Northern Bank Direct Offers 2.26% APY On New Money Market

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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. The minimum opening deposit is $5k minimum deposit, with a $250k maximum opening deposit.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.26*%-$250kNorthern Bank DirectMoney Market Account
OTHER TIERS: 0.01% $1mm+ | 0.75% $250k - $1mm
Rates as of June 17, 2018.

This limited-time offer is for “new account opened June 8, 2018 and after, which is subject to change at any time.” I asked CSR if they had any indication how long the promotional rate might last. She replied “it will be available until it isn’t.”

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.

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.

NBD has added a FAQs page, which includes information about their ACH transfer system. Nothing has changed since I last wrote about the MMA in January, so using another bank’s ACH transfer service to get money in or out of the MMA is probably the best 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.

Although not mentioned in the FAQs, there are fees: $3 for outgoing ACH transfers (when initiated from NBD) and $25 for outgoing wire transfers.

Top 30-Month CD Rate

NBD appears to be trying hard to attract deposits. NBD began June 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.”

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.01%$500-Northern Bank Direct30-month CD
Rates as of June 17, 2018.

As stated on the FAQs page, the Early Withdrawal Penalty (EWP) reads as follows:

Term of 12 months to 35 months: 12-months interest

CSR stated that partial principal withdrawals are not allowed: any withdrawal of the principal will result in the CD being closed. Accrued interest, on the other hand, can be paid out at any time by check or NBD ACH, or through a transfer to an NBD Money Market Account (MMA). Transferring any interest to an MMA is probably the easiest withdrawal route, but there is a monthly $4 dormant account fee for MMAs with account balances of less than $500 for 12 consecutive months, with the $4 fee starting in the thirteenth month.

Availability

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. According to CSR, even though this MMA is referred to as “promotional,” existing NBD customers are eligible to open a new account and take advantage of the 2.26% APY and the year-long rate guarantee.

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 DepositAccounts.com, with a Texas Ratio of 10.77% (excellent), based on March 31, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $213.31 million, an excellent annual growth rate of 20.68%. 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 23rd largest bank in the state, with assets in excess of $2.08 billion and more than 30,800 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 Money Market Accounts and Savings Accounts tracked by DepositAccounts.com that are nationally available, Northern Bank Direct's Money Market Account APY currently ranks first, regardless of deposit requirements.

Interest RateAccount NameCredit Union/Bank
2.26% APYMoney Market Account (no min/$250k max)Northern Bank Direct
2.01% APYeMoney Market (no min/no max)Virtual Bank
1.85% APYMoney Market Account ($100 min/no max)CIT Bank
1.85% APYPopular Direct Plus Savings ($5k min/no max)Popular Direct

The above rates are accurate as of 6/11/2018.

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

Related Pages: money market accounts, 5-year CD rates, nationwide deals, Internet banks

Comments
The Mighty Sven
The Mighty Sven   |     |   Comment #1
2.26% APY is a very high rate of interest for liquid funds. I did try to read through Ken's writeup all the way. I found no mention of an NBD rate guarantee for a specified period of time, as we have with Northpointe and Virtual. If that guarantee exists and I missed it, please post.

Without a rate guarantee I have to wonder what NBD will do to the rate once they have acquired the funds they are seeking. Both Northpointe and Virtual have given us rate locks, albeit at a lower rate of interest. To my way of thinking that establishes a standard and eliminates concern about being whipsawed. I'm sticking with the providers offering such a guarantee, at least for now.
The Mighty Sven
The Mighty Sven   |     |   Comment #2
OK, sorry. I went back and found the mention of a rate guarantee right at the beginning of Ken's post. Have to say in light of that this is a pretty good deal.
Verlikk
Verlikk   |     |   Comment #5
just as likely to be a problem that the rate falls behind, a real rate lock would be based on inflation, which even according the fake government measure is higher than this "very high rate"
Carnac
Carnac   |     |   Comment #100
And, I suppose you get your inflation numbers from the psychic friends network?
Henry
Henry   |     |   Comment #206
"Without a rate guarantee I have to wonder what NBD will do to the rate once they have acquired the funds they are seeking."

This is the correct question to be asking. Popular Direct did the exact same thing over the past few months. Teaser rate was 2% on their savings account. Now they have dropped it to 1.85%.

Also check for any fine print in the terms as far as fees or restrictions.

The comments on the Popular Direct page give a glimpse of how it may not be worth the effort.

https://www.depositaccounts.com/banks/popular-direct.html
The Mighty Sven
The Mighty Sven   |     |   Comment #207
Read Comment #2
RJM
RJM   |     |   Comment #208
Northern DOES have the rate guarantee. And Popular accounts that signed up for 2% are grandfathered in at 2%. Its only the new accounts that get 1.85%.

I have little double that by June 2019, 2.26% will no longer be a top rate. Transfering money out or writing a check is just not that difficult if Northern does not increase their rate later on.
RichReg
RichReg   |     |   Comment #3
****,....a 75 bps increase? I guess closing this account 6 weeks ago was still the right move since they won't give this rate to existing customers.

If I recall correctly, the $3 outgoing ACH fee isn't only when initiated by NBD; they will also charge you if another bank initiates it.
alan1
alan1   |     |   Comment #6
According to the article, existing customers can get this rate. "According to CSR, even though this MMA is referred to as “promotional,” existing NBD customers are eligible to open a new account and take advantage of the 2.26% APY and the year-long rate guarantee."
RichReg
RichReg   |     |   Comment #21
Right, but I'd have to go through the entire account opening process all over again.
More withdrawals from other accounts where there are restrictions;; another length of time before checks arrive, etc.
zjts
zjts   |     |   Comment #187
the $3 outgoing ACH fee isn't only when initiated by NBD; they will also charge you if another bank initiates it.

is this confirmed true? or is the $3 fee only when initiated by NBD?
RJM
RJM   |     |   Comment #4
Nice rate.
Server timeout
Server timeout   |     |   Comment #65
Even better rate at:
https://www.igobanking.com/Home.aspx
I just open it for a 2.35% for just one year CD and will make extra $250 on the $250K in comparison to Northern.
RJM
RJM   |     |   Comment #68
Well, that is an apples to oranges comparison. Ten basis points is not enough of a premium for me to give up my liquidity.

Nor is 3.3% or whatever the 5 year brokered CDs are paying.
Rickny
Rickny   |     |   Comment #71
You can't compare a liquid savings account to a 1 year term CD. You could have earned 2.50% opening a 1 year CD at Connexus CU.
Smart
Smart   |     |   Comment #87
RJM and Rickny, no, there are no apples and oranges, it is the same money that can bring you and extra $250-$500 in just one year on the same apples or oranges, what ever you like to call it. My apples will bring me more oranges at the short 12 month period than what you are receiving now.
You are being tempted to keep the money in a MM (liquid) account for less apples per month just to say my money are liquid. What happens when 6-12 months down the road the rates are still the same as the present interest rate?
By the way a already have a CD at Connexus CU for the 12 month period and earning much more apples than your apples will earn in a year. Liquid accounts come with a price and a penalty attached at the same time.
Sour Grapes
Sour Grapes   |     |   Comment #101
You can use the same argument for purchasing longer term CD's with higher rates.
It just depends on how fast you expect rates to go up over a stated period of time.
If they go up fast enough, even that 2.5% CD at Connexus will turn into sour grapes.
Beside that, both are losers versus inflation.
If you expect interest rates to go up faster than inflation over the next couple of years, keeping cash liquid is a good idea.
If not, it's not.
Smart
Smart   |     |   Comment #106
Sour Grapes, no, you can not use the same argument for longer rates, 6-12 months is considered very short term and is compatible with MM. You missed one very important variable, TIME, waiting for Godot to arrive is wasted opportunity and the time ticks away from the extra interest you are losing.
I did some calculations, if you keep your money longer then 3 months in MM, you have already lost extra interest and even if you get better rates then 2.5% later, the lost already occurred and you are trying to do a catchup. .
RJM
RJM   |     |   Comment #108
Here is an example of why locking your money up a year at 2.35% is a bad idea.

I got filled on this order just now...

Action Buy
CUSIP 065680NF3
Description BANK WEST SAN FRANCISCO CALIF CD 1.95000% 11/02/2018
Quantity 6
Coupon 1.950
Maturity Date 11/02/2018
Trade Date 06/12/2018
Settlement Date 06/14/2018
Order Type Price Limit at 99.650
Time in Force Fill or Kill
Trade Type Margin
Limit Price 99.650†
Mark-up 0.10
Price w/Mark-up 99.750
Effective Yield 2.597689
Accrued Interest 13.78
The cost of this trade without mark-up $5,992.78
Mark-up(%) $6.00 (0.10%)
Cost of this trade with mark-up $5,998.78
------------
CuriousDave
CuriousDave   |     |   Comment #113
If the principal proceeds upon maturity were $6,000 and the and principal cost to purchase was $5,985.00, how exactly did they compute an effective yield of 2.597690% on a brokered CD held for 143 days with a coupon rate of 1.95% ?
RJM
RJM   |     |   Comment #121
Dave, Might the Accrued Interest have something to do with it?

The math does not make sense to me but Fidelity assures me it is correct.
RJM
RJM   |     |   Comment #123
Yes, the little bit of accrued interest would seem to make a difference.

The difference between 2% and 2.6% for 5 months is only about $15.

Gosh, it just goes to show how little it means when 1 or 2 CDs show up at what looks like a good rate for a short term.
deplorable 1
deplorable 1   |     |   Comment #117
@Not Smart: Locking up money for a one year CD just before a FED hike is well.........not smart. There are many ways that a liquid MMA can earn more than your CD:
1. They could raise the interest rate on the MMA multiple times within a year.
2. Another CD deal could pop up which blows your current one year CD away and since your funds are liquid you can take advantage of it.
3. You can do bank bonuses with you liquid cash like the Citibank $400 bonus for example and earn 10% ROI.
4. Another savings account could hike their rate much higher and you could just move your funds.
5. 0% no fee balance transfers. You need a high yielding account to make the monthly minimum payments from and to pay that cash back quickly when the 0% expires.
I didn't even touch on stock trading because that is not guaranteed.
DELA
DELA   |     |   Comment #7
Ok Redneck......I tried to be patient with you guys.....but I'm gone. This is a good deal!
deplorable 1
deplorable 1   |     |   Comment #17
I just linked this account to my Redneck MMMA just in case they raise their rates even higher after the next FED hike. Best to have options. Let the rate hike wars begin!
AAA
AAA   |     |   Comment #8
I already have Money Market account there opened prior to June 8, 2018. Wonder if they will let me open one more?
DELA
DELA   |     |   Comment #9
Look under "Availability" about 2/3 down the post above.....looks like you can.
AAA
AAA   |     |   Comment #10
Great ... let me try ...
AAA
AAA   |     |   Comment #53
I was able to open the "Promo MM". As I already have another opened prior to June 8, 2018, I was doubtful. But there was no problem. The web-site application did not ask me any details like SSN, DOB, email, address etc. They just asked how I want to fund the account and that's all. I was able to see new account with higher rate right away. Very good experience.
Top rate seeker
Top rate seeker   |     |   Comment #11
Called bank and service representative said rate is not guaranteed for any length of time. So once you open an account, they can drop rate to whatever they want.
Top rate seeker
Top rate seeker   |     |   Comment #16
Bank representative gave wrong info. Rate is guaranteed till June 2019. Posted on their web site:
Your interest rate and APY are accurate as of June 8, 2018 and guaranteed through June 30, 2019.
111
111   |     |   Comment #12
The online application was clean and simple (BTW, I was not one of their customers prior to today). The "challenge" questions regarding my past history, or whatever you want to call them, were reasonable. (Which is good, because in the past I've had some that were like "How many zits did you have the 3rd month of your freshman year in high school", and so forth.)

The signup for online banking immediate follows the account application - none of this "2-part" stuff like some banks where you can't sign up for online banking until a few days later. In my case, at least, there was nothing that will have to be mailed, faxed or scanned then emailed back to them for ID purposes.

You have the option of getting at ATM card for this account. You get 50 free checks.

One issue is that a poster above said they did charge a $3 transaction fee for even those transactions that were NOT initiated on their website. That annoys but is not a big problem for me since I don't foresee using this account for a lot of small-to-middle size transactions. Those who do, though, may want to confirm this.

As noted by others, their own transfer system has limits too small to be useful.
AAA
AAA   |     |   Comment #13
They have not charged me $3 for transactions I made via other bank (like Ally) when I pull/push funds using ACH. Not sure which $3 charge are you referring to?
111
111   |     |   Comment #15
The one made above by RichPeg in comment #3.
If they do NOT have that charge any more, that's great!
deplorable 1
deplorable 1   |     |   Comment #18
Can someone confirm that there is no $3 fee for ACH push/pull initiated from a external 3rd party bank? In the terms and conditions it only mentions a $3 ACH transfer fee which appears to be only for transfers initiated from their site. Even Bank of America while charging $3 ACH fees does not charge them for push/pull from a external bank.
RichReg
RichReg   |     |   Comment #22
They did it to me when I asked another bank in PA. to pull the funds. I did complain and they reversed it, but didn't say that it was an error......maybe it was.
AAA
AAA   |     |   Comment #27
How did you "ask" another bank in PA to pull the funds? Wire or ACH?
RichReg
RichReg   |     |   Comment #73
Typical ACH service...BTW, I called them after reading all of this late yesterday & confirmed they DO NOT charge a fee if a bank pulls funds, and YES (as per 'Top rate seeker' above), the rate IS guaranteed for about a year, once you're in. Apparently, NBD has hired a bit more astute reps since HE started calling them (and since I closed my account).

But get in while the gettins' good, folks,... LOL!
deplorable 1
deplorable 1   |     |   Comment #75
Thanks Rich that's what I figured the $3 was from their end only. They also mention a $10 closing fee in the terms.
zjts
zjts   |     |   Comment #188
I see $10 closure fee if by mail. Anyone know if there is any fee if to close account after 120days by phone or online?
TheBombingRange
TheBombingRange   |     |   Comment #32
Awesome rate, was just considering opening up the Purepoint account at 1.90% but this blows it out of the water. Also looking for confirmation that external transfers pulled by other banks don't accrue a $3 charge, I'll call tomorrow to ask as well. Also confirming for current account holders that Norther Bank Direct accounts work on the "NBTC Mobile Banking" iOS app? Finally, while the opening minimum balance is $5k, can the balance be less than that/$0 once the account has been opened?
111
111   |     |   Comment #61
TheBombingRange - I'll only address the last sentence in your post. Unfortunately I did not ask them that precise question this morning, but I see on their website this page - https://www.northernbankdirect.com/money-market - states, in the fine print at the bottom of the page, "Money Market average daily balances from $.01 to $250,000.00 earn the advertised 2.24% interest rate with an Annual Percentage Yield (APY) of 2.26%." (And as stated elsewhere in this thread, that interest rate guarantee goes through the end on June, 2019.)

