Review of Northwest Bank’s Deposit Rates

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Written By

Updated on Sunday, November 1, 2020

Northwest
Northwest Bank — owned by Northwest Bancshares — offers a range of personal banking products and services including loans, checking accounts, savings account, trust services, investment services and insurance. Headquartered in Warren, Pa., Northwest Bank has approximately 250 locations throughout the Eastern United States.

Unfortunately, compared with the rates at competing banks like Ally, Goldman Sachs and Synchrony Bank, Northwest Bank’s deposit account rates are significantly lower.

When learning about the various accounts available at Northwest Bank, keep in mind that its rates vary depending on where you live. The rates listed below are based on the area closest to the bank’s headquarters. To get list of rates based on your region, please go to the rates section of the lender’s official website and enter your ZIP code.

Northwest Bank CD rates

The certificates of deposit (CDs) at Northwest are locked in, based on the term you choose. The interest earned can be compounded or paid out via check or direct deposit into a Northwest Bank account.

Term

APY

Minimum Deposit to Open

12-17 Months

0.10%

$500

18-23 Months

0.13%

$500

24-29 Months

0.17%

$500

30-35 Months

0.17%

$500

36-47 Months

0.20%

$500

48-59 Months

0.23%

$500

60-71 Months

0.27%

$500

72-120 Months

0.30%

$500

Northwest Bank’s CD accounts offer higher annual percentage yields (APYs) for longer terms. When a CD matures, you have a seven-day grace period where you can opt to roll over the account or take it out in cash.

There are early withdrawal penalties which vary depending on the term:

  • Terms of up to 181 days: one month of interest
  • Terms of 182 days to 364 days: three months of interest
  • Terms of 24 to 47 months: six months of interest
  • Terms of 48 months or longer: 12 months of interest

You can withdraw money easily using online or mobile banking or by calling your local branch. Early withdrawals will require you to call Northwest; as long as you acknowledge and understand the penalties involved, you can access your cash. The penalties seem in line with that of other banks.

How Northwest Bank’s CDs compare

Compared with competitors we’ve rounded up on our best CDs listing, Northwest Bank falls short in terms of the APYs on its CDs. With its highest APY at 1.00%, it lags other banks that offer much higher rates, sometimes even on shorter terms. However, the minimum deposit requirement at Northwest Bank is lower than what you’ll find at some competitors, making this account more accessible to those who don’t have large amounts to invest.

How to Get a Northwest Bank CD

To open an account, you can call Northwest’s toll-free number at 1-877-672-5678, apply online or do so at your local branch.

Northwest Bank savings account rates

Northwest Bank offers two different savings account options. The Statement Savings account is best for those who do not intend to keep a large balance in their accounts and don’t want to pay a monthly fee. The Money Market Deposit Fund is best for those seeing a higher APY, want access to a Visa debit card and intend to keep larger sums banked.

Statement Savings

Get access to free online and mobile banking, and over 25,000 ATMs in the network and more than 55,000 ATMs worldwide. You can open with a low minimum amount and face a low minimum balance requirement, matched with a paltry APY.

APY

Minimum Deposit to Open

Minimum Balance to Earn APY

0.01%

$50

$100

Interest earned on Northwest Bank’s Statement Savings account compounds and deposits monthly. In order to earn interest, you need to keep an average balance of at least $100.

With your account, you get access to electronic statements and a free ATM card, which you can use at Northwest ATMs and ATMs that are a part of its MoneyPass® ATM Network, which includes SHAZAM Privileged Status® ATMs.

You can make deposits or withdrawals using your ATM card, or online, via a mobile app or at a branch. However, you can only make unlimited withdrawals in person, by mail or at an ATM. Online withdrawals are limited to six per month. A small fee of $0.50 applies when you use an ATM other than the ones available through the Northwest ATM network.

Money Market Deposit Account

Northwest Bank’s Money Market Deposit Account provides access to a Visa debit card and unlimited ATM and in-person transactions.

Minimum Balance to Earn APY

APY

Minimum Deposit to Open

Up to $4,999.99

0.08%

$10,000

$5,000.00 - $49,999.99

0.10%

$10,000

$50,000.00 - $99,999.99

0.15%

$10,000

$100,000.00 - $249,999.99

0.20%

$10,000

$250,000.00 - $4,999,999.99

0.20%

$10,000

$5,000,000.00 and over

0.20%

$10,000

Compared with the Statement Savings account, you need to keep a higher balance in the Money Market Deposit Account but you get a higher APY that’s compounded monthly. As long as you keep an average daily balance of $2,500, you will not be charged a service fee.

