Popular Direct review 2023

Popular Direct is the online division of Popular Bank, based in New York City. Launched in 2016, this bank offers savings accounts and certificates of deposit (CDs) with highly competitive rates (though the CD has a high minimum deposit requirement). You can only access cash through external bank transfers, however, so if you’re looking for a full-service banking experience you may want to consider other options.

• No monthly fees: Popular Direct’s accounts don’t charge monthly maintenance fees, nor do you need to meet minimum balance requirements for its savings accounts. 
• Competitive interest rates: The bank offers some of the highest rates we’ve seen for savings accounts and CDs.
• Mobile app available: Account holders can use the mobile app to deposit checks, monitor their account, and more.  

• Limited account offerings: Currently, Popular Direct only offers savings accounts and CDs. 
• No ATM access: Account holders won’t be given a debit card for their savings account, meaning funds can only be accessed by electronic transfer. 
• High minimum deposit requirements: The bank requires a $10,000 minimum deposit to open one of its CDs.

Popular Direct, unlike other online-only banks, only offers two types of deposit accounts — savings accounts and CDs. These accounts can help you reach your savings goals and supplement your daily banking needs. 

Popular Direct’s savings accounts offer a competitive rate, currently 5.25% APY (annual percentage yield), and no minimum balance requirements. The minimum opening deposit is $100, which makes the account an accessible option for many types of savers. 

To access your funds, you can transfer money to a connected external bank that will allow you to withdraw it (Popular Direct’s account doesn’t provide ATM access). You can deposit money through an electronic transfer, or you can use the mobile deposit feature on the bank’s app. 

Not all of Popular Direct’s CDs offer a competitive rate — ones with longer terms tend to offer the highest APYs. You can choose CD terms ranging from three to 60 months (five years), each requiring a minimum deposit of $10,000. 

Once your CD matures, it will automatically renew for the same term unless you take action (the rate may be higher or lower than what you were getting before). Account holders have a 10-day grace period to either withdraw the funds or move them into another Popular Direct CD for a different term.   

If you withdraw funds before the maturity date, you’ll need to pay an early withdrawal penalty. The fees you’ll pay will depend on the CD term:

Account holders can reach customer service by phone from 7:30 a.m. to midnight EDT Monday through Friday, and 9 a.m. to 6 p.m. EDT on weekends. There is also a secure messaging option available once you log into your account. 

Although Popular Direct doesn’t impose monthly fees, there are other charges you may have to pay, including: 

• Overdraft fee: $10 per overdraft
• Early account closing fee (closed within 180 days): $25

Although there are no opening or maintenance fees for CDs, you will be charged early withdrawal penalties if you take out money before the maturity date. 

RIght now, the only way to make withdrawals is through electronic transfers. You will need to connect an external bank account for these withdrawals. You can make withdrawals anytime for savings accounts, but with CDs, it’s best to wait until the account matures.

Popular Direct is best for those who want to use an online bank account and maximize the interest they’ll earn on their savings. It’s also great for those who don’t mind using more than one bank account for their everyday banking needs. Since account holders can only access their cash through electronic transfers, Popular Direct’s accounts are a better fit for those who may not need immediate access to their funds. 

Popular Direct is probably not the best fit for consumers who want to bank all in one place. Since there are no checking accounts or other products like money market accounts, you will need to look elsewhere to satisfy those banking needs. Plus, the $10,000 minimum opening deposit for the bank’s CDs may be prohibitive to some. 

Popular Direct is a great choice for those looking for a competitive interest rate and low to no fees. However, given its limited products and high deposit requirement for their CDs, consumers may need to look elsewhere if they’re unable to afford the minimum or don’t want to deposit that much. 

Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.

This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].