Northern Bank Direct

Deposits held and insured by Northern Bank

Overview / Commentary
844-348-8996
275 Mishawum Road
Woburn, MA 01801
Deposits held and insured by Northern Bank

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

Northern Bank Direct MM To Go Down To 1.75% APY Effective 1/13/2020 - 1/6/2020

I received an email from NBD a few minutes ago, the conclusion of which was: "Effective January 13th, the interest rate for daily balances less than $250,000.00 on your Northern Bank Direct Money Market will be lowered to 1.74% with an APY of 1.75% in response to the recent Federal Reserve rate cuts." I can understand the bank's reasoning for dropping so low -- they were effectively subsidizing depositors for 2-3 months -- but it's still sad to see. They had quick, capable customer service, and I appreciated that they kept the rate around a little longer than they committed to, but there are a number of banks that offer better rates -- enough to make a difference. Had they dropped "only" to 1.9 or 2.0, I'd have likely stuck around.

2.50% Rate Thru At Least 1/13/20 - 12/31/2019

Called. Spoke to a rep. Was advised current rate good to Jan 13. On Jan 13 advised to log on to online account and the new rates will be posted on line

Still At 2.5% But... - 12/10/2019

As of 12/10/19 the rate is still 2.5% annual for grandfathered money market accounts. Just spoke with a rep since the rate is guaranteed only thru December and was told the new rate will be “communicated” next week. I asked if that meant we would be getting an email but it was not confirmed. I would suggest (besides watching your email inbox) those with 2.5% accounts monitor the website and/or call Northern during the week of 12/16 to get the most up to date information.

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Reviews (6)

Average At Best Banking Experience

Posted by: |

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

Posted by: |

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

Posted by: |

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

Posted by: |

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.



Health
A+

Data as of Q3 2019

Data displayed below is for insuring bank: Northern Bank
Learn why bank health matters

Health Grade Components

Overall
FDIC Certificate #18266
Year Established1960
Employees218
Primary RegulatorFDIC
Profit Margin
Return on Assets - YTD1.72%
Return on Equity - YTD15.65%
Annual Interest Income$89.1MM
Assets and Liabilities
AssetsQ3 2019vs Q3 2018$2.15B$2.14B
LoansQ3 2019vs Q3 2018$1.89B$1.86B
DepositsQ3 2019vs Q3 2018$1.80B$1.86B
Equity CapitalQ3 2019vs Q3 2018$255.3MM$215.5MM
Loan Loss AllowanceQ3 2019vs Q3 2018$25.3MM$24.0MM
Unbacked Noncurrent LoansQ3 2019vs Q3 2018$11.1MM$22.5MM
Real Estate OwnedQ3 2019vs Q3 2018$192.00K$602.00K
  User-submitted Promotions & Notices

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.

Northern Bank Direct MM To Go Down To 1.75% APY Effective 1/13/2020

  |  
I received an email from NBD a few minutes ago, the conclusion of which was: "Effective January 13th, the interest rate for daily balances less than $250,000.00 on your Northern Bank Direct Money Market will be lowered to 1.74% with an APY of 1.75% in response to the recent Federal Reserve rate cuts."

I can understand the bank's reasoning for dropping so low -- they were effectively subsidizing depositors for 2-3 months -- but it's still sad to see. They had quick, capable customer service, and I appreciated that they kept the rate around a little longer than they committed to, but there are a number of banks that offer better rates -- enough to make a difference. Had they dropped "only" to 1.9 or 2.0, I'd have likely stuck around.

2.50% Rate Thru At Least 1/13/20

  |  
Called. Spoke to a rep. Was advised current rate good to Jan 13.

On Jan 13 advised to log on to online account and the new rates will be posted on line

Still At 2.5% But...

  |  
As of 12/10/19 the rate is still 2.5% annual for grandfathered money market accounts. Just spoke with a rep since the rate is guaranteed only thru December and was told the new rate will be “communicated” next week. I asked if that meant we would be getting an email but it was not confirmed. I would suggest (besides watching your email inbox) those with 2.5% accounts monitor the website and/or call Northern during the week of 12/16 to get the most up to date information.

Rates
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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

APYMINMAXACCOUNT NAMEVIEW DETAILS
1.75%*$5k*$250kMoney Market
OTHER TIERS: 0.25% $1m+ | 1.25% $250k - $1m

Northern Bank Direct CD Rates

APYMINMAXACCOUNT NAMEVIEW DETAILS
1.70%$500$250k60 Month CD
1.60%$500$250k48 Month CD
1.50%$500$250k36 Month CD
1.45%$500$250k30 Month CD
1.40%$500$250k24 Month CD
1.35%$500-18 Month CD
1.30%$500-15 Month CD
1.25%$500$250k12 Month CD
Locations

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

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.