To me, that says that once the initial funding hurdle of $5K is met, anything from $0 to $250,000 will earn 2.26% APY. But as always, you might want to call and confirm that with them.
111
111   |     |   Comment #14
On the issue of the rate guarantee - earlier today I emailed them at nbdirect@nbtc.com

Me - "Is there any guarantee on the 2.26% rate, for any number of weeks or months?" Them - "The current advertised Money Market rate is only guaranteed until June 30,2019. After June 30, 2019 your interest rate and annual percentage yield may change and at our discretion we may change the interest rate on your account daily."

Also - their website lists this guarantee - https://www.northernbankdirect.com/money-market (fine print at the bottom).
111
111   |     |   Comment #19
One thing I forgot to ask them was whether or not they did a "hard credit pull" on customers opening this Money Market acct. (with debitcard), or just a "soft" or ChexSystem-type pull.

From past experience with them - does anyone know?

IMO banks really should not do this since we're loaning to them and not vice-versa, but it seems that several of them do.
deplorable 1
deplorable 1   |     |   Comment #20
I find that most banks do a soft pull/chex while credit unions love to do a hard pull for everything. It looks to me like this is not a teaser rate even though there IS a rate guarantee. The terms also say they can change the rate at any time. Since the rate is guaranteed for a year I take that to mean they could actually raise the rate.
RJM
RJM   |     |   Comment #23
In recent months, I have opened accounts at All American, Popular, NASA and a local credit union and none of them did a hard pull for me. (Not that it would have mattered to me)

And 3 of those accounts are now obsolete. But they seemed like good ideas at the time. LOL

I suspect we will have more of that going forward.

Ally pays 1.60% and SPRXX paid 1.71% as of 5/31.

Those that pay significantly more all have roach motel aspects to go along with the higher rates.

Ditto for Penfed where I have another CD maturing in about a month and a half. Do I spend for the wire or pull out $5000 a day?

Make your decisions wisely, but DO NOT let a troll tell you that .54-.65% is "a few basis points".
deplorable 1
deplorable 1   |     |   Comment #24
I still like Redneck for a hub account and I would be very surprised if they don't hike their rate to 2-2.3% very soon. They have a history of hiking their rates regularly along with the FED. That being said I will most likely be maxing this account out while waiting for the next CD deal to come along.
RJM
RJM   |     |   Comment #29
redneck requires a call first for over a $5000 transfer from their end.

No reason for that.
Bogie
Bogie   |     |   Comment #54
@#29, I don't have a problem with that as long as they then permit the transfer to be completed. I view it as a little extra security, which never hurts.
ConfedrcyDunces
ConfedrcyDunces   |     |   Comment #25
Let's do some math!

40 extra basis points, which lasts one month, equates to 40 / 12 = 3.3 basis points for the year. The very definition of a few.

Because Vanguard's Prime pays about 2% and Treasury pays 1.8%.

The extra 40 basis points, for one month or whatever it was, calculates at 3.3 basis points. Or maybe 6 basis points.

Getting a part time job is going to pay a whole lot more.
alan1
alan1   |     |   Comment #28
your math may be correct for a one month period. and, if I wanted to, i could mathematically demonstrate that it's even less for a one week period.

But why are you giving a one-month example for an account which guarantees its rate for over one year?
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deplorable 1
deplorable 1   |     |   Comment #35
Not if you borrow $250,000 from 0% no fee balance transfers for 15 months and put it in here @ 2.26%. That's $5,650 a year on the bank's money.
ConfedrcyDunces
ConfedrcyDunces   |     |   Comment #46
Deplorable, what if you borrow a million, or a billion?

What is your point again?
deplorable 1
deplorable 1   |     |   Comment #60
My point is that it is totally worth it for .5% more. You can even open multiple accounts. This is a great spot to park liquid cash just before another rate hike in order to take advantage of rising short term CD rates.
RichReg
RichReg   |     |   Comment #74
Now you're talkin! $250k is quite the sum though, for abusing one of those deals. But still gotta love these recent balance transfer offers. Careful lately, as lotsa them stopped offering balance transfer checks, making it more difficult easy. FYI, AMEX will overnight you a check for your 'suddenly' large credit balance (at no charge, if you ask nicely.)
deplorable 1
deplorable 1   |     |   Comment #77
@RichReg comment #74: Wow you did that with AMEX! All data points I have read said that AMEX does not like credit card overpayments. You must be the guru of phone negotiating skills. I don't consider it abuse just a short term loan based on credit score. The bank knows that If I miss just one payment they can jack the interest rate. I have also paid transaction fees at times from $50 to $75 or a 1% BT fee to get the loan. It is sometimes worth it to pay a fee on a existing card with a high credit line. I also noticed that whenever you pay a fee no matter how small they always will give you a check for you to deposit ;). There are currently 3 non targeted 0% 15 mo. no fee BT cards if anyone is interested:
Chase Slate, Amex everyday and BankAmericard. Chase has a $15,000 cap but you can bump that to $30,000 by doing 2 transfers 30 days apart withing the 60 day window.
RichReg
RichReg   |     |   Comment #80
@deplorable1 comment#77, Hey, ..did that w/AMEX not once but TWICE.
Used previous permissions given last year as my defense to allow it again, for MORE $$. But again, we're talking small potatoes here ($10K).

OTOH, I'm also talking about AMEX BlueCash, a rewards card, which I pay off every month (incidentally, I thought that was AMEX's signature policy?). So I wasn't carrying any sort of balance to start with. I can see them being upset if I tried to take a 'credit' back after what would look like me paying down a balance.
deplorable 1
deplorable 1   |     |   Comment #88
@Rich: Interesting maybe AMEX has changed their terms. I have done bt's for as high as $67,000 on one card so when I call it always raises some eyebrows because of the high dollar amount. They automatically think fraud or money laundering. I just tell them that it's just a 0% balance transfer and that I wasn't issued a check and need to get the money into my savings account to pay multiple bills. The fact that I will be earning interest on it is on a "need to know" basis and they don't need to know.
RJM
RJM   |     |   Comment #105
I must be blacklisted or something. I have not had a balance transfer deal worth a crap in probably 7-8 years. I don't even have an amex. I used to do them a lot but I just never see them. Or maybe I paid less attention when rates were low?
deplorable 1
deplorable 1   |     |   Comment #112
@RJM: Most of the good deals require you to open a new card and it's a one time shot. Then when you pay it back at the end of the 0% term you transfer all the credit line back to another card issued by the same bank and close the card out. This way you don't lose any of your available credit and your score doesn't even take a hit. Sometimes though as in the case of the NFCU more rewards AMEX I will be keeping and using the card for 3% grocery store purchases after the 0% deal expires. I do receive some good 0% bt offers from time to time on cards I already have though but it is increasingly rare. I think the more you do it the more you get targeted for these offers. In order to make this work you need to have many cards from many different issuers with high credit lines.
RichReg
RichReg   |     |   Comment #114
Possibly.
Below are 2 great such BT offers that would allow just what I was talking about (after I transferred the balance to AMEX):
https://www.bankofamerica.com/credit-cards/products/bankamericard-credit-card/

https://creditcards.chase.com/balance-transfer-credit-cards/chase-slate
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rzelman
rzelman   |     |   Comment #31
I took the plunge transferring funds from UFB which has been stuck at 1.6% since January. Vanguard Prime has a APR of 1.95% so I use it to link all of my bank accounts. I don't like that they compute interest monthly and you can lose accrued interest but the check writing option is a decent consolation.
#102 - This comment has been removed for violating our comment policy.
SYC
SYC   |     |   Comment #26
Beware of this from FAQ - do NOT close your MMA account until right after interest is posted.

