Northpointe Bank Boosts Ultimate Savings Rate
UPDATE 5/16/18: Existing Ultimate Savings account may qualify for new rate. See below for more details.
In September 2016, Michigan-based Northpointe Bank introduced its Ultimate Savings, which at the time earned 1.12% APY on balances of $10k+, with a rate guarantee for “at least 12 months.” Since being added to the product line, the Ultimate Savings has had no rate changes, until now.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 1.95*% | $25k | $1m | Northpointe Bank | Ultimate Savings | |
| OTHER TIERS: 1.12% → Any amount | |||||
For Ultimate Savings accounts opened on or after May 14, 2018, the new tiered APYs are as follows:
1.12% APY – Balances of $0-$24,999.99
2.05% APY – Balances of $25,000-$999,999.99
1.12% APY – Balances of $1,000,000.00+
Unlike when the Ultimate Savings was introduced in September 2016, there is no rate guarantee. Also, existing customers of the Ultimate Savings won't automatically benefit from this new rate. Like several of today's rate leaders, a new account must be opened to receive the top rate.
UPDATE 5/16/18: In a Live Chat this morning, CSR stated,
We are not changing existing customers’ rates. But if they request the new rate and meet the qualifications [$25k-$1m balance], they are eligible. But it won’t automatically change.
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.
What You Won’t Find On The Website
My September 2016 contained information that isn’t readily available on Northpointe Bank’s website; CSR confirmed that nothing has changed since that blog post. Here’s a re-cap of what I found out. In summary, you'll probably want to rely on the ACH transfer service of your other bank to move funds.
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 in Online Banking within the Bill Pay section.
Is it free to initiate ACH transfers?
There is no charge to pull money into Northpointe Bank via ACH. There is a $3 per transfer fee to push money out of Northpointe Bank via ACH.
What's the maximum dollar amount for incoming and outgoing transfers?
Limits are dynamic based on the account relationship. New customers have a $2,000 limit per rolling seven (7) days. That limit can increase to $10k over time based on average balance and account activity.
For the ACH transfer service, how many accounts at other banks can be linked to?
At some point, I believe there is a maximum limit but I am unsure on the exact figure (I have several set-up and would think 3-5 would suffice for most consumers).
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, Michigan). 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 with 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 branch located in Grand Rapids on the aptly named Deposit Drive.
Northpoint Bank also has 24 Loan Centers in 15 states across the country.
Bank Overview
Northpointe Bank has an overall health rating of “A" at DepositAccounts.com, with a Texas Ratio of 4.86% (excellent), as of December 31, 2017. In the past year, Northpointe Bank increased its total non-brokered deposits by $122.25 million, excellent annual growth rate of 30.63% growth rate. Please refer to our financial overview of Northpointe Bank (FDIC Certificate # 34953) for more details.
A relatively young institution, Northpointe Bank was founded in 1999 by Charles Williams, the current President and CEO. Northpointe Bank has been honored several times by the Independent Community Bankers of America with a variety of accolades including,
- 2013 – Ranked as the number one best performing financial institution in the country among its peers.
- 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.
- 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 the 213 Savings Accounts tracked by DepositAccounts.com that are available nationally, Northpointe Bank’s Ultimate Savings APY currently ranks first, regardless of minimum deposit.
The above rates are accurate as of 5/15/2018.
To look for the best Savings Accounts rates, both nationwide and state specific, please refer to our Savings Account Rates page.
Perhaps the info on our product page helps clarify: https://www.northpointe.com/ultimatesavings/
This is not a blended rate offer. The amount on deposit earns the rate disclosed for that tier on the entire amount on deposit. For example, if $500k is on deposit, the full balance earns 2.05% APY.
If this was a blended rate (it is not), blended rates are required to be disclosed as a range, such as "on Balances $25,000 - $999,999, APY = 1.96% - 1.12%" since the APY earned can vary based on the actual balance.
