Investing to Wealth

I have reviewed quite a few banking sites in the recent past and the first thing that struck me about FNBO Direct is that it is about as close to a “one stop shop” for banking that I’ve been able to find. Their most attractive feature is their 1.1% APR for their online savings account. At first glance, this was appealing, but not anything out of the ordinary. What occurred to me soon after are all the other great services that they have to offer.

The Basics

First, let’s get through the basics. FNBO Direct offers an online savings account which can earn up to 1.1% APR. The rate is a variable one of sorts, and although they say there is no minimum for your account , you do need to carry a minimum of $500 to get this rate. And you do need a minimum of $500 to open the account.

They offer a variety of companion accounts as well, such as checking and others. They also offer a Bill Pay service also.

Additionally, they offer certificates of deposit and even have a credit card with a pretty decent “teaser” rewards program for the first 12 billing cycles. You can double your rewards in the first year.

Calculators

FNBO Direct offers a drop down menu which includes a variety of “calculators” which can help you determine anything from how important an interest rate is on a new credit card to which is better, buying a new or used vehicle.

Savings Finder

They offer another very appealing concept, based on the “pay yourself first” premise. They call it a Savings Finder. Basically it outlines for you the importance of paying yourself first. I won’t get into this concept now, but it is a key to your long-term financial success. As a matter of fact, I love this feature of FNBO Direct.

Basically, as I understand it, you can set up a savings account with them. Then, you can also set up a Bill pay account or a checking account. You would then direct deposit your income into the savings account and then FNBO takes care of transferring only the amount you need to pay your bills each month to either your Bill pay or checking account. This will maximize the interest you earn on your “leftover” money. I can certainly attest to the fact of leaving some money on the table in this respect. The account I pay my bills out of earns no interest, and I could certainly make something each month if I had a set up like this.

Popmoney

They also offer an interesting service called “Popmoney” that I can best describe as a mini-PayPal. You can send money to anybody with an email address, mobile number or bank account, directly from your FNBO accounts. Is a great service, however, keep in mind that fees do apply.

Their History

In case you’ve never heard of FNBO Direct, it stands for First National Bank Omaha. They are a subsidiary of First National of Nebraska. They’ve been around for about 150 years, and according to their site they’re the largest privately owned banking company in the United States.

Fees, Oh Those Pesky Fees

FNBO Direct has the same cryptic phrase as many other websites do now; they claim to have no “monthly fees”. Of course, they do have variety non-monthly ones.

Honestly, when I dig into the fine print of these websites as I am researching them it is almost comical the way they disguise some of their fees, and how hard it is to find them.  This is not directed squarely at FNBO Direct, but more the banking industry in general.

Regardless, FNBO does have its share of fees, and they make it a little more difficult than most places to even find them. My eyes hurt by the time I was done digging through all of their fine print.

They have the typical inactivity fee that you find everywhere, although they chooses to call it a dormant account fee. They also hit you with $25 the first month your account is dormant and $5 for each additional month.  I guess this is the latest twist in the “fees” game. They have standard fees for using “foreign” ATMs as well. Keep in mind that “foreign” doesn’t mean out of the country, it means any machine without their logo on it. Another nice little touch.

They have fees for different types of domestic wire transfers, too.

Popmoney Fees

Also, as stated, keep in mind that fees do apply for their Popmoney services.  It is $2 for standard deliveries and $10 for next day deliveries. This may be worth it though because keep in mind that in most cases, either the sender or receiver is charged money when using PayPal. If you used Pop Money correctly, in place of PayPal in certain instances, you could save yourself some money.

The funniest fee that I’ve found in awhile is one I found at FNBO called a Copy Request Fee. It is $5 per request. All I can say is that I’d love to see the copier they use or the paper those copies come out on. Must be some pretty expensive stuff!

Transfer Limitations

FNBO Direct offers a variety of accounts, but keep in mind that the number of transfers you are granted for each billing cycle is limited. I believe they are limited to six per month. It doesn’t say there is a fee if you go over that, just a limit. So I’d imagine if you try to do more than six, then the transfer simply isn’t processed.

Their Bog

They don’t really have a blog per se, but rather a quarterly newsletter. And it doesn’t just contain bank-related articles, but more a variety of savings topics, security advice, and college savings ideas.

The Last Word

I think that FNBO Direct has some great attributes and is well worth investigating if you are in need of an online savings account. They truly do offer that, and a whole lot more. Their rate of 1.1% APR is pretty competitive compared to other online savings accounts, but where they really set themselves apart is all the other services they offer.

Their Pay Yourself First service is truly directed at helping their customers, and it crystallizes a concept that should be key to any long-term savings plan—paying yourself first.

They also offer checking and bill pay accounts, so you can really just about do it all here on one site. Their Popmoney service is great for those that need that type of thing. And the fees associated with it may actually be a little less than PayPal, so there are some possible savings as well. They offer customer service via email or by phone, 24/7, which is another nice touch.

All in all, I’d say give them a shot. Read the fine print as with anything, but they sure can offer you a lot of services all in one place. Have any of our readers had any experiences with FNBO Direct? Feel free to share below.Related Posts:

• FNBO Direct: A One Stop Shop For Banking is a post from: Money Crashers