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FNBO Direct's Savings Account Offers 6.00% Until 9/28/07

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FNBO Direct
FNBO Direct has started a 6.00% APY promotion on its online savings account. The 6% APY applies to all balances until September 28, 2007. The account has no minimums or monthly fees.

I did a review of FNBO Direct in February. The rate had been 5.25% APY since January. The account seems to have a decent online ACH transfer system. In February I noted that they allow only one linked account. However, their current FAQ now states an additional 2 linked accounts are allowed in addition to the account that you use for the initial funding.

I didn't expect FNBO Direct to be the next rate leader. In that February post I mentioned that new online banks needed to do something big to grab attention like what E-LOAN did last year when it launched with 5.50%. Well, 5 months of 6% APY is big. I just hope they can keep this promotion going. Last week when UmbrellaBank came out with their 5.50% promotion through 2007, they had to back off to 5.50% through July (see post).

Thanks to the reader who mentioned this new promotion in the finding deals post.

  Tags: FNBO Direct, savings account

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Comments
26 comments.
Comment #1 by SVG (anonymous) posted on
SVG
 
Banking Guy,

I was doubting if the other banks will pick-up where HSBC is leaving-off. Looks like my doubt was unfounded ... Perhaps there are quite a few rate-chasers (your truly included) these days, that the banks are trying to get their business with such offers.

The yield for i-bond is ... err ... disappointing ... Therefore it is not going to pose a significant challenge for coming six months to the yields of these banks.

- SVG

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Comment #2 by Anonymous posted on
Anonymous
Great rate, but they ask TONS of annoying questions and seem to be pulling your credit report. Why the heck to they need to know my employers phone number and why I have the money? Other banks don't need this info. When you go to ACH the money they ask you when you opened that account??
Tip: I am going to ACH $100 and then wire $100k to avoid lost of interest due to ACH.

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Comment #3 by Lo (anonymous) posted on
Lo
I've applied to other banks and they have asked me for my employer's number (which is pretty annoying because I don't like to be bothered at work). Obviously, they need to pull your credit report (I think they even blatantly state it in the application, but when I talked to the CSR on the phone, she informed me that they do a soft pull.

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Comment #4 by Anonymous posted on
Anonymous
I filled out the online application and the questions seem fairly standard. Most of the time, credit card and bank account application do ask for employer phone number if you selected 'employed'. Although I don't know what other information was required since I selected 'retired'. For those familar with this bank or select the 'fund electronically' option, how long does it take for the money to get there?

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Comment #5 by Anonymous posted on
Anonymous
Is it true that it is only a soft pull to open the account?

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Comment #6 by Anonymous posted on
Anonymous
Okay...quick question.

Has anyone noticed the EXTREME similarities between the FNBO application and account messages and IGOBANKING application and account messages?

There are almost identical, but they aren't owned by the same bank correct?

Do they use the same vendor for their online presence?

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Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
About the hard pull, I was informed by the CSR in February that it was just a soft. But you can't always be 100% sure on this until you've reviewed your credit file. I noticed in the application that the credit-related questions are from Equifax.

About the similarities between this and iGObanking, it's due to both of the banks contracting the online banking system to CashEdge.

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Comment #8 by Anonymous posted on
Anonymous
FNBO disclosures states:
Currently, the interest rate on your account is 5.84% with an annual percentage yield of 6.00%. Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account at any time. We will not, however, change your interest rate until to September 28, 2007.

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Comment #9 by Anonymous posted on
Anonymous
I went through their scripts for a joint acct. @ ~8 pm PST 5/1. Got confused on the ACH funding and called the 800#--got a CSR--friendly and well-informed. Takes a LOOONG time for the ACH mumbo-jumbo dust to clear--doubt this acct. will be feng shei until late next week--if we're lucky. We ACH'd $1 and chose the verification option where THEY make 2 small deposits into the target acct. Nice idea--nice concept--nice rate--slow fulfillment. Jury's out.

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Comment #10 by Jonny C. (anonymous) posted on
Jonny C.
i just signed up. extremely easy.
thanks for the good rate to replace the hsbc.

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Comment #11 by Anonymous posted on
Anonymous
Is 104000016 the correct ABA routing number for this account?

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Comment #12 by Anonymous posted on
Anonymous
If I send you a check, will my check start collecting interest the day you receive it, or there is some hold period (processing time, etc.) before the interest on the check amount starts accruing?

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Comment #13 by Anonymous posted on
Anonymous
Sorry if this isn't the proper forum, but I'm trying to educate myself and find terms I don't know: ACH, and soft and hard pull. Can you enlighten me?

