Update: Rate has increased to 2.47% with a 2.50% APY for balances up to $250,000.00. Account not available to new customers, this rate upgrade is for existing account holders only.
Rate is no longer available sadly. View the best current rates here.
Update: They won’t be accepting new applications after 9AM EST June 20th (today). Few hours left to get the account if you’re interested. Hat tip to reader Ty
The Offer
- Northern Bank Direct is offering a 2.26% APY interest rate on their money market account. Rate is guaranteed through June 30, 2019.
You do need $5,000 to open this account, however, there’s no need to have $5,000 in the account to earn the rate, just to open the account, as per the fine print.
Northern Bank Direct is the online arm of Northern Bank (a Massachusetts based bank) – accounts are available to anyone nationwide. The bank is FDIC insured. No monthly fees.
The Fine Print
- Annual Percentage Yield (APY) effective as of 6/8/18.
- Minimum deposit of $5,000 to open the account.
- Maximum opening deposit of $250,000.00.
- 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%.
- Money Market average daily balances between $250,000.01 and $1,000,000.00 earn an interest rate of 0.75% resulting in a blended APY between 2.26% and 1.13%.
- Money Market average daily balances greater than $1,000,000.00 earn an interest rate of 0.01%, resulting in a blended APY between 1.13% (for average daily balances just over $1,000,000.00) and 0.23% (for an average daily deposit balance of $5,000,000.00).
- Your interest rate and APY are accurate as of June 8, 2018 and guaranteed through June 30, 2019.
- After June 30, 2019, your interest rate and APY may change and at our discretion we may change the interest rate on your account daily. The interest rate will be determined by us based on current market conditions.
- You can make up to 6 transfers per month to another account with us or to a third party.
Our Verdict
Rate is a good bit above the next-best available rates of around 2% APY (check updated rates in our dedicated post), and rate is guaranteed for a year.
The fed recently raised interest rates by .25%, and signaled that two more raises are on their way this year. So the main thing is really to find a bank who will KEEP UP their rates as rates overall go up.
That said, it’s likely this will still be a good or very good rate for the next 12 months. If you have a lot of cash on hand, and don’t mind jumping banks, this could make sense. For example, if you have $100k cash, you’ll net an extra $260 using this account over an account which earns 2%.
We’ll add this to our list of Best High Yield/Interest Savings Accounts – Up To 5% APY.
Hat tip to reader Eduardo Baez
Heads up for anyone who has/uses this account — they now offer a Money Market Premier account with a high rate, but the rate on existing Money Market accounts has been nerfed (0.45% as of 2/2023).
Yes, and if you send a SM they will convert your account to the 4.35% account which is what I did a few days ago.
The 0.45% rate has been in effect since before June 2022 on the old MM account.
Real shit move not notifying customers and then forcing them to manually request a account conversion to get the new higher APY.
I wonder if NBD is doing this to pad their new account openings quota for Q1. If the APY weren’t 4.35%, I probably wouldn’t put up with this nonsense.
After getting the statement email yesterday morning I logged in to check my March statement. I can’t pull up anything past the Nov 30th statement. Three days ago I could see statements through Feb. Messaged them, but I imagine it will take a while to hear back from them.
Anyone able to see their March statement?
Anybody have trouble setting up a linked account to their money market? Northern said I need to chose ‘MMA Checking” from the dropdown from the Citibank menu but it’s not accepting it. Calling Citibank now but wondering if anyone experienced the same thing.
Gina, I’ve had no problems with setting up external transfers from Alliant Credit Union to/from Northern. I just selected “checking” instead of “savings” when Alliant asked what type of account.
Just got an email today that the 2.5% APY got extended to year end.
Received e-mail today: Because you’re a valued and loyal customer, we have increased your interest rate to 2.47% with a 2.50% APY for balances up to $250,000.00*.
Keeping up with the Joneses.
William Charles I’m to lazy to research new account rate for MM.
Got the same thing, just when I was getting ready to move my money out. New rate is guaranteed till June 20th, 2019. Also, at least for now, this rate does not look like it is available on their website.
Got the same thing. I’d moved most of my money out a few weeks ago when Marcus went to 2.25%. Now I might move some back.
I moved a sizable chunk out a couple weeks ago… So it’s very possible it’s targeted. Probably trying to see how much they can get back in, before advertising for new accounts.
I’ve had 100k in the account since the beginning, but I did move out $15k a few weeks ago and I received the bump. I suspect everyone received the bump. Moved it back in now that Q4 is over with.
Got the same email today. I moved all my money out a few days ago. I thought they increased the rate because I moved my money out. But looks like it’s the same for others. Now moving some money back.
NBTC has restricted my account and threatened closure three times over signature cards. I provided them signature cards months ago. This is starting to get annoying.
