📍 Update May 2022: Following the FED’s rate hike on May 4, many banks and credit unions have begun lifting the APYs on both their fixed and variable rate deposit accounts. Ponce Bank has bumped the yield on their variable rate account from 0.50% to the current 0.75% APY. See details below.]

Ponce Bank has launched a high yield savings account through the SaveBetter platform that pays a noteworthy APY of 0.75% and comes with a minimum deposit requirement of just $1.00.

The SaveBetter platform that houses this offer, allows for consumers to create just one account (with SaveBetter) which then unlocks access to a curated network of FDIC member banks and their FDIC-insured savings products.

Ponce Bank and their high yield savings account is currently the highest yielding product within the SaveBetter network. We should note that the network only consists of three banks at the moment:

• Ponce Bank,
• Continental Bank and
• Central Bank of Kansas City.

Ponce bank does not offer this digital savings product through their own website. If you visit Poncebank.com and navigate to their savings solutions section, you’ll notice the savings product(s) aren’t the ones offered through SaveBetter.

To access the high yield savings account Ponce Bank offers in this review, you’ll want to navigate to the products exploration page on SaveBetter. You can also continue reading our comprehensive review on the product below.

Ponce Bank High Yield Savings Account APY + Details

The Ponce Bank high yield savings account available through SaveBetter is federally insured by the FDIC up to $250,000 per depositor. Joint accounts are not available at this time.

Ponce Bank High Yield Savings Account

To put the yield above in perspective, the current national average for a savings account sits at just 0.06% APY, according to recent FDIC data. That said, there are still a handful of online banks and even nationally available credit unions offering yields above 1.00% APY following the FED’s move. Keep in mind these rates are variable and can change anytime without notice.

Interest is compounded daily and credited monthly.

Drawbacks

The account has some notable drawbacks that one should consider before opening it.

First, the account provides limited access to your funds. You will not have an ATM or debit card of any kind. You also can not deposit money through traditional methods such as direct deposit, wire transfer, cash deposit, or remote check deposit via a mobile app. The only way to withdraw funds is by linking a bank account. And depending on the bank or credit union you’ve linked, this could take anywhere from 3 – 5 business days to receive a transfer.

No joint accounts. Typically banks and credit unions allow for joint savings and/or deposit accounts which expands FDIC coverage up to $500,000 so that both individuals are covered up to the applicable limits of $250,000 per depositor.

You have to use the SaveBetter mobile app to manage the account. And the app does not provide any basic budgeting or automatic savings tools that many digital savings products do.

Customer Service goes through SaveBetter and office hours are limited. To reach an actual representative for questions regarding your Ponce Bank High Yield Savings account, you’ll need to call: 844-994-EARN (3276). And the hours of operation are just Monday to Friday from 9:00 a.m. – 4:00 p.m. Eastern Standard Time.

How to Open the Account

If you’d like to open the Ponce Bank high yield savings account and earn the advertised interest rate, you’ll first need to navigate to the Ponce Bank offer page on Save Better here.

Once there, follow these steps:

1. Click the forest green “Save now” button.
2. Enter your email address, and set a strong password.
3. Enter your name and go over the terms and conditions (link at the bottom). Once done, confirm that you have read them. Click “Continue“.
4. Then you’ll need to confirm your email address.
5. From there, you’ll enter your date of birth, Social Security number and contact details. Then click “Continue“.
6. Review and submit your application.
7. Once approved you’ll need to connect the bank in which you’ll be transferring funds from. You’ll need your bank account number and routing number to complete this step.

Items to have handy to complete the process:

• Driver’s license or government-issued ID
• Social Security Card (if you don’t have the number memorized)
• Bank account number and routing number of the institution you’ll be transferring the funds from.

Final Thoughts

If you’re strictly after a high yield, variable-rate online savings account and do not need regular access to these funds, then this Ponce Bank high yield savings account may be a good option for you.

If you value in-person banking and easy access to cash and your money held, then this product may not be a good fit for you.

Also keep in mind you’ll be interfacing with SaveBetter and their app(s) to manage the account and will not have any interaction with Ponce Bank itself.