Northern Bank Direct Accepting Applications For Its Money Market


Deal Summary: Money Market Account, 1.75% APY on all balances up to $250k, $5k minimum opening deposit.

Availability: Nationwide (internet bank)

In June 2018 and 2019, Northern Bank Direct (NBD) offered a promotional rate on its Money Market Account (MMA) that also came with a rate guarantee. The June 2018 offer was only available for ten days, while the June 2019 promotion lasted into August. (The MMA was removed from DA's bi-weekly Liquid Summary in August 2019, since new accounts could no longer be opened.) The rate guarantee for the last MMA promotion was 2.50% APY on balances up to $250k through December 31, 2019. The rate actually lasted into mid-January before it dropped to 1.75% APY.

At some point following the rate drop, NBD began accepting applications for the MMA. The current 1.75% APY applies to all balances up to $250k, but there is no rate guarantee. The minimum opening deposit is $5k.

0.45*%-$250kNorthern Bank DirectMoney Market
OTHER TIERS: 0.25% $250k+
Rates as of June 26, 2022.

In the past, the MMA offered a blended APY, based on two balances tiers (up to $250k and up to $1 million). That has changed, with the fine print on the landing page stating,

If your average daily balance is less than $250,000.00, the interest paid on the balance of your account will be 1.74% with an annual percentage yield of 1.75%.

If your average daily balance is $250,000.00 up to $999,999.99 the interest rate paid on the balance in your account will be 1.24% with an annual percentage yield of 1.25%.

If your average daily balance is $1,000,000.00 and above the rate will be .25 % with an annual percentage yield of .25%.

NBD has a FAQs page, which includes information about their ACH transfer system. Given the maximum daily limits, using another bank’s ACH transfer service to get money in or out of the MMA is probably a better option.

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.

When compared to a savings account, one advantage of the MMA is its limited fee-free check writing (six checks per month, complimentary standard checks offered). While there is no monthly service charge, there is an excessive transaction fee of $20 for each withdrawal over the six permitted 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.


As the internet division of Massachusetts' Northern Bank, Northern Bank Direct offers its product line nationwide through its online banking platform.

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.

Opening a Money Market Account can only be done using NBD’s 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.

Bank Overview

Northern Bank/Northern Bank Direct has an overall health grade of “A+” at, with a Texas Ratio of 1.51% (excellent), based on December 31, 2019 data. In the past year, the Bank has increased its total non-brokered deposits by $174.4 million, an excellent annual growth rate of 11.46%. 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's the largest privately-held, family-run, full-service bank in Massachusetts. In 60 years, Northern Bank has grown to become 21st largest bank in the state, with assets in excess of $2.2 billion and more than 34,000 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 Account Compares

When compared to the nationally available Money Market Accounts tracked by, Northern Bank Direct's Money Market Account APY currently ranks second, tied with CIT Bank.

The above rates are accurate as of 4/20/2020.

Looking for the best Money Market Account rates, either nationwide or state specific? Please refer to our Money Market Account Rates Table page.

Related Pages: money market accounts, nationwide deals, Internet banks


  |     |   Comment #2
No beneficiaries allowed on accounts. Has a $250K maximum. ACH limits. Interest is compounded monthly, not daily. There are better alternatives.
  |     |   Comment #3
If the ACH is initiated by a outside linked institution then no limits on amounts withdrawn.. 250k limit is reasonable. The beneficiary issue is a negative.

I have some funds at Northern but have most of my liquid funds at Elements Fonancisl at 2.1% guaranteed till November.
  |     |   Comment #4
I don't believe their website is correct about the compounding.
I had their MM account more than once for the better part of 2 years, and when I called they could give me Accrued Interest at any time during the month.
The figure always came within a few pennies of my Daily compounding spreadsheet, which uses average Daily balance.
  |     |   Comment #8
How is interest calculated?
Interest is compounded monthly and credited monthly. If you close your account before the interest is credited, you will not receive the accrued interest.
  |     |   Comment #11
Do you have a Northern MM account?
If not, that FAQ neither confirms nor denies what Northern's system actually does.
Predatory Depositor
  |     |   Comment #14
Yes, the FAQ seems to confirm that they both pay and credit interest monthly. It's also a good example of what I described earlier i.e. that FIs that deviate from the standard of compounding daily and crediting monthly are more likely to play games with the interest. So you should view it as a red flag and scrutinize them more carefully.

In this case the game is one of the nastiest tricks in the biz, which is to dock your interest for the month when you close out the account. A very nasty policy that used to be more common but few FIs have anymore. In this case it's a function of the monthly compounding versus daily.

There's a very easy way around it. Keep the minimum amount necessary to avoid fees in the account, in this case I think it's $1 (but check if you plan to do it), until the beginning of the next month when the interest will have credited for the previous month, then close it.

I don't have anything against NBD. They treated me fairly enough. But this kind of non-standard interest shenanigans takes points off their score. At least they expose it in their FAQ.
  |     |   Comment #35
Just NEVER close it.

