Popular Direct CD Rates for October 2024
Written by
Sarah Sharkey
Edited by
Elizabeth Constantineau
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Popular Direct’s certificate of deposit rates offer a worthwhile opportunity if you are looking for a lucrative place to stash your funds. Read on to learn about Popular Direct CD rates and terms to help you decide if this online bank is the right spot for your savings.
Popular Direct CD Rates
Popular Direct offers eight different CD terms ranging from three to 60 months. Here’s a look at current Popular Direct CD rates for October:
| CD Term | APY |
|---|---|
| 3 months | |
| 6 months | |
| 12 months | |
| 18 months | |
| 24 months | |
| 36 months | |
| 48 months | |
| 60 months |
Popular Direct CD Details
When locking your funds into a CD, it’s important to get clear about the details. Here’s a closer look at what you need to know about Popular Direct CDs:
- Minimum deposit amount: $10,000
- Automatic renewal grace period: 10 calendar days after maturity date
- Monthly maintenance fee: $0
Early Withdrawal Penalty
Another detail to understand is the early withdrawal penalty. If you withdraw your funds before the maturity date, you can expect to pay this penalty.
| Term Length | Early Withdrawal Penalty |
|---|---|
| Terms less than 91 days | 89 days’ worth of simple interest |
| Terms equal to or greater than 91 days and less than 12 months | 120 days’ worth of simple interest |
| Terms equal to or greater than 12 months and less than 36 months | 270 days’ worth of simple interest |
| Terms equal to or greater than 36 months and less than 60 months | 365 days’ worth of simple interest |
| Terms equal to or greater than 60 months | 730 days’ worth of simple interest |
Pros and Cons of Popular Direct CDs
Every financial product has advantages and disadvantages, including Popular Direct CDs. Below is a closer look at both sides of the product.
Pros
- Competitive rates: Popular Direct offers competitive rates, especially when compared to the national average rates for CDs.
- Easy access to funds: You can use the website or mobile app to access your funds at any time.
- FDIC insured: CD accounts at Popular Direct are FDIC insured, which gives savers peace of mind about their funds.
- Wide range of term lengths: With eight term lengths to choose from, savers can potentially set up a CD ladder with this bank.
Cons
- Poorly rated mobile app: Popular Direct’s mobile app has relatively low ratings in both the Apple App Store and Google Play Store.
- High minimum deposit: You’ll have to have at least $10,000 on hand to open a new account.
- Early withdrawal penalty: If you need to get your funds out early, you’ll face an early withdrawal penalty.
Thanks!
Alternative Savings Options at Popular Direct
In addition to competitive CDs, Popular Direct offers other opportunities for savers, including a high-yield savings account. As of writing, the Popular Direct Select Savings account offers a APY. To open the account, you’ll need to make a minimum deposit of $100. Like the CDs available through Popular Direct, the funds in this account are FDIC-insured.
Who Is Popular Direct Best For?
Popular Direct CDs are best suited for established savers looking to tuck at least $10,000 into a CD. Notably, these funds shouldn’t represent your emergency fund because you’ll have to pay a steep penalty to access the money before the CD matures. With that, savers should have more easily accessible funds on hand in a high-yield savings account or checking account to avoid a cash crunch.
Popular Direct only offers online savings products. While the limited product availability could work for some savers, it wouldn’t be a good fit for everyone. If you want to manage all of your money under a single banking umbrella, you’ll likely need to seek out another financial institution.
Additionally, Popular Direct is better suited to customers who are comfortable with online banking. If you want to do your banking in person, then Popular Direct isn’t the right fit.
Other Options To Consider
Popular Direct isn’t the only bank with attractive CD options. Below is a look at some of the other options on the market.
Ally Bank
Ally Bank offers competitive CD rates with terms ranging from three months to five years. In addition to standard CDs, the bank offers an 11-month No Penalty CD and two different Raise Your Rate CD options. The No Penalty CD offers more flexibility to savers looking to keep their funds accessible. The Raise Your Rate CD options cater to savers who want the option of tapping into a higher CD rate over their term.
In terms of the High Yield CD options, the six-month CD offers a APY. The CDs don’t come with a minimum deposit requirement, and the early withdrawal penalties are relatively low. With that, Ally Bank might be better suited for new savers looking to get the ball rolling with a smaller amount to tuck away.
Capital One
If you are looking for a bigger banking option, Capital One’s CDs could be a good fit. Capital One offers 10 different CD term options, ranging from six months to five years. The rates range from to . Currently, the highest CD rate available with Capital One is on a 12-month CD. That’s an attractive rate for savers.
Unlike Popular Direct, Capital One offers these CD rates with no minimum balance requirement. For savers looking to lock in guaranteed returns on a CD with a big bank, Capital One is a great option. That’s especially true if you want to take advantage of dealing with most of your banking under one roof because Capital One offers a robust selection of products, including top-tier credit cards.
Final Take
Popular Direct offers undeniably attractive CD rates to savers. But with a minimum deposit requirement of $10,000, the bank is a better option for established savers. If you are just starting out or don’t like what Popular Direct has to offer, explore the best CD rates to find an option that suits your needs.
FAQ
Here are the answers to some of the most frequently asked questions regarding Popular Direct and CD rates.- Is Popular Direct a legitimate bank?
- Yes, Popular Direct is a legitimate online bank known for offering savers attractive interest rates.
- Can you get 6% on a CD?
- It is rare to find a CD account offering a 6% interest rate. To access such competitive rates, you would likely need to join a smaller credit union and watch its promotional rates. For example, Financial Partners Credit Union offers an eight-month certificate with a 6.00% APY for new members.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 8, 2024.
*Capital One interest rates accurate as of Oct. 8, 2024. See website for all current rates.
