Multiple readers let us know about an email they received from Northern Bank increasing their money market rate to 2.50% APY through June 30, 2019.
Money Market average daily balances from $.01 to $250,000.00 earn the advertised 2.47% interest rate with an Annual Percentage Yield (APY) of 2.50%….
Your interest rate and APY are accurate as of January 28, 2019 and guaranteed through June 30, 2019. After June 30, 2019 your interest rate and APY may change as this is a variable rate account. 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. Please call 1-800-273-6908 for current rate information.
2.50% APY is just about the best rate you can get at the moment. Rate is only locked in through June, and it’s likely rate will then go down. Certainly a good reason to leave your money there, but you’ll have to decide if it’s worth the trouble of moving it back and forth for this.
Again, this offer is only for existing Northern Bank money market customers – I believe for all of them – but it’s not something you can signup for now.
Interest rate down to 1.25% now, down from 1.75% and 2.5% before that. Man this sucks. All my interest bearing accounts have cut their rates in half and even many of my dividend paying stocks have cut or stopped paying their dividend.
Anybody yank >20K out of their account yet? Have the ACH set for today pulling from account with discover. Here goes nothing!
Follow up: I was able to yank all my money out without incident using Discove.r
The rate lock on your Northern Bank Direct Money Market account of 2.50% Annual Percentage Yield (APY) for daily balances less than $250,000.00 expired on December 31, 2019. This letter is to notify you that Northern Bank will continue with the 2.50% APY through January 12, 2020.
Effective January 13th, the interest rate for daily balances less than $250,000.00 on your Northern Bank Direct Money Market will be lowered to 1.74% with an APY of 1.75% in response to the recent Federal Reserve rate cuts.* This is a variable rate account and the interest rate and APY may change at any time.
Now to see if they block ACH’s >$20K like their TOS says. However their TOS may be for their internal transfer initiations. I’m pulling out back to my hub on the 13th. Will report back….
Which hub do you use, Justin? Does your hub offer more interest than the 1.74%, and that’s why you default to it? I’m trying to have some kind of process in place for when interest rates lower, and also after cashing in on bonuses. I have some accounts that already got their bonus but have left the $ there even though it’s no longer earning interest because I’m not sure what to do with it. So by having a default go to would help with that.
I use discover and that’s currently at 1.70/1.75% itself for now. So, it’s a wash. However, I finally got enough save to pay of my mortgage (woot!) so i’m depleting my war chest to liberate myself from that 🙂
I called recently and was told that accountholders would receive an email during the week of 12/16-20 which announces the new rate. The worst case scenario is not receiving any notification and waking up New Year’s Day to an unpleasant “surprise”. Many of us are already in position to take appropriate action on short notice. If you want a current 2% cushion I’m using both All America Bank and Virtual..
I called today and was told we would be notified the week of January 13th if any rate change, but that the rate would remain through then. Previously was told they would let us know on 12/26 so it sounds like they are still trying to decide on the new rate.
Email went out today, see above.
So, would the 2.5 rate be over at the end of the year? Where are you all moving funds?
Email today:
..
Change to the Interest Calculation Method on Your Account
Online Banking
Dear Valued Customer,
At Northern Bank, we are committed to providing our customers with the highest level of service and the most innovative banking products possible.
We are writing to inform you that effective December 1, 2019 we will begin using the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the available principal balance in your account each day.
The new tier structure will be as follows:
If your daily balance is less than $250,000.00, the interest rate paid on the entire balance in your account will be 2.47% with an annual percentage yield (APY) of 2.50%.
If your daily balance is $250,000.00 up to $999,999.99 the interest rate paid on the entire balance in your account will be 1.24% with an annual percentage yield (APY) of 1.25%.
If your daily balance is $1,000,000.00 and above the interest rate paid on the entire balance in your account will be .25 % with an annual percentage yield (APY) of .25%.
Northern Bank is no longer accepting applications for the Money Market account.
Just got an email saying the 2.50% APY rate was extended through the end of the year for under $250k:
*Effective July 1, 2019, the interest rate and annual percentage yield (APY) on your Northern Bank Direct Money Market account will change. The tiers are changing as follows and the blended APY will no longer apply. You will earn the stated APY on your total account balance of the tier that your account balance aligns with.
Average daily balances less than $250,000.00 will earn an interest rate of 2.47% and APY of 2.50%.
Average daily balances $250,000.00 up to $999,999.99 will earn an interest rate of 1.24% and APY of 1.25%
Average daily balances $1,000,000.00 and above will earn an interest rate of 0.25% and APY of .25%
After December 31, 2019, the interest rate and APY may change. Fees may reduce earnings on the account. The minimum to open this account is $5,000.00
5-business day hold for initial ACH funding and for 30-days new customer period. Then it supposed to be 3 business days. I recall EBSB is immediate after 30-days.
It’s only for a subset of existing customers – not everyone with a lower-rate account there, only the ones who signed up for a year of 2.26% guaranteed, that was offered for a limited time last summer. Now the final 5 months of that guarantee will be at 2.5% instead.
Mine is still at 2.26%. Not cool. just sent them a secure message. Let see if they match. Thanks for the heads up. 2.50% would make me stay with them.
This is supposed to be an increase on all 2.26%-guaranteed accounts. If you received the email announcing the change yesterday, it’s just taking them some time for the website to be updated to the new rate.
No email, checked the spam as well :/