Deal Summary
Northern Bank Direct (NBD), an internet division of Massachusetts-based Northern Bank, has recently raised the APY of its 9-month CD to a competitive 5.00%.
This offer requires a minimum opening deposit of $500 and caps at $250,000, available nationwide.
READ MORE: SEE THE BEST CD RATES HERE
Northern Bank Direct 9-Month CD Offer
The NBD 9-month CD now offers an APY of 5.00%, marking a significant increase from its previous rate of 0.40%.
This rate change, reminiscent of a similar brief spike nine months ago, indicates that this attractive rate may not last long.
Customers interested in opening an NBD CD should be vigilant about potential rate drops to avoid being auto-renewed into a lower-rate CD.
APY last updated April 10, 2024
Early Withdrawal Penalties and Account Closure Fees
NBD’s Early Withdrawal Penalties (EWP) vary depending on the term of the CD:
- Less than 12 months: 6 months’ interest.
- 12 to 35 months: 12 months’ interest.
- 36 to 47 months: 24 months’ interest.
- 48 months or more: 36 months’ interest.
Additionally, there is a $25 fee for closing a new account within the first 120 days. Partial withdrawals are not allowed, and the principal is not protected from penalties.
Availability and Account Opening
NBD, launched in 2017, offers its products nationally through its online platform. Accounts can be opened as individual, joint, or trust accounts, although trusts require approval before opening a CD. Beneficiaries are not allowed on any NBD account.
CDs and MMP accounts must be opened online. While transactions can be conducted at Northern Bank branches, account openings are exclusively online.
Funding and Other Details
Funding options include ACH (with a next business day availability for existing customers), wire, check, or internal transfer, with a 14-day window for funding after opening. Interest is compounded daily and credited monthly, and can be transferred penalty-free to an NBD liquid account, via ACH to an external account, or by check. Upon maturity, funds can be transferred via ACH, wire, cashier’s check, or internally to an NBD MMP account.
READ MORE: SEE THE BEST BANK BONUSES HERE AND THE BEST INVESTING BONUSES HERE.
Bank Overview
NBD operates under Northern Bank’s FDIC Certificate and shares its financial history.
Northern Bank, established in 1960, is a family-run bank and is currently the 19th largest bank in Massachusetts, with over $2.4 billion in deposits and more than 36,000 customer accounts.
READ MORE: SEE THE BEST CD RATES HERE
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Frequently Asked Questions
Q: How long will the 5.00% APY on the 9-month CD be available?
A: The duration of the 5.00% APY offer is uncertain. Based on NBD’s history, the rate may change, so it’s advisable to act quickly if interested.
Q: Can I make partial withdrawals from the 9-month CD?
A: No, partial withdrawals are not allowed. Early closure of the CD involves penalties and the entire principal must be withdrawn.
Q: Is there a fee for closing a new NBD account early?
A: Yes, there’s a $25 fee for closing an account within the first 120 days, in addition to the applicable early withdrawal penalties.
Q: Can accounts be opened at Northern Bank branches?
A: No, Northern Bank Direct accounts can only be opened online, although transactions can be conducted at Northern Bank branches.
Q: Are beneficiaries allowed on Northern Bank Direct accounts?
A: No, beneficiaries are not permitted on any Northern Bank Direct account.
Q: How does the interest for the 9-month CD get credited?
A: The interest is compounded daily and credited monthly. It can be transferred without penalty to an NBD liquid account, an external account via ACH, or by check.
READ MORE: SEE THE BEST BANK BONUSES HERE AND THE BEST INVESTING BONUSES HERE.
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