Northern Bank Direct quenches your thirst for a high-yield CD
2 min read
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our
goal is to help you make smarter financial decisions by providing you
with interactive tools and financial calculators, publishing original
and objective content, by enabling you to conduct research and compare
information for free - so that you can make financial decisions with
confidence.
Bankrate has partnerships with issuers including, but not limited to,
American Express, Bank of America, Capital One, Chase, Citi and
Discover.
How We Make Money.
The offers that appear on this site are from companies that compensate
us. This compensation may impact how and where products appear on this
site, including, for example, the order in which they may appear
within the listing categories. But this compensation does not
influence the information we publish, or the reviews that you see on
this site. We do not include the universe of companies or financial
offers that may be available to you.
At Bankrate we strive to help you make smarter financial decisions.
While we adhere to strict
,
this post may contain references to products from our partners.
Here’s an explanation for
.
Editorial Integrity
Bankrate follows a strict editorial policy, so you can trust that
we’re putting your interests first. Our award-winning editors and
reporters create honest and accurate content to help you make the
right financial decisions.
Key Principles
We value your trust. Our mission is to provide readers with
accurate and unbiased information, and we have editorial standards
in place to ensure that happens. Our editors and reporters
thoroughly fact-check editorial content to ensure the information
you’re reading is accurate. We maintain a firewall between our
advertisers and our editorial team. Our editorial team does not
receive direct compensation from our advertisers.
Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader.
Our goal is to give you the best advice to help you make smart
personal finance decisions. We follow strict guidelines to ensure
that our editorial content is not influenced by advertisers. Our
editorial team receives no direct compensation from advertisers,
and our content is thoroughly fact-checked to ensure accuracy. So,
whether you’re reading an article or a review, you can trust that
you’re getting credible and dependable information.
How We Make Money
You have money questions. Bankrate has answers. Our experts have
been helping you master your money for over four decades. We
continually strive to provide consumers with the expert advice and
tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that
our content is honest and accurate. Our award-winning editors and
reporters create honest and accurate content to help you make the
right financial decisions. The content created by our editorial
staff is objective, factual, and not influenced by our
advertisers.
We’re transparent about how we are able to bring quality content,
competitive rates, and useful tools to you by explaining how we
make money.
Bankrate.com is an independent, advertising-supported publisher
and comparison service. We are compensated in exchange for
placement of sponsored products and, services, or by you clicking
on certain links posted on our site. Therefore, this compensation
may impact how, where and in what order products appear within
listing categories. Other factors, such as our own proprietary
website rules and whether a product is offered in your area or at
your self-selected credit score range can also impact how and
where products appear on this site. While we strive to provide a
wide range offers, Bankrate does not include information about
every financial or credit product or service.
Hoping to buy more than one CD in 2018? To get the best bang for your buck, you may have to open accounts at multiple banks. Fortunately, that’s not always the case.
In early January, Northern Bank Direct started offering the nation’s best 48-month CD rate. It also offers a competitive 2-year CD rate.
Savers across the country who opt for the bank’s 4-year CD can earn 2.51 percent APY. That’s higher than the yields offered by banks like TIAA Direct and Live Oak Bank. The minimum deposit for all Northern Bank Direct CDs is just $500.
Four years is a long time to keep money in a single account. And with interest rates expected to rise over the course of the year, signing up for a long-term CD may not be the smartest financial move. You could buy a 48-month CD today only to find a much better offer next week.
Top nationally available 24-month CD rates
Institution
APY
Minimum deposit
Connexus Credit Union
2.27%
$5,000
Northern Bank Direct
2.26%
$500
KS StateBank
2.15%
$500
USALLIANCE Financial
2.12%
$500
ConnectOne Bank
2.12%
$500
That’s why Northern Bank Direct’s 2-year CD deal may be more appealing. You’ll earn more interest than you would from a standard savings account without having to make a long-term commitment. The bank’s 24-month CD pays 2.26 percent APY, making it one of the best deals on the market.
Early withdrawal penalty
Keep in mind that there’s an early withdrawal penalty for all Northern Bank Direct CDs. If you decide you need to bail before your 24- or 48-month term is over, you risk losing either 12 or 36 months of interest. As far as penalties go, those are pretty harsh.
You can withdraw any interest you earn, however, at any time without penalty. You can have it transferred into another bank account or sent to you in the form of a check.
Compound interest helps your savings grow more quickly. Just note that at Northern Bank Direct, interest compounds monthly, not daily.
How to buy Northern Bank Direct CDs
If Northern Bank Direct’s CDs seem like a good fit for your investment portfolio, you can purchase them online. When you fill out an application, you’ll need to provide details including:
Your Social Security number and date of birth
Your driver’s license number
Your employment status and home address
Northern Bank Direct makes it easy to purchase two or three CDs at the same time. You can fund your accounts through an electronic transfer from another bank. You can also mail in a check.
About Northern Bank Direct
Northern Bank Direct is the online division of Northern Bank, a community bank founded in 1960 and headquartered in Woburn, Massachusetts.
Goldman Sachs Bank USA. The interest rate Goldman Sachs Bank’s Term CD offers is 2.55 percent APY for a 6-year CD, and the minimum deposit requirement is just $500. Virtually all CD accounts except for the bank’s six-month option are typically available as IRA CDs.
Share