6% FNBO Direct Online Savings Account Review

May 5, 2007

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I opened an account with FNBO Direct on May 1. Here’s my review of the online savings account with 6% APY until September 28, 2007!

Reliability

FNBO Direct is the online savings account for First National Bank of Omaha who is completely FDIC insured and has been serving the Omaha area for 150 years! Their Bankrate.com’s Safe and Sound rating is 4 stars out of 5 which is higher than Emigrant Direct, HSBC Direct, and ING Direct (all with 3 stars)! First National and its affiliates have over $18 billion is managed assets. This is a bank you can trust.

Opening Process

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I applied for an account on May 2nd online. They use the same CashEdge application system as HSBC Direct. It was an easy process with the regular stuff you’d expect on an application (name, address, etc.). There is nothing to mail and nothing to receive by mail; it’s completely an online process.

The application includes an identity verification system like the one Washington Mutual uses. They will ask you questions about your credit report to verify your identity. It even gives you a choice between credit cards and regular loans such as auto loans, mortgages, etc. So if you pick “credit cards” they will ask you questions about your credit cards (like account numbers, monthly payments, etc.) to verify your identity. You can just use your credit card statements for that or your credit report. It does not do a hard credit pull so you won’t have to worry about your credit score going down.

You can choose to fund the account by wire transfer, online transfer, or mailing in a regular old check. I, of course, chose to do the online transfer.

So on May 2, I applied for the account and chose to verify my account by trial deposit (you can also do a login verification if you already do online banking with your current bank, but I never do because of security issues and because I want some free money). On May 3, the trial deposits showed up in my bank account (free money!) I verified the deposits and by May 4, I was sent my account number via e-mail and I signed up for account access. My initial funding amount was also taken out that day but it hasn’t yet shown up at FNBO. It’ll probably show up on Monday because it usually takes a few days.

Features

  • High 6% APY interest until 9/28/07 (almost a full 5 months!)(Rate before promotion was 5.25% which is still very high so you can expect competitive rates after the promotion ends).
  • No minimum balance, no fees
  • You can request an ATM card during the application process ($2.50 charge for each withdrawal, and up to six withdrawals a month)
  • Online account access
  • Don’t have to change banks
  • Customer Service: 877-370-3707 (24/7)

Transfers

Transfers are free but are as slow as HSBC’s system. Here’s the delivery schedule:

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Interface

The interface is simple and easy on the eyes. It also seems to have all the functionality required of an online savings account (view account, transfer funds, statements, etc.)

Conclusion

This is a great online savings account for an emergency fund or for other savings that you need because of the guaranteed, high 6% APY until September 28, 2007! The opening process is completely online and easy, and it’s backed by a safe and sound bank with billions of dollars in assets. I don’t think you can go wrong with this account!

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One Response to “6% FNBO Direct Online Savings Account Review”

  1. leah Says:

    FNBO has poor customer service, outrageous early termination fees, and it is impossible to get a customer service rep on the phone who will work with you. Do not use this bank. Too be honest, I will never do business with them again and I am going to tell everyone I know the horrible experience I had with their institution.


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