"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."
TheBombingRange
TheBombingRange   |     |   Comment #69
When is the interest paid, like what day of the month? Some banks do the 30/31, some do the 15th, others do the anniversary of the account opening. Any other sort of activity fees besides the $3 transfer fee? Do you have to accept the checks and ATM card?
111
111   |     |   Comment #78
"Do you have to accept the checks and ATM card?"

Each is optional. You make these 2 selections during the online application.
RichReg
RichReg   |     |   Comment #81
Paid last business day of the month.
If you don't want to lose interest, you'd need to get a check out and deposited by the 1st of the following month. Only other drawback w/this account (I think) are the ACH limitations.
oap
oap   |     |   Comment #33
Question......As noted above there is a limit of $5K/$25K transfer limit per day/month using NB's internal system. Does this limit also apply if one is pulling/pushing funds initiated from an external bank like Ally....to and from NB?
alan1
alan1   |     |   Comment #34
oap -- this from the FAQ section of the bank's website:

What are the dollar limits for electronic transfers?
If you initiate the electronic transfer from your other financial institution, Northern Bank Direct does not impose a limit on the amount of the transfer. However, you should check with your other financial institution to see what their limits are.
https://www.northernbankdirect.com/faqs?open=depositsinsured#depositsinsured
Mike
Mike   |     |   Comment #47
I just tried to open an account and got this message:

Thank you for your interest in opening a new account.

Unfortunately, we cannot process your application.
For assistance, please contact us at (800)273-6908.

Should I try again?
Mike
Mike   |     |   Comment #49
I tried again no luck. I am positive that I answered all the questions correctly.
Bogie
Bogie   |     |   Comment #55
Why not just call for assistance? They even gave you the number to call.
Mike
Mike   |     |   Comment #82
I did call, and they couldn't tell me what the problem was, but that I would be receiving a letter in the mail.

Oh, well!
John
John   |     |   Comment #96
Hi Mike, did you try to fund this account with big amount in the initial funding during the application? Is this the cause?
Mike
Mike   |     |   Comment #98
No, I never got that far. The message to call the bank was after I completed the application process.
John
John   |     |   Comment #99
Oh. Some how I thought you had to specify the initial fund amount during the application process, which I thought you already did.
RJM
RJM   |     |   Comment #107
Letter in the mail sounds like you were rejected for something. That happened to me a real long time ago. Not a bad chexsystems but too many new accounts or something.

But, I have number of new accounts within the last 6 months and this one opened for me just fine.

Way back then, I tried to call in and get the bank to manually override it. They could not and would not. But, as is often the case, another bank deal came down the pike in short order.
Sylvia
Sylvia   |     |   Comment #103
Mike, offer to provide copy of ID and proof of residency, e.g., utility bill. Many will accept those when applicant doesn't pass regular authentication process.
Mike
Mike   |     |   Comment #119
The bank said that they don't know why I was rejected, and ro wait for a letter. I know I answered all the questions correctly.

I had the same thing happen happen at Bank 5 last month, and it was due to having my files locked at Experian, which are now unlocked.
Server timeout
Server timeout   |     |   Comment #56
It is not you, it happened to me too, after the first page, their server went into an endless loop and after a wait period of 30+ minutes it said: your application can not be verified at this time.
I guess they are overwhelmed with applications and their server(s) cuts off or times out after a while. I'll try again tomorrow.
RJM
RJM   |     |   Comment #63
Mine went thru without a hitch. An hour ago.

Can I go ahead & start the linking process with another bank or do I have to wait for the initial deposit of over $5000?
deplorable 1
deplorable 1   |     |   Comment #66
It looks like we need to wait for trial deposits to post before setting up the account with the initial $5,000. That's what the email I got from them says. I signed up at 8:00 A.M. and don't have a account number yet. Do you actually have a account number already to link with?
RJM
RJM   |     |   Comment #67
I told them I was going to mail a check and I thought I wrote down my account number on a piece of paper near my desktop ? I saved this below....

Make your check payable to Northern Bank & Trust Company.
Include your account number on the memo line. (Your new account number is provided at the end of the application process).
Send your check to the address below:

Northern Bank & Trust Company
Deposit Operations Dept.
P.O. Box 282
Woburn,MA 01801
--------
I later read they have to send a signature card by snail mail and that's when I add beneficiaries. So I was pondering holding off for that before sending the check.

Sounds like I got an account number because I was sending a check?
deplorable 1
deplorable 1   |     |   Comment #84
I'm all set now as of today with the account number. I received the trial deposits and set up the account for online access. Just waiting for the $5,000 to transfer in now. Pretty smooth and fast account opening process actually. I'm going to wait to link external accounts until the initial deposit has posted just to be on the safe side.
John
John   |     |   Comment #111
Hi deplorable, would you report back tomorrow when you see your initial fund show up in your new Northern MM account? I am trying to figure out how fast Northern's ACH is. thanks.
deplorable 1
deplorable 1   |     |   Comment #120
Sure thing John. The initial funding may go faster than ACH transfers you initiate afterwards though. We will have to test them out.
Wil
Wil   |     |   Comment #140
Hi Deplorable,

Did the initial fund show up in your northern account today(Wednesday)? I assume you verified the trial deposits on Tuesday.

Thanks
deplorable 1
deplorable 1   |     |   Comment #143
Yes the $5,000 showed up today. The website is still not showing the interest rate in the account details section yet. Maybe it will take another day for that info to show up.
Bill
Bill   |     |   Comment #182
Thanks for the update.
Do you know how many external banks can I add into the northern bank account? Hopefully it's more than one.
larry
larry   |     |   Comment #124
What was your initial deposit?
Rickny
Rickny   |     |   Comment #70
When I opened the account and choose ACH they called it a direct deposit from your institution. They noted that you would need Northern's ABA number which they showed and the new account number which they would give you at the end of the process (which I received). I linked new Northern account to Chase checking with logon verification so the accounts are linked and the funds are already transferred from Dollar Direct and I will transfer to Northern today.
John
John   |     |   Comment #83
Did you open the account yesterday? You said the funds are already transferred from Dollar Direct. How soon did you see the fund left from your Dollar Direct account after you did the online verification? I assume this is done during the account opening . But I am confused you mentioned you chase checking at one place but later Dollar Direct.
Rickny
Rickny   |     |   Comment #90
I send from Dollar to Chase. Funds were in Chase at 7 am nowbtransfering from Chase to Northern. Chase ACH is 4 hours so funds should be in account this afternoon.
John
John   |     |   Comment #95
OK, Did you ask Northern to ACH fund from Chase as the initial funding to your Northern Momey Market account? If that's the case , how do you control the timing to make sure fund is there in Chase when Northern initiate the withdraw?
Server timeout
Server timeout   |     |   Comment #64
I decided to go with iGobanking for 2.35% for one year CD, I get an extra $250 per year on the same $250K. Northern bank direct ACH's is very slow and limited in transfer amounts. Second reason, I do not trust MM account rates, even if they say it will remain in force for one year. Many banks after going overboard with new accounts, lower the rates or find some other reason to short change you.
#51 - This comment has been removed for violating our comment policy.
111
111   |     |   Comment #57
One minor item I forgot to mention - Northern Bank Direct did send me a confirmatory email, not long after I applied early this afternoon, indicating that my account had been successfully opened. Since I'd chosen to fund the account by simply mailing a check, this email listed the mailing address to which the check should be mailed. I knew that already, but it was kind of nice.

