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.
Why would any bank limit a customer to an inbound transfer of 5,000 per day and 25,000 per month? What a very stupid move. Isn’t the objective of a bank to gather deposits and make it as convenient for a customer as possible in that respect? Now I know you can transfer from another bank without these limitations, but if they are so concerned about security, they should just put a hold on the funds until they clear like every other NORMAL bank does. Good banks are innovative and not limiting... maybe management should listen to their customers for once. Here’s an idea... now that same day ACH is possible, why don’t you implement a feature to transfer to another bank in the same day. There you go!
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.
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.
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.
If you know what's good for you....stay away!!!! They falsely told me that I had a freeze on my credit & would not open a money market account. They tortured me for days because they were providing wrong information. Last but not least, they do not permit depositors to designate beneficiaries on the money market accounts, which is a definite deal killer. If a person were to die, there would be no beneficiary to receive the funds on deposit on the death of the depositor. One would be required to probate the person's estate, which is absurd. Whether or not that is the law in MA,, don't make it YOUR problem. Put your money into another institution in another state. What a horrible experience & total loss of time. BE SMART. STAY AWAY.
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.
|FDIC Certificate #||18266|
|Return on Assets - YTD||2.45%|
|Return on Equity - YTD||20.21%|
|Annual Interest Income||$32.4MM|
|Assets and Liabilities|
|Assets||Q1 2021vs Q1 2020||$2.59B$2.29B|
|Loans||Q1 2021vs Q1 2020||$2.26B$1.97B|
|Deposits||Q1 2021vs Q1 2020||$2.16B$1.85B|
|Equity Capital||Q1 2021vs Q1 2020||$320.9MM$273.5MM|
|Loan Loss Allowance||Q1 2021vs Q1 2020||$37.8MM$27.7MM|
|Unbacked Noncurrent Loans||Q1 2021vs Q1 2020||$14.4MM$4.1MM|
|Real Estate Owned||Q1 2021vs Q1 2020||$0$0|
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.
|APY||MIN||MAX||ACCOUNT NAME||VIEW DETAILS|
|OTHER TIERS: 0.25% → $250k+|
|APY||MIN||MAX||ACCOUNT NAME||VIEW DETAILS|
|0.45%||$500||$250k||24 Month CD|
|0.40%||$500||-||18 Month CD|
|0.35%||$500||-||15 Month CD|
|0.30%||$500||$250k||12 Month CD|
|0.30%||$500||-||9 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