Northern Bank Direct MM - 2.26% APY (offer ended 6/20/18)

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geospatial
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Northern Bank Direct MM - 2.26% APY (offer ended 6/20/18)

Post by geospatial » Wed Jun 13, 2018 10:51 am

https://www.depositaccounts.com/banks/n ... ct/offers/
Interest rate is guaranteed through June of next year. Minimum opening contribution = $5000. Max of $250,000.

The comments are useful to gauge individual's experiences opening up an account and a discussion of the various fees. I just tried the online application, entered all the necessary information, but got an error message saying it couldn't process at this time and to call their CS number. I did so, and they said it was just a system problem (they're probably getting slammed with new account requests) and they were opening up a case for me to get approval and would email me with the results of that soon. I specifically asked if there was a hard or soft credit pull and they said soft, so the freeze I have on my Chexsystems report wasn't the culprit. I'll try to update this post/thread as things go along if there is further interest. Seems that FDIC protection along with liquidity makes this superior to most of the 1-year CDs out there currently.
Last edited by geospatial on Mon Jun 25, 2018 8:24 pm, edited 1 time in total.

tenkuky
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Re: Northern Bank Direct MM - 2.26% APY

Post by tenkuky » Wed Jun 13, 2018 5:18 pm

There appears to be a $3 charge for ACH each time if initiated from Northern.
And a $10 close out fee.
Otherwise another great deal thanks to Kevin.
Please update with your opening experience.

NOLA
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Re: Northern Bank Direct MM - 2.26% APY

Post by NOLA » Wed Jun 13, 2018 5:48 pm

Thank you for the heads up! Will have to check it out.

geospatial
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Re: Northern Bank Direct MM - 2.26% APY

Post by geospatial » Thu Jun 14, 2018 3:07 pm

Update: I received a form letter email today stating the following...
Hello,

Unfortunately at this time we will not be able to process your application. We will be sending a letter in the mail with further information on this matter.

Thank you,
I emailed back to see if I could get clarification sooner and got a reply stating that a freeze on my ChexSystems account prevented the approval process from proceeding. When I spoke to the CSR yesterday though, they said the bank performs a soft pull and didn't think the freeze would prevent it. Apparently not. So it looks like I'm going to request a temporary lift of my ChexSystems freeze and see how to get the ball rolling again.

tenkuky
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Re: Northern Bank Direct MM - 2.26% APY

Post by tenkuky » Fri Jun 15, 2018 3:57 pm

Thanks for the update.
Ugh, not sure I want to deal with this.

geospatial
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Re: Northern Bank Direct MM - 2.26% APY

Post by geospatial » Fri Jun 15, 2018 4:06 pm

I either never got my Chex Systems PIN or misplaced it (personally I think it's the former), so I've had to request a PIN change and they only send it via snail mail. Tried to call Chex today to confirm my fax request was received... twice. But it became obvious they outsource their customer service and both times they claimed their systems were down. So it is turning into a bit of a hassle. But I'm going to persist and go through with it regardless. I suspect it would have been much simpler if I hadn't gotten the freeze in the first place or had the PIN available to do the temporary freeze lift. Another reason I'm comfortable doing this is that I'm actually a reasonable car drive away from the bank's HQ, so could always show up in person if there are any future issues... a perk over the non-brick-and-mortar options we mostly have these days.

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BrandonBogle
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Re: Northern Bank Direct MM - 2.26% APY

Post by BrandonBogle » Fri Jun 15, 2018 4:31 pm

geospatial wrote:
Thu Jun 14, 2018 3:07 pm
Update: I received a form letter email today stating the following...
Hello,

Unfortunately at this time we will not be able to process your application. We will be sending a letter in the mail with further information on this matter.

Thank you,
I emailed back to see if I could get clarification sooner and got a reply stating that a freeze on my ChexSystems account prevented the approval process from proceeding. When I spoke to the CSR yesterday though, they said the bank performs a soft pull and didn't think the freeze would prevent it. Apparently not. So it looks like I'm going to request a temporary lift of my ChexSystems freeze and see how to get the ball rolling again.
The CSR had me email a picture of my driver's license. We didn't speak about pulls or freezes, but I do have the major credit bureaus frozen and my ChexSystems too.

