Review of Northwest Bank’s Deposit Rates

Formerly called Northwest Savings Bank, Northwest Bank offers a range of personal banking products and services including loans and insurance. Headquartered in Warren, Pa., Northwest Bank has 175 locations throughout New York, Pennsylvania and Ohio.

Northwest Bank was on Forbes’ list of the Most Trustworthy Companies in 2016. JD Power touted Northwest for the “Highest Customer Satisfaction with Retail Banking in the Mid-Atlantic Region” in the same year.Customer service and trustworthiness don’t necessarily translate to the best rate for customers, however. Compared with the rates at other banks, like Ally, Goldman Sachs Bank USA, and Synchrony Bank, Northwest Bank’s deposit account rates are significantly lower for similar products.

Northwest Bank CD Rates

Northwest Bank Savings Account Rates

Northwest Bank Checking Account Rates

Northwest Bank IRA Account Rates

The CDs at Northwest are locked in based on the term you choose, and interest earned can be compounded or paid out via check or direct deposit into a Northwest Bank account.

[Chart-NorthwestBankCDRates]Term

APY

Minimum Deposit Amount

12-17 Months

0.30%

$500

18-23 Months

0.35%

$500

24-29 Months

0.45%

$500

30-35 Months

0.55%

$500

36-47 Months

0.60%

$500

48-59 Months

0.75%

$500

60-71 Months

0.90%

$500

72-120 Months

1.00%

$500

[/Chart-NorthwestBankCDRates]Northwest Bank’s CD accounts offer higher rates for longer terms. When a CD matures, you have a seven-day grace period where you can opt to roll over the account or take it out in cash.

There are early withdrawal penalties which vary depending on the term:

To withdraw money, you can do so easily using online or mobile banking or by calling your local branch. Early withdrawals will require you to call Northwest Bank; as long as you acknowledge and understand the penalties involved, you can access your cash.

Northwest Bank offers two different savings account options. The Statement Savings account is best for those who do not intend to keep a large balance in their accounts and don’t want to pay a monthly fee. The Insured Money Fund is best for those who seek more interest, want access to a Visa debit card and intend to keep larger sums banked.

You can get access to free online and mobile banking and over 55,000 ATMs, but at the cost of a low APY.

[Chart-NorthwestBankStatementSavings]APY

Minimum amount to open

Minimum balance requirement

0.05%

$50

$100

[/Chart-NorthwestBankStatementSavings]Interest earned on Northwest Bank’s Statement Savings account compounds and deposits monthly. In order to earn interest, you need to keep an average balance of at least $100.

With your account, you get access to eStatements and a free ATM card. If you already have a checking account with Northwest, you can link your account to your Visa debit card.

You can make deposits or withdrawals using your ATM card, online, via a mobile app or at a branch. However, you can only make unlimited withdrawals in person, by mail or at an ATM. Online withdrawals are limited to six withdrawals a month.

Northwest Bank’s Insured Money Fund provides access to a Visa debit card and unlimited ATM and in-person transactions.

[Chart-NorthwestBankInsuredMoneyFund]Minimum balance requirement

APY

Minimum amount to open

Up to $2,499.99

0.05%

$50

$2,500.00-$9,999.99

0.10%

$50

$10,000.00-$74,999.99

0.15%

$50

$75,000-$4,999,999.99

0.25%

$50

$5,000,000.00 and over

0.25%

$50

[/Chart-NorthwestBankInsuredMoneyFund]Compared with Statement Savings, you need to keep a higher balance but you get a higher APY that’s compounded monthly. As long as you keep an average daily balance of $2,500, you will not be charged a service fee. Any lower than that and you’ll have to pay $10 every month.

This account gives you a free Northwest Visa debit card. You can also write checks, deposit money at a qualifying ATM, and have access to monthly statements and direct deposit. You can access your money online, in person or through Bankline, a 24/7 automated telephone banking service. You also get unlimited ATM or in-person transactions.

However, Northwest Bank offers more access to your money compared with others that only allow ACH transfers and check-writing capabilities. Many comparable banks also do not offer in-person customer service or debit cards. You can also make unlimited withdrawals at ATMs, compared with six per month with some of the other banks out there.

Club Accounts are designed to help you reach short-term savings goals, but you can do the same with money market accounts from competitors.

[Chart-NorthwestBankClubAccounts]Account name

APY

Minimum amount to open

Term

Holiday Club

0.05%

$1.00

Nov.-Oct.

Vacation Club

0.05%

$1.00

May-Apr.

[/Chart-NorthwestBankClubAccounts]

The Club Accounts are designed to help you reach your short-term savings goals for the busiest times of the year, whether for a vacation or gift giving. These as sub-accounts are designed for a specific purpose similar to a one-year CD. You choose the type of account based on when you want to access your savings, as both accounts offer the same APY and minimum opening deposit.

