Review
Updated
Fact Checked
Nathan Alderman
Popular Direct is an online-only banking platform operated through its parent company, Popular Bank, DBA Popular. The only accounts available through Popular Direct are savings and certificates of deposit (CDs). There are no checking accounts or money market accounts. Still, keep reading to learn how Popular Direct's savings and CDs work -- the good and the not so good.
Popular Direct
Rating image, 3.00 out of 5 stars.
3.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Popular Direct may have few account types from which to choose, but it more than makes up for it by paying an excellent APY.
Pros
- Excellent APY on both its Select Savings and CD accounts
- Mobile app allows you to bank on the go
- Only $100 required to open a savings account
- Round the clock customer care
- FDIC insured
Cons
- Mobile app is poorly rated by both iOS and Android customers
- No check-writing privileges
- No debit cards
- No ATM withdrawals
Popular Direct savings account review
If you want to open a bank account with an excellent APY, Popular Direct offers one of the best rates that we've found.
Popular Direct Select Savings
A Popular Direct Select Savings account currently offers one of the highest APYs that we've come across at 5.20%. Still, it's not the right bank for anyone who wants to keep the bulk of their banking business under one roof. That's because Popular Direct does not offer a checking account, money market account (MMA), debit card, or ATM access.
For those who are comfortable banking with more than one institution, current APYs make opening a savings account tempting.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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New customers can earn up to a $300 bonus with qualifying direct deposits!
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
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N/A
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.35%
Min. to earn: $0
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New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
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Popular Direct CD accounts
Popular Direct only offers one type of CD, but that single CD offers an excellent APY.
Standard CD account
Popular Direct CDs offer highly competitive rates. However, with a minimum required deposit of $10,000, the entry point is a little steep for the average person. For the consumer who has an emergency savings account elsewhere and does not expect to need access to the funds in their CD any time soon, the APY alone makes Popular Direct worth considering.
Compare CD rates
It's tough to find a financial institution that offers a higher rate than Popular Direct. Here's a quick rundown of some of the other strong rates out there.
Rates as of May 1, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Member FDIC.
| APY: 5.10% | Term: 10 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
| APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | |
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| APY: 5.15% | Term: 9 Months | Min. Deposit: $1 | |
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
Popular Direct customer service and experience
In its 2022 U.S. Direct Banking Satisfaction Study, J.D. Power discovered that established financial institutions and brands that have entered the digital banking sector are doing a better job of supporting their customers than traditional banks. The study also found that by last year, 27% of American banking customers depend solely on online-only banking services.
While Popular Direct was not included in the J.D. Power study, it has received mixed reviews from customers posting online.
Popular Direct relationship benefits
Unlike a bank that offers everything from checking accounts to safe deposit boxes, Popular Direct focuses solely on two products -- savings and CDs. It may be an ideal situation for a person focused on saving for the future, but there are no bells and whistles. There is, however, a dedicated customer care department that is available by phone or secure messaging 24 hours a day, seven days a week.
Alternatives to Popular Direct
With such limited account options at Popular Direct, this might not be the institution for you if you're looking for a more all-inclusive banking experience. Check out a couple alternative banks to compare offerings.
Citibank
Not only is Citibank an established name in banking, but it currently pays a higher-than-average APY. In addition to savings accounts and CDs, Citibank also offers checking accounts, credit cards, mortgages, personal loans, and an assortment of investment options. In other words, it's a bank that allows its customers to carry out many of their financial transactions under one roof.
Ally Bank
Another bank offering a full menu of services is Ally. Checking and savings accounts, auto loans, mortgages, personal loans, credit cards, four different types of CDs, and MMAs are all available through Ally Bank.
Is Popular Direct right for you?
Popular Direct is a good choice for you if:
- You're interested in growing your money by allowing it to remain in a savings account or CD for the long term.
- You are not concerned about having immediate access to your funds.
- You have an emergency savings account that can be quickly accessed if needed.
- You understand that withdrawing money from a CD before its maturity date means getting hit with a penalty.
Our bank and credit union methodology
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
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Depending upon when you cash out, you'll either dip into the principal or forfeit a portion of the interest you would have earned if the funds had been left in the CD.
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It depends on what types of accounts you open. By default, you'll receive email alerts. For example, you'll be notified when your contact information is changed (to ensure it was you who made the change). You'll also be contacted when your password is changed, a new external transfer account is added, your user ID is changed or disabled, when a payment is scheduled or fails, and when a fund transfer fails. You'll have the opportunity to opt in for other email or SMS alerts.
Our Banking Experts
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
Fact Checked
Nathan Alderman
Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.
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