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FNBO Direct's New 2% Cash Back Credit Card and It's Official, New Yield of 5.05%

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FNBO Direct
FNBO Direct has started a new cash back credit card with a 2% cash back on all purchases for the first 12 months. It's called the ExtraEarnings Visa Card, and it's only for FNBO Direct online savings account customers. I received the details from FNBO in an email today.

Here's the promotion page. Some of the important details of the credit and bonus terms include:
  • Earn cash back with 2% back for the first 12 billing cycles and 1% back after that directly deposited into your FNBO Direct Online Savings Account.
  • Redeem your cash back by requesting a $25 deposit into your FNBO Direct account for every $2,500 in purchases on the card.
  • No annual fee
  • 7.99 APR fixed on purchases and balance transfers.
  • A balance transfer fee of 3% of the transaction, with a minimum of $10, will be applied to each balance transfer with this offer.

With the 6% savings account promotion coming to an end, this is a product intended to keep customers. Unfortunately, the 2% is only for the first 12 months. After that, it goes down to 1%. Nevertheless, I would say FNBO did a better job with this cash back credit card than what Emigrant Direct launched in 2006 (see post). Unlike Emigrant's cash back card which required a $10K balance, FNBO doesn't seem to have any savings account balance requirements in order to be eligible for the cash back rewards.

5.05% APY is Official

Another email I received today from FNBO confirmed that the post-promotional savings account yield will be 5.05% APY. Hopefully, this rate will last at least until the next Fed rate cut. If they can do this, that would be a respectable rate considering the 50 basis point rate cut that the Fed did last week. But you have to wonder if FNBO is planning to ease us into the non-promo rates.

Thanks to the reader who mentioned this new credit card in the finding deals post.
  Tags: FNBO Direct, savings account

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Comments
12 comments.
Comment #1 by Anonymous posted on
Anonymous
based on the way they handled the savings account, it's almost a sure bet that we will be reading about people getting ****ed with the credit card. If you're smart, you'll stay far far away from this.

1
Comment #2 by Anonymous posted on
Anonymous
I actually read a recent post where someone had a major problem with an FNBO credit card. It was reported that FNBO handled a disputed transaction improperly causing a severe credit report problem to the person. To me, nothing is worth the potential problems that this bank has seemed to cause people. I just keep reading and reading about them.

1
Comment #3 by Anonymous posted on
Anonymous
FNBO is the "gang that can't shoot straight" - on STEROIDS!

Stay away. This bank is remarkably bad.

1
Comment #4 by Anonymous posted on
Anonymous
I am withdrawing all my money from FNBO and ASAP. They made an error and withdrew money from the wrong external account, causing me overdraft fees from my external account. Not only that they resubmitted the withdraw again after I spoke with customer service explaining their error and was promised they would not resubmit. Thank god National City is reversing their fees. Here's the kicker, FNBO will not let me do any transfers, they are holding my money hostage!!! They said it should be cleared up in a day or two? The rep was also the rudest customer service person I'd ever dealt with, to the point of me hanging up on her. She did call back to apologize, but at this point I don't want to hear it.

1
Comment #5 by Anonymous posted on
Anonymous
to 8:22 AM anonymous poster:
File a complaint with the OCC (Office of the Comptroller). It is the fed agency that regulates this sorry excuse for a bank. If enough people complain, maybe something will be done. If you want to talk with a customer service supervisor, call the 877#, select option 4, and extension 4578. You'll get Josh (refuses to give his last name). He will be very helpful... yeah right.

1
Comment #6 by Patrick (anonymous) posted on
Patrick
If you spend $2500 and at 2% why does FNBO only deposit $25 in your account shouldn't it be $50?

1
Comment #7 by Anonymous posted on
Anonymous
Here's an interesting question (to me anyway.) If FNBO deposits the 2% bonus into your account, I assume that money gets reported on a 1099 INT. This is in contrast to getting cash back in for form of a check or statement credit.

1
Comment #8 by Anonymous posted on
Anonymous
What do you have to do to get an email from FNBO? My husband and I each have accts there with substantial balances, yet other than the "due diligence" emails we haven't heard from them. Only he got the survey. I haven't lost any money there, but this adds to the impression that they don't have their act together.

1
Comment #9 by Anonymous posted on
Anonymous
I am glad to have found this blog. I have been an FNBO customer for awhile now without any problems other than the due dilligence issue. I was just about to apply for the new 2% cashback credit card, but after reading the problems others have experienced, I don't think I will. I, too, am searching for other banks with a higher APR, incase their rates continue to drop. Thanks for the info!

1
Comment #10 by Anonymous posted on
Anonymous
@Anon 8:12AM, Sept 28:
FWIW, Wachovia's Wealth Management division has a Visa Signature card which pays 1.5% on everything, NON-promotional rate, no limits on payout. I guess it somewhat makes up for how ****-poor their interest rates are on savings/checking accounts.

1
Comment #11 by Anonymous posted on
Anonymous
You keep knocking Emigrant but they are a superior bank over FNBO. I already pulled my money out of FNBO. It takes them a week to transfer money out...Emigrant takes less than 24 hours. Emigrant credit card pays 1.4% vs FNBO 1.0% (after promotion). FNBO is a company the tries to suck you in with all these teasers rates, etc. Emigrant does not do this..actually their credit card rebate went from 1.2>1.4%. The $10k requirements that earns 4%-5% is peanuts and a great rate to get $10k..

I was not impressed with FNBO..the annoying emails, VERY VERY slow money transfers is not worth it. I put some of the money into Countrywide..after seeing how FDIC handled the NET Bank failure (very smooth transfer to ING) I have no worries if they go under and Countrywide's rate is one of the best now.

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Comment #12 by Anonymous posted on
Anonymous
I got this card in October 07 and have enjoyed the 2% cashback since then. Not only that, they recently told me that it'll revert to 1% only this month, so to me that's more than 12 billing cycles:-)
You earn points for each dollar spent and once you have 2500, you can get $25 deposited into your FNBO savings account - no tax issue (not counting as taxable interest). With the 2% promo, you simply earn double the number of points and reach the 2500 much sooner.
I've had no bad experiences with this bank whatsoever during this past year and would recommend their products. This card has been a good deal and I used other cards (Chase Freedom) only for gas purchases because of the 5% cashback for those purchases. However, after the promo ends, I'll be using other cards (mostly Chase cards) as their cashback level is more competitive.

1