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Kevin M
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Re: Northern Bank Direct MM - 2.26% APY

Post by Kevin M » Sun Jun 17, 2018 2:15 pm

I was wondering if this account could be set up as payable on death (POD), as I want most financial assets either owned by my trust or using POD. I found this in their FAQ:
Can I designate a beneficiary?

Beneficiaries may not be added to the account during the account opening process. Once the account has been opened and funded, Northern Bank will mail out signature cards and disclosures to the address provided. You will need to complete and return the signature card to us regardless of whether or not you want to add a beneficiary. If you want to add a beneficiary, also complete the beneficiary form and return it with the signature card. Once we receive both forms back, we will mail out a revised signature card with the account titled as a Totten trust account with named trustee(s) and beneficiary(ies) for you to sign and send back to us. The account will not be updated with the beneficiary information until we have received the updated signature card back. If you have any questions, please contact us regarding this process.
So apparently it is doable, but in kind of a cumbersome way.

So I think I would start by funding with the minimum amount of $5,000, then add more after the beneficiaries are set up.

Kevin
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mrc
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Re: Northern Bank Direct MM - 2.26% APY

Post by mrc » Sun Jun 17, 2018 3:42 pm

Be sure you can initiate transfers from another bank, the daily/monthly limits on external transfers from NBD out are $K/$25K.
If you initiate the electronic transfer from your Northern Bank Direct account, there is a maximum daily limit of $5,000.00 (or the available balance in your account, whichever is less) for Interbank (external) transfers per transaction; $5,000 in aggregate per day; and $25,000 in aggregate per calendar month. The maximum number of transfers is 10 per day and 100 transfers to your account per calendar month. Please refer to the Electronic Funds Transfer Disclosure and the Online Banking Agreement.
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Kevin M
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Re: Northern Bank Direct MM - 2.26% APY

Post by Kevin M » Sun Jun 17, 2018 7:15 pm

mrc wrote:
Sun Jun 17, 2018 3:42 pm
Be sure you can initiate transfers from another bank, the daily/monthly limits on external transfers from NBD out are $K/$25K.
If you initiate the electronic transfer from your Northern Bank Direct account, there is a maximum daily limit of $5,000.00 (or the available balance in your account, whichever is less) for Interbank (external) transfers per transaction; $5,000 in aggregate per day; and $25,000 in aggregate per calendar month. The maximum number of transfers is 10 per day and 100 transfers to your account per calendar month. Please refer to the Electronic Funds Transfer Disclosure and the Online Banking Agreement.
This is not unusual, which is why it's advisable to have a good hub bank, like Ally, that has very high ACH limits. Also, once you set up the external link from Vanguard (or Fidelity or other broker) to NRB, you can buy or sell shares of your money market fund to get large amounts of cash in and out of this bank or any other.

If I proceed, the initial $5K deposit would come from Ally. Then I would link NBD to Vanguard, since most of my cash is there now. Once that link is verified and the hold period is up, I would sell shares of my Vanguard MM fund, specifying NBD as the destination bank.

Kevin
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BrandonBogle
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Re: Northern Bank Direct MM - 2.26% APY

Post by BrandonBogle » Mon Jun 18, 2018 12:19 pm

BrandonBogle wrote:
Fri Jun 15, 2018 4:31 pm
geospatial wrote:
Thu Jun 14, 2018 3:07 pm
I emailed back to see if I could get clarification sooner and got a reply stating that a freeze on my ChexSystems account prevented the approval process from proceeding. When I spoke to the CSR yesterday though, they said the bank performs a soft pull and didn't think the freeze would prevent it. Apparently not. So it looks like I'm going to request a temporary lift of my ChexSystems freeze and see how to get the ball rolling again.
The CSR had me email a picture of my driver's license. We didn't speak about pulls or freezes, but I do have the major credit bureaus frozen and my ChexSystems too.
Got an email today from them thanking me for my driver's license photo, but saying they need me to lift my ChexSystems freeze before they can continue.

