September 2021 – Forbes Advisor


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PurePoint Financial offers nine online certificate of deposit (CD) terms, ranging from six months to 60 months. The bank’s CD rates tend to be much less competitive than other online banks. Rates range from 0.15% APY for a six-month CD to 0.25% APY for a 60-month CD. There’s a $10,000 minimum deposit requirement to open a CD.

Here’s an overview of PurePoint Financial’s Online CD rates. Rates are accurate as of September 9, 2021.

Overview of PurePoint Financial CDs

The minimum opening balance for all of PurePoint Financial’s CD products is a somewhat steep $10,000. The bank offers two different types of CDs: Online (nine different terms) and No-Penalty (three different terms). The No-Penalty CDs pay 0.10% to 0.15% APY, depending on the term length.

Interest on all CD types is compounded daily and paid monthly. Take note of the hefty early withdrawal penalties should you choose to withdraw your fund early. You’ll lose 181 days’ simple interest on the amount withdrawn.

How Much Can You Earn With PurePoint Financial CD Rates?

Before investing in a CD with PurePoint or any bank, it’s important to run the numbers to see how you’ll fare.

Here’s what you can earn with PurePoint Financial’s Online CDs with a $10,000 investment, assuming the earnings are compounded daily:

How PurePoint Financial’s CDs Compare

Compared to the best CD rates currently in the market, PurePoint Financial’s rates tend to trend significantly lower. However, they are competitive with rates offered by many larger brick-and-mortar national banks. Its rates are also in line with and, in some cases, higher than the average national CD rates, according to FDIC data.

It’s worth noting that PurePoint Financial’s Online Savings account, which also has a minimum deposit of $10,000, earns 0.40% APY. Opting for the bank’s savings account would provide you with higher earnings and more liquidity.

Be sure to do plenty of comparison shopping prior to opening a CD. By comparing different banks, credit unions and terms, you can make sure you’re receiving the highest possible rate of return on your investment.

About PurePoint Financial

PurePoint Financial is a division of MUFG Union Bank, N.A. and part of Mitsubishi UFJ Financial Group Inc., one of the largest financial groups in the world. The bank offers a simple selection of basic banking products, including online savings accounts and CDs. All customer service and account service is accessible either online or by phone.

Frequently Asked Questions (FAQs)

What is a CD ladder strategy?

A CD ladder strategy involves buying multiple CDs in varying terms. The goal is to have CDs maturing at regular intervals so you can then reinvest the money at potentially more favorable rates while avoiding early withdrawal penalties.

CDs are low-risk time deposit accounts. They are typically insured by the FDIC at banks and by the NCUA at credit unions. Investors tend to trade off higher interest rates earned elsewhere for the safety of a CD.

Are there savings alternatives to a CD?

Investors can explore alternative savings options such as online savings accounts and money market accounts. Those types of accounts may also offer the same low risk but higher interest rates than CDs.

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