Popular Direct is an online-only, FDIC-insured bank and a subsidiary of Popular Bank. While Popular Bank has been around for over 120 years and offers checking accounts, credit cards, loans, investments, and more, Popular Direct was launched in 2016 and offers just two accounts: savings and CDs. This in-depth review can help you decide if Popular Direct is the best place to keep your money.
- Pros and Cons
- Company Overview
Competitive APY on savings
Open an account online in minutes
Higher minimum balance requirement to start saving
Monthly maintenance fee on balances under $500
No ATM or physical branch access for savers
- Official Website www.populardirect.com
- Bank Product Offerings Savings, CDs
- Customer Service Available 24/7 at 800-274-5696 or by logging into your account and sending a secure message.
- Year Founded 2016
Who Is Popular Direct Best For?
Overall, it may be best suited for people who:
- Are looking for competitive interest rates on savings accounts
- Have at least $5,000 to open a savings account or $10,000 to open a CD
- Don't mind not having ATM or branch access to their money
What Does Popular Direct Offer?
Like many online banks, Popular Direct offers a narrow range of banking products and services.
Popular Direct Ultimate Savings Account
The Popular Direct Ultimate Savings Account is a high-yield savings account that could help you grow your money quickly, thanks to its annual percentage yield.
Key account features include:
- 0.75% APY, as of August 17, 2020
- 24/7 online and mobile banking
- Linking to external banks for easy deposits and withdrawals
- Mobile check deposit
The savings account’s 0.75% APY is among some of the best in the industry and doesn’t require huge deposits or balances. Several banks with higher APYs only give you the best APY if you make deposits and/or have much higher balances than what Popular Direct requires.
There are, however, a few things to keep in mind about this account.
You'll need at least $5,000 to open a Popular Direct Ultimate Savings Account. That means it’s not the best choice if:
- You want to start a savings account with small deposits
- You don't want to tie up a large chunk of your cash in a single bank account
Besides that, Popular Direct charges a number of fees that could detract from the interest you're earning on savings.
|Fees to Be Aware Of|
|Conditional monthly maintenance fee||$4 per month if your balance falls below $500|
|Early account closing fee||$25 if closed within 180 days of opening|
|Dormancy fee||$5 per month after no account activity for 12 months|
|Overdraft and returned item fee||$10 each|
It's a little unusual to see a monthly service fee with a savings account from a direct bank. Many online banks offer online savings accounts without charging monthly maintenance fees.
This fee applies when your balance falls below $500 on any day of your statement period. In other words, you can avoid it by maintaining a $500 average minimum daily balance.
That might not be difficult if you deposit the $5,000 minimum and then add money consistently. But, if you need to withdraw a large chunk of your savings, it's important to be aware of the fee.
The bank limits you to six withdrawal transactions from your savings account per month. If you go over that limit, Popular Direct can charge you a $5 fee for each excess transaction.
Popular Direct CDs
Opening a certificate of deposit account is one way to save for short- and long-term goals. Popular Direct offers CDs with terms ranging from three months to five years.
You'll need a minimum of $10,000 to open a CD with Popular Direct. As a general rule of thumb, the longer the CD term, the better your APY. Here are the rates you can earn for Popular Direct CDs as of August 17, 2020.
|CD Account Offers|
While there are no monthly maintenance fees associated with Popular Direct CDs, you could be penalized for withdrawing money from your account before it matures. Popular Direct charges between 89 and 730 days of simple interest if you withdraw money from the account before the CD matures. The penalty is based on your CD term.
If you'd like to try a CD ladder, you could open multiple CDs with varying maturity terms and rates. With a CD ladder, you can take advantage of higher interest rates while having the option to renew or withdraw CDs once they mature.
Popular Direct Bank Customer Service
Popular Direct gives you both online and mobile banking access to your money. However, there are no ATM or physical branch locations for you to visit.
If you need help with your account or have questions, you can contact customer service 24 hours per day, seven days per week by phone at 800-274-5696. You can log into your account and send an online message, too.
How to Bank With Popular Direct
You can open an account with Popular Direct in just a few minutes via its website. Remember, you'll need to provide certain personal information (Social Security number, driver’s license, address) when opening an account.
A Popular Direct savings account could be a good option for super savers who want to get the most bang for their buck when it comes to earning interest. The bank offers a competitive rate on its high-yield savings account and mobile banking makes it easy to keep track of your savings, too.
Popular Direct requires high account minimums to open a savings account or CD. And if your savings account average daily balance dips below $500, you’ll incur a fee. Coming up with $5,000 or $10,000 to save may be challenging if you're brand new to saving, or you're working on finding the money in your budget to save regularly. The average APYs for CDs are also not great. If you have the money, there are likely better CD rates.
Popular Direct. "Savings Account." Accessed August 17, 2020.
Popular Direct. "Popular Direct Product Guide for Popular Direct Ultimate Savings." Accessed August 17, 2020.
Popular Direct. "Certificate of Deposits." Accessed August 17, 2020.
Popular Direct. "Popular Bank Product guide for Popular Direct Certificates of Deposit." Accessed August 17, 2020.