I was surprised that the last time I wrote about a CD offered by Michigan-based Northpointe Bank (Northpointe) was in October 2017. After reviewing the rate history, the reason is quite simple: Northpointe’s CD rates have been dismal for the past six years. Northpointe has ended this lengthy rate drought by recently adding an 11-month CD Special earning 5.55% APY. The minimum opening deposit is $25k of new money, with no stated balance cap.
According to the Truth in Savings disclosure (page 27),
Funds already on deposit with Northpointe Bank in any other account within the 60 days preceding the date that the new Account is opened may not be used to qualify for this offer.
Early Withdrawal Penalty
As stated in the Truth in Savings disclosure, the Early Withdrawal Penalty reads as follows:
Withdrawals from the account prior to maturity are subject to a substantial
withdrawal penalty equal to 90 days interest on the amount withdrawn.
According to CSR, partials withdrawals are allowed, but any withdrawal made within the first 90 days of account opening will reduce the CD Special principal.
Availability and Account Opening
Headquartered in Grand Rapids, Michigan, Northpointe Bank offers its services and product line to all U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number or a Taxpayer Identification Number (TIN).
Funding and Other Details
The following information is from the Truth-in-Savings disclosure and conversation with a CSR.
- Funding – ACH or wire (no fee).
- Ownership – Individual, joint, or trust.
- Interest* – Compounded daily/credited monthly and can be withdrawn penalty-free.
- Maturing Funds – ACH, wire ($25 fee), cashier’s check to address on file, or internal transfer.
- Grace Period** – 10 calendar days.
- Beneficiaries – Unlimited, with percentages available; Social Security numbers are required.
- Credit Check – ChexSystems
*“Account holders can only elect for a transfer of interest via withdrawal prior to account opening. This election cannot be changed after account opening. This includes accrued and credited interest to be paid monthly to the account holder by ACH or deposited into a Northpointe Bank account.”
**“Unless specified otherwise on the Account Signature Card, this account will automatically renew at maturity.”
Northpointe Bank has an overall health rating of “B+" at DepositAccounts.com, with a Texas Ratio of 4.14% (excellent), based on March 31, 2023 data. In the past year, Northpointe Bank’s total non-brokered deposits decreased by -$129.55 million, a poor annual growth rate of -10.95%. Please refer to our financial overview of Northpointe Bank (FDIC Certificate # 34953) for more details.
Currently the fourth largest largest bank headquartered in Michigan, Northpointe Bank has with assets in excess of $4.5 billion and nearly 18,000 customer accounts. A relatively young institution, Northpointe Bank was founded in 1999 by Charles Williams (current President and CEO) focusing on residential mortgage loan origination and servicing. According to HousingWire February 2023 article, Northpointe Bank,
will walk away from its correspondent lending business to focus on its retail lending, mortgage warehouse financing division and specialty loan servicing business.
“Due to the significant contraction in the overall mortgage industry, we have made the difficult decision to exit the correspondent lending business,” Chuck Williams, president and CEO, said in a statement.
Northpointe was the 24th largest correspondent lender, according to Inside Mortgage Finance. Correspondent production posted $2.45 billion in the first nine months of 2022, accounting for 41.7% of its total origination. Third quarter correspondent volume dropped to $552 million in Q2 2022, a decline of 29% from the previous quarter’s $780 million, IMF data showed.
How the 11-Month CD Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $25k or less, two banks have higher rates than currently offered on the Northpointe Bank 11-Month CD Special. The following table compares the 11-Month CD Special to the two highest-rate CDs from credit unions and the two highest-rate CDs from other banks.
The above information and rates are accurate as of 8/10/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.