If you’re getting tired of earning close to no interest on your savings — and who isn’t? — then you will want to check out the Ponce Bank Money Market Deposit Account. It currently pays interest at a rate 8.5 times higher than the national average on money market accounts.
There’s no limit on the number of withdrawals you can take. So it’s the perfect place to park your money for short-term or long-term needs, especially as an emergency fund. No matter who you’re banking with now, you can take this opportunity to earn higher interest on your savings. Keep your checking account with your current bank or credit union but move your savings to Ponce Bank where your money can earn more.
What Is Ponce Bank?
Ponce Bank began in 1960 in the Bronx, New York. It was a response to a decline in the number of banks in an area widely seen at the time as a community in decline. The founders saw something different in the area. They saw proud neighborhoods anchored by a strong immigrant work ethic and entrepreneurial spirit.
Ponce bank has since expanded throughout New York City and into New Jersey.
The Ponce Bank Money Market Deposit Account is available only through SaveBetter. This banking network offers high-interest rates on various deposit accounts. To be eligible for a Ponce Bank Money Market Deposit Account you first need to open an account with SaveBetter, which we cover later in this review.
What Does Ponce Bank Offer?
Two savings products are currently available: Ponce Bank Money Market Deposit Account and Ponce Bank high-yield certificates of deposit (CDs).
Please be aware that the deposit accounts and rates listed below are available only through SaveBetter. Rates offered on deposit accounts opened directly through Ponce Bank are considerably lower.
1. Ponce Bank Money Market Deposit Account (MMDA)
The Ponce Bank Money Market Deposit Account currently pays 0.51% APY, which is 8.5 times higher than the national average interest rate being paid on money market accounts by banks.
You can open an account with as little as $1, and there are no fees associated with the account.
One of the biggest advantages of the Ponce Bank Money Market Deposit Account is that it doesn’t have the typical six-withdrawal limit associated with deposit accounts.
2. Ponce Bank High-yield CDs
Ponce Bank currently offers CDs with the following terms and interest rates:
- 5-month high-yield CD — 0.25% APY
- 13-month high-yield CD — 0.55% APY
- 48-month high-yield CD — 0.50% APY
You can open a Ponce Bank high-yield CD with as little as $1, which is an incredible offer.
There is no provision for automatic renewal of a CD at the end of the term. This must be done manually; otherwise the funds will be transferred to your linked bank account upon expiration.
Ponce Bank Main Features
|Eligible account holders||Individual accounts only; joint accounts are not available.|
|Minimum initial deposit||$1 for the Ponce Bank Money Market Deposit Account; $1 for Ponce Bank high-yield CDs.|
|Interest compounding frequency||Daily, and posted to your account monthly.|
|Deposit Policy||A deposit made by 4:30 P.M., Eastern Time, is completed the next business day. Deposits completed after 4:30 P.M. will be completed on the second business day.|
|Withdrawal policy||A withdrawal requested by 1:30 P.M. is completed the next business day. Withdrawals requested after 1:30 P.M. will be completed on the second business day.|
|Tax reporting||You get a year-end tax statement if you earn $10 or more in interest during the calendar year.|
How Does Ponce Bank Work?
You don’t need to open an account directly with Ponce Bank to take advantage of the high rates offered on either the Ponce Bank Money Market Deposit Account or high-yield CDs. Instead, you first open an account with SaveBetter. That gives you access to the high-interest deposit accounts with Ponce Bank, as well as those of other participating banks.
These are high-interest deposit accounts only. Checking accounts and other banking services — like business banking, credit cards, and loans — are not offered as part of the program. You need to retain a relationship with your current bank for those services and use the Ponce Bank deposit accounts strictly to earn high interest on your savings.
Who Is Ponce Bank For?
Ponce Bank Money Market Deposit Account and high-yield CDs are excellent choices for anyone who is tired of getting the typical 0.05% or 0.20% being paid by most banks on savings accounts, money market accounts and CDs. Even if you want to keep your regular bank account for checking purposes, you can still open a Ponce Bank deposit account through SaveBetter to receive high interest on your savings.
The deposit accounts offered by Ponce Bank are open to anyone since the minimum initial deposit is just $1. That makes it an appropriate account for someone who may be new to saving and wants to build an account a few dollars at a time, or even for someone with $100,000 looking to earn more interest on their savings.
We believe the Ponce Bank Money Market Deposit Account is especially valuable for parking your emergency fund. Emergency funds need to be held in an account that’s totally safe, like a bank money market account.
