FNBO Direct's 6% savings account promotion must be attracting many millionaires. I just received an email from FNBO Direct about a policy change starting June 18 that limits customers' deposits to $1 million. However, for those who already have $1 million or more on deposit prior to June 18th, the new limit will not apply. This is one policy change that I don't have to worry about.
Since FNBO Direct does not accept POD accounts or IRA accounts, the most you can be FDIC insured is $200K for a joint account (see FDIC page). It may be risky to have more than this. FNBO is shown to be in good shape based on December 31st evaluations at Bankrate and BauerFinancial. Both give FNBO 4 out of 5 stars. However, Metropolitan Savings Bank in Pennsylvania also had a 4 out of 5 star rating at Bankrate before it went under and was taken over by the FDIC (see post). FNBO is much bigger than that Pennsylvania bank, but it's no Bank of America. As of December 31st, 2006, FNBO had $5.2 billion in deposits, $7.6 billion in total assets, and total liabilities of $7.0 billion. This is based on data from the FDIC. They have 28 offices in Nebraska and 4 in Texas. As a comparison, the largest US Bank, Bank of America, has $1,196 billion in assets, 6009 offices and $760 billion in deposits (FDIC page). The list of the top 30 largest US banks in 2005 is available here.
Pushing Money into FNBO Direct
This week I was able to create a link to FNBO Direct from my GMAC Money Market Savings Account. I also tested out a push of funds initiated at GMAC into my FNBO account. I was a little disappointed in the speed of both. I initiated the trial deposits at GMAC on Thursday. It didn't show up in my FNBO account until Monday. From my GMAC account, I initiated a push of funds from GMAC into FNBO on Monday morning at 9:15am CDT. It was debited at GMAC on Monday, but it wasn't credited in my FNBO account until Wednesday.
One reader reported a faster transfer when he initiated a transfer from GMAC. For a FNBO deposit case, the money was withdrawn from the GMAC account the same day as the request and deposited into FNBO the next day. For the FNBO witdrawal case, the money was deposited into GMAC account the same day and withdrawn from FNBO the next day. Another reader reported a similar result as mine except that he had initiated the transfer from GMAC to FNBO on a Friday. It was debited from GMAC on Friday, and it didn't show up at FNBO until Tuesday.
Others have reported fast transfers when initiating transfers from other banks. One reader reported initiating a transfer at ELOAN to FNBO on the morning of 5/14. The funds were in his FNBO account the next morning on 5/15.
One thing that's common in the above transfer examples is that it's best not to initiate a transfer on a Friday. At GMAC or ELOAN, it's likely to get debited before the weekend, and it won't get deposited until Monday or Tuesday. You'll likely lose at least 2 days of interest.
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.