Really, I've seldom encountered a smoother experience in opening a deposit account.
John
John   |     |   Comment #58
Did you have account with them before?
111
111   |     |   Comment #59
No, I did not.
Rickny
Rickny   |     |   Comment #72
We recently received your application for a Money Market account, Confirmation Number xxxxxxx. Welcome to Northern Bank Direct. We greatly appreciate your business.

During the application process you opted to fund your new account by Direct Deposit. Your application has been submitted and your account is now open.
John
John   |     |   Comment #85
Did you specify the initial deposit during the application or did you do it after the external account is verified?
Rickny
Rickny   |     |   Comment #91
When I opened account I believe they asked for the amount.
Cycles
Cycles   |     |   Comment #76
How long must account remain open in order to avoid account early closing fees?
111
111   |     |   Comment #79
Here is what a CSR emailed me back yesterday in response to my question about an early closing fee - "For dormant accounts there is a $4.00 per month starting in the 13th month for account balances less than $500.00".
deplorable 1
deplorable 1   |     |   Comment #86
I saw a $10 account closing fee in the terms and conditions with no time period mentioned although it said (by mail) so maybe you don't have to do it by mail? They really need to ditch the $3 ACH fee on their end though as very few banks charge for ACH transfers. While not a deal breaker it's not very customer friendly IMHO.
RichReg
RichReg   |     |   Comment #89
That's not the one you have to worry about 'cause you can close it by writing a check and then calling. However there's a 'New Account Closure Within 120 Days' Fee of $25. So actually ,...closing fee before 4 months.

https://www.northernbankdirect.com/content/disclosures/account-agreement.pdf
The Mighty Sven
The Mighty Sven   |     |   Comment #93
Yes, but that $3 ACH fee only applies if you initiate the ACH at NBD. Right? Very few of us will ever do that. Most of us would initiate the ACH at the financial institution where we have our hub account. At least I think that's how it would work for a great many of Ken's readers.
#94 - This comment has been removed for violating our comment policy.
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111
111   |     |   Comment #92
I just realized that in my earlier post (#79), the questions I emailed the bank yesterday, and their answers, got a little jumbled. Here it is, put back together -

Me - "If for whatever reason I choose to close my account, is there an "early closing fee"? If so, how much? After how many months of having the account open, would that fee NOT be charged?" Them - "There is a $25.00 early close out fee within 120 days of account opening."

Me - "Is there a dormancy or inactivity fee? How much? After how many months of dormancy does it kick in?" Them - "For dormant accounts there is a $4.00 per month starting in the 13th month for account balances less than $500.00." (Note that their response to me on this question matches what Ken Tumin posted.)
Joe
Joe   |     |   Comment #109
I may just move funds out of DSD for this rate. Yeah that's what I'll do. I'll move funds into this new account for 2.26%.
TheBombingRange
TheBombingRange   |     |   Comment #110
I just did the same. Moving funds from there into my hub, I'll open the NBD account tomorrow. If this first transfer goes smoothly, I'll close the Ally No Penalty CDs I have and move them in here. That "rate guarantee" from the CD ends in November. This will last until at least June of next year, 12.5 months.

Question about the inactivity fee, I spoke to the CSR and said the accounted needed a transfer/ACH activity of any amount (even $1) every 12/13 months. She didn't indicate that this only applied for accounts less than $500 though, she seemed to explain it as every account needing this. The Deposit Account Agreement on their site shows this to be true as well, with the fee being $3.75 for "checking accounts" without activity in 12 months. I'm not sure if this MM account is considered checking, since it has an ATM card and checks, and they don't seem to have a checking account at this time. There is also a dormant account fee which others were discussing for accounts less than $500.
Anon456
Anon456   |     |   Comment #116
*** FYI - I also was a bit concerned with the ACH limitations. I had already done a CD, and then today did the MM. Had some problems with online system, so I had to by-pass CS and go to an officer level. Once I did that, all road blocks were cleared.

ALSO - I was told the ACH limit is $5000/day when you push from NTD, but uses the limits of the other bank when you originate it there. So, I use ALLY BANK, which has high limits, and will use it for both deposits and withdrawals. He also did tell me that the $3 service charge to originate the ACH would be going away on June 15.
deplorable 1
deplorable 1   |     |   Comment #118
Thanks Anon. So the $3 ACH fee IS going away also? Wow! This account just keeps looking better and better.
RJM
RJM   |     |   Comment #122
I just called them and was surprised they answered. Apparently, they are open until 6pm eastern.

Routing # is 011303097. She said I can go ahead & link other accounts while my check is in the mail.
Anon
Anon   |     |   Comment #125
When I confirmed my trial deposits, I got my money market account number and I registered for online banking. Note the Application Completed message says interest rate 0.750% so I immediately contacted their call center. The rep said they're aware of this issue and the correct rate is 2.26% APY. So no need to worry.
ratechaser
ratechaser   |     |   Comment #126
Nice deal! Easy acct opening process. Thank you Ken for the info on this great MM rate!
Joe
Joe   |     |   Comment #127
I've read about how there's a $5k transfer limit if done from within this bank. Does anyone know if the transfer is initiated(pushed or pulled) from another bank that this limit doesn't apply? That's usually the case.
Anon456
Anon456   |     |   Comment #134
I posted this when I had asked about it. If the ACH comes FROM the other institution, NBT does not have their own limit at all. Totally up to the other institution. So my suggest to set them up from some place like ALLY BANK that has high ACH limits. Then do BOTH deposits and withdrawals with ACH originating there.

FYI - most banks and credit unions do have lower ( like 5K ) limits, and some have limits both at their own institution as well as another. NBT does not have external originated ACH limits, per the bank officer that I spoke with on this topic.
Sperry8
Sperry8   |     |   Comment #128
Fantastic rate - thanks Ken for posting about. Just opened and account and it took all of 5 minutes online. Now just waiting for the 2 test deposits. Closed my CIT Bank no Penalty CD yesterday, will move those funds here. An extra $1,000 in my pocket for ~10 minutes of work. Double if I bother with their annoying paper beneficiary process.
larry
larry   |     |   Comment #131
Is that extra $1k on the $250k max?
Customer
Customer   |     |   Comment #129
Great Customer Service!
They were helpful and answered all my questions!
RICKNY
RICKNY   |     |   Comment #130
I transferred funds from my Chase account yesterday to my MM account, When I checked online the balance was 0. I sent a secure email and the answer:

The funds usually take 2-3 business days to be processed. If you have any other questions please feel free to give us a call.
John
John   |     |   Comment #132
Rickny, Did you initiate the transfer from Chase or from Northern Bank Direct? Is this your initial funding?
Rickny
Rickny   |     |   Comment #136
Chase They have a funding option for "Direct Deposit". Was surprised that the Chase ACH took 8 hours. Usually it is 4 hours. Maybe because of the large sum. Funds were initially from Dollar Direct. Will slowly move from Dollar to Northern. So turn around from Dollar, to Chase and to Northern wss 24 hours.
Rickny
Rickny   |     |   Comment #137
Also with Chase they have logon verification. You put in ABA and account number. If you have online access then you put in ID and PW and Chase verfies the account on the spot.
Jayhawk
Jayhawk   |     |   Comment #133
Just opened-Mostly went fine but I'm a little confused over the funding. I chose to directly deposit from another account. I assumed they would want that bank account info but the message said I had to initiate from my external account?? Well that's fine but first I will have to register the Northern Bank account.....and only way to do that is for my external bank to first send trial deposits.......I'm wondering if that will **** everything up since obviously the 2 trial deposits will be much less than the required $5K minimum initial funding? Anyone experienced any problems doing it this way? Thanks.
alan1
alan1   |     |   Comment #135
Jayhawk -- your posting seems to be at variance with the info on the bank's website regarding test deposits. According to the website, it doesn't seems that you "have to register the Northern Bank account" with your current institution in order for trial deposits to occur.

from the bank's FAQ
What are test deposits, and what do I need to do to verify them?

