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.

1.51*%-$250kNorthern Bank DirectMoney Market Account
OTHER TIERS: 0.01% $1mm+ | 0.75% $250k - $1mm
Accounts mentioned in this post. Rates as of February 20, 2018.

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.

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 “B+” at, 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 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.

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

deplorable 1
deplorable 1   |     |   Comment #1
Interesting option but I prefer Redneck/All America bank because of their free ACH transfers and so far unlimited linking to other banks. I see no reason for banks to be charging for ACH transfers particularly online banks. The $5,000 ACH limit as well as the $35,000 cap can easily be doubled by adding a second account @ Redneck/All America bank. If you are married you can have 4 accounts and quadruple those limits ;)
nobody   |     |   Comment #2
Banks keep putting out these new rates and they fall below the current leader(1.6% or so). Why would anyone go for anything other than the highest rate?
deplorable 1
deplorable 1   |     |   Comment #3
I don't know as I just opened the 1.6% DollarSavingsDirect account myself. The only drawback is only being able to link a checking account(I linked one of my Redneck accounts instead though and it worked fingers crossed).
Stable Customers
Stable Customers   |     |   Comment #4
I think being a rate leader for savings accounts would be a huge risk. Rather get customers for a more stable reason.
Att   |     |   Comment #5
As long as their rate is the highest I'll stay with them. If someone offers a better rate I
'll move the funds out. I don't really care about the institution. Dollar has on their site " America's Highest Rate" no minimum. Hope they stick to that. The Ally 11 month at 1.75% no penalty was a great place to park cash. The new rate at Ally is 1.60%(25K+) the same rate as Dollar's savings account,
Stable Customers
Stable Customers   |     |   Comment #6
Thanks for stating the obvious.

This reply was for the person who asked why all banks are not rate leaders.

From a customer perspective, if a person has a large amount of money, moving it around every month or two while ensuring insurance coverage and dealing with ach limits are basic reasons to focus on traits other than the last basis points.
deplorable 1
deplorable 1   |     |   Comment #7
I need the ability to move money quickly through ACH(with multiple banks) and a high yield. It's nearly impossible to find a bank that offers both. 4 redneck accounts seems to work pretty well.
DCGuy   |     |   Comment #8
"This reply was for the person who asked why all banks are not rate leaders."

Prior to the 1980s, savings bank all offered the same passbook rate. So wherever you decided to open the account, the rate was the same. With the introduction of money market funds and banks asking to allow them to "float" their rate, it changed the dynamics of banking. If the rates were regulated as in decades past, it would definitely drop the number of interstate bank accounts.
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...

Continue Reading
Northern Bank Direct's 48-Month CD Rate Raised
Deal Summary: 48-month CD, 2.25% APY, $500 minimum deposit

Availability: Nationwide (internet bank)

It’s been eight months since Massachusetts-based Northern Bank introduced its internet division, Northern Bank Direct (NBD). Its initial offerings included five competitive CDs, but earlier this week NBD significantly lowered rates on three of the CDs. At the same time, the remaining two CDs had rate increases, with the 48-month CD (2.25% APY) becoming very competitive. All of NBD’s CDs require a $500 minimum deposit, with no stated balance cap.

Continue Reading
Northern Bank Direct Ups Money Market Account Rate
Deal Summary: Money Market, 1.26% APY on all balances up to $250k.

Availability: Internet bank

Just a few months ago, I wrote about a new internet bank, Northern Bank Direct, (NBD) which is the internet division of Massachusetts-based Northern Bank. The initial offerings by NBD included a competitive Money Market Account (MMA) and several equally competitive CDs. Since the beginning of June, internet banks are where the action is, as far as liquid accounts (MMA, savings, etc.) are concerned. These internet bank rate increases have been so frequent,...

Continue Reading
Northern Bank Direct Debuts Competitive Money Market and CD Rates

Deal Summary: Money Market, 1.05% APY $0-$250k; 36-month CD, 2.00% APY; 60-month CD, 2.15% APY; 48-month CD, 2.05% APY; 24-month CD, 1.65% APY; 12-month CD, 1.15% APY; $500 minimum deposit.

Availability: Internet bank

Massachusetts-based Northern Bank has launched a new online division called Northern Bank Direct. The new internet bank is offering a competitive money market account and a couple very competitive CDs. The best deal is currently a 3-year CD with a 2.00% APY. Other CD terms include a 5-year (2.15% APY), 4-year (2.05% APY), 2-year (1.65% APY) and...

Continue Reading