FNBO Direct BillPay Account and IGoBanking Transfer Limit

FNBO Direct recently introduces a new savings tool, 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 and it pays 3.50% 1.25% APY (rate as of March 10, 2010). Other features of the new account include:

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

Read more about FNBO Billpay and other interest checking accounts.

I have moved all my deposit from IGoBanking to FNBO Direct after IGoBanking lowered its rate to 5.00% APY, less then FNBO’s 5.05%. I also canceled the bi-weekly transfer of $300 from my checking account at Bank of America to IGoBanking and redirected the recurring transfer to FNBO Direct instead.

I am planning to get ride of IGoBanking and currently searching for a replacement. One of my targets is AmTrust Direct, which currently pays 5.26% APY for its e-Savings account. The rate is quite appealing and the account supports ACH transfer (UFB Direct, which is another possibility, doesn’t support ACH). Now I only need to decide whether I want to go through the process.

Last night when I logged into my IGoBanking account, I noticed that the bank has increased the account transfer out limit in a rolling 30-day period to $50,000. It used to be $25,000, which is one that I complained most about.

Too bad I am leaving.