FNBO Direct Review: High Interest Online Savings Account

FNBO Direct Review

Today I’m going to share my review of FNBO Direct’s Online Savings Account. I thought it was only fair that I provide some more detail about the FNBO Direct Savings Account, which I’ll be using to save $5,000 $7,500 for the FNBO Direct Pay Yourself First Challenge.

At the time of this review FNBO Direct Online Savings Account was paying 3.50% APY (this is a variable rate that is subject to change). That was .50% better than their main competitor, Capital One 360, and likely a ton better than any brick and mortar bank. As of 7/14/14 FNBO’s APY is 0.75%.

In case you didn’t know, FNBO Direct is a family owned bank located in the mid west (Omaha). They just celebrated their 150 year anniversary. They are actually FDIC insured and very well respected in the industry.

Easy Account Opening Process

It took me 10 minutes online to open my FNBO Direct Online Savings Account. If you decide to open an FNBO Direct Online Savings Account here are the steps that are required:

1. Start The Application – Visit FNBO Direct’s web site and click on “Open an Account.” On the next page, select the button for starting a new application (individual or joint account) and then click “Next Step.”

2. Provide Your Personal Information – On the “Tell Us About Yourself” page you’ll find a request for some pretty basic personal information: name, address, social security number, date or birth, etc. Fill that out and click “Next Step.”

3. Confirm Your Identity – On this page you’ll be asked a couple of questions from your credit record. Something like “who services your mortgage and how much is it.” Answer these and you’re on to the next step.

4. Fund Your Account – The next major step is to fund your online savings account. While the account requires no initial deposit, you must connect the account with another bank account – one that you already have.

You can do this one of two ways: by giving them your online credentials or by confirming two small deposits they make into your other bank account. The first method is instant, the second will end up taking 2 to 4 days. After you’ve decided which is right for you, click “Next Step.”

5. Finishing Up – Once you’ve designated a funding account, you should be all set. Enjoy your new Online Savings Account from FNBO Direct. Easy, right? To sign up for the FNBO Direct Online Savings Account please visit FNBO Direct’s web site.

No Large Deposit Required

Just a reminder that I deposited a mere $1 into this account from my Bank of America checking account.  That’s all it takes to get started saving today.

No Fees and Easy Internal Transfers

There are never any fees with this bank account. You can even transfer money quickly to an associated bill pay account.

External Transfers Take 2 to 3 Days

One big downside with the account (as with all online savings accounts) is that externally transferred funds do take up to 3 days to post to your FNBO Direct Online Savings Account.

FNBO DIRECT Transfer Process

Another thing to note is that “you may make up to 6 transfers from, and unlimited transfers to, your FNBO Direct Online Savings Account during any statement cycle.” Find out why online bank transfers take so long.

Competitive CD Rates

Although I haven’t used the CD products, the terms (5 to choose from) and associated interest rates appear competitive.  They are of course FDIC Insured and they can be funding using your savings account.

ExtraEarnings Visa® Card

Lastly, FNBO Direct offers a credit card with the account.  You have to apply separately though.  Looks like the rate is low and there’s a point system involved.  Check it out…

Bottom Line

FNBO Direct’s Online Savings Account is an excellent financial product.  It currently has one of the best rates amongst the “big” online banks.  It’s got an easy account setup process, no fees, and some decent extras if you need them. The FNBO Direct Online Savings Account is definitely one of the best online savings accounts to consider.

Start Now with FNBO Direct

Last Edited: May 26, 2016 @ 10:36 pm The content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
About Philip Taylor

Philip Taylor, aka "PT", is a CPA, financial writer, FinCon CEO, and husband and father of three. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.

Comments

  1. Something I’ve been wondering. With 6 transfers from the account allowed per cycle, doesn’t this seem more like an MMA? ING does the same thing, and taking money out is counterproductive to saving, but I still wonder.

  2. Janet Wilkinson says:

    Very nice article, but as usual the interest is so LOW. One of my friends invested in a high interest cd abroad. The interest rate is 18%! Personally I will never do this and that’s what I told her. Can anyone tell me how to convince her to immediately withdraw her money? There’s even no FDIC insurance!

  3. PT – What if you have no credit history? Will they still take your money? That’s a deal breaker for me.

  4. @ Mr.TML – I suspect they will need to see some type of history. In the app they even ask about income and lving history.

    They run a soft credit check (so it can’t hurt to try).

  5. Even if you have no credit history you will get denied at first but call them up and say there is nothing in your credit history and they will manually setup the account for you.

  6. FNBO’s CD rates and online savings account rates are competitive, I opened an online savings account, the process the quick and easy.

  7. Don’t know of any other bank accounts that offer a better rate than this.

  8. FNBO has really competitive rates, probably the best in the market right now.

  9. The FNBO credit card pays double points too (for the first 12 months). You can easily convert 2500 points to $25 back into your account. Not bad!