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

Review Updated
Steven Porrello
Ben Gran
By: Steven Porrello
Steven Porrello
Steven Porrello
Writer

Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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 and  Ben Gran
Ben Gran
Ben Gran

Ben Gran is a freelance writer based in Des Moines, Iowa. He has written for regional banks, fintechs, and major financial services companies. Ben is a graduate of Rice University.

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Our Banking Experts

Nathan Alderman
Check IconFact Checked Nathan Alderman
Nathan Alderman
Nathan Alderman
Fact checker

Nathan Alderman has worked with The Motley Fool 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 The Ascent'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 our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.
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Member FDIC.
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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 through Raisin
  • 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.

Certificates of deposit

Ponce Bank has three types of 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 June 7, 2024

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. The Ponce Bank CDs that you can get directly from the bank offer some competitive APYs for certain terms, but are not usually the best CD rates available.

MINIMUM DEPOSIT $500 or $1,000, depending on CD term
Open Account for Ponce Bank CDs
1 Mo. APY 2 Mo. APY 3 Mo. APY 6 Mo. APY 1 Yr. APY 13 Mo. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
3.00% 3.00% 3.50% 3.80% 4.25% 5.25% 4.27% 4.30% 2.85% 2.50% 3.25%

Ponce Bank CDs have minimum opening deposits of $500 (for terms 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 High-Yield CD from Raisin

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.

Rates as of June 7, 2024

APY = Annual Percentage Yield

Offer image for Ponce Bank High-Yield CD from Raisin
Ponce Bank High-Yield CD from Raisin
Bottom Line

Ponce Bank is an FDIC-insured bank with well over $2 billion in assets. And with the CDs that it offers via Raisin, savers can access some of the highest CD rates available on the market. Note that the bank offers both standard high-yield CDs (with early-withdrawal penalties) and a no-penalty CD via Raisin.

MINIMUM DEPOSIT $1
Open Account for Ponce Bank High-Yield CD from Raisin
1 Mo. APY 3 Mo. APY 6 Mo. APY 9 Mo. APY 11 Mo. APY 13 Mo. APY 4 Yr. APY
5.30% 5.25% 4.00% 3.00% 1.21% 1.31% 1.61%

Ponce Bank No-Penalty CD from Raisin

Ponce also offers a 4-month no-penalty CD through Raisin with a super-high APY of 5.20%. 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.

Rates as of June 7, 2024

APY = Annual Percentage Yield

Offer image for Ponce Bank No-Penalty CD from Raisin
Ponce Bank No-Penalty CD from Raisin
Bottom Line

Want the flexibility of a savings account with the benefits of a CD? Ponce Bank offers a high-yield no-penalty CD through its partnership with Raisin. This no-penalty CD gives you special upside on the APY, but with no penalties if you pull your deposits out early. Be aware that the term is only four months.

MINIMUM DEPOSIT $1
Open Account for Ponce Bank No-Penalty CD from Raisin
4 Mo. APY
5.20%

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 June 7, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.70% Term: 1 Year Min. Deposit:  $2,500
Open Account for Discover® Bank CD
APY: 5.25% Term: 1 Year Min. Deposit:  $1
Open Account for
APY: 5.10% Term: 9 Months Min. Deposit:  $1
Open Account for

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.

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 high APY to get it.

Rates as of Jun 28, 2024

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 4.60%
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!
4.25%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of June 28, 2024
Min. to earn: $1
N/A

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.

Ponce Bank Direct Interest Checking

Ponce Bank Direct Interest Checking is the bank's basic checking account. It has no monthly service charges, plus no minimum balances required. 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).

Ponce 50+ Premium Interest Checking

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

Ponce Premium Interest Checking

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 June 4, 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')
up to 1.10%
Min. to earn: $1
High APY when you complete 10 or more qualifying debit card purchases each month
0.40% (up to 3.30%)
Rate info Circle with letter I in it. To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
Cash in on up to a $500 bonus† and up to 3.30% APY* with a new Rewards Checking account. Just use promo code RC500 before July 31.

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.

Ponce Money Market Deposit Account from Raisin

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 accounts, but you can link an account to it to transfer money back and forth.

Is Ponce Bank FDIC insured?

Yes, deposits at Ponce Bank are covered by FDIC insurance up to $250,000 per depositor, per ownership category.

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 nonprofits with their banking and also 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, while its Better Business Bureau profile on BBB.org has a D-. Most of its 10 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 [email protected] 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

Relationship benefits

Ponce Bank doesn't offer traditional relationship benefits (like higher APYs) when you open more than one account with it.

Alternatives to Ponce Bank

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

Western Alliance 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

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 can access over 70,000 ATMs nationwide. Capital One CD rates are are highly competitive with the best CDs.

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.

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 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 less 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.