Posted by William Charles on March 1, 2018
Savings Accounts

Published on March 1st, 2018 | by William Charles

67

Northpointe No Longer Earning 5% APY – How To Transfer Your Funds Out

Update 01/03/18: This account no longer earns 5% APY so you’ll want to transfer your funds out. Reader Jody has an easy way to do so:

  • Click the “Bill Pay” tab, and then click bottom right “what else can I do?”
  • Then you’ll see the option to transfer money between your own bank accounts.

There is no point keeping funds in this account as plenty of banks offer accounts earning well above 1% APY with no requirements and up to 5% with requirements. More alternatives can be viewed below.

Original post: Northpointe offers the UltimeAccount, this earns 5% APY on balances up to $10,000 when the following requirements are met:

  • Must enroll in e-statements.
  • Must make 15 debit card purchases. (The 15 transactions must post and settle during the statement period to qualify.) More details on this below.
  • Must set up an automatic withdrawal or direct deposit of $100 each month

This account has undergone a number of changes over time (full history here) and on 11/21/17 it became no longer available for new sign ups. Existing account holders are starting to receive letters regarding a major negative change to this account. Important sections of the letter are as follows:

  • Effective March 1st you’ll earn 1% APY when requirements are met (down from 5% APY)
  • Effective March 1st the requirements will be as follows:
    • Make $1,000 or more in debit card purchases
    • Be enrolled in eStatements
  • They will make closing your account easy by visiting northpointe.com/goodbye. This currently doesn’t work and won’t work until February 5th, 2018

Alternatives

Given that basic savings accounts rates are currently offering 1.7% APY, I don’t think Northpointe seriously thinks people will continue to keep using this account. I suspect a lot of readers will be looking for alternative places to stash their funds. The obvious choice for most people will be getting an Insight card (or two) that offers 5% APY on balances up to $5,000. Other options include Consumers Credit Union 4.59% APY account on balances up to $20,000 and Mango Prepaid’s 6% APY account. A full list of high interest accounts can be found here (this page is kept up to date, so might be worth bookmarking and sharing with friends).

Hat tip to reader Steve



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Justin
Justin

Northpointe has already set up this link: https://www.northpointe.com/goodbye/

Man this was nice while it lasted!

JasonP
JasonP

I can feel Bill Clancy’s broken heart. I don’t know if originally it’s Bill’s idea to promote products and establish a relationship here or a decision by the Northpointe’s management team. Anyway, it’s a fail, and Northpointe must be losing a lot of money and hopefully Northpointe can forget about this website which broke their heart soon…

The Man
The Man

It’s no surprise banks are just too greedy and don’t care about customers. It’s all about profits at the end of the day. Let’s put things into prospective. If they have 10 who have the full 10k, that’s roughly 416.66 they are paying on interest monthly and 100k in their bank to loan out that money to other customers. You don’t think they are making more than 416.66 loaning out 100k? Absolutely!

JasonP
JasonP

mathematically, u r right. But banking industry, like almost all other industries, is not pure maths. How about operational cost? How about loans they lent that can never be retrieved and had to be written off? All in all, I don’t think any banks can make money on the money they are paying 5% for, unless the customers are meeting some requirements without cheating. Those high-yield banking products are supposed to be for customers who can just meet or can with a little additional effort to meet the requirements like debit card use and DD. In that case, banks can continue providing high yield interest and customers can still continue their spending habits. It’s supposed to be win-win. However, with websites/blogs/forums sharing info, ppl can cheat now…and banks start to do the bait and switch. All businesses. and everything will go back to a status of balance.

The Man
The Man

True. I’m sure there are other costs behind the scenes we don’t know about they need to cover.
All good things have endings unfortunately.
Oh well… life goes on 🙂

Jason
Jason

Not that “people can cheat now”, it’s that people share their own way of cheating.

Josh
Josh

Note: A fee of $10 will be charged against the account if it is closed within 120 days of the date opened. D:

Ed\'
Ed\'

All I wanna say is lmaooooooooooooooooo

Lazzy
Lazzy

What can I say… LOL!