The average rate paid by bank money market accounts nationally is just 0.06%. But you can earn a lot more on your emergency fund with a Ponce Bank Money Market Deposit Account. After all, you need to have your emergency fund somewhere, so you may as well do it where it earns high interest.
Since there are no withdrawal limits on the Ponce Bank Money Market Deposit Account, the account is also suitable if you want to earn high interest on savings that you expect to access in the coming weeks or months.
Ponce Bank Fees & Limits
Ponce Bank Money Market Deposit Accounts or high-yield CDs can be opened with as little as $1, and It has no fees associated with the account.
Ponce Bank high-yield CDs also have no fees, but early withdrawal penalties are as follows:
- CDs with maturities less than 12 months: 90 days simple interest on the principal at the rate in effect for the CD.
- Maturities between 12 months and five years: 270 days simple interest on the principal at the rate in effect for the CD.
- A maturity greater than five years: 365 days simple interest on the principal at the rate in effect for the CD.
However, withdrawals made within seven days of opening your CD are not subject to early withdrawal penalties.
How Do I Open an Account?
To open a Ponce Bank Money Market Deposit Account or CD, you need to open a SaveBetter account.
- You start by choosing the product you want, such as the Ponce Bank Money Market Deposit Account or a specific CD. Then create a username and password for your account.
- And finally, complete an online application, which will include verifying your identity.
- Once your application has been accepted and your identity verified, you link an external bank account to fund your Ponce Bank savings product.
One of the advantages of opening a SaveBetter account is that you have access to the banks and savings products available throughout the company’s network. That lets you choose savings products offered by Ponce Bank, as well as other bank offerings available.
How’s the Customer Service?
Customer service is available through SaveBetter by phone or email, Monday through Friday, 9:00 A.M. to 4:00 P.M., Eastern Time. Live chat is also available and the site also has a very generous FAQ section that addresses most common questions you may have.
Is Ponce Bank Safe?
Funds held on deposit with Ponce Bank are fully protected by FDIC insurance for up to $250,000 per depositor. The bank has also implemented technical and organizational measures to protect your information against threats, loss, destruction, and abuse.
Your information is protected from unauthorized access by third parties during transmission. This is done through SSL encryption for online services. In addition, the platform is continually monitored to detect and alert on security events. And it undergoes rigorous security assessments and testing from architecture planning to production phases.
Ponce Bank Pros & Cons
- Easy to get started — You can open a Ponce Bank Money Market Deposit Account or high-yield CD with as little as $1.
- High-interest rates — Earn interest on the money market deposit account that’s 8.5 times higher than the national average being paid by banks on money market accounts.
- No fees– There are no fees associated with the money market deposit account.
- Can access other SaveBetter products — Since you’ll open your account with SaveBetter, you also have access to savings products of other banks in the SaveBetter network.
- No joint accounts — Savings products are available for individuals only. Joint accounts are not supported on the SaveBetter platform.
Best Alternatives to Ponce Bank
Fortunately, Ponce Bank isn’t the only bank paying high interest on deposits — though it is one of the best in the class. But if you prefer, there are other banks that pay high interest and offer other services you may find attractive.
Discover Bank, best known for having some of the best credit cards in the industry, also offers high-yield savings. Its Online Savings Account currently pays 0.40% APY with no minimum deposit requirements and no monthly fees. In fact it doesn’t even charge insufficient funds fees. CIT Bank offers a Savings Builder account. It currently pays 0.40% APY. It requires a minimum $100 deposit to open, as well as recurring monthly deposits of $100 or more. There is a limit of six withdrawals per month from the account, but there are no monthly service fees. As an online bank, you can open and fund an account online from the comfort of your home or work. If you’re looking for a more versatile option, consider Chime. It currently pays 0.50% APY on its High-yield Savings Account. There are no hidden fees. You can access your funds from one of more than 38,000 surcharge-free in-network ATMs. It also offers a spending account and you can build up your credit score with its credit builder. Chime Disclosure – Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
Bottom line — Is Ponce Bank Worth It?
If you’re looking to earn more interest on your savings, Ponce Bank is definitely worth it. Even if you love your current bank, you’re losing money if your savings are held in an account that pays only 0.06%. You can keep your regular bank account wherever it is and move your savings to a Ponce Bank Money Market Deposit Account or high-yield CD.
And since your deposit accounts will be part of SaveBetter, you also have access to high rates on savings products offered by other banks. This lets you take advantage of high yields without needing to shop for banks and opening new accounts.
High yields with high liquidity is a tough combination to beat. You can get that with the Ponce Bank Money Market Deposit Account through SaveBetter.