Northpointe Bank Ups Ultimate Savings To 2.55% APY
I last wrote about Michigan-based Northpointe Bank’s Ultimate Savings about a year ago, when its rate was increased from 1.12% APY ($10k+ guaranteed for 12 months) to 2.05% APY ($25k+ with no rate guarantee). The 2.05% APY lasted about two months before dropping to 1.95% APY in July 2018, where it remained until mid-May. The May rate increase was a modest 10 bps, but this month’s addition of 50 bps has made the Ultimate Savings a rate leader.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 2.55*% | $25k | $1m | Northpointe Bank | Ultimate Savings | |
| OTHER TIERS: 1.12% → Any amount | |||||
For Ultimate Savings accounts opened on or after July 1, 2018, the new tiered APYs are as follows:
1.12% APY – Balances of $0-$24,999.99
2.55% APY – Balances of $25,000-$$1,000,000.00
1.12% APY – Balances of $1,000,000.00+
The 2.55% APY is guaranteed for at least three months following account opening.
After the three (3) month promotional period, the
rate may change based on prevailing market rates.
The Ultimate Savings account is fairly straightforward – there are no monthly fees and no minimum opening balance requirement, but there is a $10 fee if the account is closed within 120 days of opening. There is also a $15 fee for each outgoing transaction beyond the allowed six per month.
Existing Ultimate Savings Accounts
CSR confirmed that existing Ultimate Savings accounts won’t automatically receive this new 2.55% APY. If existing customers meet the deposit qualifications ($25k-$1m balance), they may request the new APY be applied to their Ultimate Savings account.
Ultimate Money Market
In November 2017, Northpointe Bank’s Ultimate Money Market (2.30% APY) offered a 24 month rate guarantee, but within the last week, the guarantee period for newly opened accounts was reduced to three months. For those who have recently opened an Ultimate Money Market, the 2.30% APY guaranteed for 24 months is probably more appealing than the Ultimate Savings’s 2.55% APY guaranteed for only three months.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 2.30*% | $25k | $1m | Northpointe Bank | Ultimate Money Market | |
| OTHER TIERS: 0.20% → Up to $2.5k | 0.25% → $2.5k - $25k | 0.50% → $1m+ | |||||
ACH Transfer Service
The following is from my November 2018 blog post, but CSR confirmed the information is up-to-date.
Is there an ACH transfer service that customers can log into and initiate a transfer to/from accounts at other banks?
Yes, this is offered within Online Banking under the “Transfers > External Transfers” menu options.
Is it free to initiate ACH transfers?
There is no charge to send or received money into Northpointe Bank via standard ACH transfers (2-3 business days). Expedited transfers are available on eligible accounts for $4.95 per transfer (1 business day).
What's the maximum dollar amount for incoming and outgoing transfers?
ACH Transfers are allowed up to $25k per day per account, with a $250k monthly maximum per account.
For the ACH transfer service, how many accounts at other banks can be linked to?
Account holders can link up to five (5) external accounts to a single Northpointe Bank account.
Does Northpointe allow ACH deposits and/or withdrawals that are initiated by you from another bank?
Yes
How many days after an ACH deposit are the deposited funds placed on hold (inaccessible)?
Typically available same day received/processing.
What is the transaction time for ACH transfers for incoming and outgoing transfers?
We process the same day as received. Typical transfer times through the Fed result in 2-3 business days between when an ACH is sent and when we receive/deposit the funds. This may change soon with Same Day ACH going into effect.
My final questions concerned the ability to establish beneficiaries and trust accounts.
Yes, beneficiaries (i.e. POD or ITF) can be listed.
Yes, multiple beneficiaries can be listed.
Name, address, SSN, and DOB are required for each beneficiary listed.
Yes, the account can be opened as a trust account, although Trust accounts cannot be opened via our online application. Trust accounts can be opened via phone (888-672-5626) or in-person (only branch is in Grand Rapids, MI). A copy of the Certificate of Trust Existence and Authority document is required as part of this process, in addition to the standard information required of the trustee(s) – name, address, SSN, DOB, copy of government issued ID, etc.
Availability
Headquartered in Grand Rapids, Michigan, Northpointe Bank offers its services and product line to all U.S. citizens and resident aliens who have a physical address in the U.S. and a valid Social Security number.
