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
7/24 - Northern Bank Direct 11-Month CD Is New 1-Year CD Rate Leader - Expired
7/5 - Money Market Has New Higher Rate 4.95% Apy
5/30 - Rates Drop
5/13 - Northern Bank Direct 15-Month CD Now Has The Top Rate - Expired
5/12 - 5.50% APY CD Changed From 9-Months Term To 15-Months Term
4/29 - Northern Bank Direct Ups 9-Month CD Rate To Highest In Nation
4/28 - Northern Bank Direct Offers A 9 Month Certificate At 5.5%
3/28 - Northern Bank Direct Surprises With Large Money Market Rate Increase
2/3 - NBD Plays Catching-Up: Money Market Premier 4.35% APY
10/19 - NBD Money Market Premier Rate Increased To 3.25% APY (for balances of less than $250K)
9/27 - Northernbankdirect Ups Rate To 2.75% APY
9/27 - Rate Increase NBD Money Market Premier Now Pays 2.75% APY
9/12 - Money Market Premier Rate Is Now 2.00% APY.
10/7 - Money Market APY Drops To 0.60%
8/5 - Northern Bank Direct's Money Market Drops To 0.9%
7/1 - Northern Bank Direct Cuts Money Market Rate To 1.00%
6/2 - Northern Bank Direct Cuts Money Market To 1.25% From 1.50% Today
5/1 - Northern Bank Direct Money Market Rate Cut To 1.50% APY
4/20 - Northern Bank Direct Accepting Applications For Its Money Market
1/6 - Northern Bank Direct MM To Go Down To 1.75% APY Effective 1/13/2020
12/10/19 - Still At 2.5% But...
8/27/19 - Northern Bank Direct's Money Market (2.50% APY) - No Longer Available 8/27/19
6/12/19 - Northern Bank Direct's Money Market (2.50% APY) Available Again
6/11/19 - Northern Bank Direct Increased Their Money Market To 2.50% APY
5/13/19 - Money Market Rate Guarantee Extended To December 31 2019
1/29/19 - Northern Bank Direct Ups Promo Rate On Existing Money Market Accounts
1/28/19 - Rate Increased To 2.50% APY
1/15/19 - Rate Confusion
6/19/18 - Northern Direct Bank Ending Special Money Market Rate
6/15/18 - Money Market Account
6/11/18 - Northern Bank Direct Adds New Money Market
6/2/18 - Northern Bank Direct Adds New 30-Month CD
2/22/18 - Northern Bank Direct Ups Long-Term CD Rates
1/8/18 - Northern Bank Direct Ups Money Market Rate
1/3/18 - Northern Bank Direct Ups 48-Month CD
12/13/17 - Northern Bank Direct's 48-Month CD Rate Raised
7/31/17 - Northern Bank Direct Ups Money Market Account Rate
4/7/17 - Northern Bank Direct Debuts Competitive Money Market and CD Rates
Good Experience
I opened a online 9 month CD with Northern Direct back in May 2023 when they were paying 5.50. I had zero problems. The application and transfer were simple and easy. I just opened a 11 month CD at 5.60 on Aug 08, 2023. Again I had zero problems. Northern Direct did the two trial deposits to my linked Chase account within 24 hrs and did the funds transfer within 48 hrs. I see some folks had some issues with Northern Direct but that hasn’t been the case with me. So far I’m happy with the service and rate.
Application In Limbo
Applied online for 9 mo CD at 5.5. Never heard back. Called and was told they were still processing applications. Called again and was told application rejected. "Could someone tell me the reason?" Ginny will get back to you. Crickets.....So I've moved on to another bank who has no issue with our application.
To Many Hoops
Bought a 9 month and 15 month CD. Nice, competitive rates. Very tough to open a CD. First it would not allow me to add a second person to the account. I had to make it a single person. Thought it would allow me to add them later, no such luck. Ok, Ill add a beneficiary, once again, no such luck. Emailed them and they said, NO you cannot do that. Ok, just let them mature and move the money. About every 2 months I get a letter stating they need a copy of this or that and the account will be frozen until the information is received.
Here is the interesting part. The emails they send you look like they are from scammers. It says we need this information, and you can reply from this email. WHAT??? Nice rates, too many hoops!
Update: I called to make sure the account was not frozen for any reason. Want to get things cleared up before maturity. Everything was ok! I asked why you cannot have a beneficiary. I was told the bank does not like to get in the middle of those things. WHAT!!!!! I asked about adding my wife to the account. I was told that I could add my wife as a second on the account. Nice, after being told 2 other time I could not. After sending new documents to them, my wife was finally added to the account. Now, as long as my wife and I don't a die at the same time, the money will not be locked up.
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?
Data as of Q1 2023
Health Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 18266 |
| Year Established | 1960 |
| Employees | 241 |
| Primary Regulator | FDIC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 2.57% |
| Return on Equity - YTD | 17.61% |
| Annual Interest Income | $44.1MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q1 2023vs Q1 2022 | $2.83B$2.77B |
| Loans | Q1 2023vs Q1 2022 | $2.51B$2.29B |
| Deposits | Q1 2023vs Q1 2022 | $2.26B$2.36B |
| Equity Capital | Q1 2023vs Q1 2022 | $416.9MM$378.3MM |
| Loan Loss Allowance | Q1 2023vs Q1 2022 | $47.2MM$41.5MM |
| Unbacked Noncurrent Loans | Q1 2023vs Q1 2022 | $26.3MM$31.9MM |
| Real Estate Owned | Q1 2023vs Q1 2022 | $0$0 |