JasonP
JasonP

I felt it funny long ago that banks or credit unions could partner with a site/blog like this in terms of checking/saving products (no offense though), coz basically doc website vs. banks/CUs should be sort of enemy relationship by nature. All the main contents here are basically teaching people how to take advantage of banks…from how to fake DDs to meet requirements and how to maximize our profits by CC funding/out-of-state application etc/abusing promos, and none of these will help banks/CUs make money at all…

That said, I like doc’s website. It’s just that I found the previous relationship/partnership between doc website and northpointe is quite surprising. ;D

Ed\'
Ed\'

Now the bank knows, lulz

Yet Another Redditor

Yup, surprised me too. Someone must have benefited from the sigups but the bank itself obviously could not sustain the account – which was expected. Why put it out in the first place and get all this negative publicity?

NoonRadar
NoonRadar

Yeah several of us founded suspicious that Northpointe was advertising here, we feared they’d pull a bait & switch. I opened an account last year just before they changed their terms (after their first wave of getting a bunch of new customers); I figured after that it was a matter of time before they did this.

Oh well, will close the account (there’s zero reason to stay with Northpointe for 1%, doesn’t even exceed Alliant’s savings rate which I like much better as a bank & has zero requirements) and will take a look at some of the credit unions that have been doing the higher rates for a while–and who make it a point to not solicit customers on a site like this.

Jeff
Jeff

Noooooooo. terrible news

Yet Another Redditor

Good riddance to bad rubbish.

Of all the amazing stuff posted here, Northpointe was the worst – the only one to leave a really bad taste in my mouth. Glad I am never going to be their customer again.

JasonP
JasonP

there’s an old Chinese saying, which basically translates to “if someone gives u a little help/benefit, u will be grateful; however if someone keeps giving you more help/benefits, u will take it as granted and think he/she should help you. And one day when he/she stops giving you help/benefit, u will start to hate him/her coz you feel he/she is not fair and a bad guy, regardless he/she has always been helping you” Cmon, Northpointe is not that awful. Let’s say that “Drop”, let’s say that credit union who closed all the accounts the next day after ppl signed up. Northpointe was too nice at the very beginning…

SMan
SMan

+1

JasonP
JasonP

BTW, i know a lot of high yield bank accounts just closed ppl’s accounts when they spot ppl playing around the rules. While Northpointe added certain hard requirements like debit purchases over a certain dollar amount or the conditions saying that they have the discretion to not honor high interest rate if ppl don’t complete requirements in a healthy way, i don’t think they ever implemented such punishment. I assume they were too embarrassed to really enforce that coz they have “friendship” with doc website and doc readers. And maybe finally when they examine their balance sheet, it’s the last straw and they realized they had to end this for good.

Wilson
Wilson

Probably wouldn’t really be legal for a bank not to pay interest though the requirements were met, and too many customers called their bluff

Dan
Dan

I’ll probably just leave a couple bucks in the account just in case they decide to bring it back at some point in the future (I’m not holding my breath, though). There’s no harm in leaving it open

Wilson
Wilson

There is an inactivity fee after 12 months

DMitri
DMitri

Well, looks like I get to change my auto-pay for all my credit cards now.

I actually used this account semi-legitimately. I funneled all my income not destined for investment and retirement funding toward this account and paid for my first 12 trips to the convenience store/weekend cafe with this card (avg transaction was over $5, when I would otherwise use Citi Double Cash regardless of which credit union I kept my money with [was denied Uber card for restaurant spend…..soon]).

Too bad Insight is such a pain to deal with re: auto-payments because you have to keep moving money between the card and the savings account, making it less than auto.

Glad I didn’t close my LMCU account after learning about Northpointe, that’ll probably be my new CC bill-pay account.

Ender
Ender

Why is insight hard to keep? I just set a monthly ACH to the card and forget about it. Anything I am missing?

PC
PC

You can have more than 1 Insight card?