You fund your account in person, online, via direct deposit or by setting up an automatic transfer. Once the money is in the account, you cannot access it for the duration of the account. At the end of the savings period, you can have a check mailed to you or have it automatically transferred to a Northwest savings or checking account.

Compared with a one-year CD, this account falls short. For one, the rates are significantly lower, with some banks offering at least 1.75% APY for a 12-month CD with a minimum deposit of $500. However, you can access the cash earlier if you’re willing the face the penalties. If you have less than a few hundred dollars for an opening deposit, then the Club Accounts may be a good alternative.

Northwest Bank’s Health Savings Account allows you to access pretax funds easily for your medical needs, but at a lower rate compared with some competitors.

[Chart-NorthpointeBankHealthSavingsAccount]Minimum balance requirement

APY

$1,000.00-$4,999.999

0.05%

$5,000.00-$14,999.99

0.10%

$15,000.00 and over

0.15%

Northwest Bank’s HSA account requires that you maintain an average daily balance of at least $1,000 if you want to earn interest and avoid a $3 monthly service fee. Like other accounts offered, you get access to online and mobile banking and ATMs. You also get a Northwest HSA debit card which is accepted by Visa merchants worldwide.

Competitors offer similar services with higher rates. However, some of these banks have mandatory monthly service fees of up to $4. With these accounts, you can access your cash the same way, except some offer Mastercard debit cards instead.

You can open an account by phone, online or in person. You’ll need your social security number, personal information and a government issued ID.

This account offers one of the lowest interest rates, but has unlimited ATM transactions and a GO! Rewards account.

[Chart-MyNorthwestInterestChecking]APY

Minimum balance requirement

Minimum amount to open

0.01%

$1,500

$50

[/Chart-MyNorthwestInterestChecking]MyNorthwest Interest Checking requires a minimum daily balance of $1,000 or else you face a $10 monthly service charge. There is also an overdraft fee of $35 with no grace period. However, you can opt in to a premium service that costs $12 a year. This service links your checking and savings accounts so that any possible drafts from one account will be withdrawn from the other.

Like the savings account, you get access to free ATMs, electronic statements, and online and mobile banking. You also get access to online bill pay and a Northwest Visa debit with Go! Rewards. With this program you earn points with each purchase to redeem for merchandise as well as the ability to use Apple, Android, and Samsung Pay.

To open a checking account, you’ll need your Social Security number, government-issued ID, and account information for existing bank accounts you want to transfer to Northwest Bank.

Northwest Bank’s IRA CDs offer one of the lowest minimum deposit amounts, at the expense of a lower APY.

[Chart-NorthwestBankIRAAccountRates]Term

APY

Minimum deposit amount

12-17 Months

0.30%

$500

18-Month Variable

0.35%

$25

18-23 Months

0.35%

$500

24-29 Months

0.45%

$500

30-35 Months

0.55%

$500

36-47 Months

0.60%

$500

48-59 Months

0.75%

$500

60-71 Months

0.90%

$500

72-120 Months

1.00%

$500

[/Chart-NorthwestBankIRAAccountRates]With the IRA CD, you can deposit money any time and in any increment you wish. Interest is compounded and credited every quarter. However, the interest rate is not fixed, meaning that the interest rate may fluctuate on the last day of each quarter.

When your IRA matures, you have a seven-day grace period in which to make withdrawals or roll it over. Early withdrawals are subject to the same penalties as their regular CD accounts

You will need to apply for an IRA CD at the nearest branch.

This account offers higher rates than their IRA CD, but still falls short compared with other banks.

[Chart-NorthwestBankIRATieredMoneyFund]Minimum balance requirement

APY

Up to $2,499.99

0.10%

$2,500.00-$9,999.99

0.10%

$10,000.00-$74,999.99

0.10%

$75,000.00 and over

0.25%

[/Chart-NorthwestBankIRATieredMoneyFund]Like the IRA CD, you only need a minimum of $25 to open an account and deposit money as often as you want. There is a tiered interest based on balance, and interest is compounded and deposited every month. As well, there are no withdrawal restrictions, unlike the IRA CD where you may be penalized for early withdrawals.

If you’re looking for a similar product else with higher rates, you can consider a savings or checking account that may have tiered APYs.

Visit your local branch to open an IRA Money Fund. You cannot open one online.

Although Northwest Bank offers free ATM access as well as a wide variety of customer service options, its rates are significantly lower than you’ll find with competitors. If you’re looking for a bank that offers more competitive rates with similar services, you may be better off looking elsewhere.