Dedicated to Deposits: Deals, Data, and Discussion

How Much Have You Deposited into FNBO Direct?

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FNBO Direct
FNBO Direct is receiving a lot of exposure this week as it starts to heavily advertise its 6% online savings account. With news that it plans to target Orlando, Seattle, Phoenix and Boston for its marketing campaign, newspaper articles have been written about them in Orlando and Boston.

One stat mentioned in the Orlando article is that internet banks have pulled in $120 billion in deposits since 2000, and estimates are that they will pull in up to $400 billion by the end of the decade. This is not a huge amount when you consider Bank of America already has $760 billion in deposits (per FDIC data).

How successful has FNBO Direct been in attracting your money? I thought it would be interesting to create this poll to see the size of deposits that readers have at FNBO Direct. It's entirely anonymous so feel free to give it a try.


Create polls and vote for free. dPolls.com


If your deposits fall on a boundary, choose the higher deposit level.

For a summary of the FNBO Direct savings account, please see my FNBO Direct account overview or for all of my previous FNBO Direct posts, please see this page.
  Tags: FNBO Direct, savings account

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Comments
19 comments.
Comment #1 by Anonymous posted on
Anonymous
You should have a separate choice for 94k-100k so we can see how many people went without FICO insurance.

Right now the insured and the unisured up to 200k are bunched together.

1
Comment #2 by Anonymous posted on
Anonymous
I like the people who are in for half a mil or more. You know they are mostly uninsured. So you wonder just how much these folks must be worth, given they likely are only risking what they can afford to lose. Using ten to one as a working guess, I figure these folks are in the five to ten mil, or more, net worth category. It must be a warm, comfortable existence when you can afford to lose half a mil give or take; not too shabby. Not too shabby at all.

1
Comment #3 by Mike (anonymous) posted on
Mike
Or it could be that those 4 people who clicked half a mil are just college kids joking around ...

To the 1st poster, I'm not sure I understand what you're saying. Different people can be insured up to $100k, $200k, or even $600k depending on how they set up their accounts (i.e. spouses setting up 2 single accounts, a joint account, and 2 revocable trust accounts get a $600k total insurance)

1
Comment #4 by Anonymous posted on
Anonymous
so, if I were to open a second account under the same name, I would be insured for 100k on both accounts?

1
Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
I should have mentioned that FNBO Direct does not allow revocable trust accounts (i.e. payable-on-death).

So the only way that I know to go above the $100K limit at FNBO Direct is to include joint accounts. One joint account between a husband and a wife is insured to $200K. Each could open an individual account and be insured for a total of $400K. There's a good FDIC article about this here.

1
Comment #6 by Anonymous posted on
Anonymous
No, FDIC insure only one person per entity (bank) regardless of the different account you have in your name. To insure above the 100k limit the second account must be joint account or other type which have different name.

1
Comment #7 by Anonymous posted on
Anonymous
I like the people who are in for half a mil or more. You know they are mostly uninsured. So you wonder just how much these folks must be worth, given they likely are only risking what they can afford to lose. Using ten to one as a working guess, I figure these folks are in the five to ten millon, or more, net worth category. It must be a warm, comfortable existence when you can afford to lose half a mil give or take; not too shabby. Not too shabby at all


To me that seems odd. Most people with that kind of money would be more in the market. Myself and most others use banks for safety and would not want to lose a penny in a bank. I would not keep uninsured funds in most banks including FNBO but have no problem keeping a Million+ in BoA

1
Comment #8 by Anonymous posted on
Anonymous
Is it really very risky to have uninsured funds in savings accounts?

I don't do it. But I mean, lots of people have a great deal in money market accounts. Those are uninsured.

Lots of money in bonds and equities. All uninsured.

So all things being equal, sure, take advantage of the FDIC insurance. But if you think the best risk-adjusted returns are in a savings account, is it really a horrible idea to exceed the insured amount? What if the bank is considered very strong?

