This is a review of FNBO Direct, the online savings account arm of First National Bank of Omaha. With so many banks offering online saving accounts these days, it’s difficult to pick one that is right for us. Let me tell you why FNBO Direct is the online bank I’m using now.
Let’s be Honest, It’s FNBO Direct’s High Yield
Let me get this out of the way first. The primary reason why I use online savings accounts is because it charges no fees and offers high yields. When I signed up, FNBO Direct offered the highest yield.
Currently (as of April 4, 2009), they are offering 1.90% APY which is still one of the highest in the industry.
FNBO Direct and the Account Opening Process
The account opening process went smoothly for me and I was up and running in about 10 minutes. The bank does an automated credit check to make sure your social security and the information you typed in are all correct but that was about it. No hassle at all.
Then my wife signed up and actually got rejected. Luckily, it provided a number for us to call and after we spoke to a representative, they looked over our account and approved the it. (Turns out that it was just a typo on our end as the birthday on the credit report did not match).
FNBO Direct Bill Pay Feature
Unlike most other online banks, FNBO Direct offers a bill pay feature. This is so convenient because ever since I found out about this feature, I canceled my Wells Fargo checking account and had all my money going to FNBO Direct. This way, I’m giving my money the maximum potential to earn interests.
How much interest did I saved? When I canceled my checking, I found out that I had an average balance of $3,537 in my checking account (if you want to know your average balance but don’t want to do the math, just ask your banker). This means I was giving up $5-$10 every month by having money there earning no interest. It’s wasn’t keeping me from buying that beach front property, but I certainly welcomed the extra cash.
FNBO Direct’s Lack of Fees and Low Minimum Balance
Maybe I should say no minimum balance because you only need at least $1 to have an account with FNBO. Also, there is no account maintenance fee or anything like that so you can literally keep a minimal amount of funds in it if you choose to.
Is FNBO Direct Right for You?
Only if you aren’t comfortable with an online only interface would I recommend not opening a savings account with FNBO Direct. For everyone else, I highly urge you to start saving with them today. Once you sign up, remember to check out the bill pay feature as this alone is worth the time to get an account setup. Not only is it free, it also lets you keep your money in your savings account until you absolutely need to pay your bills.
- FNBO Direct – Official Site
{ 4 comments… read them below or add one }
FNBO is the best. While I never hear about them on the news (these days, that’s probably good), I was convinced since I signed up. Like the review say, I just love the bill pay with FNBO. It’s great since I don’t ever have to write a check anymore.
I agree with Peter. FNBO Direct is really the best. I once send too many transfers around and lost track of it while thinking FNBO screwed it up. When I called them, they were patient and helped me identify what went wrong.
FNBO seems to work well so far for me. The interface is simple but works for what I need it to do (which I admit isn’t much). The yield is over 2% which works for me for now since 99% of the offerings are much lower than that.
I love the bill pay feature of fnbo direct too. It has a slightly lower rate (right now it’s still 1.80% APY) but I usually transfer money to it at the last second anyway so I think it’s okay.