Thank you,
Bill C, Northpointe Bank
On this page, the savings account points to footnotes 1 and 2, which do not indicate the tiered interest rates.
https://www.northpointe.com/banking/personal-accounts/
The tiered rates are noted here.
https://www.northpointe.com/banking/rates/
First $25k @ 1.12% APY
Remaining $225k @ 2.05% APY
= Blended $250k @ 1.96% APY.
If you put in lower amounts the blended APY comes down. Obviously if you have higher FDIC limits it will push it up. But with their SS# req I'd say it's annoying.
This account pays the APY disclosed on the *full balance* indicated by the tiers. So if the balance is $250k, 2.05% APY is earned on the entire $250k on deposit.
Thank you,
Bill C, Northpointe Bank
Anyhow, killing the golden goose is not a right thing to do, after all, they ask you to do normal purchases throughout the month (please read the disclosure if you still have it), not in just one day and leave the debit card at home until the next month.
If your purchase pattern is to buy one item at a time at the grocery store, it is OK, but you have to do it across the whole month. If you did not agree with their disclosure, you should have not open the account.
Bill C, Northpointe Bank
I applied online with no problem. It lets you attach an image of your Driver's License so you don't need to mail it in.
Biggest issue is that you can't fund it with more than $1000 initially, and their online banking allows only rather small external transfers (nowhere near the $25K required to get the 2.05% APY). So you need to mail in a check, push the funds from an external account or wire in the funds.
I got an email with my account number just hours after I applied.
Don't read more into the "12 month guarantee" that what it actually is - a floor to guarantee the rate will be at least 2.05% APY for 12 months. We've run similar promotions the last two years and in all cases the rate after 12 months was *at or higher* than the promo rate. That's not a guarantee of more than the terms of the 12 months rate promise but past behavior is the best predictor of future behavior, right? While we can't be all things to all people, we do possess a track record for offering high rates, being easy to contact and deal with and providing a higher level of transparency than most FIs (how many other banks respond to questions like these on consumer forums?).
Bill C, Northpointe Bank
EDIT, I just called to make sure. She said the 2% should remain the same for those of us who already have accounts.
I did not ask but Im wondering if the 2% brought in a lot of money and they no longer need to offer that now?
I just looked it up, I opened my account on 4/6 so I am still within their 60 days.
Also, I read an old email which seemed to indicate I could not link my brokerage account but Im pretty sure she is wrong because my brokerage account is connected to a checking account I think.
Its UMB, NA I believe. I had an issue initially linking it at ally but got it straightened out. I know for a fact i never opened an account with UMB, they must handle my Fidelity banking I guess. But the checks say Fidelity. Although I have not used one in a long time.
But I'd give you even more credit, especially considering your comment about past behavior, if your bank hadn't just offered a 5% rewards checking account for some months and then suddenly with almost no notice to your customers pulled the rug out from under them by drastically cutting the rate and what, ultimately eliminating having a rewards checking account altogether?
That's also a kind of past behavior that I, as a former Northpointe customer, take into consideration.
Yes, that is accurate - interest on our Ultimate Savings is calculated daily and paid *quarterly* (Mar 31, June 30, Sept 30, Dec 31). I'll add that we don't require minimum balances to avoid fees with any of our accounts so that's a non-issue as a new account gets opened and funded.
Sincerely,
Bill C, Northpointe Bank
Compounding and Crediting Frequency: Interest will be compounded quarterly and credited to the account quarterly.
So who do we believe you, or the Deposit Accounts Terms and Conditions?
Have I missed anything? Is there a "gotcha" with my plan that I'm not seeing? About the only thing I can think of that could bite me is if they limit ACH withdrawals when (again) the ACH withdrawal is initiated EXTERNAL to Northpointe. Those withdrawals would be limited to $100k each but if that makes them sweat then I should remain clear and not be in Northpointe to begin with. Checks, BTW, are so twentieth century.
That being said - I think this is a very good offer from Northpointe.
Ken clearly states, in his writeup: "Unlike when the Ultimate Savings was introduced in September 2016, there is no rate guarantee."
