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% APY on balances up to $250k through the end of June 2019.

In a Forum post yesterday, DA reader, Sperry8, relayed the contents of an email NBD sent to existing promotional Money Market Account customers. Below is a portion of that email.

Is there anything better than watching your Northern Bank Direct Money Market Account grow? What about an increased interest rate?

Well, we're giving you both! Because you're a valued and loyal customer, we have increased your interest rate to 2.47% with a 2.50% APY for balances up to $250,000.00.

Your interest rate and APY are accurate as of January 28, 2019 and guaranteed through June 30, 2019. After June 30, 2019 your interest rate and APY may change as this is a variable rate account.

The APY for the balance portion between $250k and $1 million continues to earn 0.75% APY, with the portion of the balance over $1 million earning 0.01%. This results in a blended APY.

While the outlook for the next six months for existing promotional Money Market Accounts is rather rosy, current NBD rates don’t bode well following the end of the promotion period. As of today, the rate for the non-promotional Money Market Account is only 1.51% APY on balances up to $250k. NBD’s current CD rates don’t inspire a lot of confidence either, with rates ranging from 1.50% APY (12-month CD) to 2.57% APY (60-month CD). Enjoy the next six months, but have an exit plan in place, just in case.


As the internet division of Massachusetts' Northern Bank, Northern Bank Direct offers its services and product line nationwide only online. Since the promotional rate is only available to existing Money Market Accounts, information about opening an account is moot. Should the availability change, I will let you know.

Bank Overview

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 “A” at, with a Texas Ratio of 9.66% (excellent), based on September 30, 2019 data. In the past year, the Bank has increased its total non-brokered deposits by $426.89 million, an excellent annual growth rate of 37.14%. 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 59 years, Northern Bank has grown to become 22nd largest bank in the state, with assets in excess of $2.14 billion and more than 33,200 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 Promo Compares

When compared to the nationally available Money Market Accounts and Savings Accounts tracked by, Northern Bank Direct's Money Market Account promotional APY currently ranks first, regardless of deposit requirements.

The above rates are accurate as of 1/29/2019.

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

RichReg   |     |   Comment #1
So if the Fed raises in June, this rate should stay or go higher..?
QED   |     |   Comment #2
First tranche of new funding for my old NBD account hit this morning early via ACH. There will be a second tranche, most likely in one week's time, after I see on February first how competition is reacting. But in all likelihood it's going to be "goodbye Ally, hello NBD"!!

2.5% APY is a good interest rate, NBD has been a good bank, and I like the rate guarantee a whole lot.
deplorable 1
deplorable 1   |     |   Comment #3
I was just about to ditch this account before they hiked the rate because I figured they would drop it in June. Now I'm not so sure so I'm holding on to it to see what happens.
Mikey1   |     |   Comment #6
In a similar way I have only kept a few hundred dollars in this and other bank accounts waiting to see if anything positive resulted. My only note of caution is the low $5K daily ACH limit if you initiate a push or pull from this account. You’ll still need an account elsewhere with a more generous limit for major moves. Already lost yesterday’s interest of one day on funds I had to send to Northern from another bank.
AnnO   |     |   Comment #7
NBD will provide a free checkbook if requested, good for quick movement of larger amounts of money. I deposited one of their checks at a shared branch CU for opening the Garden Savings CD.
larry   |     |   Comment #8
Mikey1 (Comment #6) I thought the account minimum at Northern is $5k? I looked through their info and couldn't find that info so I called a rep and that's what they stated. I could be wrong(several month's ago) so you might want to double check. Also, it's weird that they don't show the current 2.50% APY anywhere on account info page except last month's 2.26% rate.
AnnO   |     |   Comment #9
Nope, the NBD MMA we have has no minimum. That min is for a different account type. My NBD account has been well under $5k for a couple months now. I got it verified in writing (secure messages with NBD reps) that there will be no fees, and there haven't been.
GoodToGo   |     |   Comment #13
It took $5K to open the NBD account but no minimum required after it was opened. I am also well under the 5K opening requirement and there have been no fees of any kind.
RJM   |     |   Comment #18
As an FYI, I had 2 Northern accounts and had decided to close one of them. I had run it down to I think a dollar or something. And, when the month ended, I was hit with a small fee of some type. Maybe $5? Anyway, it confiscated my dollar or two and left a negative balance in the account. I saw it quickly because I had intended to close the account out, I emailed customer service and they quickly refunded it and closed it and transferred what i had to the first account. When I asked what happened she said their system apparently got confused that mine was one of their different accounts that may have had a minimum but mine did not. And like Ann mentioned, I also verified the no minimum before I went down to a low balance.

I hope they continue to offer a top MMA rate for a long time for existing customers. Couldn't care less if they open it to newbies or not.

I expect when their 2.26% rate became less attractive by comparison, they lost some funds from a lot of customers and they knew they would get a certain amount back by raising the rate. In the end, any bank or CUs rates depend on THEIR NEEDs, they are not paying high rates to create goodwill for no reason.
Mikey1   |     |   Comment #19
Hey Larry, No minimum on this account as others have reported. That’s why I’ve kept it open all these months. Two main negatives are: you have to call to confirm rate since you won’t see it anywhere even on s full site. And (not a deal breaker but annoying) a $1.50 ATM charge, plus fee from other bank is not reimbursed (East Boston is much better in this respect).
111   |     |   Comment #4
Ken Tumin's write-up cited the large difference between this increased rate for existing accounts (2.50%) and the rate being offered for new accounts (1.51%). While this difference is significant, remember that NBD is not one of the megabanks of the world (Citi, BoA, Wells Fargo, etc.), which provide financing worldwide. NDB has a much more limited market niche for its loans, and as such requires much less funding from depositors.

