Northern Bank Direct
Popular Accounts at this Bank
| APY | ACCOUNT TYPE | HOW THEY COMPARE |
|---|---|---|
| 1.51% | Money Market | 0.40% - National Average |
| 2.50% | 4-year CD | 1.99% - National Average |
| 2.41% | 2-year CD | 1.68% - National Average |
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
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
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.
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.
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.
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.
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.
Data as of Q4 2018
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 18266 |
| Year Established | 1960 |
| Employees | 200 |
| Primary Regulator | FDIC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 1.47% |
| Return on Equity - YTD | 14.62% |
| Annual Interest Income | $107.6MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q4 2018vs Q4 2017 | $2.16B$2.07B |
| Loans | Q4 2018vs Q4 2017 | $1.89B$1.81B |
| Deposits | Q4 2018vs Q4 2017 | $1.79B$1.67B |
| Equity Capital | Q4 2018vs Q4 2017 | $226.3MM$202.5MM |
| Loan Loss Allowance | Q4 2018vs Q4 2017 | $24.2MM$23.2MM |
| Unbacked Noncurrent Loans | Q4 2018vs Q4 2017 | $41.5MM$24.8MM |
| Real Estate Owned | Q4 2018vs Q4 2017 | $603.00K$603.00K |
This section lists recent deals, promotions and rate changes submitted by our community within the past 90 days. Always verify official rates and promotions with the bank or credit union.
Rate Increased To 2.50% APY
Is there anything better than watching your Northern Bank Direct Money Market Account grow? What about an increased interest rate?
Well, we're giving you both! Because you're a valued and loyal customer, we have increased your interest rate to 2.47% with a 2.50% APY for balances up to $250,000.00*.
*Money Market average daily balances from $.01 to $250,000.00 earn the advertised 2.47% interest rate with an Annual Percentage Yield (APY) of 2.50%. Money Market average daily balances between $250,000.01 and $1,000,000.00 earn an interest rate of 0.75% resulting in a blended APY between 2.50% and 1.19%. Money Market average daily balances greater than $1,000,000.00 earn an interest rate of 0.01%, resulting in a blended APY between 1.19% (for average daily balances just over $1,000,000.00) and 0.25% (for an average daily deposit balance of $5,000,000.00).
Your interest rate and APY are accurate as of January 28, 2019 and guaranteed through June 30, 2019. After June 30, 2019 your interest rate and APY may change as this is a variable rate account. At our discretion we may change the interest rate on your account daily. The interest rate will be determined by us based on current market conditions.
Rate Confusion
Today when I logged on the rate was shown as 0%. A CSR assured me that this was an error that they are working to fix. As a reminder for those grandfathered, there are no rate tiers, or minimum balance to avoid a service charge. I forgot to ask if accrued interest will be paid if the account is closed mid cycle but with the policies I noted, there is no risk if only a small balance is left
Always verify rates and promotions with the bank or credit union. We are not Northern Bank Direct; we are a rate comparison website and cannot provide official rates or promotions.
* The APY shown varies based on the deposit amount. Expand the listing to see APYs for other deposit amounts.
Northern Bank Direct Money Market Rates
| APY | MIN | MAX | ACCOUNT NAME | VIEW DETAILS | |
|---|---|---|---|---|---|
| 1.51%* | - | $250k | Money Market Account | ||
| OTHER TIERS: 0.01% → $1m+ | 0.75% → $250k - $1m | |||||
Northern Bank Direct CD Rates
| APY | MIN | MAX | ACCOUNT NAME | VIEW DETAILS |
|---|---|---|---|---|
| 2.76% | $500 | - | 18 Month CD | |
| 2.55% | $500 | $250k | 36 Month CD | |
| 2.50% | $500 | $250k | 48 Month CD | |
| 2.41% | $500 | $250k | 24 Month CD | |
| 2.40% | $500 | $250k | 30 Month CD | |
| 1.76% | $500 | $250k | 12 Month CD |
Northern Bank Direct is an Internet only bank and does not have branch locations. Its headquarters is located at 275 Mishawum Road - Woburn, MA 01801