Opening an Ultimate Savings account can be done online, or at Northpointe Bank’s single Michigan branch located in Grand Rapids on the appropriately named Deposit Drive.
Northpoint Bank also has 50 Loan Centers in 24 states across the country for "custom tailored home loans."
Bank Overview
Northpointe Bank has an overall health rating of “A" at DepositAccounts.com, with a Texas Ratio of 3.43% (excellent), based on March 31, 2019 data. In the past year, Northpointe Bank has increased its total non-brokered deposits by $403.23 million, excellent annual growth rate of 81.23% growth rate. Please refer to our financial overview of Northpointe Bank (FDIC Certificate # 34953) for more details.
Northpointe Bank recently celebrated its 20th anniversary, having been founded in May 1999 by Charles Williams, the Bank's current President and CEO. Currently the tenth largest bank headquartered in Michigan, Northpointe Bank has been honored several times by the Independent Community Bankers of America with a variety of accolades including,
- 2014 – Ranked as a top-performing lender, one out of nearly 450 community banks that have been successful in providing loans to individuals, families and small business.
- 2016 and 2017 – Ranked as the ninth best performing financial institution in the country, according to return-on-equity during 2016 for banks with assets between $300 and $1 billion.
How the Ultimate Savings Compares
When compared to 220 Savings Accounts tracked by DepositAccounts.com that are available nationally, Northpointe Bank’s Ultimate Savings APY currently ranks first, regardless of minimum deposit.
| Interest Rate | Account Name | Credit Union/Bank |
|---|---|---|
| 2.55% APY | Ultimate Savings ($25k min/$1m max) | Northpointe Bank |
| 2.52% APY | High Yield Online Savings ($100 min/no max) | Vio Bank |
| 2.51% APY | eOne Savings (no min/$1m max) | Salem Five Direct |
The above rates are accurate as of 7/6/2019.
To look for the best Savings Accounts rates, both nationwide and state specific, please refer to our Savings Account Rates page.
rate may change based on prevailing market rates."
Translation: "We plan to reel 'em in and then pull the rug out from under them."
Silly.
This bank has a history of high rates going back to 2017 so I would not expect such games.
I am not opening a new account over .005% either.
Similarly, I do not expect Northern to drop their rate very low on Jan 1, 2020. They might drop it but I don't expect games.
It's easily to look at this offer on its face and think it's a short term promo followed by a large rate drop but we have a track record over the last 2-3 years of rolling out savings and money market rates at or very near the top of the market and then making the promo rate the permanent rate.
For us, the true story is much simpler. We're one of the larger mortgage lenders in the U.S. and growing rapidly. We need more deposits to fund our lending activities. High rates attract deposits. Historically, we've offered 12 or even 24 month rate guarantees but with most analysts predicting the Fed to cut rates in July, the longest we're comfortable guaranteeing the top savings rate in the U.S. was three (3) months. After the July Fed meeting, we'll reevaluate to see if 2.55% still makes sense as well as whether to hold or extend the rate guarantee. No malintent here; this is just how bank's need to operate in an uncertain rate environment. Best, Bill C, Northpointe Bank
But if I interpret what Ken is saying correctly, you get a choice between keeping that OR getting 2.55% guaranteed for only 3 months and then after that and unknown rate.
So it sounds like if you take this deal, you lose your 2.3% guaranteed floor.
Maybe someone can check and confirm if that's correct.
As Ken said, if that's the choice, then it seems like keeping the 24 months guarantee at 2.3% is a better choice.
Maybe the reason they're offering this 2.55% deal is to get people to give up the 2.3% guarantee. If it's a choice between the two I'm keeping the same arrangement already have. If I get both, I'll be bringing significant new money into that account.
I assume you can open a new ultimate savings account at 2.55%, and also keep your existing ultimate money market account a 2.30% guaranteed for 24 months if you have it. If that's the case it's a good deal.
You are correct in that you don't have to choose one or the other; clients with an existing 2.30% APY Ultimate Money Market account can open a second account to earn 2.55% APY on our new Ultimate Savings promotion. That said, both accounts have minimum balances of $25k so this would require someone having at least $50k to maintain both accounts. Best, Bill C. Northpointe Bank