FNBO Direct Review: An Online Bank Offers High-Yield Savings and Checking Account

FNBO Direct is the online division of First National Bank of Omaha. The bank currently offers 1.25% APY for its online savings account with no minimum and no monthly fee.

With five online bank accounts (not including the Bank of America checking account) already, am I supposed to simplify our finance instead of making it more complex?

FNBO Direct promotionWell, simplification is THE plan, but the reality is I just couldn’t resist the 6.00% APY (current rate is 1.10% APY as of December 1, 2010) promotion offered by FNBO Direct. The result was that I opened another savings account with FNBO last night. Part of the reason that I went in the opposite direction of our plan was I am kind of disappointed by the recent decline of T-bill rates.

I borrowed $32,000 from Bank of America last month and had planed to use the money to buy T-bills. However, at current rate of 5.11% APY, T-bill isn’t the best choice for the money, which I will have to return in November. I am not a rate chaser, but I do want to get the most of my money. Though the 6.00% APY from FNBO will only last till middle of September (currently 3.25% APY) , the 5.25% rate afterward isn’t that bad either. Therefore, I decided to lock in this temporary rate and see where the rate of T-bill goes in September.

FNBO Direct

The account opening process is quite simple, taking less than 10 minutes to complete in five steps and everything was done online (if only I could answer correctly one of the security questions that FNBO asked me when it tried to connect to my BoA account and verify my ownership :( ). Now I am just waiting for the trial deposit to hit my BoA account and go back to complete the process.

To apply for an account, you will need the following items:

  1. Your Social Security or Tax ID Number.
  2. Your Driver’s License or ID card issued by a state DMV.
  3. Information about any loans or mortgages that you may have to help us confirm your identity.
  4. For instant funding, you will need your current bank account and routing numbers.
  5. If applying for a joint account, you will need the Secondary Applicant’s name, Social Security or Tax ID Number, and Date of Birth.

Deposits can be made to FNBO Direct via ACH. The banks allows a maximum of 3 external accounts linked to the FNBO Direct account. Of course, you can always link to FNBO from other banks if you use all your external links but want to have more. Be aware that since this is a savings account, you are not allowed to make more than 6 transactions (withdraws and transfers) in any given month. FNBO Direct Routing Number is 104000016. For ACH fund transfer, there’s a $100,000 transfer limit on a single transaction per day and you can’t transfer more than $500,000 in a 30-day period. ACH transfer will take about 2 to 3 business days before the money appears in the account. Interest will begin to accrue when the fund is credited to your account, meaning you will lose 2 or 3 days of interests :(

The following is a screenshot of the account interface.

FNBO Direct interface

In addition to savings account, FNBO Direct also offers FNBO Direct BillPay Account, which is more like an interest checking account (except no check-writing ability). The product currently is only available to existing Savings account members. Other features of the account include:

  • No minimum balance required and no fee;
  • FDIC insurance;
  • Interest compounded and credited monthly;
  • BillPay payment limits between $5 and $10,000.

Find out more

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13 Responses to “FNBO Direct Review: An Online Bank Offers High-Yield Savings and Checking Account”

  1. Jim |  May 14, 2007 at 11:53 am

    You borrowed $32,000 to put into an online savings account earning 6%? What type of loan did you take out and what rate are you paying on it?

  2. Sun |  May 14, 2007 at 9:30 pm

    Jim: Actually, the $32K was from 0% balance transfer with my BoA credit card. Therefore, there’s no interest for the money, and I only paid $75 balance transfer fee. I will have to return the money in November, but it’s a great deal in my opinion.

  3. Nick |  Oct 08, 2008 at 3:53 pm

    You keep posting the name wrong, its First National Bank of OMAHA

  4. Sun |  Oct 08, 2008 at 7:39 pm

    Nick: Thanks for the correction. Apparently, I have been wrong all the time :(

  5. Mr.ArfArf |  Dec 02, 2008 at 5:50 pm

    I noticed your review of DollarSavingsDirect lists a maximum ACH of 2 $500,000 transfers per day, Do you know what the limit is at FNBO Direct?
    Thanks for the GREAT site and reviews. It’s invaluable and well written! :)

  6. Sun |  Dec 03, 2008 at 3:21 pm

    You may not transfer or withdraw more than: (i) $100,000 from your account in any one transaction; (ii) $100,000 from your account on any one business day; or (iii) $500,000 from your account in any one month.