Dedicated to Deposits: Deals, Data, and Discussion

New Online Savings Account at CNB Bank Direct


CNB Bank Direct
Update 10/09/09: The yield has fallen to 1.70% APY. Refer to the bottom of the post for the rate history.

Citizens National Bank has started a new internet bank called CNB Bank Direct with a no-minimum online savings account. The yield isn't the best, but it's competitive at 3.30% APY as of 8/04/08.

It has an ACH transfer system to allow you initiate bank-to-bank transfers, but I was told you're limited to only one linked account. A few other downsides to the account include a hard credit pull and a limit of one beneficiary. Below are the full account details from the bank's FAQ page and from my conversation with the CSR (877-777-9358):

General Account Features
  • 3.30% APY on all balances as of 8/04/08
  • No minimum balance requirements
  • No monthly service charges
  • No check writing or ATM cards
  • Interest is compounded and credited monthly
Opening the Account
  • Available to people in any state
  • Hard credit inquiry and ChexSystem performed (per CSR)
  • Minimum initial deposit is $1
  • Online application is used to open account
  • Account is funded by electronic funds transfer via ACH
  • The external account used to fund the initial deposit (initial link) can be a savings or checking account

Electronic Funds Transfer Features
  • The initial linked account can be used for additional deposits and withdrawals after the account is opened
  • Only one link can be set up for transfers (per CSR)
  • The linked account can be changed online
  • takes up to three business days to process transfers
  • ACH transfers are free
  • ACH withdrawals are limited to the standard 6 per month limit as required by regulation
  • No dollar limit on the ACH transfers as long as the balance remains under the maximum balance limit (per CSR)

Large Balance Features
  • Accounts are limited to a maximum balance of $1 million
  • Only one beneficiary can be specified per account

Citizens National Bank is a small Ohio bank with 129 employees and $482 million in assets based on FDIC data as of 3/31/08. It was established in 1920, and it has been FDIC insured since 1934 (FDIC Certificate # 6531).

The bank does seem to be financially healthy based on its financial ratings: 4 stars (sound) at and 4 stars (excellent) at BauerFinancial. Both are based on 3/31/08 data.

Other High Yield Savings Accounts

Without a top yield and without any noteworthy online banking features, it may not seem worthwhile to report on another online savings account. However, you never know when the bank will come out with some competitive rates. Last month I first reported on Union Federal Savings new online savings account. Last week, it just raised the yield on the savings account to 3.75% APY, and it's now on the top of my list for non-promo yields. FNBO Direct was like this early last year when it first launched with competititive, but not exciting, rates. A few months later, it came out with a 6% promotion.

To review the top online savings accounts, please refer to my weekly savings and money market account summary.

Rate History:
10/09/09: 1.70% APY
08/29/09: 1.85% APY
06/13/09: 2.00% APY
04/18/09: 2.20% APY
03/21/09: 2.30% APY
03/13/09: 2.80% APY
02/20/09: 3.00% APY
02/10/09: 3.20% APY
01/30/09: 3.40% APY
12/20/08: 3.50% APY
11/20/08: 3.75% APY
09/23/08: 4.00% APY
08/09/08: 3.50% APY

  Tags: CNB Bank Direct, savings account

Related Posts

Comment #1 by Anonymous posted on
I noticed today that the rate and CNB Bank Direct has increased 3.50%

Comment #2 by Savings Toolbox (anonymous) posted on
Savings Toolbox
"Citizens National Bank" Sounds...communist.

Comment #3 by Anonymous posted on
4% promo rate now. I wish they did not do a hard credit pull for opening an account.

Comment #4 by Anonymous posted on
Completing the online application was quick and easy. Then, you must wait for an email. I waited an hour, but it hasn't arrived yet.

Comment #5 by Anonymous posted on
I have an account with them and I'm not happy with the 5 working day hold they put on ACH funds.
They put 10 working days on the initial opening deposit amount.
ACH take 2-3 days depending on the time of the day ACH is initiated.
Over all neither happy nor unhappy.

Comment #6 by Anonymous posted on
There is a problem with their account opening system where it is not sending out emails properly for new accounts. I called the bank and they were able to send the email to move the setup process along, but my initial deposit still has not been made.

Comment #7 by Anonymous posted on
My experience with CNB Direct is very similar (not good). I initially am trying to open two individual accounts with 1 POD (different for each). I am an accountant and ask many questions, and received reasonable responses. Checked the FDIC website and also the rating on Bauer Financial. Am convinced they are real, but very small staff.

Each time I called (6 times over 5 days), I got only 3 different people. Also found out that they have 1 person who is handling the on-line savings account product-technical, operational and problem resolution sides. She is swamped and is having problems keeping up with the flood of new accounts-nice person though.

Once the accounts are open, I think I will be OK, but the endless e-mails are rather "stupid", and look to be a purposeful delay tactic. I am at a week now and have only today received the 2 small ACH deposits and withdrawals in my target linked account. I did receive an interesting e-mail telling me my 9/30 statement was ready to view (I assume $0 balance).

If you go with this institution, don't expect same level of service like GMAC, AM Trust or FNBO.

OC Steve