Test deposits will allow us to confirm the link between your Northern Bank Direct account and your other financial institution that you are making the initial deposit from. We will send two test deposits to your existing account. After you see these small amounts credited to your account, you will then return to our website and confirm the amounts by using the "finalize my account" link found at the top of the homepage. Once we confirm the correct amounts of the test deposits, we will transfer your opening deposit.
https://www.northernbankdirect.com/faqs
Jayhawk
Jayhawk   |     |   Comment #138
Yes......I was expecting to register my external account with Northern when setting up the initial funding.......but when finishing the application it says to set up the funding through my external account. It was confusing and I may have done it incorrectly......I have a feeling this is going to mess up the funding but we will see what happens.
TheBombingRange
TheBombingRange   |     |   Comment #139
Any info on how to access online banking? I opened an account and initiated a transfer. They also emailed me a confirmation number, though this doesn't seem to be my account number. However, using this confirmation number, I attempted to sign up for online banking, and that hit me with a message saying it will take 1-3 business days. How are you all able to access your accounts already?
RJM
RJM   |     |   Comment #141
I told them I was funding my check and I got my account number right away. You may have to wait for the money to arrive if you did an ach transfer.
Jayhawk
Jayhawk   |     |   Comment #142
It took me to it right after I got the account number.....seems like there are always issues with new accounts at every single bank. I wish they could just get all the kinks worked out-but that's apparently too much to ask for. I got a message telling me I had to fund it by initiating a deposit through my external account-not through them. I have a feeling it's not going to work but I will try it.
RJM
RJM   |     |   Comment #144
I just opened the account, the check is in the mail and I have linked it to my Ally account already as the trial deposits hit just now.
Jayhawk
Jayhawk   |     |   Comment #145
Did you send trial deposits from Northern to Ally......or vice versa? The funding part seemed a little odd to me in the application.....said I needed to initiate the ach from my external account. But first I will have to register Northern with that bank......and only way to do it is by sending trial deposits from my external to Northern......I can do that but the initial minimum funding is $5K.....Just wondering if it will mess it all up? Guess just try and see what happens.
RJM
RJM   |     |   Comment #146
My check deposit went by mail today. Because I had the account number and routing number, I set up the trial deposit from ally last night and confirmed it today.

So I am set for 3 day transfers to/from ally. Well, I will be set when the northern account has available funds. I will pull $200 out as soon as possible just so that 2 months from now I will have 1 day transfers.

I did not try Northerns ACH because it was only $5000 and because of the possibility of fees.
Jayhawk
Jayhawk   |     |   Comment #148
Thanks RJM......I was just sort of concerned that those 2 trial deposits hitting the Northern account first would mess up something since minimum initial deposit is $5k....But hopefully wont matter
oh oh
oh oh   |     |   Comment #149
Jayhawk #148
If you tried sending "trial deposits" usually just a few cents each on your own to Northern you may have ****ed up. Trial deposits are sent FROM Northern to your outside acct. You then verify AT northern what they were
oh oh
oh oh   |     |   Comment #150
I did not use the F word it was a 5 letter word that began with S
Geeze how picky can it get?
Jayhawk
Jayhawk   |     |   Comment #152
That's the way I "thought" it would go.....but it never gave me that option. It did however give me my account number and said all was ok and account was open.....So who knows? I'm going to try to register Northern with my external account and then send in my deposit......see what happens and will let you know.
RJM
RJM   |     |   Comment #164
I called yesterday to verify the account could accept the trial deposits prior to my check getting there. She said it could.
Jayhawk
Jayhawk   |     |   Comment #197
RJM-Thanks again......Yes all was fine with my new account. Trial deposits coming in first did not matter......should be fine for your account too.
Jayhawk
Jayhawk   |     |   Comment #196
oh oh.....I can report that all is well with my new account at Northern.....Not sure why but they wanted me to initiate the direct deposit from my external account. Took just an extra day but all went well and funds are there and available. Very happy to have this account .....I think it will take a long time for other banks to offer this high a rate on a money market.
TheBombingRange
TheBombingRange   |     |   Comment #151
I called in, the confirmation number is not the account number. They said since I'm funding via ACH (after the trial deposits), I'll receive my account number after i confirm. Then I can use the account number to finish enrolling in online banking.
Jayhawk
Jayhawk   |     |   Comment #153
Really strange.....I got my account number and said acct was open & let me do online banking......but that I had to do the ach through my bank......not through them. Hopefully both ways will work.
deplorable 1
deplorable 1   |     |   Comment #169
The 1-3 days is for THEIR trial deposits to show up at YOUR external bank. Then you click the link in the email they send you and verify the trial deposits. After that they let you sign up for online access and you can see your account and number. The whole process took only 2 days from start to finish which is pretty fast.
Anonymous
Anonymous   |     |   Comment #147
Just a warning to others not to repeat my mistake: I set up funding for this account from a money market account at another bank. The 2 trial deposits sent to my other bank were accompanied by 2 matching trial withdrawals. Along with the actual 5K funding withdrawal, this is a total of 3 withdrawals from my money market account at the other bank. Since I'd already used 2 of my 6 available (to pay estimated taxes), I now have just 1 left until the end of June. My fault!
RJM
RJM   |     |   Comment #154
Ally only pulled one, the total of the combined two small deposits. But even if the other bank I want to link uses two, that leaves me with 3 more for the month. Besides, at 2.26%, I'm not inclined to be pulling money out for a while anyway.

I cannot link my broker until I have a statement to send them and wait a few more days after that.
(I guess an extra security measure after so many linked accounts or a certain dollar balance. It did not used to be that way) But I can send a physical check and that is what I did.
RickZ
RickZ   |     |   Comment #156
I've had that happen to me a couple of times before but I can't remember which banks. I've found that if you talk to a manager and explain that the two trial withdrawals were to due verfication procedures and not real withdrawals then they will usually agree in advance to waive any fee associated with you going over the monthly 6 withdrawal limit.
larry
larry   |     |   Comment #166
Please, trial deposits are not withdrawals. I'm pretty sure no bank or cu count this against you withdrawals/mo.
RJM
RJM   |     |   Comment #167
The associated withdrawals can be counted toward the limit. Ally combines them and makes ONE, AA does not and does two. I think. But, you can find yourself getting near the limit if you are trying to link multiple banks and use some otherwise too.
deplorable 1
deplorable 1   |     |   Comment #170
I really hate it when banks try to count the trial deposit withdrawals against you 6 for the month. I find that if you call them and explain they will usually not count them against you.
Zemo999
Zemo999   |     |   Comment #155
Spoke with the manager at the bank, and if one is aware of the policies, it all seems doable, and reasonably so. What I gleaned: Confirmed - the small daily limits for ACH transfers initiated through Northern are circumvented by having the funding institution 'push' funds to Northern. In which case, the daily limit is dependent on the outside institution's daily limit, not Northern's. The rate is indeed guaranteed to June 30th, 2019. If you initiate a transfer of funds out of Northern, my understanding is that if it's initiated through Northern, it may take 5 business days, but you'll earn interest for that period. If initiated from an outside institution, I *think* that 5 business day hold is null. On interest payment: It is true that interest is paid and posted monthly. But the idea that you'll need to close the account right after a monthly posting to get the interest is not quite the true story: Interest, while posted monthly, is accrued each night to the account. Yes, if you close the account, let's say on the 15th of the month, you'll lose 15 days interest. But if you leave *even a dollar* in the account, at the end of the month *all* of the accrued interest is paid to you. Lastly, while you have to fund the account with at least $5k, any amount in the account, even $1, will get the 2.26% APY rate. The manager I spoke with was horrified at the story with Popular Bank holding onto people's money even after the 60 day period. And rightly so. As far as I can tell, this is a good deal, and a solid bank. JIMHO.
Cautious
Cautious   |     |   Comment #157
Has anyone considered what they are going to do when it is time to move on and close the account when this great rate expires? There is no leaving a $1.00 in the account to keep it open in case they are competitive again with this bank.

