In the nine months since Northern Bank Direct (NBD) appeared on the internet bank scene, its Money Market Account has gone from offering a slightly competitive rate (1.05% APY) to having the highest rate available on nationally offered MMAs. With today’s 25 bps rate increase, NBD’s Money Market Account (MMA) now earns 1.51% APY on balances up to $250k.
|1.51*%||-||$250k||Northern Bank Direct||Money Market Account|
|OTHER TIERS: 0.01% → $1mm+ | 0.75% → $250k - $1mm|
Balances above $250k have two tiered rates: the balance portion between $250k and $1 million earns 0.75% APY, with the portion of the balance over $1 million earning 0.01%. This results in a blended APY, which is not always the case with tiered rates.
The MMA can be opened with a minimum deposit of $25 and there is no monthly service charge. When compared to a savings account, an advantage of the MMA is its limited fee-free check writing, with a maximum of six checks per month. (NBD also offers complimentary standard checks.) While there is no monthly service charge, there is an excessive transaction fee of $20 for each withdrawal over the permitted six per statement cycle. As a member of the SUM ATM network, NBD account owners have access to thousands of surcharge-free ATMs throughout the country.
My April blog post about Northern Bank Direct contains details about the ins-and-outs of the MMA, including information that is not available on NBD’s website. Probably the most important point I can make, is that account holders would be much better off by using another bank’s ACH transfer service to get money in or out of this MMA. Why? Small limits ($5k per transaction/per day and a maximum of $25k per month) and fees ($3 for outgoing ACH transfers and $25 for outgoing wire transfers).
As the internet division of Massachusetts' Northern Bank, Northern Bank Direct offers it services and product line nationwide online only.
Opening a Money Market Account must be done using NBD’s online application. In addition to the usual personal information, the account number, routing number, and name of the financial institution being used to transfer funds for the initial deposit are required.
As the online division of Massachusetts-based Northern Bank, Northern Bank Direct operates under the Bank’s FDIC Certificate and shares its financial history.
Northern Bank/Northern Bank Direct has an overall health grade of “B+” at DepositAccounts.com, with a Texas Ratio of 11.32% (above average), based on September 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $196.91 million, an excellent annual growth rate of 20.67%. Please refer to our financial overview of Northern Bank/Northern Bank Direct (FDIC Certificate # 18266) for more details.
While Northern Bank Direct is a new institution, Northern Bank is not. Established in 1960 by brothers Jim and Thomas Mawn, it's the largest privately-held, family-run, full-service bank in Massachusetts. In 58 years, Northern Bank has grown to become 21st largest bank in the state, with assets in excess of $2.06 billion and more than 29,600 customer accounts. From 2010 to 2016, 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 Account Compares
When compared to the Money Market Accounts tracked by DepositAccounts.com that are nationally available, Northern Bank Direct's Money Market Account APY currently ranks first, regardless of deposit requirements.
The above rates are accurate as of 1/8/2018.
To look for the best Money Market Account rates, both nationwide and state specific, please refer to our Money Market Account rates table.