account as you should then none of this matters.

Tm
Tm

Newbie….what kind of hub acct? Recommendations?

Banker
Banker

Ally is the best HUB.

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