1
Comment #9 by Anonymous posted on
Anonymous
It worth it to mention that the bank is insured with DIF for amount above FDIC coverage so it's not accurate to say that people are uninsured above these limits.

As to the point of having half million or more in liquid vs. the market, that's not outside the norm for retirees, especially with bond yields these days. I wouldn't have it all in one bank but spreading it around, I suspect that it is not that exceptional at all.
Banking Guy: did I misread the FNBO post or did it state that PODs are allowed but must request separately from the application?

1
Comment #10 by Anonymous posted on
Anonymous
To the point of money market accounts , equities, bonds being uninsured. This is not accurate. Bank accounts including checking, savings or MM are all insured not just savings.
As to equities and bonds, most brokerage companies or banks that provide brokerage accounts (ie. BoA, Well Fargo etc.) have these accounts insured under SIPC and then the overage usually covered by private insurance. Seems that there are alot of misconceptions on the much abused FDIC 100K limitation.

1
Comment #11 by Anonymous posted on
Anonymous
It's money market FUNDS that are not insured

1
Comment #12 by Anonymous posted on
Anonymous
re MM funds, nope not accurate either. Usually, these funds are purchased thru a brokerage account, the comments about SIPC and private insurance apply.

1
Comment #13 by Anonymous posted on
Anonymous
SIPC insurance does not insure the value of Money Market Funds, Bonds, or any other securities in a brokerage account.

If the Money Maket Fund or the bond issuer goes broke and can't redeem the fund shares or the bonds, SIPC will not pay you a cent.

SIPC only guarantees to replace the securities in your brokerage account if the broker somehow loses them. If the lost bonds or money market fund shares were worthless, the SIPC will replace them with worthless bonds.

FDIC insurance is completely different. It guarantees that you will get back all the money (up to the limit) that you put into the bank, regardless of how poorly managed the bank is. SIPC will not give you your money back if you invest in a bad fund or an insolvent bond issuer. SIPC will not give you your money back if you buy stock in a company that goes bankrupt. FDIC will give you your money back if you put money into a bank that goes bankrupt.

Big difference.


That's a big difference.

1
Comment #14 by Anonymous posted on
Anonymous
"re MM funds, nope not accurate either. Usually, these funds are purchased thru a brokerage account, the comments about SIPC and private insurance apply."

Doesn't matter. If the MM fund goes broke, the SIPC will not give you your money back.

If the broker goes broke and it is discovered he has been embezzling your MMF share, the SIPC will replace the shares or pay you whatever they were worth at the time.

1
Comment #15 by Anonymous posted on
Anonymous
"It worth it to mention that the bank is insured with DIF for amount above FDIC coverage so it's not accurate to say that people are uninsured above these limits."

Not true.
The DIF is an insurance fund for certain Massachusettes based savings banks.

The First Natonal Bank of OMAHA is
1) a national bank
2) based in Nebraska
and so it fits neither qualification for DIF insurance.

1
Comment #16 by Anonymous posted on
Anonymous
I hope FNBO does not lock our savings in a long term comitment because when (and if) they lower their rate on 9/28, all these rate chasers (yours truly included) will move their money out.

1
Comment #17 by Bob (anonymous) posted on
Bob
You should know that you could loose interest of three business days if you intiate ACH transfer. The bank will not post interest to you account for three business days, and that is not include the weekend or the holidays

1
Comment #18 by Banking Guy (anonymous) posted on
Banking Guy
If you want to see more details of the poll without voting, please refer to the

poll details link

The current votes show 117 people with more than $100,000 in deposits.

Votes
84 - Under $1,000
84 - Between $1K and $10K
141- Between $10K and $50K
120- Between $50K and $100K
80 - Between $100K and $200K
25 - Between $200K and $500K
12 - Over $500K

1
Comment #19 by Anonymous posted on
Anonymous
Anyone know why FNBO Direct is no longer listed on Bankrate.com?

1