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Comment #14 by Anonymous posted on
Anonymous
"Sorry if this isn't the proper forum, but I'm trying to educate myself and find terms I don't know: ACH, and soft and hard pull. Can you enlighten me?"

Well, since I see you've proven you're able to figure out how to write a post on the internet, please allow me to introduce to you something wonderful to help you grow your developing internet skills:

www.google.com

1
Comment #15 by travis (anonymous) posted on
travis
first of all, yes that is the correct ABA (routing) number for FNBO(i work there). and as for the ACH it is a 3 day process but you would only lose interest for an average of one day. when we get a check the interest starts the day we get it. and as for the 'unnecessary questions', we have to ask those due to recent amendments to the USA Patriot act, which for anyone who is familiar with banking, is a very well-known and strict law; there's really no way to get out of that. as for the credit report, it's a soft hit so it won't go down when we check it, we simply use it to verify identity with Equifax and OFAC.

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Comment #16 by Banking Guy (anonymous) posted on
Banking Guy
Sorry about not providing explanations on these terms like ACH and hard pull. ACH is a method for making electronic funds transfers (ETF) from one bank account to another. A hard credit pull or inquiry is done when there's a check to your credit report. The hard dings your credit score. The soft pull doesn't hurt it.

1
Comment #17 by Anonymous posted on
Anonymous
apparently, the 6% promotional rate is only good for new accounts. i opened an account on april 26th at the 5.25% rate. when i called fnbo, they wouldn't give me the 6% rate since i opened my account before may 1st, which stinks.

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Comment #18 by Anonymous posted on
Anonymous
Anybody know the number of transfers you are limited to per month?

1
Comment #19 by Banking Guy (anonymous) posted on
Banking Guy
From the FAQ: You are allowed unlimited ACH (online) deposits and unlimited ATM transfers. You are, however, limited to six withdrawals per month.

Note the 6 withdrawal limit is per US regulations regarding savings accounts.

1
Comment #20 by ctgottapee (anonymous) posted on
ctgottapee
for employer phone number and employer in general, there are a number of privacy tactics you can use

you can give them the fax number of your employer, or better yet, a fax number of any large employer as the numbers are generally unlisted

you can also create a standard 'fake' employer, which is what i do. i chose a small local firm that i know is fairly private with details, and i use their name/address/phone on all applications. often the forms ask for this info to match up to credit and other records to confirm identity or spot changes in employment, ie risk.

i use the fax machine trick for my home phone number, nobody calls me; i only get contacted when i call them. you just have to be very judicious about it, use it everywhere, dr office, voter registration, etc

it is also a good idea to establish fake mother's maiden name - make it your fav athlete - and even birthdate - i swap the month and day for most mundance stuff.


another great trick is to occasionally use a phone or address of someone with the same first initial and last name as you for meaningless things, like when a store asks you for a number at checkout. this is great as it clouds up the quality of your information in databases.


overall you have to keep in mind that you as an individual are really not that important to these firms, but contact privacy is nice so you don't get hassled, and can sometimes use their lack of quality records on you to your advantage

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Comment #21 by Anonymous posted on
Anonymous
Any way to get FNBO direct into BofA protfolio?

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Comment #22 by Anonymous posted on
Anonymous
FNBODirect What a joke. I have never had so much trouble. They cannot get my accounts linked up so I can use the transfer links. I therefore cannot access my money. I spent 3 days on line and on the phone and still no help. I stopped payment on two checks going in for deposit - and they were large ones. The extra 1 percent is not worth the trouble. You cannot talk directly to the tech people. THey talk back and forth with customer service, put you on hold for 20 minutes and still get nowhere and there is no higher up to talk to. Wow. Capital ONe gives great service, checks, phone service and just like a real bank. I will opt for a lower MM interest for some better service. I still have money tied up with FNBODirect and hope I can get to it. What a joke.

1
Comment #23 by Anonymous posted on
Anonymous
dont use FNBO it is a big problem

1
Comment #24 by Anonymous posted on
Anonymous
Someone complained about opening an account in April and the 5.25% rate was locked -- there were not getting the 6.00% rate. That is incorrect, all new and current accounts get the 6.00%

The ABA number listed in one of the comments is correct.

1
Comment #25 by Anonymous posted on
Anonymous
FNBO dIRECT what a joke after 2 weeks of emails and phone calls I gave up on them....waste of my time,they couldn't get nothing straight or link to another account

1
Comment #26 by Anonymous posted on
Anonymous
I got an account, it was straight forward and I love it.

I am getting more family memebers interested with FNBO.

1