From NBD's perspective, their decision to raise rates for existing accounts yet almost discourage new accounts (via much lower rates), may say more about their desire to retain existing accountholder funds while also not gathering a lot more new funding (from new accounts), than it does about their view on the future direction of rates. NBD may simply not have enough places to loan a large influx of new funds profitably, and therefore may not want them. Although existing accounts are not limited to $250K the higher rate of interest is paid only to $250K, therefore by limiting the increase to existing accounts NBD has somewhat of a control over the upper limit of principle on which higher interest must be paid.
Get Real
Get Real   |     |   Comment #5
I moved most of my funds to EBSB as they were and are still paying 2.5%. I use my Northern account when I need to write large checks.
RJM   |     |   Comment #10
Their decision not to open it to new members suggests that while they want to raise more funds, they don't want to deal with the work needed to process brand new accounts. And, they don't have to.

I appreciate the increase and just because it's only guaranteed through june does NOT mean they will automatically decrease it to 1.51%.

A poster elsewhere on here was talking about what's the big deal about 2.5%.

Its 13.6% more than Ally pays and since I already have an account with northern, no extra paperwork or accounts to be opened.

And, I think I have some checks of theirs buried somewhere in my clutter.

I read elsewhere here that Northern is aware that many accounts are showing a different rate and they are working on correcting it.

I think yesterday mine showed 2.37% while others reported less.

I dropped a check in the mail yesterday which will remove virtually all my remaining funds from Ally.

I am keeping the Ally account open because its a great hub and because their website is probably the best of any bank or CU I have used.

And, maybe they have another 1% bonus deal again which requires outside money.
#11 - This comment has been removed for violating our comment policy.
#12 - This comment has been removed for violating our comment policy.
RJM   |     |   Comment #15
I used the word "members", I guess because I am used to dealing with credit unions. Should be customers. And the edit feature goes away after so long.

I never opened an EBSB account because at the time, I did not have even $5k available. Now I do with more coming available next week.
dick THE WEASEL durbin
dick THE WEASEL durbin   |     |   Comment #16
FED meeting tomorrow, should we expect a hint of increasing rates?
RichReg   |     |   Comment #22
Historically, they only take that action at the Quarterly meetings. (March, June, Sept, Dec.)
Do the Due
Do the Due   |     |   Comment #23
Historically, as in 2018.

You might want to do a bit more due diligence.
RichReg   |     |   Comment #27
You might want to check last year's calendar.
The Fed GENERALLY doesn't actually RAISE or LOWER anything at a January meeting. Historically, speaking.

'Hints' are worthless as far as I'm concerned ....the Fed can change course on a dime.
Do the Due
Do the Due   |     |   Comment #28

Last year is not a historical look at the Fed. You should educate yourself on how the Fed operates, not just repeat what happened last year.
RichReg   |     |   Comment #29
Nor is going back more than 10 years relevant in today's world.
In the years prior to the Financial crisis, they went about things quite differently.....
...up to and including a few of their "emergency meetings".
Do the Due
Do the Due   |     |   Comment #30
Lazy works a lot of the time, Rich Reg.
Playcentric   |     |   Comment #17
Has not received the email yet. Will call to confirm the rate hike.
#20 - This comment has been removed for violating our comment policy.
Rickny   |     |   Comment #21
Got this response to my email when the rate will increase. My account is showing the old rate, Misspellings is part of the reply

Thank you for your email!

The rate chnage online will chnage on your next statement cycle.
Trax   |     |   Comment #32
Thanks for nothing.....I already have this at Redneck.
RateHopper   |     |   Comment #33
Apparently not all customers qualify for the rate increase. I have two accounts with NBD: a "money market" opened Jan 2018, and a "promo northern bank mm account" opened June 2018. When I emailed to request the new 2.50% APY, they said neither account qualifies.
RJM   |     |   Comment #34
#33, did you get the email or not?

I had 2 identical accounts, the 2nd one is now closed but when it went below a certain amount, it charged me a small service charge. When I emailed the rep, she said their system charged me as if I had a different account but corrected it. I opened the 2nd account because they had a $250k limit per account for the high rate.

Both accounts were paying the 2.26% from before I believe.

I don't recall my exact date of opening but it was for the 2.26%. If you joined for that rate, I would think you are eligible too unless they someone only offered it to some which makes little sense.

I closed the 2nd account because I did not envision them raising the rate and me going over the $250k limit. But they did. Still, I am staying below $250k this time.
RateHopper   |     |   Comment #35
I did not get the rate update email.

As of the end of the year, the "promo" account was earning 2.25% and the older account was earning 1.51%. I only had small amounts in each to keep the accounts open in case they ever raised the rate.

When I asked for the new rate, I mentioned that I'd transfer large amounts back in if they gave me the 2.50% rate, but no luck.
AnnO   |     |   Comment #36
In addition to emailing me about the rate change when it happened, I got a phone call from NBD a week later just to make sure I knew about it, lol.
RJM   |     |   Comment #37
I did not get a phone call but when I go online in my account it now reflects the higher rate. Initially it was showing less.
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....

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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...

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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.

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Northern Bank Direct Ups Money Market Rate
Deal Summary: Money Market Account, 1.51% APY on all balances up to $250k.

Availability: Internet bank

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.

Balances above $250k have two tiered rates: the balance portion between...

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Northern Bank Direct Ups 48-Month CD
Deal Summary: 24-month CD (2.26% APY), 48-month CD (2.51% APY), $500 minimum deposit

Availability: Nationwide (internet bank)

It took less than a week for Northern Bank Direct (Northern Bank’s internet division) to match its parent company’s newly increased 24-month CD (2.26% APY) and 48-month CD (2.51% APY) rates.

The CDs 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.”

Northern Bank Direct’s (NBD) debut...

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