A non-problem solved.
  |     |   Comment #5
I opened an account there some time ago and added beneficiary

Where are you getting this information that you cant ?
  |     |   Comment #7
You are mistaken.
Can I designate a beneficiary?
Beneficiaries may not be added to a Northern Bank Direct account.
  |     |   Comment #9
  |     |   Comment #13
I am rarely mistaken. And never wrong

FACT: in 2018 an account was opened with beneficiary. It's possible they changed the rules after the fact.

I have the original paperwork and THEY filled in the details and titling. They are closed now, but I will check .

can anyone else confirm a grandfathered account with bennies ?
  |     |   Comment #18
I opened a NBD MMA and CD back in 2018. I called to request a beneficiary form to add my child. They mailed it about a week later and the accounts were retitled about a week after that.
  |     |   Comment #20
I added beneficiaries when I opened my MM account in 2018. They must have changed the terms later.
Predatory Depositor
  |     |   Comment #23
Looked through my notes... I opened an NBD account in mid 2019. I usually only use beneficiaries if I expect to have more than $250k in an account. Since this account paid a lower rate if the balance exceeded $250k I didn't even ask about beneficiaries so I can't add anything about what the status was then.

Sounds like they allowed beneficiaries at one time according to the posts here, but no longer do...
Predatory Depositor
  |     |   Comment #6
I have a Northern account, but I don't pay any attention to it because I have currently have a better deal (that is no longer available for new accounts).

Since I don't pay any attention to Northern now I haven't bothered to check into any of the details that are being discussed so I'm speculating on a possible explanation as to why the discrepancy of information.

It may be the difference between the compounding period and the crediting period. They are two different things.

The most common method today is daily compounding with monthly crediting. That may be the source of varying accounts here, as it sometimes has appeared to be a source of confusion in the past.

While the compounding period may be important to know for other reasons, with respect to the APY on the account, the compounding is irrelevant because the effect of the compounding is already captured in the APY. So if two accounts have the same APY, for purposes of comparing the annual return on each it doesn't make any difference what the compounding is They will both yield the same return on an annual basis.
Predatory Depositor
  |     |   Comment #10
Daily compounding with monthly crediting is so common today, that if I encounter an FI that doesn't use that method, I ask extra questions because I find that those that deviate from this standard often play tricks with the way they pay interest.
  |     |   Comment #12
Northern always quoted me accrued interest on any given day, so I don't believe their system compounds monthly. And I don't think their website has been updated in some time.
Predatory Depositor
  |     |   Comment #15
It's possible they have changed their interest calculation and not updated their website, but the FAQ they have currently posted on their site states that interest is both compounded and credited monthly.
  |     |   Comment #16
Thank you for checking Predatory Depositor!

I agree on all points.

Stay safe.

Predatory Depositor
  |     |   Comment #17
As bad as crisis is, it's not without banking deposits humor.

I'm constantly bombarded with emails from probably 20 or more banks and credit unions about the virus crisis.

Among the messages was one which generously offered to waive the EWP on my 3.25% CD to assist me during this crisis if I would only do them the favor of withdrawing the money (of course there was no mention of that last part).

I'm still laughing.
deplorable 1
  |     |   Comment #19
Every bank and credit card I login to has the line: "We are here to help you during this covid-19 crisis".
Followed by: "Please don't call us as you will experience very long hold times!" LMAO good to know they are there to help except that they are not there.
  |     |   Comment #21
...and it’s good to hear from my car insurance and home insurance companies that they “are here for me” after I paid my annual premiums a few weeks ago!
Predatory Depositor
  |     |   Comment #22
My experience has been that most of the banks I deal with have been unexpectedly easy to reach during the crisis. Most a little slower than usual, but still not too bad all things considered. They adapted surprisingly quickly.

They've certainly been a lot easier to reach than anyone to help in government I've tried to contact!

The bad part is that I need to get some signature guarantees and notary on various paperwork and can't. I live in ground zero. Not going to risk my life even if it was possible, but it's going to cost me...
Predatory Depositor
  |     |   Comment #24
"...and it’s good to hear from my car insurance and home insurance companies that they “are here for me” after I paid my annual premiums a few weeks ago!"

If you want to find out how much they really care ... try not paying the next one!
  |     |   Comment #25
PD, exactly my point. All these emails from the banks, insurance companies, cable/internet provider, phone company, etc. etc. are meaningless and unnecessary.
Predatory Depositor
  |     |   Comment #27
Agree. And they all seem to have the same generic message which often sounds more like capitalizing than caring.

Personally I find it annoying. But fortunately it carries the occasional laugh.
Sam Young
  |     |   Comment #29
With a forecast of much higher rates, and cheaper stocks, it makes sense to terminate some of the Lower Rate CDs while the FI is not charging a EWP.

