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.
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.
Northern Bank/Northern Bank Direct has an overall health grade of “A+” at DepositAccounts.com, 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 DepositAccounts.com, 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.