PHONG CHAU
PHONG CHAU

I have 3 :). Just auto ACH for easiness. Some reason I get login problems ever few months and have to reset it though. So annoying.

Dave
Dave

How did you get 3? I’ve been stuck with one this whole time.

PC
PC

I just tried opening a second card for myself and spouse with no luck.

V.
V.

My experience with Northpointe was rather negative. Short story: couple months after opening an account, around $400 were stolen from my debit card, and the bank told me I was too late with my dispute. Long story below. I have opened a checking account in June 2017. It happened that I did not use the card a lot – only had 8 purchases in total – just regular things, no shady sellers. They don’t have any notification system about the card usage, and – my bad! – I didn’t log in very often to check recent transactions. That’s why it was only in October that I noticed a charge of about $400 displayed as an offline purchase (in a drugstore) in Ontario, Canada. I have never been to Canada in my life, and the card was kept at home all the time. I contacted the bank (btw this can be done only in business hours, even if you want to report a fraud! have never seen a bank like this) and was asked to submit an “Error report”. In one week, they send me a letter saying that I was too late: “Per Regulation E, you have 60 days after your statement date to dispute transactions. Per your dispute forms, you did not notify Northpointe Bank until November 3, which is 64 days after your August statement cut on August 31, 2017.” – yes, I was just 4 days late! I wrote them again asking about the possibility to reconsider my case – they never answered. Bottomline: think twice before doing business with Northpointe, or at least be very cautious: 1) if you use their debit card, there’s high risk of it being compromised. I only had 8 purchases in total – and this was apparently enough to make a duplicate of my card that could be used even for in-store purchase. 2) they have no notifications about the card usage – no text or email messages, nothing. Every time you must log in their website and check your recent transactions. 3) their anti-fraud system sucks. Sudden big charge in a foreign country does not raise any alert. 4) and If you’re lucky to notice the fraud by yourself – no, you can’t get support at any moment, wait for their business hours. Then fill the forms and wait for their decision letter (no, they will not call or email… Read more »

CtownBin
CtownBin

I would DEFINITELY report this to the CFPB. Frankly, I am rather shocked by your story. Most banks I’ve dealt with would never leave a customer hanging over a transaction that was so obviously not their own. Particularly, the fact that it was a large purchase in a foreign country should have set off a fraud alert immediately, unless you had other similar purchases and/or had told the bank you were travelling (which of course you didn’t). These would all be things to include in your report.
I have to be honest here, I’m very surprised. Of all banks to pull this stuff- I mean, really, 4 days late on a transaction that so clearly isn’t his!- I can’t believe it was Northpointe. I’m wondering what Will thinks about this given his relationship with Norhtpointe and what can be done to settle this. V., please keep us posted.

J. Grant

I was going to give this bank a try, and actually make it my main bank. I was REALLY turned off by a few things regarding online banking 1) website that looked like it was built by me in my info science class using Microsoft frontpage, in high school 2) limited options (really looked like a stripped down version of what a normal bank’s website usually looks like). I’m not sure if my expectations are just normal or if I was logging into their “old” website from 2005 or something. They were professional and pleasant on the phone though, so they’re at least doing something right.

Flea
Flea

The entire bank site’s not working for me, lol. The login’s been giving me various flavors of give-up for about 45 minutes now, which isn’t helpful since I need to retrieve the list of my small debits and cancel them. I can only assume everyone else is trying to do the same. Thanks Northpointe!

NorthpointeScams
NorthpointeScams

Gotta love the bait and switch. Get everyone to invest time in switching banks and turn around and screw them a few months later. They even advertised “earn $500 per year” but never made it that far. Feels shady.

az
az

Oh, I can still earn 5% for the last month.

Max
Max

I have nothing but negative things to say about Northpointe. First, they’re Chex sensitive, which I can’t stand, and secondly, they did a pretty big bait and switch here.

However everyone, please don’t close your account until you get the last of your 5% interest paid. You may have 5% interest which has accrued but not been paid yet. Get your final payment, then close the account.

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