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Kevin M
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Re: Northern Bank Direct MM - 2.26% APY

Post by Kevin M » Mon Jun 18, 2018 5:01 pm

First time through online application, it failed, and said to call. Called, and was told it was because of security questions, which I had suspected. Only thing to do is try again (they can't do anything by phone), so I did, and it worked second time through.

Now waiting for the trial deposits to verify initial funding account, then stuff in the mail so I can set up beneficiaries.

Kevin
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Kevin M
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Re: Northern Bank Direct MM - 2.26% APY

Post by Kevin M » Tue Jun 19, 2018 1:56 pm

Trial deposits/withdrawals hit my Ally checking account today, so I was able to complete the account setup with no glitches. Next step is for them to pull the initial $5K deposit from my Ally checking account. Since the trial deposits took one business day, I assume that will happen tomorrow.

Note that although I have freezes on credit reports, I do not have a freeze on ChexSystems, so that did not cause any issues for me. I did not have to provide a drivers license photo or anything else beyond what I filled out in the online application to get the account open.

Next steps are to receive the paperwork, designate beneficiaries, mail it back, wait for the account to be re-titled as POD (Trotten trust), and set up links from external financial institutions.

Regarding the latter, since this is a money market account, only six withdrawals per month are permitted without paying a fee. Depending on the process, either one or two withdrawals will be used up for the trial deposit/withdrawals in linking from an external account. Ideally, I want to set up links from Ally, Vanguard and Fidelity, but doing all three could use up all my withdrawals for the first month, and don't want to do that.

NBD will essentially serve as a third-tier savings account for me.

Tier one is Ally Bank checking and savings, as this provides the most liquidity; e.g., I can use Zelle to transfer money to other people instantly. Of course it has the lowest rate on savings, 1.65%, so don't want to keep too much cash there. Although Ally savings has the same six per month limit on withdrawals as any other savings or bank money market account, I have two savings accounts, giving me 12/month, and I can batch transfers from savings to checking, then use checking for unlimited transfers out.

Tier two is Vanguard Treasury MM fund, which currently has taxable-equivalent yield for me of 2.02%. It takes one business day to transfer between there and either Ally or Fidelity, and of course there is no limit on the number of outbound transfers. Currently this is the account that feeds Fidelity for purchases of Treasuries or munis, in addition to feeding Ally to keep the most liquid cash reserves at target.

So I want to keep enough at Ally to meet unexpected needs where I might not need or want to wait one business day for access to the cash. I'll probably want to keep enough in the Vanguard MM fund for possible upcoming purchases of Treasuries or munis at Fidelity. I'll want the bulk of cash at NBD, reserving the six monthly outbound transfers for unexpected larger cash needs, or to add to the reserves at either Vanguard or Ally.

Vanguard puts a 7-10 day hold on new banks before you can do outbound transfers to them (you can do inbound transfers as soon as the trial deposits are verified). This would be a negative for setting up a link from Vanguard to NBD first. However, it may take that long to get the NBD account set up as POD.

Since it only take one business day for transfer between Ally and either Vanguard or Fidelity, I'm thinking that I'll set up the link from Ally to NBD first.

I know this all sounds ridiculous to many folks, as the dollar amounts from the extra yields are not very large, but I kind of enjoy it. I'd rather be having fun with this, earning a few extra dollars, than doing crossword puzzles.

Kevin
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indexfundfan
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Re: Northern Bank Direct MM - 2.26% APY

Post by indexfundfan » Tue Jun 19, 2018 9:57 pm

Interestingly, NBD is stopping the promotional rate of 2.26% for new accounts starting from 9am on Wed 6/20. Just saw this on their homepage.
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nalor511
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Re: Northern Bank Direct MM - 2.26% APY

Post by nalor511 » Tue Jun 19, 2018 10:26 pm

indexfundfan wrote:
Tue Jun 19, 2018 9:57 pm
Interestingly, NBD is stopping the promotional rate of 2.26% for new accounts starting from 9am on Wed 6/20. Just saw this on their homepage.
Yikes. Funky process, ACH fees, closing fees, doesn't seem like a great bank.

geospatial
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Re: Northern Bank Direct MM - 2.26% APY

