Online platform, strong money market account

Northern Bank Direct logo on 2x1 personal finance pattern background

Northern Bank Direct offers a money market account and CDs.

Bank of the North direct; Rachel Mendelson / Insider


Overall rating of the bank

Advantages and disadvantages

CD

Annual percentage return (APY)

0.30% to 0.40% APY

  • Advantages and disadvantages

  • Details


  • Advantages
    • Competitive interest rates
    • Minimum deposit of $ 500
    The inconvenients
    • High early withdrawal penalties
    • Interest compounded monthly, not daily
    • Online account available nationwide; you can also visit 13 branches in Massachusetts
    • The durations vary from 6 months to 5 years
    • Early withdrawal penalties range from 6 months to 36 months of interest
    • Interest compounded monthly
    • FDIC member

    Read our review
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    Northern Bank Direct pays higher interest rates on CDs than most physical banks. But you can find better rates on most terms at other online banks.

    Money market account

    Annual percentage return (APY)

    0.45% APY

  • Advantages and disadvantages

  • Details


  • Advantages
    • High APY
    • No monthly service fees
    • Paper checks
    • Bank card
    The inconvenients
    • $ 5,000 opening deposit
    • $ 2 off-network ATM fee
    • Interest compounded monthly, not daily
    • Online account available nationwide; you can also visit 13 branches in Massachusetts
    • Free access to ATMs in the SUM network
    • Interest compounded monthly
    • FDIC member

    Read our review
    Read our review A long arrow, pointing to the right

    We’ve included the Northern Bank Direct Money Market Account in our guide to the best money market accounts. It pays a high interest rate and includes both an ATM card and paper checks. It could be a good place to keep your emergency fund because you can easily access your money if needed.

    How Northern Bank Direct works

    Northern Bank Direct is Northern Bank’s online platform. You can open Northern Bank Direct accounts online from anywhere in the United States and visit any of the 13 branches in Massachusetts if you live nearby.

    Northern Bank Direct offers CDs and a money market account, but no traditional checking or savings account. You can, however, open current and savings accounts if you are in a branch.

    To contact customer service, call Monday through Friday 8:00 a.m. to 6:00 p.m. ET, or Saturday 8:30 a.m. to 12:30 p.m. ET.

    The Northern Bank mobile app does not yet have a lot of customer reviews. So far, it only has 1.5 out of 5 stars in the Apple Store and 3.6 out of 5 stars in the Google Play Store.

    Your deposits are FDIC insured up to $ 250,000, or up to $ 500,000 for joint accounts. This means that your money is safe even if Northern Bank closes its doors.

    How trustworthy is Northern Bank Direct?

    Northern Bank Direct has no public controversy.

    The Better Business Bureau gives Northern Bank an A + in reliability, indicating that the bank responds effectively to customer complaints, advertises honestly, and is transparent about business practices.

    A high BBB rating, however, does not guarantee that you will have a harmonious relationship with a company. You might want to ask friends and family about their experiences with Northern Bank Direct, or read customer reviews online.

    How Northern Bank Direct Stacks Up

    We compared Northern Bank Direct to two other banks in our best guide to money market accounts: Ally and Synchrony.

    Ally is probably your best bet if you are looking for a full banking experience, as it is the only one of the three that offers a regular checking account. Ally or Synchrony might be better for long term CDs, but you might earn more with Northern Bank Direct on a shorter term CD.

    All three banks have strong


    money market accounts

    that offer paper checks and cards at no monthly fee. The main difference is that Northern Bank Direct and Synchrony have ATM cards, which allow you to withdraw money from an ATM. Ally has a debit card, so you can use it to make purchases.

    Stephen V. Lee