Popular Direct CD

Popular Direct is the online deposit brand of Popular Bank, the US arm of Puerto Rico based Popular Inc. It has narrowed its CD line sharply: as of August 3, 2026 the site offers exactly three terms, 6 months, 12 months and 18 months. Older writeups describing eight terms out to five years no longer match what the bank actually sells. The rates are the reason to look. The 18 month CD pays 4.35% APY, the 12 month pays 4.25%, and the 6 month pays 4.15%. That 18 month rate is the strongest among the major online CD issuers in this comparison set and roughly 60 basis points ahead of what banks like First Internet Bank and Quontic are paying. The curve also runs the right way, rewarding longer commitments, which is rare in August 2026 when most banks are inverting their CD ladders. The cost of entry is the catch. Every Popular Direct CD requires a $10,000 minimum opening deposit and balance, which rules the product out for anyone building savings rather than parking a lump sum. The early withdrawal penalty is also steep and tiered by term: 89 days of simple interest under 91 days, 120 days for terms from 91 days to under 12 months, 270 days for 12 to under 36 months, 365 days for 36 to under 60 months, and 730 days at 60 months or more. An 18 month CD therefore costs 270 days of simple interest to break, roughly half the term. CDs renew automatically after a 10 day grace period at whatever rate is set on the maturity date, and Popular Direct does not publish a compounding frequency on its public CD pages. This is the right pick if you have $10,000 or more that is genuinely idle for a year and a half and you want the best fixed rate available without chasing a credit union membership. Deposits are FDIC insured to $250,000 per depositor per ownership category, and there are no opening or maintenance fees. Skip it if $10,000 is most of your liquid savings, because the 270 day penalty makes an early exit expensive enough to erase more than a year of the yield advantage. Skip it too if you want a five year lock, since that term simply is not offered any more. And diary the maturity date: with only a 10 day grace window, a 4.35% CD can auto renew into a materially lower rate before you notice.