Northern Bank Direct Unveils Money Market Premier With Top Rate

A Forum post yesterday, DA reader, TRP, echoed exactly what I was thinking.

Who would have thought that the NBD Money Market Premier
rate would rise to 3.25% APY and become a rate leader?

At first glance, I thought Northern Bank Direct (NBD) had simply boosted the Money Market rate, but I soon realized the new 3.25% APY belonged to a new account – the Money Market Premier. According to CSR, those who have an existing Money Market account can “convert” it to a Money Market Premier account by contacting NBD.

DA reader, Reader1, pointed out an important rate limitation in a Forum post:

Per their website on 10/19/2022 – Applies to daily balances of less than $250,000 only. Balances of $250,000 or greater earn only 0.25% APY on the ENTIRE balance.

That statement is confirmed in the fine print of the landing page,

If your daily balance is less than $250,000.00, the interest paid on the entire balance of your account will be 3.20% with an annual percentage yield of 3.25%.

If your daily balance is $250,000.00 up to $999,999.99, the interest rate paid on the entire balance in your account will be .25% with an annual percentage yield of .25%.

If your daily balance is $1,000,000.00 and above, the interest rate paid on the entire balance in your account will be .25 % with an annual percentage yield of .25%.

NBD has a FAQs page, which has information about their ACH transfer system including,

If you initiate the electronic transfer from your Northern Bank Direct account, there is a maximum daily limit of $5,000.00 (or the available balance in your account, whichever is less) for Interbank (external) transfers per transaction; $5,000 in aggregate per day; and $25,000 in aggregate per calendar month.

The maximum number of transfers is 10 per day and 100 transfers to your account per calendar month.

Given the maximum daily limits, using another bank’s ACH transfer service to get money in or out of a Money Market Premier account is probably a better option.

In addition to ACH transfers (which usually take 3 business days), you can make deposits by wire transfer, direct deposit, mailing a check, or mobile check deposit.

As stated in the Personal Deposit Account Agreement disclosure,

You can make a withdrawal from any money market account by writing a check, in person using our withdrawal slip, making withdrawals or transfers at ATMs, or through other electronic means.

According the FAQs, NBD continues to honor the Fed’s pause of Regulation D, allowing NBD customers “to make more than six convenient transfers and withdrawals per month from their savings and money market accounts” without an excess transaction fee.

NBD also participate in the SUM ATM network, giving NDB account owners access to thousands of surcharge-free ATMs throughout the country.

Availability

Launched in 2017 as the internet division of Massachusetts-based Northern Bank, Northern Bank Direct offers its product line nationwide through its online banking platform. Individual and joint accounts can be opened, but trust accounts are not permitted. Surprisingly, beneficiaries cannot be designated on any NBD account.

Opening a Money Market Premier account can only be done using the NBD online application. According to the FAQs,

Can I open a Northern Bank Direct account at a Northern Bank branch?

Northern Bank Direct accounts can only be opened online.

Can I visit my local Northern Bank branch to transact on this account?

Yes, you may visit any Northern Bank branch to conduct a transaction on a Northern Bank Direct account.

Northern Bank has 13 full-service branches located in northeast Massachusetts.

Bank Overview

NBD operates under Northern Bank’s FDIC Certificate and shares its financial history. NBD deposits are considered to be held by Northern Bank and will be combined with other accounts held by the depositor at Northern Bank for purposes of FDIC deposit insurance.

Northern Bank/Northern Bank Direct has an overall health grade of “A” at DepositAccounts.com, with a Texas Ratio of 4.77% (excellent), based on June 30, 2022 data. In the past year, the Bank has increased its total non-brokered deposits by $187.81 million, an excellent annual growth rate of 9.04%. Please refer to our financial overview of Northern Bank/Northern Bank Direct (FDIC Certificate # 18266) for more details.

While Northern Bank Direct is a relatively new institution, Northern Bank is not. Established in 1960 by brothers Jim and Thomas Mawn, it is the largest privately-held, family-run, full-service bank in Massachusetts. In 62 years, Northern Bank has grown to become the 19^th largest bank in the state, with assets in excess of $2.7 billion and more than 59,000 customer accounts. From 2010 to 2017, Northern Bank was rated by the S&P Global Market Intelligence Ratings as the top New England bank with assets of $500 million to $5 billion.

How the Money Market Premier Compares

When compared to the nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com that do not require large balances, have activity requirements, or have small balance caps, the Northern Bank Direct Money Market Premier currently tops the list.

The above information and rates are accurate as of 10/20/2022.

To look for the best rates on liquid bank accounts, both nationwide and state specific, please refer to our Money Market Accounts Table and Savings Accounts Table.