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Ponce Bank Review: Community-Focused Bank With High APYs via Raisin

Review Updated
Steven Porrello
Steven Porrello
| 2 others [ + ]
Ashley Maready
Ashley Maready
Nathan Alderman
Fact Checked: Nathan Alderman
Nathan Alderman
Nathan Alderman
Fact checker

Nathan Alderman has been a full-time Motley Fool employee since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As Motley Fool Money's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. APY = Annual Percentage Yield.
Offer image for
Member FDIC.

Ponce Bank

Bottom Line

Ponce Bank offers competitive APYs on various CD terms and a money market account through the financial platform Raisin. Outside of Raisin's platform, it offers clients brick-and-mortar banking through a variety of accounts, such as CDs, checking, savings, and money market.

Pros
  • High APYs
  • Low minimum deposits
  • Account fees waivable
  • Community-focused bank
Cons
  • Low APYs on savings accounts
  • Limited brick-and-mortar branches

  • Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

    These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

    We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

    Learn more about how The Motley Fool Ascent rates bank accounts.

Is Ponce Bank right for you?

Ponce Bank is right for you if:

  • You want a community bank or minority depository institution.
  • You want to bank with a brick-and-mortar institution in New York or New Jersey and don't mind lower APYs on your savings account if it means getting in-person support.
  • You don't need in-person banking; you just want high-yield CDs and money market accounts that are completely online.

Bank Fees

Ponce Bank Fees Charge
Monthly maintenance fee $0 to $7, depending on account
Overdraft Unknown at time of writing
Non-sufficient funds Unknown at time of writing
Sustained overdraft fee Unknown at time of writing
Data source: Ponce Bank consumer schedule of fees

Savings accounts

The Ponce Savings Account has an APY of just 0.10%, but no monthly account service fees when you maintain a minimum balance of $100 (you'll be charged a $5 monthly fee if your balance falls below $100).

The minimum opening deposit is fairly low at $50. While Ponce Bank's savings account rates can't compete with online banks, it does have 13 brick-and-mortar branches in and around New York City. This might be important if you want in-person support for your banking needs and don't mind sacrificing a high APY to get it.

Rates as of Apr 17, 2025

Ponce Savings Account

Member FDIC.
APY
0.10%
Min. To Earn APY
N/A
  • No account fees with $100 balance
  • Low opening deposit
  • Branches in NYC for in-person support
  • Low APY
  • $5 monthly charge if $100 balance not maintained
  • Branches only in NYC

The Ponce Savings account isn't a good choice if you're looking to earn a high return on your savings, as its APY falls well below the national average. If you're just looking for a standard savings account with a low minimum balance requirement and no monthly fees when that balance is maintained, this account could be a good fit, particularly if you're located in NYC and can take advantage of the in-person support.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
up to 3.80%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
4.10% APY for balances of $5,000 or more
Rate info Circle with letter I in it. 4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000+ for max APY
Earn a bonus of at least $225 after a one-time deposit of $25,000+. Circle with letter I in it. Transfer a one-time deposit of $25,000-$49,999.99 for a bonus of $225. Transfer a one-time deposit of $50,000+ for a bonus of $300. Account must be opened with code PS2025 while this promotion lasts, and funded within 30 days. Bonus will be fulfilled within 60 days from the funding date. There is no period of time where the customer will be required to maintain the funds. Account must be open when bonus is credited. One bonus per account and primary customer. Bonus will be credited into the Platinum Savings Account that fulfills the funding requirement. Funding can be deposited all at once or incrementally.
3.70%
Rate info Circle with letter I in it. 3.70% annual percentage yield as of April 17, 2025. Terms apply.
Min. to earn: $0
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

Disclaimers



SoFi disclosure:

¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.

² SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

³ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.

⁴ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.

Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.

⁵ We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.

⁶ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

⁷ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.

Certificates of deposit

Ponce Bank has three types of certificates of deposit (CDs). The first is a personal CD account that it provides directly to its clients. The other two are online CDs offered through Raisin.

Ponce Bank CDs

Ponce Bank's CDs have decent APYs for a local bank. In fact, it even has a promotional 13-month CD with a rate competitive with online institutions. Its non-promotional CD rates, while not terrible, are still below the best CD rates.

