May 9, 2017 in CDs

Popular Direct vies for best 5-year CD rates

An online bank has bumped up its 5-year CD rate, making it the most competitive offer in the country.

Popular Direct, an online division of New York-based bank Banco Popular North America, just increased its 60-month CD rate by five basis points to 2.35 percent APY. A basis point is one-hundredth of a percentage point.

The catch? You’ll need a minimum deposit of $10,000 to open it. This is probably not a CD for newbie savers looking to dip their toes in investment waters.

How Popular Direct’s 5-year CD compares with other banks
Bank APY Minimum deposit required
Popular Direct 2.35% $10,000
Synchrony Bank 2.35% $25,000
Ally Bank 2.25% $0
Goldman Sachs Bank USA 2.25% $500

The national average for a 5-year CD is 0.89 percent APY, according to Bankrate’s most recent national survey of banks and thrifts, which makes any of these nationally available offers a solid deal.

Compare the best CD rates before you open an account. Then use our CD calculator to estimate your earnings.

How to apply

The 5-year CD is available nationwide and in Puerto Rico, but account holders must:

About Popular Direct’s 5-year CD

The CD’s interest is compounded daily (not always the case for CDs — interest can be compounded monthly or quarterly, for example) and any Popular Direct account can be accessed through your mobile device or computer.

If you need to withdraw your money early, here’s a warning: You’ll be assessed a penalty of 730 days of simple interest, which is high for a CD of this length.

About Popular Direct

Popular Direct and BPNA are subsidiaries of Popular Inc., a financial services firm serving the United States, Puerto Rico and the Caribbean. Popular Inc. was founded in 1893 and is the “leading banking institution by both assets and deposits in Puerto Rico,” according to its website.

BPNA accounts are FDIC insured and the bank received five out of five stars in Bankrate’s Safe & Sound rating system, which measures the financial health of banks and credit unions throughout the United States.

Looking for something a little more liquid? Try a regular savings account instead.