Per their terms you must have a minimum of $500 in order to avoid the $4.00 dormant account fee. They do not state how to close the account other then that it will cost you $10.00 if done by mail.

Also the exit timing must be just right because If you close your account before the interest is credited, you will not receive the accrued interest.
#158 - This comment has been removed for violating our comment policy.
111
111   |     |   Comment #159
Cautious -

1) Ken's writeup states: "there is a monthly $4 dormant account fee for MMAs with account balances of less than $500 for 12 consecutive months, with the $4 fee starting in the thirteenth month." So, once you drop the balance below $500, you have 12 months to decide what to do. Only after that will you be charged a dormancy fee.

2) Personally, I'm not going to sweat a $10 closing fee even if they charge me. (They did tell me there's a $25 EARLY closing fee for closing before 120 days, but I would avoid that.) But - I would bet you $10 that if you close it (after 120 days) in a way OTHER than by mail - they won't charge you even that $10!

3) Just my opinion - when one removes the bulk of the funds, the general practice of leaving either $1 or the lowest remaining balance to avoid a fee, whichever is lower, should be just that - a general practice. Leave that minimal amount there until 2-3 days following the next monthly statement, then close it Sure, some banks WILL pay you the accrued interest even if you close in the middle of a statement, but why sweat that for (probably) less then $5?
Zemo999
Zemo999   |     |   Comment #162
On the other hand, what customer service 'feels' like, is no guarantee, but counts for a lot in my book, in terms of reasonableness e.g., the manager I spoke with volunteered to waive the $10 fee that an incoming wire normally costs. On the way out , yes, perhaps one will get nicked for $4 and $10 there, but the rate is good enough for me should that happen, and so far it doesn't sound like it would, unlike the nightmare that Popular Bank (not so 'popular' now, eh?) has turned into. BTW, if anyone did or does follow up with federal regulatory agencies and has news to share about Popular Bank essentially refusing to honor any withdrawals, there's probably a ton of people here who would be interested.
RJM
RJM   |     |   Comment #163
Speaking of the UNPOPULAR one....

Because I am sure many of us are wondering how soon we can get out without it costing us, I went back & found the details from Kens original post.
------------------------

$4 monthly service fee if the balance on any day is below $500.

$25 early closing fee if account is closed within 180 days of opening.

$5 monthly dormancy fee if there has been no activity for 12 months.

Withdrawals only allowed via an external account, internal transfer to another Popular Direct account, or ACH.

$5 fee for each additional debit exceeding the limit of six per statement cycle.
---------------

Won't be too painful to leave $500 in there for 4 more months. (I recently made it 60 days) Just do not want to go below $500.
RJM
RJM   |     |   Comment #165
The forgone interest cost versus 2.26% will be $1.30 a month. Assuming popular does not go up on their rate which is probably a pretty safe bet given they have already come down for new customers.
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Cautious
Cautious   |     |   Comment #174
@111 Comment #159 I read what you stated, but you can't assume. They do not state anywhere any other way to close the account other then through the mail. I see these fees as a trap and the lack of information as questionable and unethical business practices.

While the rate is great I refuse to do business with any institution that charge fees to exit, make it hard to close the account, or fail to post clear and concise information about their business. If you read the their FAQ section the questions are very general, lacking, and the answers are very vague leaving it for them to interpret it any way they choose.
111
111   |     |   Comment #176
Cautious - OK, man. Sorry I tried to help.

Initially I felt RBJ's response was perhaps just a bit terse, so I tried a different approach. In retrospect, however, I'm wondering if his approach was not as or more correct.
Jayhawk
Jayhawk   |     |   Comment #198
Geez don't worry about it. It's a great rate. The glass is not always half-empty.
111
111   |     |   Comment #160
I called a CSR this morning fairly early this morning about a couple of details. (BTW hold time was only about 1 minute, shorter than I expected).

1) I applied Monday, was accepted, and received an account number near the end of my application (I'd chosen to fund via paper check - if you chose some other way, you may not have gotten an account number immediately). I wrote and mailed my check then. Afterwards, I started to wonder about the signature card - was I supposed to wait on it before sending the check? Well, the CSR said no, it's the other way around - them receiving the initial deposit check is what triggers them sending you the signature card.

2) For those keeping large balances, keep in mind that the drop-off in interest rate above $250,000 is SEVERE. (This may be the point where some might think "why would someone keep that much in a liquid account anyway... etc., etc.", to which I would say that there are sometimes valid reasons, for certain periods of time, etc., etc.)

In any case, since interest is credited monthly, that means any amount above $250,000 should be siphoned off monthly to some other account, to avoid the lower rate.
RJM
RJM   |     |   Comment #161
The limit really does not make much sense, especially when considering that they will let you open a 2nd account with them.

As a general rule, I don't like to go over for obvious reasons but Northern is clearly interested in gathering money so why would they limit the amount per account with an interest rate penalty?

As a side note, since my Popular account was unfrozen, I tested a $500 transfer and it went thru so I did a 6 figure pull and it went thru fine too.

I will pull more soon given the bad taste the bank has left in my mouth and Northerns emergence as a rate leader. (But there are early closing fees there too I believe so I need to familiarize myself with them)
deplorable 1
deplorable 1   |     |   Comment #172
I'm sure glad I closed out my old Popular direct account a while back and didn't open the new one! Maybe Northern just figured they would $250,000 FDIC limit. I'm considering opening one of these for the wife. I need a higher limit for 0% bt cash.
larry
larry   |     |   Comment #177
So you are saying they allow extra accounts per household? If you did 4 with the $250k max you would net $5k extra for one year versus say Ally 11 month no penalty cd and still be liquid to get into up coming rate deals?
deplorable 1
deplorable 1   |     |   Comment #186
I think you can open another account for your spouse and a joint account as well. Not sure if they do IRA. So $750,000 in FDIC coverage total. With 4 accounts I think $250,000 would not be covered. Here is the FDIC site on this topic:
https://www.fdic.gov/deposit/covered/categories.html
larry
larry   |     |   Comment #190
Right and the use of beneficiaries will help push that total coverage over 1 mil, but then again this is not ally that allows you add them easily or did I miss this about Northern?
Rickny
Rickny   |     |   Comment #168
Deposit from Chase now shows on line and the Funds are available. Took 2 days to post.
dasave
dasave   |     |   Comment #178
Maybe this will help answer one question, Here's what I was told about the acct closeout process:
You may close this account by a written letter or send us a secure message through your online banking account. We currently have not been charging the $10.00 mail close out fee.
And I also asked about atm fees/sum network, and was told: If the ATM card is used at a SUM Network, that ATM will not charge a fee but our bank will charge $1.50 for each withdrawal made at a non-Northern ATM.
Cautious
Cautious   |     |   Comment #180
Thanks dasave for the update. They may not be charging $10 now but it's there in their disclosure that they can. (Look what happened to those who were with Popular Direct and the 60 day money lock disclosure) NBD is obviously looking for depositors now and they will tell you whatever sounds favorable, but that may not be the case when rate chasers see another great deal elsewhere and decide to bail. When a better deal comes along, you are stuck with parking $500 for 4 months minimum to avoid the $25.00, 120-day new account closure FEE, but then the $10.00 closure fee is still there to punish you in the end.
RJM
RJM   |     |   Comment #181
Yes, I was on pins & needles for 7-8 days while my Popular account was frozen. LOL

I look at parking $500 for 4 months as a small price to pay for a premium rate. Even though the 2.26% rate today may not be a rate leader 3 months from now.

