Despite the benefits of a great interest rate, the Popular Direct Select Savings account is not for everyone. It's important to understand its limitations before signing up.
Top perks
Part of an experienced bank: The fact that the Popular high-yield savings account is available online only may lead one to believe that it's part of a start-up company. However, as an offshoot of Popular Bank, Direct Select Savings is backed by a banking system with over 120 years of experience.
$100 is all it takes to open an account: While $100 is nothing to sneeze at, the minimum deposit required is lower through Popular than many banks paying competitive APYs.
Mobile apps available: If you're someone who enjoys the option of banking on the go, it's good to know that your savings account is as close as your mobile app.
Great APY: The rate can change at any time, but now is a good time to earn cash while you can.
FDIC insured: If, for any reason, Popular goes belly up, you know that FDIC insurance will cover up to $250,000 per account holder.
What could be improved
Available online only: There are still those consumers who would prefer to walk into a local branch of their bank and deposit or withdraw funds when needed. That's not possible with a Popular Direct Select Savings account as Popular is an online-only bank.
No checking available: There are no checking accounts available at this time, meaning deposits must be made either through direct deposit or transferred from an external bank account.
Must provide proof of ownership of linked external account: Before you can transfer money from an external bank account, you need to provide proof of ownership of that account. Proof of ownership must be received within the first 10 calendar days of the Direct Select Savings opening date.
Somewhat confusing availability schedule: While Popular provides a schedule of when you can expect funds to be available, it's easy to become confused. For example, it can take up to four business days for funds to become available during the first 90 days your account is open. After those 90 days, it can take up to three business days. The first $225 of a check deposit is generally available one business day after deposited, while the remainder is available on the second business day. The point is this: It's important to familiarize yourself with when you can expect funds to become available to avoid cutting yourself short.
Fees can eat away at earnings: Most financial institutions charge fees, but Popular's can easily erode your earnings. For example, if you close your account within 180 days of opening it, you'll be charged $25. If a statement is returned as undeliverable, you'll get dinged for $5. If you exceed the number of permissible transactions per month, it's another $5.
