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.
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.
Northern Direct CD Application Software Has Problems
They have changed their CD opening software since I last opened a CD there (I don't have specific dates, but I'm guessing it coincides with their website upgrade around October of 2024). I see others have commented on problems with the account opening process, but I wanted to add comments on the current software.
1). The CD opening process is completely separate from the website where existing customers can manage and view their accounts. I have no problems with the website. To open an additional CD, you are treated like a new customer.
2). The application asks for both an email address and a cell phone #. A subsequent screen then asks for a verification code they have sent. I received two different codes, one in email and another by text. Neither code was accepted. I tried to open a CD using both Firefox and then, Safari. Same results.
3). When I called customer service to get some resolution, they said they don't recommend the use of Firefox. Great! Thanks for the advanced notice. And, maybe I had made too many attempts and I was "somehow" locked out. Their recommendation was, "try again tomorrow."
4). The account application process provides for two avenues, upload a photo/scan of your drivers license OR fill out a form. The upload seemed simpler but is full of pitfalls. For example, it will not accept a PDF, but you only find this out after the attachment is rejected and you can find a drop down that gives the acceptable file types. I never got to the form to fill out because first you are required to input the verification code, discussed above, which is not accepted.
Over the last few years, I have opened CDs at more than a half dozen other banks and credit unions and have never encountered software as glitch filled as this.
Update: Tried again to open a CD several days later. Same result as described above. The software does not accept the code they send. So, no CD for me
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.
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.
Data as of Q1 2025
Health Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 18266 |
| Year Established | 1960 |
| Employees | 256 |
| Primary Regulator | FDIC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 1.63% |
| Return on Equity - YTD | 11.2% |
| Annual Interest Income | $62.3MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q1 2025vs Q1 2024 | $3.13B$3.23B |
| Loans | Q1 2025vs Q1 2024 | $2.67B$2.75B |
| Deposits | Q1 2025vs Q1 2024 | $2.6B$2.69B |
| Equity Capital | Q1 2025vs Q1 2024 | $464.5MM$441.5MM |
| Loan Loss Allowance | Q1 2025vs Q1 2024 | $63.6MM$51.4MM |
| Unbacked Noncurrent Loans | Q1 2025vs Q1 2024 | $66.4MM$44.9MM |
| Real Estate Owned | Q1 2025vs Q1 2024 | $6MM$10.1MM |