This account gives you a free Northwest Visa debit card. You can also write checks, deposit money at a qualifying ATM, and have access to monthly statements and direct deposit. You can access your money online, in person or through Bankline, a 24/7 automated telephone banking service. You are allowed unlimited ATM or in-person transactions.

How Northwest Bank’s Money Market Deposit Account compares

The minimum opening balance is on par with similar offerings from other competitors. However, the rates are much lower compared with the accounts we’ve listed on our best money market accounts roundup.

But, Northwest Bank offers more access to your money compared with other banks that only allow Automated Clearing House (ACH) transfers and check-writing capabilities. Many comparable banks also do not offer in-person customer service or debit cards. You can also make unlimited withdrawals at ATMs, compared with six per month with some of the other banks out there.

Other Northwest Bank Savings Accounts

Club accounts

Designed to help you reach short-term savings goals.

Account Name

APY

Minimum Deposit to Open

Term

Holiday Club

0.01%

$1.00

Nov.-Oct.

Vacation Club

0.02%

$1.00

May-Apr.

The Club Accounts are designed to help you reach your short-term savings goals for the busiest times of the year, whether for a vacation or for gift giving. These essentially function as sub-accounts designed for a specific purpose. You choose the type of account based on when you want to access your savings, as both accounts offer the same APY and minimum opening deposit.

You fund your account in person, online, via direct deposit or by setting up an automatic transfer. Once the money is in the account, you cannot access it for the duration of the account. At the end of the savings period, you can have a check mailed to you or have it automatically transferred to a Northwest savings or checking account.

Compared with a one-year CD, this account falls short. For one, the rates are significantly lower, with some banks on our best CDs page offering at least 1.75% APY for a 12-month CD with a minimum deposit of $500. However, you can access the cash earlier if you’re willing the face the penalties. If you have less than a few hundred dollars for an opening deposit, then the Club Accounts may be a good alternative.

Interest is paid annually at the end of the last business day in either October or April, based on whether you choose the Holiday or Vacation Club account.

Health Savings Account

Northwest Bank’s Health Savings Account allows you to access pretax funds easily for your medical needs.

Minimum Balance to Earn APY

APY

$1,000.00-$4,999.999

0.01%

$5,000.00-$14,999.99

0.05%

$15,000.00 and over

0.10%

Opening a Health Savings Account (HSA) can help you set aside money for out-of-pocket medical expenses. As long as you’re covered under a qualified high-deductible health plan and are not listed as a dependent on someone else’s tax return, you can use this account to pay for certain medical expenses on a pretax basis.

Northwest Bank’s HSA account requires that you maintain an average daily balance of at least $1,000 if you want to earn interest and avoid a $3 monthly service fee. Like in other accounts offered, you get access to online and mobile banking and over 55,000 ATMs worldwide. You also get a Northwest HSA debit card, which is accepted by both domestic and overseas Visa merchants.

Competitors offer similar services with higher rates. However, some of these banks have mandatory monthly service fees that can be significantly higher. With these accounts, you can access your cash the same way, except some offer Mastercard debit cards instead, so which one is right for you comes down to personal preference.

How to Get a Northwest Bank Savings Account

You can open an account by phone, online or in person. You’ll need your Social Security number, personal information and a government-issued ID.

Northwest Bank checking account rates

Northwest Bank Affinity Checking

No monthly fee — but the account earns no APY and offers zero ATM refunds.

  • Monthly maintenance fee: None
  • Minimum deposit to open: $25
  • ATM fees: $2 for out-of-network ATMs
  • Atm fee refunds: None
  • Overdraft fees: $37 for each item and $10 for each overdraft transfer

Northwest Bank’s Affinity Checking account is not the best checking account we’ve seen. There is no APY, which isn’t so bad on its own — but once you factor in zero ATM refunds, a fee when you use out-of-network ATMs, no free checks and the rather high overdraft fee, it doesn’t seem to have much going in its favor.

Positive aspects of Affinity Checking include access to Northwest Bank’s rather large ATM network and no monthly fee. If you are committed to using only Northwest Bank’s ATMs, the account might not be a terrible choice.

