Popular Direct offers CDs across various terms with highly competitive rates. The minimum deposit, however, is $10,000. The average saver may struggle to meet that threshold.
Early withdrawal penalties vary depending on the length of the CD term. For example, for a 12-month CD, the penalty for an early exit is 270 days of simple interest. For a 5-year CD, the penalty is much steeper: 730 days of simple interest.
Compared to other banks, the minimum deposit is higher.
Withdrawals of either credited interest or part of the principal will result in an early withdrawal penalty.
A harsh early withdrawal penalty applies for long-term CDs.