Rates as of March 6, 2025

APY = Annual Percentage Yield

Offer image for Ponce Bank CDs
Ponce Bank CDs
Bottom Line

Ponce Bank is an FDIC-insured bank with well over $2 billion in assets. Ponce Bank has a variety of CD terms on offer, from 1 month up to 5 years. Terms of 6 months or less require a $500 deposit, while terms from 12 to 60 months require a $1,000 minimum deposit. The 7-month promotional CD also requires a $1,000 minimum deposit to open.

MINIMUM DEPOSIT $500 or $1,000, depending on term
3 Mo. APY 6 Mo. APY 7 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
3.50% 3.80% 4.40% 3.95% 3.60% 3.50% 2.85% 2.50% 3.25%

Ponce Bank CDs have minimum opening deposits of $500 (for terms of six months or less) and $1,000 (for terms of 12-60 months). These CDs also have early withdrawal penalties, so be sure you understand the consequences if you need to take out money before the term is up.

  • Ponce Bank's partnership with Raisin has produced some excellent high-yield CDs. Each term has a minimum opening deposit of $1. The early withdrawal penalties can be severe (the 9-month CD, for instance, charges a penalty of 180 days of simple interest), but as long as you keep your money locked up for the term, you can earn high interest.

  • Ponce Bank also offers a 4-month no-penalty CD through Raisin with a super-high APY of 4.37%. That's one of the highest CD rates for a no-penalty CD. Unlike its high-yield CDs, this one won't charge a penalty for any withdrawals. But you have to wait 30 days after opening your account to waive the penalty. If you withdraw before the 30-day mark, you might still forfeit some of your interest.

Compare CD rates

Some of Ponce Bank's CD rates are competitive with the best CDs. But not every term has a high APY, especially the longer-term CDs that Ponce Bank offers through Raisin. To give you some perspective, here's how Ponce Bank compares with other top-paying CD providers.

Rates as of March 6, 2025
Bank & CD Offer APY Term Min. Deposit Next Steps
Discover® Bank CD
Member FDIC.
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

APY:
4.00%
Term:
1 Year
Min. Deposit:
$0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

LendingClub CD
Member FDIC.
Open Account for LendingClub CD

On LendingClub's Secure Website.

APY:
4.00%
Term:
10 Months
Min. Deposit:
$500
Open Account for LendingClub CD

On LendingClub's Secure Website.

Western Alliance Bank CD
Open Account for

On Secure Website.

APY:
4.30%
Term:
6 Months
Min. Deposit:
$1
Open Account for

On Secure Website.

Checking accounts

As a local bank, Ponce Bank offers four kinds of checking accounts. Three of them are interest-bearing.

Ponce Bank Simply Free Checking

True to its name, the Ponce Bank Simply Free Checking account has no monthly fees and no minimum balance fees. But to go along with those zeros, you also earn zero interest with this free account. A $50 minimum opening deposit is required to open the account. Account holders get access to free online and mobile banking and a free debit card.

Ratings Methodology
Rates as of Apr 17, 2025

Ponce Bank Simply Free Checking

Member FDIC.
APY
N/A
Min. To Earn APY
N/A
  • No monthly service fees
  • No min. balance fees
  • Free online and mobile banking
  • Free debit card
  • Over 39,000 surcharge-free ATMs
  • Earns no interest
  • $50 opening deposit required to open account
  • No free checks

The Ponce Simply Free Checking account is suitable for people who want a standard checking account with a free debit card, online and mobile banking, and a large surcharge-free ATM network. It doesn't offer many bells and whistles though, including no option for your balance to earn interest.

  • Ponce Bank Direct Interest Checking is the bank's basic checking account. It has no monthly service charges, plus no minimum balance requirement. Checks are available with this account but not free. The account comes with a debit card and links to the Ponce Bank mobile app. It also earns a small portion of interest on your money: 0.05% (as of October 27, 2023).

  • This free checking account is available to those age 50 or older. It's almost identical to Ponce Bank's Direct Interest Checking (including 0.05% APY), but you also get free standard checks.

