Northern Bank Direct Review of Money Market and CD Rates

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Updated on Tuesday, September 1, 2020

Northern Bank Direct CD rates

Certificates of Deposit

Low minimum deposit with lackluster interest rates.
12 months0.30%
24 months0.45%
30 months1.45%
36 months1.50%
48 months1.60%
60 months1.70%
  • Minimum opening deposit: $500
  • Minimum balance to earn APY: $500
  • Early withdrawal penalty: The early withdrawal penalty on 12- to 35-month CDs is 12 months’ interest. For 36- to 47-month CDs, it’s 24 months’ interest. If you have a term of 48 to 60 months, you will pay 36 months’ interest.

Northern Bank Direct’s CDs require a relatively low opening deposit. But the APY offered is far from competitive. While we don’t encourage you to withdraw money from your CD before maturation, it’s important to note that if you do, the fees for early withdrawals on these are high when compared to the competition.

How to get Northern Bank Direct’s CDs

You can only open a CD from Northern Bank Direct online.


on Northern Bank Direct’s secure website

Member FDIC

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How Northern Bank Direct’s CD rates compare

Northern Bank Direct could stand to improve its CD offerings in light of the competition. You can find much higher CD rates elsewhere with lower penalties in the event you need to withdraw money from your certificate before its maturation date.

Northern Bank Direct’s money market account option

Money Market account

Northern Bank Direct’s Money Market account offers competitive rates and balance requirements, but comes with some extra fees and limitations.
APYMinimum Balance to Earn APY
  • Minimum opening deposit: $5,000
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: $1.50 if you use an out-of-network ATM
  • ATM fee refund: None
  • Overdraft fee: $35

If you look at just the APY and minimum balance requirement to earn that APY, Northern Bank Direct’s money market account is competitive. But it’s important to consider some key factors about this account before opening one.

While there is no monthly account maintenance fee, there is a $3 fee for transferring your money from Northern Bank Direct to an outside financial institution or account. While the fee isn’t likely to bust your budget, it is an additional cost that is not found among much of the competition. Also, when you’re transferring money out of your Northern Bank Direct Money Market account, you will be limited to a total of $5,000 per day and $25,000 per month.

Bear in mind that because money market accounts are savings accounts, they are governed by Federal Reserve Regulation D, which mandates no more than six in-person withdrawals per month from any given savings account. Exceed that regulatory limit and Northern Bank Direct will charge you a $20 fee for each excessive transaction.

If you are OK with those fees and limitations, Northern Bank Direct is a decent option for money market accounts, though you should still do some comparison shopping.

How to get Northern Bank Direct’s Money Market account

The only way to open any account with Northern Bank Direct, including money market accounts, is online.


on Northern Bank Direct’s secure website

Member FDIC

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How Northern Bank Direct’s money market account compares

If you decide to open a money market account with Northern Bank Direct, you’ll be getting a competitive product, particularly given the lack of a minimum balance requirement. But you should still check on the best money market rates, as you will be able to find higher offers, particularly if you have enough money to throw into savings to maintain a higher minimum balance requirement.

If you’re putting a big chunk of money into your money market account and know you will need to make large transfers in the future, you may want to keep shopping. Northern Bank Direct’s daily and monthly withdrawal limitations are low for a money market account, and these limitations may cause headaches down the line if you need to move large sums.

Overall review of Northern Bank Direct’s banking products

Overall, Northern Bank Direct’s biggest draw is it low barrier to entry, whether you’re looking at minimum balance requirements on money market accounts or minimum opening deposit requirements on CDs.

There are some drawbacks, though. While the money market rate is competitive, it’s not the cream of the crop when compared to offers from competitors. Northern Bank Direct’s CD rates in particular rank below rivals, so if you’re looking for the highest rates, you’ll want to keep shopping.

Finally, there are the fees. Whether you’re being charged to transfer money out of your money market account or are in the unfortunate situation of having to withdraw money from your CD before its maturation date, you’re going to have to fork over some cash in excess of what other financial institutions would charge in a similar situation.

You’re not necessarily getting a bad product from Northern Bank Direct, but you should go into any of its online agreements with your eyes wide open, knowing that this is potentially a more expensive way to do your banking.

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