Post by geospatial » Sat Jun 23, 2018 2:22 pm

indexfundfan wrote:
Tue Jun 19, 2018 9:57 pm
Interestingly, NBD is stopping the promotional rate of 2.26% for new accounts starting from 9am on Wed 6/20. Just saw this on their homepage.
personal update: I only got my new ChexSystems PIN in the mail *today*. Absurdly slow process. Just submitted the temporary freeze lift online and then learned about the promotional offer being withdrawn. I started the application process 6 days before they rescinded it though, and hope I still have an application somewhere stuck in the pipeline because I had been emailing one of their CSRs to confirm that the freeze was the problem and let them know I was in the process of trying to fix it. I just sent another email letting them know I lifted the freeze and asking if they could complete the application with the promotional offer. Guess I'll find out Monday if they're going to be nice about it or not. If not, I won't be opening an account there and won't have a positive experience to be sharing with social media.

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Kevin M
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Re: Northern Bank Direct MM - 2.26% APY

Post by Kevin M » Sat Jun 23, 2018 2:59 pm

Kind of a moot point except for those of us who got in under the wire, but for those of us who did, here's my update.
Kevin M wrote:
Tue Jun 19, 2018 1:56 pm
Trial deposits/withdrawals hit my Ally checking account today, so I was able to complete the account setup with no glitches. Next step is for them to pull the initial $5K deposit from my Ally checking account. Since the trial deposits took one business day, I assume that will happen tomorrow.
I wrote that on the 19th, and that's the day NBD showed the $5,000 deposited into the account. The money came out of Ally on the 20th, so so far, transfer times have all been one business day. As of Friday the 22nd, the balance is not yet showing as available. Also, when I look at account details, it shows interest rate of 0.00%.

On Friday I wrote NBD a message about all of this, asking them to confirm that I was earning the 2.24% rate, 2.26% APY, asking them why the rate wasn't showing in account details, and asking how long until funds become available.

I want to start transferring more cash over soon, but want to be sure I'm earning the promotional rate before doing so. Promotional rate definitely was in effect when my account was opened.

Kevin
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geospatial
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Re: Northern Bank Direct MM - 2.26% APY

Post by geospatial » Wed Jun 27, 2018 11:13 am

Kevin M wrote:
Tue Jun 19, 2018 1:56 pm
Trial deposits/withdrawals hit my Ally checking account today, so I was able to complete the account setup with no glitches. Next step is for them to pull the initial $5K deposit from my Ally checking account. Since the trial deposits took one business day, I assume that will happen tomorrow.
Possible final update: The CSR I had been in contact with was very accommodating in light of my Chexsystems PIN # snafu and let me know they would honor the promotional offer for the new account I had tried to open up a week earlier. :) So at the moment I'm singing their praises and hopefully will continue to do so depending how the rest of the process goes. I received the two test deposits this morning, confirmed them, and set up my online account. Though the confirmation window stated the interest rate was the non-promotional rate, I'm hoping that's just a baked-in programmed value based on the current account offer available. I have the CSR email stating the promotional rate will still be in effect for me, just in case. After setting up the online account, the rate there still says 0.00% too. My initial funding amount will get there in a day or two and we'll take it from there.

The other reason this offer particularly appealed to me is that in my home state you get an exemption from state income tax on the first $100 of interest earned from banks located in my state if you're single and $200 if married. This will be the first online bank account I have with a respectable rate that is headquartered here, so I'll finally be able to claim that on my state tax forms. Every little bit helps.

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Kevin M
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Re: Northern Bank Direct MM - 2.26% APY

Post by Kevin M » Wed Jun 27, 2018 3:27 pm

Kevin M wrote:
Sat Jun 23, 2018 2:59 pm
I wrote that on the 19th, and that's the day NBD showed the $5,000 deposited into the account. The money came out of Ally on the 20th, so so far, transfer times have all been one business day. As of Friday the 22nd, the balance is not yet showing as available. Also, when I look at account details, it shows interest rate of 0.00%.

On Friday I wrote NBD a message about all of this, asking them to confirm that I was earning the 2.24% rate, 2.26% APY,
Got a reply to my Friday message on Monday morning. The interest rate shows up after your first interest is credited. Verified that "Any Money Market accounts opened before 6/20/18 will still be receiving the 2.26% APY on balance from .01-$250,000.00 until June 30, 2019." My initial deposit was on 6/19. Also, five business day hold on funds, but interest begins accruing the day the deposit is made.

