Northern Bank Direct logo on Personal Finance pattern background 2x1
Northern Bank Direct offers a money market account and CDs.
Northern Bank Direct; Rachel Mendelson/Insider

Overall bank rating

Feature Insider rating (out of 5)
CD 3.25
Money market account 4
Trustworthiness 5
Total 4.08

Pros and cons

Pros Cons

  • Online bank available around the US

  • Pays a high interest rate on its money market account

  • No monthly service fees

  • Low minimum opening deposit for CDs
  • No traditional savings or checking accounts
  • You can earn higher CD rates at other online banks
  • High minimum opening deposit for money market account

CD

Northern Bank Direct Certificate of Deposit

Northern Bank Direct Northern Bank Direct Certificate of Deposit
Learn More
Annual Percentage Yield (APY)
0.30% to 0.40% APY
Min Deposit
$500
Editor's Rating
Annual Percentage Yield (APY)
0.30% to 0.40% APY
Min Deposit
$500
Editor's Rating
  • Pros & Cons
  • Details
Pros
  • Competitive interest rates
  • $500 minimum deposit
Cons
  • High early withdrawal penalties
  • Interest compounds monthly, not daily
  • Online account available nationwide; you can also visit 13 branches in Massachusetts
  • Terms range from 6 months to 5 years
  • Early withdrawal penalties range from 6 months to 36 months interest
  • Interest compounded monthly
  • Member FDIC

Northern Bank Direct pays higher interest rates on CDs than most brick-and-mortar banks. But you can find better rates on most terms at other online banks.

Money market account

Northern Bank Direct Money Market Account

Northern Bank Direct Northern Bank Direct Money Market Account
Learn More
Annual Percentage Yield (APY)
0.45% APY
Min Deposit
$5,000
Editor's Rating
Annual Percentage Yield (APY)
0.45% APY
Min Deposit
$5,000
Editor's Rating
  • Pros & Cons
  • Details
Pros
  • High APY
  • No monthly service fee
  • Paper checks
  • ATM card
Cons
  • $5,000 opening deposit
  • $2 out-of-network ATM fee
  • Interest compounds 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
  • Member FDIC

We've included the Northern Bank Direct Money Market Account in our guide of 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 necessary.

How Northern Bank Direct works

Northern Bank Direct is the online platform of Northern Bank. You can open Northern Bank Direct accounts online from anywhere in the US, and you walk into one of 13 branches in Massachusetts if you live nearby.

Northern Bank Direct offers CDs and a money market account, but not traditional checking or savings account. You can open regular checking and savings accounts if you're at a branch, though.

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

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The Northern Bank mobile app doesn't have many customer reviews yet. So far, it has just 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 for up to $250,000, or up to $500,000 for joint accounts. This means your money is safe even if Northern Bank shuts down.

Is Northern Bank Direct trustworthy?

Northern Bank Direct does not have any public controversies.

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

A high BBB grade doesn't guarantee that you'll have a smooth relationship with a company, though. You may want to ask friends and family about their experiences with Northern Bank Direct, or read online customer reviews.

How Northern Bank Direct compares

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

Northern Bank Member FDIC
Northern Bank
ally logo wide
Ally Bank, Member FDIC
synchrony logo
Synchrony Bank

Types of accounts

Money market account, CD

Types of accounts

Money market account, CD, checking, high-yield savings

Types of accounts

Money market account, CD, high-yield savings

Money market account APY

0.45% APY

Money market account APY

0.50% APY

Money market account APY

0.35% APY

CD APY

0.30% to 0.40% APY

CD APY

0.15% to 0.80% APY

CD APY

0.15% APY to 0.85% APY
Open account Open account Open account

Ally is probably your best bet if you're looking for a full banking experience, because it's the only one of the three that offers a regular checking account. Either Ally or Synchrony could be better for long-term CDs, but you could 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, with no monthly fees. The main difference is that Northern Bank Direct and Synchrony have ATM cards, which let you withdraw money from an ATM. Ally has a debit card, so you can actually use it to make purchases.
Laura Grace Tarpley, CEPF
Editor, Banking & Mortgages
Laura Grace Tarpley is an editor at Insider, responsible for banking and mortgage coverage on Personal Finance Insider. She covers mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips. She is also a Certified Educator in Personal Finance (CEPF). Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at ltarpley@insider.com. Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »
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