Anon #26 mentions: "In the application for the Ultimate Savings account, it does say that 2.05% APY is a 12-month promotional rate ... so I think it is guaranteed for a year."
Bill, in his comment #28, writes as follows: "Don't read more into the "12 month guarantee" that what it actually is - a floor to guarantee the rate will be at least 2.05% APY for 12 months."
As with Anon, Bill seems to be saying there is a 12 month rate guarantee. I believe the rate guarantee is a big deal. This is because I will be cashing in a number of no-penalty CDs to fund this account. It's a sensible thing to do if there is a rate guarantee. It is not sensible without such a guarantee.
The application process was very straightforward, one of the easiest I ever have encountered.
Bill C, Northpointe Bank
Opening this application was easy. Online application needed verification of ID. Filled out app 5/18, Faxed ID same day (Friday). Today 5/21, received Welcome with acct # & routing #.
Just started the ACH verification, to connect Northpointe with Alliant CU checking acct. This will make movement of money overnite. Quick & Easy..
Thanks for posting here. In my opinion this is good for both those who frequent Ken's website, AND for Northpointe. Why for Northpointe? Because a question answered here on this forum may prevent that same question from being asked many times, perhaps dozens of times, by phone or chat with the Northpointe customer service reps. I think most of us agree that efficiency is a good thing.
My questions are -
1) Just so I'm clear (and I ask this because of the somewhat confused prior history regarding a "Rewards Checking" account) - the Northpointe "Ultimate Savings" account is in no way a checking account of any kind, correct? Meaning, as with other savings accounts there is a fee (and perhaps other bad things) if one exceeds the 6 withdrawals per month? And, there are no checks issued on this account? And, no debit card is issued for it?
2) If a person wanted to open this account (and no other accounts, at least at the same time) from Northpointe - would Northpointe perform a "hard credit inquiry" involving one or more of the three major credit bureaus, or simply a "soft pull" involving ChexSystems, or the like?
Thank you.
1. Ultimate Savings is not a checking account. Yes, the 6 non in-person withdrawal limit applies. There are no checks or debit card available.
2. We do not pull credit with any Northpointe bank account application. We do pull a ChexSystems report.
Can anyone expound on exactly what this means? Surely, it doesn't mean we can only transfer in $2000 a week initially, as it would take 13 weeks to reach the $25k minimum for the top rate. Is this limit only for their ACH system? Can we push greater amounts from other banks through ACH?
A few questions:
1) Assuming no Reg D (6 transaction limit) issues, what options are there for larger transfers out of the account? I plan to keep my money there long term but should a need arise, I wouldn't want to be restricted by the rolling $2K-10K limits on ACH. Besides wiring the funds out (with a fee) are there other options to withdraw large amounts when needed?
2) Somewhat related to the above, if I open a checking or money market account as well, can I easily transfer funds from my Ultimate Savings account to this checking or MM account (within Northpointe), and then access the funds using checks and other regular mechanisms? If yes, is the transfer between such Northpointe accounts owned by me, instantaneous?
3) Your interest checking account states a minimum initial deposit of $2500. Is there any minimum maintenance requirement to avoid a fee? Is the only difference between the non-interest and interest-bearing checking accounts the initial deposit or is there any monthly fee or minimum maintenance requirement?
Thanks,
Mike
1. You can ACH out if originated from an external source with no transaction limit. You could also open a Northpointe checking which would give you access to Bill Pay and/or checks to write yourself. Lastly, we could mail you a cashier's check.
2. Yes, transfers between Northpointe accounts are instant via mobile or onilne banking. This will allow the functionality you describe (access via checks, bill pay, etc.).
3. No minimum to avoid a fee on Interest Checking but balances $2,500 will not earn interest on those days it is under the $2,500 level.
Best,
Bill C, Northpointe Bank
Best regards,
Mike
So, basically, once you moved in, you have to pay a fee to get out?
What about wire transfer, what is its fee?
Thank you.
Fact of the matter is that after the account is open, no one will ever know who is contributing the funds to those accounts. So much for all those security checks when opening the account, in the end is just a false sense of security.
Check Forum