Is Popular Direct Legit? Safety, CD Rates and What to Know
Popular Direct is the online division of Popular Bank, an FDIC insured bank in New York. Here is who owns it, how your deposits are insured, what its CDs pay and the catches to know first.
How we make money: Some links on this page may earn us a commission. That never affects our scores or the order of our picks, which follow our published methodology. Advertiser disclosure
Yes. Popular Direct is the online division of Popular Bank, an FDIC insured bank based in New York (FDIC certificate 34967) with about $15.0 billion in assets. Deposits are insured up to $250,000 per depositor, per ownership category, combined with anything you hold at Popular Bank. Its CDs pay up to 5.00% APY on 60 months, with a $10,000 minimum deposit (rates effective Oct 26, 2026).
Popular Direct now pays some of the highest CD rates we track, so it is worth knowing who is behind it before you send $10,000. The short version: it is a real, federally insured bank that has been around for decades, with a high minimum and stiff penalties on its longest CDs.
Who owns Popular Direct?
Popular Direct launched in July 2016 as the digital only branch of Popular Bank, according to Popular Direct. Popular Bank is owned by Popular, Inc., which is also the holding company for Banco Popular de Puerto Rico. Popular Direct says Banco Popular was founded in 1893 and is the largest bank in Puerto Rico by assets and deposits. Every Popular Direct account is opened at Popular Bank.
| Fact | Popular Bank |
|---|---|
| Brand | Popular Direct (online division) |
| FDIC certificate | 34967 (active) |
| Headquarters | New York, New York |
| Established | January 2, 1999 |
| Total assets | About $15.0 billion (Jun 30, 2026) |
| Deposits | About $11.9 billion (Jun 30, 2026) |
| Primary federal regulator | Federal Reserve |
| Holding company | Popular, Inc. |
From the FDIC BankFind database, checked Oct 21, 2026.
Is my money FDIC insured at Popular Direct?
Yes, up to $250,000 per depositor, per ownership category. Popular Direct says all balances at Popular Direct and Popular Bank are added together for FDIC coverage, so if you also bank with Popular Bank, count both. You can get more than $250,000 of coverage by using different ownership categories, such as a joint account; see how to insure more than $250,000. For what happens in the rare case a bank closes, see what happens if your bank fails.
What do Popular Direct CDs pay?
| Term | APY | Early withdrawal penalty |
|---|---|---|
| 3 months | 4.30% | 89 days |
| 6 months | 4.35% | 120 days |
| 12 months | 4.60% | 270 days |
| 18 months | 4.75% | 270 days |
| 24 months | 4.80% | 270 days |
| 36 months | 4.85% | 365 days |
| 48 months | 4.95% | 365 days |
| 60 months | 5.00% | 730 days |
APYs from Popular Direct’s CD page, effective as of Oct 19, 2026, checked Oct 21, 2026. $10,000 minimum opening deposit and balance. Penalties are days of simple interest on the amount withdrawn, from Popular Direct’s CD Product Guide. Rates change often; you get the rate in effect on the day your CD is opened and funded.
On $10,000, the 5 year CD at 5.00% APY would earn about $2,763 if you keep it to maturity. The national average 5 year CD pays 1.41% (FDIC, as of Oct 19, 2026). Popular Direct also has a savings account that pays 3.90% APY with $100 to open (effective Oct 19, 2026), below the best savings rate we track with no rules, Pibank Savings at 4.40% APY.
What to watch for
- The $10,000 minimum. You need $10,000 to open each CD, and Popular Direct also lists it as a balance requirement. If you have less, see CDs with no minimum deposit; E*TRADE pays 4.80% APY on 2, 3 and 5 years with no minimum.
- A 2 year penalty on the 5 year CD. Cashing out a 60 month CD early costs 730 days of simple interest. On $10,000 at the 4.880% interest rate behind the 5.00% APY, that is about $976. Barclays charges 180 days of interest on terms over 24 months. Compare more in CD early withdrawal penalties.
- Automatic renewal. After maturity you get a 10 day grace period. If you do nothing, the CD renews for the same term at whatever rate Popular Direct pays that day. Popular Direct mails maturity notices; set your instructions before the grace period ends.
- Online only. Popular Direct has no branches of its own. You open and manage accounts online or in its mobile banking, and fund them from a bank account in your name, which it confirms with two small trial deposits.
Who can open an account?
Popular Direct says you must be at least 18, have valid ID as a US citizen or permanent resident, and pass its credit, fraud and anti money laundering screening. On a joint account, both owners must qualify. You also need the minimum deposit: $10,000 for a CD or $100 for savings.
How to check you are dealing with the real Popular Direct
- Type populardirect.com into your browser rather than following links in texts or emails.
- Search FDIC BankFind for certificate 34967 and confirm the name Popular Bank.
- Popular Direct’s customer care number is 1-800-274-5696. Never share a password or one time code with someone who contacts you first.
How it compares
At our latest check, Popular Direct had the top rate we track on 3 and 4 year CDs and the top 12 month rate, and tied Sallie Mae for the top 5 year rate. Every Popular Direct CD needs $10,000; Sallie Mae needs $2,500. If you have that much and will not need the money early, it is hard to beat. If you might, a CD with a lighter penalty or no minimum can be the better deal even at a slightly lower rate. Read our full Popular Direct CD review, compare the best 5 year CD rates, or see every term on our best CD rates page.
CD rates change often for new deposits. Once you open a CD, your rate is fixed for the term.
Frequently asked questions
Is Popular Direct a real bank?
Yes. Popular Direct is the online division of Popular Bank, an FDIC insured bank in New York (FDIC certificate 34967) owned by Popular, Inc. Accounts are opened at Popular Bank.
Is Popular Direct FDIC insured?
Yes, through Popular Bank, up to $250,000 per depositor, per ownership category. Balances at Popular Direct and Popular Bank are added together for that limit.
What is the minimum deposit for a Popular Direct CD?
$10,000 for every CD term, as of Oct 21, 2026. The savings account needs $100.
What happens when a Popular Direct CD matures?
You get a 10 day grace period. If you do nothing, the CD renews for the same term at the rate in effect on the maturity date.
What is the penalty for cashing out a Popular Direct CD early?
It depends on the term: 89 days of simple interest for 3 months, 120 days for 6 months, 270 days for 12 to 24 months, 365 days for 36 and 48 months, and 730 days for 60 months.
Compare today’s top savings rates
Happen Bank LevelUp SavingsAPY as of Oct 23, 20264.20%with $250 or more in deposits each monthReview →