How to get a Northwest Bank Affinity Checking account

You can open an account by phone, online or in person. You’ll need your Social Security number, personal information and a government-issued ID.

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Northwest Bank Affinity Plus Checking

Demanding requirements for an account that offers a miniscule APY.

APY

Minimum Deposit to Open

Daily Balance Needed to Earn APY

0.01%

$25

$1,500

  • Monthly maintenance fee: $15 unless you carry an average daily balance of $5,000 or have total Northwest Bank balances of $15,000
  • Required daily balance to earn APY: $1,500
  • ATM fees: None but other banks may charge their own surcharge fee
  • Atm fee refunds: None
  • Overdraft fees: $37 for each item and $10 for each overdraft transfer

Although there are some features of Northwest Bank’s Affinity Plus Checking account that are nice, such as an APY and fee-free use out-of-network ATMs, other aspects are not so great. Unlike the more basic Affinity Checking account, there is a monthly maintenance fee, which requires a relatively high average daily balance to avoid. Plus, the account requires an average daily balance of $1,500 to earn the negligible APY.

How to get a Northwest Bank Affinity Plus Checking account

You can open an account by phone, online or in person. You’ll need your Social Security number, personal information and a government-issued ID.

Northwest Bank Affinity Premier Checking

Free checks no ATM fee don’t make up for the nominal ATM reimbursement and dismal APY.

APY

Minimum Deposit to Open

Daily Balance Needed to Earn APY

0.01%

$25

$1,500

  • Monthly maintenance fee: $25 unless you carry an average daily balance of $15,000 or have total Northwest balances of $50,000
  • Required daily balance to earn APY: $1,500
  • ATM fees: None but other banks may charge their own surcharge fee
  • Atm fee refunds: Up to $10 per statement cycle
  • Overdraft fees: $37 for each item and $10 for each overdraft transfer

This is the top-tier of Northwest Bank’s checking accounts but it doesn’t offer much more than basic accounts at other banks, and the required balances in order to waive the $25 monthly maintenance fee are some of the highest we’ve seen. You will get free specialty checks or 50% off other check styles, and receive free check images, cashier’s checks, and money orders.

How to get a Northwest Bank Affinity Premier Checking account

You can open an account by phone, online or in person. You’ll need your Social Security number, personal information and a government-issued ID.

How Northwest Bank’s checking accounts compare

We’re going to be honest here and say that Northwest Bank doesn’t offer competitive checking accounts. There are three tiers, but the bank wants you to hold significant cash in their account before you have access to free perks like ATM fee reimbursements and free checks. The amount they are requesting would be much better suited placed in a high-yield savings account or, if you don’t need to remain that liquid, in CDs. The checking accounts at Northwest Bank don’t hold much appeal other than access to their large ATM network. Banks they compete with however offer a more robust ATM reimbursement package, and might be worth considering.

Northwest Bank IRA account rates

IRA CDs

Northwest Bank’s IRA CDs offer one of the lowest minimum deposit amounts, albeit at the expense of a lower APY than on offerings by competitors.

Term

APY

Minimum Balance to Earn APY

18-Month Variable

0.18%

$25

12-17 Months

0.10%

$500

18-23 Months

0.13%

$500

24-29 Months

0.17%

$500

30-35 Months

0.17%

$500

36-47 Months

0.20%

$500

48-59 Months

0.23%

$500

60-71 Months

0.27%

$500

72-120 Months

0.30%

$500

With the IRA CD, you can deposit money any time and in any increment you wish. Interest is compounded and credited every quarter. However, the interest rate is not fixed, meaning that it may fluctuate on the last day of each quarter.

When your IRA matures, you have a seven-day grace period in which to withdraw the balance or roll it over. Early withdrawals are subject to the same penalties as on their regular CD accounts.

How Northwest Bank’s IRA CDs compare

The minimum opening deposit is one of the lowest out there, compared with some others that ask for a $1,000 minimum for an 18-month CD. However, like Northwest’s other products, its IRA CDs offer much lower APYs than the competitors listed on our best IRA CDs roundup.

How to Get an IRA CD from Northwest Bank

You will need to apply for an IRA CD at the nearest branch.

Bottom line

Although Northwest Bank offers free ATM access as well as a wide variety of customer service options, its rates are significantly lower than those you’ll find with competitors. There are much better options for almost every product Northwest has. If you want a bank that offers more competitive rates with similar services, you may be better off looking elsewhere.