Just two cents.
Predatory Depositor
  |     |   Comment #31

It depends on which forecast you listen to. Half the forecasts I predicting just the opposite scenario.

With a recent going on 12 year history of below average interest rates, and a rising stock market, and an already astronomical going on 25 trillion dollar national debt, I don't think it's a sure thing that adding 6 or 8 trillion dollars more to that debt, for the cost of this crisis, is going to turn that recent history around.

I think using that strategy is risky. But it's anyone's guess as no one knows what will happen.
  |     |   Comment #26
Everyone on this thread probably knows this already, but I find the Northern Bank DIRECT and Northern Bank distinction rather confusing. Most internet banks are purely internet banks, so they don't have this "two sided" identity. Bottom line, if you are trying to open a new/additional account, be very careful that you are using the DIRECT website. After opening an account, you are invited to open an online banking account. That account turns out to be with the Bank, but will show balances from DIRECT transactions. However, you can't open a new CD and get the DIRECT rate from there (again, you have to use the DIRECT website). I made this mistake of using online banking and the Bank was very pleasant about cancelling my transaction and admitted there is some confusion possible.
I guess they are hoping their brick and mortor clients don't discover the back door to better rates. Thank you
  |     |   Comment #28
There is another reason why some are banks are going this route it isn't to play games on interest they are doing this because of all the 1's that want to cash early for the next .005% better deal that flies through it costs an institution $ to open during an some more $ to close a cd this is another avenue for them to recoup that investment if the other party does not want to abide by the original terms of the product
Predatory Depositor
  |     |   Comment #30
It's business. They're in business to make the most profit that they can off of the transaction, and you're in business to make the most profit that you can off of the transaction.

It's the game of profit motive. They, as the borrower of your money are allowed to use whatever aggressive tactics they want as long as they're legal, and so are you the lender. That's the way the game is played.
  |     |   Comment #36
Northern Bank Direct's Money Market Account dropped from 1.75% APY to 1.50% on May 1, 2020.
Northern Bank Direct's Money Market (2.50% APY) Available Again
Deal Summary: Money Market Account, 2.50% APY on all balances up to $250k, rate guaranteed through December 31, 2019.

Availability: Nationwide (internet bank)

Remember Northern Bank Direct’s (NBD) Money Market Account promotion from last year? For ten days last June, newly opened MMAs were guaranteed to earn 2.26% APY on balances up to $250k through the end of June 2019. That deal was sweetened in January when the APY on existing MMAs was raised to 2.50% APY.

As DA reader, AnnO, noted in a Forum post yesterday,

Continue Reading
Northern Bank Direct Ups Promo Rate On Existing Money Market Accounts
Deal Summary: Existing promotional Money Market Accounts, 2.50% APY on all balances up to $250k, rate guaranteed through June 30, 2019.

Availability: Nationwide (internet bank)

Good news for those who took advantage of Northern Bank Direct’s (NBD) Money Market Account promotion last June: balances up to $250k now earn 2.50% APY, with a rate guarantee through June 30, 2019.

If you missed last June’s offering, here’s a brief synopsis: new Money Market Accounts opened between June 8 and 18, 2018 ($5k minimum deposit) were guaranteed to earn 2.26%...

Continue Reading
Northern Bank Direct Adds New Money Market

UPDATE 6/19/18: According to an alert on the bank's website "the promotional Money Market APY of 2.26% will no longer be available for new accounts as of 9:00 AM Eastern Standard Time on 6/20/18."

Deal Summary: Money Market Account, 2.26% APY on all balances up to $250k, rate guaranteed through June 30, 2019, $5k min/$250k max opening deposit.

Availability: Nationwide (internet bank)

There’s no need for a wordy introduction about Northern Bank Direct’s (NBD) promotional Money Market Account: 2.26% APY (up to $250k), guaranteed through June 30, 2019....

Continue Reading
Northern Bank Direct Adds New 30-Month CD
Deal Summary: 30-month CD (3.01% APY), $500 minimum deposit

Availability: Nationwide (internet bank)

Northern Bank Direct (NBD) has started the new month by introducing a new product: a 30-month CD earning 3.01% APY. The 30-month CD can be opened with a $500 minimum deposit and while there is no stated balance cap, the FAQs page states, “The maximum amount you can initially fund your account with is $500,000.”

NBD made its debut about 16 months ago, featuring five competitive CDs. Rates at new internet banks...

Continue Reading
Northern Bank Direct Ups Long-Term CD Rates
Deal Summary: 36-month CD (2.55% APY), 48-month CD (2.56% APY), $500 minimum deposit

Availability: Nationwide (internet bank)

Northern Bank Direct (NBD) has raised the rates on its long-term CDs this week, but I have to say it’s one of the more unique set of APYs I’ve seen in quite some time: 36-month (2.55% APY), 48-month (2.56% APY), and 60-month (2.57% APY). That’s right – only an increase of 1 bps for each additional 12 months. This is the flattest yield curve I've ever seen.

Continue Reading

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