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Popular Direct; Gilbert Espinoza/Business Insider
The bottom line: Popular Direct’s high-yield savings account is a stronger product than its CDs, but it’s difficult to access your savings quickly because there’s no checking account.
Should you bank with Popular Direct?
You might like Popular Direct if you …You might not like Popular Direct if you …Want to earn a high rate on your savingsAre looking for a savings account with no monthly service feesCan afford the minimum depositsWant 24/7 live customer support over the phoneWant to earn the best rate on your CDCan’t afford the minimum depositsWant to open a checking accountAre worried about having quick access to your savingsValue a strong mobile app
Savings
The Popular Direct Select Savings Account is a worthwhile option as long as you have Popular Direct Select Savings Account for the opening deposit. Popular Direct pays a high interest rate, and it doesn’t charge monthly service fees. If you don’t have Popular Direct Select Savings Account to open an account, then you can find other online accounts that pay similar rates.
Accessing your savings can be tricky with Popular Direct, though. The bank doesn’t have a checking account, so you can’t just transfer money to your checking and spend the money immediately. Instead, you’ll have to transfer funds to an external bank account, which can take a couple business days.
Popular Direct has a unique rule about transferring money. When you set up your Popular Direct Select Savings Account, you’ll link it to an external account to transfer funds for your opening deposit. For the first 70 days you have the account, you can only transfer money from Popular Direct into the account you used to fund the savings account — no other accounts.
CDs
Popular Direct pays high interest rates on CDs. The bank requires a high minimum deposit of Popular Direct Certificate of Deposit. It also charges relatively high penalties if you withdraw funds before your CD matures, especially for longer terms.
How Popular Direct works
Popular Direct is an online bank with a high-yield savings account and CDs. There’s no checking account, which means you can’t access your savings quickly. You’ll have to transfer money to an external account, which could take a couple business days.
When you set up a Popular Direct Select Savings Account, you’ll link it to an external bank account to transfer funds to Popular Direct. The bank has a rule that if you transfer funds out of savings in the first 70 days, then you can only transfer to the linked funding account.
You can speak with a live customer service representative 24/7 over the phone. There is no live online chat feature.
Popular Direct has a mobile app in the Apple and Google Play stores, but there are hardly any reviews. If a strong mobile experience is important to you when choosing a bank, then you might want to look elsewhere.
Your deposits are FDIC insured for up to $250,000, or $500,000 for joint accounts.
How Popular Direct compares to similar banks
We’ve compared Popular Direct to two other online banks with high-yield savings accounts and CDs: Marcus by Goldman Sachs and Ally.
Popular Direct
Goldman Sachs
Ally
Savings APY
0.75% APY
Savings APY
0.60% APY
Savings APY
0.60% APY
CD APY
0.15% to 0.80% APY
CD APY
0.45% to 0.90% APY
CD APY
0.20% to 1.00% APY
Minimum deposits
Popular Direct Select Savings Account or Popular Direct Certificate of Deposit
Minimum deposits
$500 for CDs
Minimum deposits
$0
Popular Direct Popular Direct Select Savings AccountMarcus by Goldman Sachs Marcus by Goldman Sachs High-Yield CDAlly Ally High Yield Savings Account
Popular Direct review vs. Marcus review
Both Popular Direct and Marcus have savings accounts and CDs, but no checking account. Both banks require you to transfer money to an external account to access your savings.
Marcus is the better choice for low minimum deposits. Marcus has no minimum deposit requirement for its savings account, and a $500 minimum for CDs — Popular Direct asks for Popular Direct Select Savings Account to open a savings account, and Popular Direct Certificate of Deposit to open a CD. Along with the Marcus High-Yield CD, there’s also a Marcus No-Penalty CD that doesn’t charge a fee when you withdraw funds before your CD matures. If you’re interested in a no-penalty CD, then Marcus is the way to go.
If your decision comes down to the best interest rate, then your choice between Popular Direct and Marcus will come down to when you open the account. But remember that savings rates fluctuate. Just because one bank pays the higher rate today doesn’t necessarily mean it will tomorrow.
Popular Direct review vs. Ally review
Ally has a lot of advantages over Product Direct, the one exception being its savings interest rate. Depending on when you open your account, either Ally or Product Direct could pay the better rate.
Unlike Popular Direct, Ally has a checking account. This makes it much easier to access your savings. All you have to do is transfer money from savings to checking, and you can spend the funds almost instantly.
Ally is the clear option if you don’t have thousands of dollars for an opening deposit with Popular Direct. Ally doesn’t require minimum deposits for any of its accounts.
You might like Ally’s CD options. There’s an Ally High Yield CD that’s similar to the Popular Direct CD. There’s also a No Penalty CD and an Ally Raise Your Rate CD. The Raise Your Rate CD lets you increase your rate should Ally’s rates go up, once during a 2-year term and twice during a 4-year term.