I checked my statement and it says “Last statement APY earned: 1.17%” instead of 2.26. Anyone else have that?
I haven’t checked my statement but did the math and I earned the correct 2.25% interest for October.
That’s weird, for me it says 2.60% apy, no idea when they increased it but I’m happy.
Says 2.26% for me. Did you have the same balance for 30 days?
It says last statement apy earned 2.68% on account rate information, no change at all on my balance for about 4 months
And the amount you received calculates out to 2.68% and is higher than last month if you did actually receive 2.25%? I wouldn’t let them know 😉
I wouldn’t let them know either XD, yes it does calculate to 2.68% exactly, I was about to close the account but them I saw that and decided to keep it
..Northern Bank with it’s 2.26% APY which used to appear here few months back — discovered today they had placed our Money Market account into an INACTIVE status despite monthly deposits and interest withdrawals. All signature forms were returned to bank also and verified online that the e-statement was worded to display our designated In Trust of… POD beneficiary.
Anyone else had this happen ?
Northern Bank solved — they place account inactive if any unsuccesful logon that day does not also have a resolved logon same day — for security, all good now
Quite annoying to receive a two page form for signatures today and also asking for my and wifes mother’s maiden names as well. Not a very decent online bank if you have to resort to snail mail and also asking for sigs as well. None of the other online banks i’ve joined have reverted to this. There was also a threat to close the account in 13 days as well. I’m wondering if this is their way to try and whittle down too much velocity in?
I received the same. If my memory is correct, I indicated that I wanted to add a beneficiary to the account which may mean that I will get more forms in the mail. Yes, it is odd to have to do this by snail mail and to provide signatures when I am using this bank as an online bank.
They probably want signatures because MMA accounts allow check-writing. No big deal, except for that “threat to close the account in 13 days” part. 😮 The only mail I’ve received from Northern so far is the ATM card, the PIN, and ‘thanks for signing up for online banking’.
Makes Sense Ann. However, other online institutions do not require wet signatures (Ally, Discover come to mind as I have recently set up accounts with both). Granted those were Checking & Savings for both and not MMA’s.
I opted out of the ATM card, but am still awaiting checks from them (wondering if they auto send them out…)
Maybe they cut checks once the wet sigs are in.
I guess the larger and more online-centric institutions have modernized their procedures more.
Got the Northern sig card thing in the mail today. It says ’14 days’ rather than 13, FWIW.
You overlooked complaining about the Full SSN on the form, and being circulated back and forth in the mail. I thought there was a law against this, but only against the federal govt doing so. And some states, but apparently not for Maine, or my state.
Ref: https://oig.ssa.gov/newsroom/blog/oct27-ssn-mail-law
https://consumersunion.org/news/state-laws-restricting-private-use-of-social-security-numbers/
I don’t think it’s an attempt to get rid of people – just a sign that they haven’t automated all of their processes. I have had a few banks want physical signature cards/applications on file. I think many banks also do this to avoid scandals, like the bad publicity WF received for not being able to track opening of accounts and they want to be able to prove they weren’t opened by bank employees, or fraudulently by scammers.
Come to think of it, I’m pretty sure I had to mail in a signature when I did a Wells Fargo checking bonus last year.
Yep. And if the policy is to have that signature card on file, and they don’t produce one, it implies that some shenanigans took place. But, maybe they WF banker’s just forged those too. Unlikely, because seems to me that would be a criminal offense.
Received the same lol, i just tried to ach some money out and it tells me i can only ach with external accounts with banking relationship, really? The accounts i used to transfer money to and from now i can’t? What a joke lol they’re active since i already did the trial deposit and been transfering betwheen them before XD i sent them a sm lest see what they make up, although i already pull from external bank anyways.
See Wilson’s comment https://www.doctorofcredit.com/northern-bank-direct-2-26-apy-money-market-account/#comment-616524 – sounds like they may just want to manually review the first time you push from Northern to that account, and it didn’t take long, at least for him.
Hehe i see, i just got a sm from northern my account was under management review hence not being able to transfer anymore, it is now active since i sent them the inquiry, also the mail thing isnt a big deal, just sign it and put your mothers maiden name, every bank i’ve applied recently is asking for this signature so is acceptable for them to do it too.
Got an email yesterday, after post account opening review we require a photo of your state id, i sent them the id as a reply but is weird they ask for that after i’ve everything set up and debit card on hand xd.
Got that too, Not very reassuring that they expect you send it insecurely. Also I found out that their online transfer system denies outgoing transfers to most of my other accounts even after setting them up with test deposits…will be closing this account once they inevitably fall behind rates
should update that apparently they may manually review linked transfer accounts, but I was soon able able to push the money and it reached the other bank the next day