Northern Bank Direct is the online banking division of Northern Bank, a Massachusetts-based financial institution founded in 1960. While this digital division is far from full-service, it offers a money market account (MMA) and certificates of deposit with excellent return rates. It also provides a health savings account and a 1031 exchange (which helps you to defer taxes when selling an investment or business property by reinvesting in a new property).
With these limited account types, is Northern Bank Direct a fit for your financial strategy? Here’s what you need to know.
All rates and fees are current as of Nov. 25, 2025, and are subject to change.
Northern Bank Direct at a glance
Northern Bank Direct
| Certificates of deposit | Up to 4.00% APY |
| Money market account | 3.50% APY |
at Northern Bank Direct
- Year Founded: 1960
- Company Headquarters: Woburn, MA
- CEO: James Mawn Jr.
Who is Northern Bank Direct good for?
Northern Bank Direct could be an excellent choice for people who already have personal checking at another bank and are looking for an MMA or CD with a high APY. Unlike some banks, Northern Bank Direct doesn’t limit the number of ATM withdrawals from your MMA each month.
Northern Bank Direct is best for people who don’t need branch access and want online-only interest-bearing accounts.
Who shouldn’t use Northern Bank Direct?
While it offers great high-yield MMA and CD options, Northern Bank Direct doesn’t provide online checking or traditional savings accounts. Customers who want all their deposit accounts under one roof should consider an alternative.
Also, if branch access is important, you won’t find it with Northern Bank Direct.
Pros
- Strong rate of return for bank’s MMA and CDs
- No limit to the number of deposits and ATM withdrawals each month
- No monthly fees
Cons
- No online checking account
- Branch access not available
- High-interest yield for MMA only available if your daily balance is less than $250,000
Northern Bank Direct rates and products
Again, Northern Bank Direct does not offer any checking products. The only deposit accounts available are MMAs and CDs. Fortunately, an MMA functions as a hybrid savings and checking account.
| Product | Rates |
|---|---|
| MMAs | 0.10%–3.50% APY |
| CDs | 3.25%–4.00% APY |
| MMAs | |
|---|---|
| Rates | 0.10%–3.50% APY |
| CDs | |
| Rates | 3.25%–4.00% APY |
Money market account
Northern Bank Direct’s MMA delivers an excellent 3.50% APY for balances under $250,000. If your funds exceed that amount, you’ll earn a measly 0.10% APY. That said, you may not want to keep more than that in a single MMA, anyway, as the FDIC only insures up to $250,000 per account owner per ownership category in case the bank founders.
Northern Bank Direct MMA features
Bank details checked Nov. 25, 2025.
Certificates of deposit
Northern Bank Direct CDs only come in one standard form. There are no bump up, flexible, or IRA CD options. You can choose from term lengths between six and 60 months.
Northern Bank Direct CD features
Other services Northern Bank Direct offers
Northern Bank Direct offers two other products in addition to its money market and CD accounts:
- HSA: An HSA allows you to save for health-related expenses and can provide tax savings and interest earnings.
- 1031 exchange: Those planning to sell property may be looking for a 1031 exchange to invest profits from a sale to defer capital gains tax.
The Northern Bank Direct platform and customer support
As you would expect from a financial institution with minimal deposit account options, Northern Bank Direct’s online banking is functional but not fancy. You can check account balances, transfer funds, and easily transfer money to friends and family via the Northern Bank app. You can use it to deposit checks, as well.
The Northern Bank app is rated 3.7 stars on the Apple App Store and 4 stars on the Google Play Store as of this writing.
You can reach Northern Bank Direct customer service by phone at 844-348-8966 Monday through Friday from 8 a.m. to 7 p.m. and Saturday from 8:30 a.m. to 12:30 p.m. Eastern Time. You can also email the bank at nbdirect@nbtc.com.
Is Northern Bank Direct secure?
Northern Bank Direct has little on its site about the measures it takes to protect your information beyond offering resources to help you be smart about safeguarding your own sensitive data. It does mention that it doesn’t store any of your information.
Northern Bank Direct deposits are considered held by Northern Bank and are FDIC-insured for up to $250,000 per account owner per ownership category.
Northern Bank Direct user reviews
Online reviews of banks are often low, as most customers decide to comment after a snag instead of a pleasant experience. With that in mind, Northern Bank Direct receives an A+ from the Better Business Bureau. It’s got virtually no presence on official review sites like Trustpilot and very little mention on online forums like Reddit.
Compare Northern Bank Direct alternatives
If Northern Bank Direct doesn’t fit what you’re looking for in an online bank, two popular competitors worth a look include Ally and SoFi.
Northern Bank Direct |  Ally Bank |  SoFi® Member FDIC |
|---|---|---|
| Top MMA APY | Top MMA APY | Top MMA APY |
| 3.50% | 3.30% | N/A |
| Top checking APY | Top checking APY | Top checking APY |
| N/A | 0.25% | 0.50% |
| Top CD APY | Top CD APY | Top CD APY |
| 4.00% | 3.90% | N/A |
| View offer at Northern Bank Direct | View offer at MoneyLion | View offer at SoFi |
Bank details checked Nov. 25, 2025.
Is Northern Bank Direct right for you?
If you are looking for a simple MMA or CD with high APY, Northern Bank Direct may be the right destination for your money. Consider an alternative if you want to have your high-yield deposit accounts at the same bank as your checking. Also, Northern Bank Direct isn’t a fit if you prefer in-person banking.
Frequently asked questions
What is the minimum deposit required to open a Northern Bank Direct account?
Northern Bank Direct requires a minimum opening deposit of $500 for CDs and $5,000 for a money market account.
Are Northern Bank Direct’s rates competitive compared to other online banks?
Northern Bank Direct’s rates are competitive with other online banks. They regularly offer some of the most generous returns on the market thanks to the low overhead from their online-only presence.
Does Northern Bank Direct charge monthly maintenance fees?
Northern Bank Direct does not charge monthly maintenance fees for its deposit accounts.
What are Northern Bank Direct’s early withdrawal penalties for CDs?
Your CD’s early withdrawal penalty depends on the term you choose. You’ll pay between six and 36 months of interest if you access your funds before they mature.
Is Northern Bank Direct FDIC-insured?
Yes, Northern Bank Direct is FDIC-insured up to $250,000 per account holder per ownership category.
SoFi disclaimer
1:
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings.Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet