Dedicated to Deposits: Deals, Data, and Discussion

FNBO Direct Increases Online Savings Account Yield to 3.50%

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FNBO Direct

Update 2/19/10: Refer to the table below for the rate history of FNBO Direct Savings Account.

It looks like HSBC Direct's 3.50% has started a trend. FNBO Direct is the latest online bank to increase its savings account yield to 3.50% APY. The yield had previously been at 3.25% APY. Unlike HSBC Direct, this yield isn't guaranteed to last for any length of time.

FNBO Direct's savings account has actually remained more competitive than HSBC Direct savings account and several other online savings accounts. Below is a history of FNBO Direct's rate changes. Also included are the rates from HSBC Direct on those days that FNBO changed rates.


Dates FNBO
Changed FNBO HSBC
Rates APY APY

02/19/09 1.25% 1.20%
11/16/09 1.40% 1.35%
6/22/09 1.50% 1.55%
5/18/09 1.65% 1.55%
4/03/09 1.90% 1.85%
3/10/09 2.15% 1.85%
2/24/09 2.40% 2.25%
2/02/09 2.60% 2.45%

6/09/08 3.50% 3.50%
3/20/08 3.25% 3.05%
2/07/08 3.85% 3.55%
1/25/08 4.30% 4.25%
9/29/07 5.05% 4.50%
5/01/07 6.00% 5.05%
2/15/07 5.25% 5.05% (HSBC's 6% new-money promo)


Both FNBO and HSBC utilize the same Cashedge ACH transfer service, so both have the same delays and loss of interest when you transfer money. One advantage of HSBC's ACH transfer service is that there are no limits to the number of external accounts that you can link. FNBO Direct limits the external accounts to three. Please refer to my FNBO Direct savings account review for more details. I describe my experience opening the FNBO Direct account and transfering money in this post. I did a review of HSBC's promo last Monday.

FNBO Direct also has a promotion called Pay Yourself First Challenge. It's mostly a sweepstakes which I usually don't cover, but you can get a $10 gift card for being the first 500 to submit a one-minute video about what you're saving for. My suggestion would be a video of one person explaining to another the concept of "don't buy stuff you cannot afford" (see explanation).

  Tags: FNBO Direct, savings account

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Comments
26 comments.
Comment #1 by Anonymous posted on
Anonymous
WaMU will be the FIRST MAJOR BANK COLLAPSE in the USA. I watched CSPAN where the head of the FDIC was on and said they did not anticipate any LARGE bank collapses however with 22 Billion dollar shortfall now at WaMU, it seems surely like it will collapse.

Just a heads up.

1
Comment #2 by Anonymous posted on
Anonymous
UBS AG analyst Eric Wasserstrom said the Seattle- based lender is underestimating losses on home loans which I concur with. WaMU is going to go poof.

The Treasury department set up a special situation to allow for the Bear Stearns sale. However with Washington Mutual, the bank will likely collapse under its own pressure and will not be bailed out since the losses are way too large.

I don't even know if the BoA and Countrywide Merger will survive even after Ken Lewis says it will.

1
Comment #3 by Anonymous posted on
Anonymous
Do NOT put funds in banks with large losses unless they are under the FDIC limits. Countrywide is a good bank to put funds in under the FDIC limit and to account for accruing interest.

In the case of WaMU they have absolutely nothing to offer.

1
Comment #4 by Anonymous posted on
Anonymous
WaMu will lose about $21.7 billion from mortgages through 2011, versus the company's forecast of $12 billion to 19 billion.

Assets will be below liabilities and the bank will not have enough funds to cover depositors because of the losses even after accounting for fractional reserves in the future.

I do not see any bailouts here. Pull funds out of WaMU immediately and do NOT USE THIS BANK. I can't stress this enough. WaMU HAS NOTHING TO OFFER. Noone should be renewing CD products or putting funds in here. Avoid this bank at all costs.

1
Comment #5 by Anonymous posted on
Anonymous
The UBS report was already known beforehand. The banks always want to underestimate losses and to make it SEEM like everything is fine and the like. But with WaMU you have unethical sharks running this company.

I apologize for the WaMU rant, but WaMU stock is at an all time low today and for good reason. AVOID EM!

It will be a major S+L failure and a huge event in American history in for banking when they go bust which will have large consequences.

1
Comment #6 by Anonymous posted on
Anonymous
oes any of the above have to do with FNBO Direct?

1
Comment #7 by Anonymous posted on
Anonymous
I see no reason to pull out your money from WAMU if it is less than 100k.

1
Comment #8 by Anonymous posted on
Anonymous
I wrote to FNBO thanking them for the rate increase. I kept my money with them because of how slow they were about lowering their rates despite others immediately cutting their rates.

I am glad I hung in there with them; they were worth it and less hassle for me to close the account and look elsewhere. It serves no purpose. I also use FNBO's Bill Pay service, since that is also interest bearing, albeit low. It's better than none at all.

1
Comment #9 by Anonymous posted on
Anonymous
Anyone having trouble accessing their Countrywide account online?

1
Comment #10 by Anonymous posted on
Anonymous
All banks whether it be WaMU or FNBO need to be checked for financial health. Judge accordingly.

1
Comment #11 by Anonymous posted on
Anonymous
No problems with Countrywide login here.

1
Comment #12 by Kamcha (anonymous) posted on
Kamcha
Why do you insist on trashing WaMu and scaring WaMu customers?

WaMu has so much money in assets and deposits.

WaMu is not going to fail.

WaMu will either be swallowed up by another bank, merge with another bank, or survive outright as the housing market improves.

1
Comment #13 by Anonymous posted on
Anonymous
Earlier in the day I pulled most of my money out of my Countrywide Savingslink account. That probably forced them to close down logins...lol, I wish.

1
Comment #14 by shrazzy (anonymous) posted on
shrazzy
Wamu has a large asset to survive this year. They do have a brand name and a lot of branches, which might be attractive for WellsFargo, US Bank, or a foreign company.
I love Wamu site management and I hope they don't collapse.

1
Comment #15 by Anonymous posted on
Anonymous
Which is the best place to post discussions on banks in general?

I realize Im not discussing FNBO now. But its the first topic on here and gets people to read it.

With that being said: As an overall basis, banks do not exist for the depositor but exist to make profit. As a customer this website and others provide a way to compare banks and to shop and choose so it forces them to compete in a competitive marketplace.

And so sometimes you can find rate specials to shop and take advantage of.

But after awhile, the net profit margin on these rate specials becomes so slim that it does not pay to shop but pays to stick with one overall bank or more depending on how much overall cash you have and FDIC insurance limit reasons.

So in that vein, if a local bank has a top rate at the time you want the account (Local branch access and ATM) then that is the bank you should likely use.

We have dozens and dozens of banks where I am and rates are all over the spectrum from no interest to 3.50% (short term rate) and 3.75% for an online only account with a local branch as well as banks offering the addition of categories on a top rewards credit card offering with $125 promo for free checking and direct deposit.

Its really hard to choose ONE overall bank to use yet you realize that banks with the highest APY are the ones you should use that have local account access with ATM.

A bank who offers no interest to depositors for use of the ATM is essentially charging the customer for use of the infrastructure with total profit for the bank for fund safekeeping. You would be better off keeping funds under the mattress or in a safe somewhere.

1
Comment #16 by Anonymous posted on
Anonymous
WaMu is not going to fail. Stop spreading fear.

If you read the UBS report, it also said that WaMu does not need any more cash infusions.

Having said that, please keep you deposits under the FDIC limits at any bank.

1
Comment #17 by Anonymous posted on
Anonymous
I think someone said if you can't say anything good don't say anything at all. With that in mind I won't comment on WAMU.

1
Comment #18 by Anonymous posted on
Anonymous
Ok, since we're talking about WaMu, I have my mortgage with it. What would happen to my mortgage and house IF the bank collapses.

1
Comment #19 by Anonymous posted on
Anonymous
WaMu in fact failed last night..

1
Comment #20 by Anonymous posted on
Anonymous
FNBO froze my funds twice without any apparent reason. Stay away!

1
Comment #21 by Atlanta Wolf (anonymous) posted on
Atlanta Wolf
Rate cut to 3.25% 10/22/2008.

1
Comment #22 by Anonymous posted on
Anonymous
Online Savings Account is now earning 2.60% APY.

1
Comment #23 by ichaelm (anonymous) posted on
ichaelm
yet another drop to 2.15%

1
Comment #24 by Anonymous posted on
Anonymous
Wouldn't it be nice if FNBO Direct's ad on your site reflected its current yield? When the yield declines, the ad doesn't reflect the reduction for several days (e.g., the current ad is wrong).

1
Comment #25 by Greg (anonymous) posted on
Greg
Just got the notice that FNBO is now at 1.65.

Time to start looking again!

1
Comment #26 by ichaelm (anonymous) posted on
ichaelm
I just received an email: effective today, the rate is now 1.50%APY

1