I have never paid an account closing fee in my life, Its fairly easy to meet their simple requirements. When the time comes, I either call or email and then I do what they say.

But the trials & tribulations of rate chasing are real. My new Northern bank already has 3 withdrawals with a 4th set up before month end. Which only leaves me with 2 more for the rest of the month. What will I do?

Wait, I know. Don't Sweat the Small Stuff.
TheBombingRange
TheBombingRange   |     |   Comment #183
Why have you already withdrawn 3x on the new Northern account? Trial deposits from another bank?
RJM
RJM   |     |   Comment #184
Ally trial deposits =1 withdrawal. All America =2. 1+2=3.
Will be pulling out $200 via Ally next week so that 60 days from now I get 1 day transfers via Ally if I need them. (versus 3 days otherwise)
TheBombingRange
TheBombingRange   |     |   Comment #193
What are you doing with Ally? It seems interesting. I thought Ally granted 1 day transfers when you have accounts linked for a certain period of time. Is it actually based on prior transfers? If you have details on how you activate this that would be great!
John
John   |     |   Comment #195
Want to know more about how Ally decides the ACH speed too. I have both my CAP1 checking and MM account linked with my ALLY account (which I did long time ago). When I initiate ACH transfer to bring in the fund to ALLY, ALLY site indicates it takes 1 day if it is from my CAP1 checking and 3 days if via CAP1 MM.
dasave
dasave   |     |   Comment #201
I explained it in the deposit accounts article dated 10/24/16, Ally Bank’s Deposit Agreement Changes - Next Day Transfers. look under banks/ally for this article.
dasave
dasave   |     |   Comment #202
guess I should have said, explained it in the Comments section of the article.
John
John   |     |   Comment #203
Sorry I can't find it. I checked out https://www.depositaccounts.com/banks/reviews/ally-bank.html . But I can't find your article date on 10/24/2016. Would you provide the URL? Thanks,
John
John   |     |   Comment #204
Never mind, I found it @ https://www.depositaccounts.com/blog/2016/10/ally-banks-deposit-agreement-changes-day-transfers.html . Thanks.
Bruce
Bruce   |     |   Comment #179
Really easy to open an account. The bank does use any credit reporting agency for the background check. Very nice CSR actually called me back like he said he would to let me know. Great deal on the 30 month CD.
zjts
zjts   |     |   Comment #189
Do you get the account# immediately after applying?
Dave
Dave   |     |   Comment #191
I did not. Still waiting for my trial deposits to hit before linking.
larry
larry   |     |   Comment #192
Shows up immediately after finishing the app process. Then it takes you straight to the online account. You'll want to copy the number down or take a screenshot of the page for reference.
Dave
Dave   |     |   Comment #205
Doing an opening deposit through trial deposits (online xfer), all I got was a confirmation # and verification code with which to "Finalize New Account" once my trial deposits hit. At the last page it said "After you have completed these steps we will open your new account and transfer money from your account at __ to your new account."

Still waiting for trial deposits to hit since applying Thurs. night.
steve212
steve212   |     |   Comment #194
I just created a new account with Northern Bank Direct. It was easy but a little weird though. It asked me how I wanted to fund the account. I selected external bank account, but at no point did it ask me for my external bank account or routing number. It let me create the account though. I guess I'll just have to set up the external account myself and manually do an ACH transfer for the initial funding. Also they seem to use the same online banking interface provider as popular direct bank. In fact, if you log into both popular direct and Northern Bank Direct at the same time (in different browser tabs) their system gets confused and will either give errors or will start showing you info for the wrong bank when you click links. Example: clicking on a link to show account details from the popular direct website and then the page loads the Northern Bank website details, (one bank website becomes the other)
Jayhawk
Jayhawk   |     |   Comment #200
This is how I opened my account as well.....and it went fine with no problems. Just register the Northern account with your external bank and then send over an ACH. No problems.
RichReg
RichReg   |     |   Comment #218
Very easy and efficient process.
Opened account on Wednesday, trial deposits confirmed Thursday morning,
initial (rather large) deposit credited to NBD as of Thursday, money leaves the UnPopular one on Friday. So, extra day's of interest on the house!
Jayhawk
Jayhawk   |     |   Comment #199
Very happy I got this account.....it is now open and earning 2.24%. Came from Redneck.....not a word about any rate increases from them. I asked a couple weeks ago why they were not keeping up & said I would probably move my $$$.......A good decision. Farewell, Redneck......I barely knew yee.
deplorable 1
deplorable 1   |     |   Comment #211
I'm surprised that All America/Redneck have not raised their rate by now. I'm still keeping the accounts open though as I do expect them to raise rates in the future. They seem to raise rates at odd times sporadically so I would not be surprised to see them either match or beat this rate in the near future.
RJM
RJM   |     |   Comment #209
I got my pin number in the mail today. My check has not gotten there yet so I still have a zero balance.

The entire mailing pin numbers seems obsolete. Can't they just let you set up a pin when you call to verify you got the card?

I hope I am able to change their pin.

Normally, I don't even ask for cards but I may be closing accounts at local credit unions just because they are obsolete for me. At one time, one had a good rate for a rewards checking and the other had a better than internet rate.

Now, their RCA pays 2% and the other one pays 1.51%. Obsolete.

Its probably been at least 7-8 years since I used an ATM to get cash. Just not much need for cash.
TheBombingRange
TheBombingRange   |     |   Comment #213
Didn't even bother taking the card. Are they part of the SUM network or something? I saw they had fees for any non-Northern ATM usage and I figured why bother.
RJM
RJM   |     |   Comment #215
I did not pay any attention to the network but I thought I read they had free ones most everywhere?

My account is showing 2 small ACH transfers in and hopefully my checks will get there today.

One thing I have observed, before EVERY sign in, they require a phone call. Thats massive overkill. At first I just thought it was for a new computer. They need to fix that. Fire their security guy or something.
deplorable 1
deplorable 1   |     |   Comment #210
I messaged them online about the $3 ACH fee, why the 2.26% isn't yet showing up on the website and when will deposits become available. Here is what they replied:
1. The $3 ACH fee has been removed as of 6/15/18.
2. Once the interest is credited for the month the account information tab with the current interest rate will be populated.
3. For the first 30 days of account opening there is a 5 day hold on funds before they will become available.
larry
larry   |     |   Comment #212
A five day hold on a push from external bank once the funds arrive? Wow, that's not looking to good for us because I did one from Discover and they say 6 days before it arrives to Northern and now we need to add another 5 days to that?
TheBombingRange
TheBombingRange   |     |   Comment #214
After the first 30 days, how long are the holds on the funds going to be? Will they update their deposit agreement to reflect the dropping of the $3 fee?
RJM
RJM   |     |   Comment #216
My 2 ACH transfer ins show immediate availability. They were from outside banks and only total $700.
RJM
RJM   |     |   Comment #217
Got a snail mail letter from them. They are pleased I decided to use online banking.

Wasted a stamp to tell me that.
Northern Bank Direct Adds New 30-Month CD (3.01% APY)
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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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.

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