I ACH'd another $5,000 from Ally, it arrived at NBD the next day, and it immediately showed as part of available balance. So apparently the five business day hold is only for the initial deposit, which was a pull from NBD.

I've now transferred about half of what was in my Vanguard Treasury MM fund to Ally, then transferred it from there to NBD today. This is quicker than waiting for the 7-10 day hold Vanguard places on outbound transactions to new bank accounts, and avoids another withdrawal or two against my limit of six in doing the trial deposits/withdrawals. The Ally trial deposits/withdrawals only used up one, since they do the withdrawal as a single transaction.

Kevin
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BrandonBogle
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Re: Northern Bank Direct MM - 2.26% APY (offer ended 6/20/18)

Post by BrandonBogle » Wed Jun 27, 2018 9:07 pm

My account was opened a couple days after my last post. They asked if I wanted to email my routing and account number for my opening deposit, or mail a check. I chose the latter. Waiting on the docs so I can mail in that check. I’ve started getting some emails, but I don’t have an account number of anything account-specific yet. I didn’t ask about the rate, but seeing as I not only applied, but contacted the CSR to give them my DL while the promo was running, I have faith they will honor the rate. If not, arguing now or in another week or so won’t make a difference.

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BrandonBogle
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Re: Northern Bank Direct MM - 2.26% APY (offer ended 6/20/18)

Post by BrandonBogle » Wed Jul 11, 2018 6:20 am

BrandonBogle wrote:
Wed Jun 27, 2018 9:07 pm
I have faith they will honor the rate
Just wanted to mention that yesterday 7/10 I received my signature card and account disclosures dated June 29th. The disclosures state I will get the 2.26% APY for $0.01-$250k and it is guaranteed through June 30, 2019.

While as Kevin mention this account process (I also want a beneficiary designation) is cumbersome, everything seems to be in order. Expediency could be improved, but follow through is well so far.

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Kevin M
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Re: Northern Bank Direct MM - 2.26% APY (offer ended 6/20/18)

Post by Kevin M » Wed Jul 11, 2018 2:47 pm

I'm a bit bummed, as I just found and opened a local savings account at 2.50% guaranteed through 12/31/2019! Turns out it has been available since April, but I just got the mailer a few days ago. Now I'm working on the most expedient way to transfer most of the cash from NBD to this new account, which appears to be to get some checks from NBD and deposit a check to the local bank. Any other way, using ACH for example, loses several days of interest, which lowers the effective net yield of the new account.

I was surprised that an ACH from NBD to Ally would take three business days instead of the usual one or two (it only took one to transfer from Ally to NBD). I initially set up the transfer from NDB to Ally yesterday, but it looked like it would extend over next weekend to get the money into the new bank. After doing a little calculating, I realized that I would lose too much interest that way, so cancelled the transfer. I takes almost 10 days at the higher rate to make up for 1 day of lost interest at the lower rate, so would take 60-70 days to make up for losing 6-7 days interest.

I already linked the new account to Vanguard, but they place a 7-10 day hold on transferring money from Vanguard to a new external account (inbound transfers can happen as soon as the micro deposits are verified). By then I'll probably have the checks. Otherwise, I think I would only lose a maximum of two days interest in doing the 2-step transfer from NDB to VG then to the new bank.

New bank has a daily ACH limit of something like $25K, so setting up a link directly to NDB is not a great option.

I don't think I'll lose any interest if I just deposit a check. I'll just lose the difference between 2.24% and 2.47% for 10 days or so in waiting for the checks, but that's much less than earning 0% for 7 days or so.

Kevin
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Re: Northern Bank Direct MM - 2.26% APY (offer ended 6/20/18)

Post by BrandonBogle » Wed Jul 11, 2018 2:57 pm

Kevin M wrote:
Wed Jul 11, 2018 2:47 pm
I'm a bit bummed, as I just found and opened a local savings account at 2.50% guaranteed through 12/31/2019!

Kevin
That is an awesome rate. Great find!

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