  • This account earns higher interest than the previous two checking accounts, but only if you have a higher minimum balance. You must maintain a minimum $1,500 balance to earn the higher interest (0.08% APY) as well as avoid the $7 monthly fee. Balances below $1,500 will only earn 0.05% APY, while balances of $50,000 and above will earn 0.10% APY. (All rates as of July 6, 2024.) This account also comes with free standard checks and a debit card.

Compare checking accounts

We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.

Account APY Promotion Next Steps
0%
Min. to earn: N/A
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
Open Account for Discover® Cashback Debit

On Discover Bank's Secure Website.

up to 1.10%
Min. to earn: $1
High APY when you complete 10 or more qualifying debit card purchases each month
Disclaimers

10 debit card point of sale transactions of $10 or more per statement cycle required to earn the maximum APY. If the qualifying activity requirement is not fulfilled, the interest rate paid on the entire balance will be 0.01% APY.

Money market accounts

Much like with its CDs, Ponce Bank also has two money market accounts -- one it provides directly to clients and the other through its partnership with Raisin.

Ponce Money Market Account

The Ponce Money Market Account has a low APY but no account fees if your balance is above $1,500 every day in a statement cycle. The account has a tiered APY system, which earns the highest rate when your balance is above $50,000. That said, none of its APYs can stack up against today's top money market accounts.

  • Although Ponce Bank's usual money market APYs are not competitive, the partnership between Ponce Bank and Raisin has produced one of the best money market accounts we've found. This one has a very high APY with a low opening deposit of $1 and no monthly fees. This account will be separate from your other Ponce Bank bank accounts, but you can link an account to it to transfer money back and forth.

Customer experience

Ponce Bank has a heavy focus on community. As a community development financial institution (CDFI), it invests around 80% of its loans into the communities it serves. It helps nonprofit organizations with their banking and dedicates a significant portion of its lending to low- and low-to-moderate income communities. Ponce Bank also pledges not to fund fossil fuel projects, which could make it a good choice for bank customers who are concerned about climate change.

Customer reviews

Ponce Bank has a 3.2 star rating on Trustpilot (based on one review), while its Better Business Bureau profile on BBB.org has a D-. Most of its 9 BBB complaints have to do with confusion over overdraft fees, while others were about home appraisals and mortgage rates.

Customer service

You can contact Ponce Bank via email at contact.center@poncebank.net or by phone at 718-931-9000. The contact center is available Monday-Thursday from 9 a.m. to 5 p.m., Friday from 9 a.m. to 6 p.m., and Saturday 9 a.m. to 1 p.m.

Mobile app

The Ponce Bank app allows you to check your account balances, deposit checks, pay your bills, and more. The app has solid ratings from both the App Store and the Google Play Store.

  • App Store rating: 4.8/5 stars
  • Google Play rating: 4.2/5 stars

Physical locations

Ponce Bank has 13 locations in New York City: four in the Bronx, three in Brooklyn, four in Queens, and two in Manhattan. It also has one location in Union City, New Jersey.

How does Ponce Bank compare?

If Ponce Bank isn't right for you, here are some other banks to consider.

Western Alliance Bank vs. Ponce Bank

If you're looking for higher interest on a savings account, the Western Alliance Bank High-Yield Savings Premier through Raisin could be right for you. Like Ponce Bank's CDs and money market account, you'll open this account on Raisin's platform. The account has a low minimum opening deposit of $1 and is FDIC insured.

Capital One Bank vs. Ponce Bank

Capital One Bank has more locations than Ponce Bank and offers a higher APY on its savings account. This could be a good choice if you have a Capital One Cafe near you and want to combine a decent APY with in-person support. It also has a free checking account, which comes with a debit card and access to over 70,000 ATMs nationwide. Capital One CD rates are are highly competitive with the best CDs.

FAQs

  • Absolutely. While it's not necessary to have a checking account with Ponce Bank to snag the high rates via Raisin, you can connect your Ponce Bank checking if you want to move money between these two accounts.

  • Yes, Ponce Bank is safe. It has FDIC insurance up to $250,000 per depositor, per ownership category.

  • Ponce Bank is one of fewer than 40 banks in the U.S. to be certified as a CDFI (Community Development Financial Institution) and MDI (Minority Deposit Institution). The bank issues 80% of its loans to the local community. Ponce Bank serves a diverse customer base from neighborhoods that are often underserved by traditional banks.