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.

2.57%$500-Northern Bank Direct60-month CD
2.56%$500-Northern Bank Direct48-month CD
2.55%$500-Northern Bank Direct36-month CD
Rates as of April 22, 2018.

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.”

NBD made its debut about ten months ago, featuring five competitive CDs. Rates at new internet banks often change in tandem; in other words, the rise and fall of CD rates will mirror each other. NBD has not followed that pattern, with each CD finding its own rate path.

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

Term of 36 months to 47 months: 24-months interest

Term of 48 months or greater: 36-months interest

In addition to confirming the substantial EWPs, 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 ACH, or through a transfer to a Northern Bank Direct 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. The $4 fee starts in the thirteenth month.

My April blog post provides more details about the CDs, including NBD’s ACH transfer service.

Money Market Account

In early January, NBD raised the rate on its Money Market Account (MMA) to 1.51% APY. The MMA was added to the product line in April 2017, with an initial rate of 1.05% APY. There have been two rate increases in the past six months, which tacked on an additional 46 bps to the APY. The MMA’s APY now ranks fourth, with 24 bps separating NBD’s MMA rate and the top rate offered by All America and Redneck Banks. The money market rates race continues to be led by internet banks: the current top eight money market rates are being offered by internet banks.

1.51*%-$250kNorthern Bank DirectMoney Market Account
OTHER TIERS: 0.01% $1mm+ | 0.75% $250k - $1mm
Rates as of April 22, 2018.

An NBD MMA provides a place to park funds from a maturing CD, as NBD does not offer the option of transferring funds back to the original funding account via ACH. The three options to receive maturing funds currently include a check, a wire transfer, or a transfer into an NBD MMA. According to CSR, CDs have a 10 calendar-day grace period. A transfer into an already opened MMA is probably the path of least resistance.


As the internet division of Massachusetts' Northern Bank, Northern Bank Direct offers it services and product line on a nationwide basis.

Opening any type of account, including a CD, 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 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% (excellent), 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.

How the CDs Compare

When compared to the 201 similar length-of-term CDs tracked by that require a similar minimum deposit and are available nationwide, Northern Bank Direct's 36-month CD APY currently ranks second.

When compared to the 170 similar length-of-term CDs tracked by that require a similar minimum deposit and are available nationwide, Northern Bank Direct's 48-month CD APY currently ranks first.

To find the best CD rates, both nationwide and state specific, please refer to our CD rates table.

The above rates are accurate as of 2/22/2018.

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

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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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,...

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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...

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