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.
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 DepositAccounts.com, 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 DepositAccounts.com, 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.