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.
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.
Take A Holiday? You'll Be Blocked
Took a holiday to France. Tried to log on to get 1099. NorthernBank blocked my account, citing security reasons. Finally spoke with someone there and they said one must call them with all holidays in advance so accounts can be accessed. Can you imagine in 2025, NorthernBank Direct feels that log ons from first world France are block worthy? He said "it's for my own protection". I passed the password check, I passed the 2FA, but the mere fact I was on holiday in France blocks me. As though there can't be a hacker somewhere in the USA. What a lame answer. Use this information when deciding whether to join or not.
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 Q4 2024
Health Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 18266 |
| Year Established | 1960 |
| Employees | 258 |
| Primary Regulator | FDIC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 1.56% |
| Return on Equity - YTD | 11.21% |
| Annual Interest Income | $225.2MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q4 2024vs Q4 2023 | $3.23B$3.11B |
| Loans | Q4 2024vs Q4 2023 | $2.78B$2.69B |
| Deposits | Q4 2024vs Q4 2023 | $2.69B$2.55B |
| Equity Capital | Q4 2024vs Q4 2023 | $458.3MM$435.9MM |
| Loan Loss Allowance | Q4 2024vs Q4 2023 | $53.3MM$50.7MM |
| Unbacked Noncurrent Loans | Q4 2024vs Q4 2023 | $62.4MM$36MM |
| Real Estate Owned | Q4 2024vs Q4 2023 | $13.2MM$6MM |