Northern Bank Direct
Headquartered in Woburn, MA, Northern Bank Direct is an online division of Northern Bank, which was founded in 1960. This internet-only bank offers certificates of deposit (CDs) and money market accounts to its banking customers. The bank’s CDs yield higher interest rates for longer terms (terms range from 12 to 60 months). Money market accounts offer access to funds through ATM, electronic transfer, wire, and limited check writing.
Northern Bank Direct offers its customers convenient and secure access to online and mobile banking. Although accounts must be opened online, transactions can be made at any Northern Bank branch location. At the time of this writing, deposits made with Northern Bank Direct are insured by the FDIC (up to applicable limits) through Northern Bank.
Related Posts
12/10 - Still At 2.5% But...
8/27 - Northern Bank Direct's Money Market (2.50% APY) - No Longer Available 8/27/19
6/12 - Northern Bank Direct's Money Market (2.50% APY) Available Again
6/11 - Northern Bank Direct Increased Their Money Market To 2.50% APY
5/13 - Money Market Rate Guarantee Extended To December 31 2019
1/29 - Northern Bank Direct Ups Promo Rate On Existing Money Market Accounts
1/28 - Rate Increased To 2.50% APY
1/15 - Rate Confusion
6/15 - Money Market Account
6/11 - Northern Bank Direct Adds New Money Market
6/2 - Northern Bank Direct Adds New 30-Month CD
2/22 - Northern Bank Direct Ups Long-Term CD Rates
1/8 - Northern Bank Direct Ups Money Market Rate
1/3 - Northern Bank Direct Ups 48-Month CD
Average At Best Banking Experience
I primarily use their high yield online savings/money market account due to a promo rate they were running. The customer service is primarily e-mail, the phone service is not so great. You will typically get bounced around and then asked to send an e-mail via online portal. The portal is vanilla and looks like most other banking platforms like TIAA, but does have the majority of features you will need. What will make me move on is not just slow customer service, but the $5K money move limitation and the fact they are the last to send my 1099's. I think its absurd they mail them and do not offer an online option with tax documents for those who file early. I also did not receive a communication about the timing, at the least post it in your portal. Once promo rate is up I will most likely move on.
Transfers Limited To $5,000, Useless For An On-Line Bank
There transfers to and from externally linked accounts are limited to $5,000 / day. This is absurd and completely useless for an on-line bank. Oh, and the maximum for an entire month is only $25,000. That's a ridiculous considering there are so many other online banking alternatives that are much better.
Just Signed Up
But did not make a transfer yet. Looks to me like they are still honoring the 2.5% rate through Dec 31? Too good to pass up. Anyone know for sure?
Great Rates, Great Service
This bank does a great job of providing really competitive rates on Money Market and CDs (I like that they have bumped up the rate on my money market to keep it near the top of the market). Customer service has been very friendly when I have needed it. Mobile app makes it easy to monitor my accounts. And, I like that they are private/family-owned and operated vs big corporate.
Limited Availability Of Matured CD Balances
This bank seems to be competing on the national stage for CD accounts. Yet, they have adverse capabilities, compared to major internet banks. Here is what they have to say about getting your money back:
"If you would like to have your funds sent electronically we will need a request to do that two days before the maturity date. The only option we are able to give if the CD has already matured is to send a check to an address on file."
I should note there was no problem funding my CD electronically. And, of course, if you want the proceeds transferred electronically, as referenced above, you must have previously established an external bank account.
Addendum: 8/1/19 This outfit has an Identity Problem
First let me reiterate that NB DIRECT is a division of Northern Bank. They each offer distinctly different rates on CDs and other deposit accounts. So, make sure you are dealing with the intended entity.
Second: Even when clearly within NBD, their accounts are, nonetheless, not integrated. For example, I just attempted to open a CD funded from my MMA (both at NBD). Not exactly easy. Even after I entered information on application form that I was an existing customer, when you get to the funding options for the new account there are only two: 1)send a check 2)transfer from another bank.
So, I took a shot in the dark and entered the NBD routing number and account number and that processed just fine, except they are going to send test deposits to verify my account. They are sending test deposits to THEMSELVES. I called them and they confirmed they currently have no capability to transfer from MMA to CD except through this procedure. When I pointed out that the test deposit routine would count against my six transaction limit, they concurred that would be the case and they could not waive this restriction for this type of administrative "withdrawal". I guess if you want their attractive rates you are going to have to suffer a little.
Unable To Open Account
Just tried to open money market account but at the end of application, it says "Unfortunately, we couldn't open your account". It gives a phone number and I called for the reason. The CSR told me you will get a letter in the mail but refused to tell me over the phone. I have never been denied an account before. I don't know if others have that experience.
Data as of Q4 2019
Health Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 18266 |
| Year Established | 1960 |
| Employees | 227 |
| Primary Regulator | FDIC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 1.69% |
| Return on Equity - YTD | 15.15% |
| Annual Interest Income | $119.3MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q4 2019vs Q4 2018 | $2.23B$2.16B |
| Loans | Q4 2019vs Q4 2018 | $1.89B$1.89B |
| Deposits | Q4 2019vs Q4 2018 | $1.91B$1.79B |
| Equity Capital | Q4 2019vs Q4 2018 | $262.1MM$226.3MM |
| Loan Loss Allowance | Q4 2019vs Q4 2018 | $26.3MM$24.2MM |
| Unbacked Noncurrent Loans | Q4 2019vs Q4 2018 | $4.3MM$41.5MM |
| Real Estate Owned | Q4 2019vs Q4 2018 | $0$603.00K |