Northpointe Banks savings accounts

The Good

• One of the highest APR rates available
• Full service bank with loans, mortgages and business accounts
• No minimum balance

Northpointe Banks was founded in 1999 in Grand Rapids, Michigan as one of the original internet banks.  They offer a full suite of traditional banking products, including checking & savings accounts, home loans, and mortgages.  And somewhat untraditionally, they also offer insurance: auto, life and home.

The obvious benefit to a high yield savings account at Northpointe is the rate.  They have consistently offered one of the highest rates on the market (for the most current rates, see our savings account comparison).  Like my other top recommended savings accounts, there is no minimum deposit and no monthly fee for their savings accounts.

Despite being a small bank, I was also greeted by a customer service person very quickly after calling.  No hold time, and she was knowledgeable.

The Bad

• Poor mobile app and website
• $25,000 ACH daily maximum
• Fees like $10 early closure
• No ATM locations or reimbursements
• 3-4 days to fund

There are some significant downsides to Northpoint Bank.  First, there mobile app is not good, and the website is also fairly antiquated.  Second, there is a daily ACH max of $25,000.  This will suffice for many people, but it can be an issue for others and require a wire transfer – which Northpoint will charge a fee for.  There are also other fees that seem strange, like a $10 early closure fee if you do not use the account over a 24 month period.  I understand the motivation here, but that should be baked into the cost-of-doing business.  No one else is charging an early closure fee.

For those who many want to access their accounts via an ATM, Northpoint does not offer a debit or ATM card.  However, because they are a full-service bank, you can open a checking account with them and then you receive an ATM card.  There is no ATM network, but you do get a $10 ATM reimbursement for any fees incurred (again, we are talking about their checking account only) if you have a $10,000 minimum.

The Summary

Northpointe was an early innovator to the internet banking scene, but they haven’t continued to lead.  They need to improve the mobile experience. And if they are positioning themselves as saving only with infrequent transaction – competing against the likes of Marcus and American Express – that’s fine, but free wire transfers are a must.  I’d recommend Northpoint only for consumers who know they also want a checking account or other services offered.