Dedicated to Deposits: Deals, Data, and Discussion

4.26% 24-Month CD & 4.00% 12-Month CD at FNBO Direct


FNBO Direct
FNBO Direct is offering some competitive CD rates. These include a 4.26% APY for a 24-month term, 4% APY for 12 and 18-month terms and 3.75% APY for 6 and 9-month terms. These rates are listed in FNBO Direct's CD disclosure as of 12/12/08. Minimum deposit is $500.

As described in their CD page, you must first have a FNBO Direct savings account to be able to open a CD.

CD Details

I did a review of these CDs last year. One thing to note is that these CDs are technically callable CDs. From the CD disclosure:
We may accelerate the maturity or call this account at our option on any maturity upon 30 days written notice.

However, I've been told by FNBO Direct that this callable feature is unlikely to be used:
Our CDs are callable, however, even in our parent company, we have never called our CDs to come due early.

Online Savings Account, the Good and the Bad

Many readers had problems with FNBO Direct during their 6% promotion last year. Some readers reported receiving requests for employment history with threats of account holds. In many cases, holds were actually placed on accounts (see post).

I've had the savings account since May of 2007, and so far I've been fortunate not to have any problems with the savings account. The yield is still competitive at 3.25% APY, it has no minimum balance requirements or monthly fees, and it has an ACH electronic transfer service. The main downside is the slow ACH transfers that can take 3 to 5 days to transfer with at least 2 days in which the transferred money is not earning interest. Please see my full review of FNBO Direct's savings account for more details.

Checking and Cash Back Credit Card

FNBO Direct also offers its savings account customers an internet checking account and a cash back credit card (see post). Their internet checking account is called Online BillPay since online bill pay replaces paper check writing. It's similar to ING Direct Electric Orange account. One advantage is a higer interest rate for balances under $50K. It pays 2.25% APY as of 12/12/08. See the Online BillPay Account Disclosure for more details.

Financial/FDIC Overview

FNBO Direct is part of First National Bank of Omaha. Deposit accounts opened through FNBO Direct are FDIC insured through First National Bank of Omaha (FDIC Certificate # 5452). For those looking for a strong bank, FNBO seems to be in good shape. They continue to have 4 stars (sound) at This is based on 9/30/08 data. FNBO is shown to be a little weaker at BauerFinancial with 3.5 stars based on 9/30/08 data.

  Tags: FNBO Direct, CD rates

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Comment #1 by Anonymous posted on
A callable CD from FNBO - RUN AWAY!

FNBO has a very poor track record when dealing with customers. Just because they have "never" called a CD means nothing. 30 day T-bills are yielding ~ 0.0% and the 30 year bond is paying ~ 3.25%. With rates going down, FNBO has the incentive to call the CD and you have no protection.

Read the long list of posts about this bank, and find another one that will treat you properly.

Comment #2 by Anonymous posted on
Something from Revolution Card.

Dear Customer,

To thank you for being a Revolution Money customer, we want you to know about our special offer to save up to $100. Apply today for the RevolutionCard credit card and if approved, use it to get $5 back for purchases of $50 or more.* It's an exclusive holiday offer you don't want to pass up.

* Save up to $100* buying anything you want at nearly 300,000** stores
* Competitive APRs across the credit spectrum
* Ongoing discounts and rewards at participating stores**

Apply now for your RevolutionCard credit card. It's fast...a credit decision is made within seconds.

Shop safer this holiday season by using your RevolutionCard credit card. RevolutionCard is PIN-based and doesn't reveal your name or signature. If your Card is lost or stolen, your identity is protected because the Card can't be used without your PIN.


Jason Hogg
Founder and CEO, Revolution Money

P.S. Don't hesitate...the holidays are nearly here. Apply today. This limited time offer is good only until January 31, 2009.

* Make a purchase of $50 or more with your RevolutionCard credit card between 11/15/08 and 1/31/09 and receive a $5 credit on your statement. This offer may be used up to twenty (20) times for a maximum credit to your account of $100. Please allow up to 5 business days for qualifying credits to appear on your account.

**List of merchants that accept RevolutionCard subject to change.

Please note: This email was sent from a notification-only address that cannot accept incoming email. Please click on the link below instead of replying to this message. If you need assistance, you can also call customer service at 1-800-956-9540.

Removal Instructions: If you do not want to receive email of this kind from Revolution Money, please click here.

If you need assistance, please call Customer Service at 1-800-956-9540. This email was sent by, P.O. Box 669, St. Petersburg, FL 33731.

Accounts issued by First Bank & Trust, Brookings, SD

Comment #3 by Anonymous posted on
I'm a satisfied FNBO customer, but I avoid their CDs. The bank can end them at any time (since they're callable), but the customer is locked in unless they pay a large penalty! This deal is unfairly biased in the bank's favor, so definitely go elsewhere.

Comment #4 by Anonymous posted on
HO HO HO boy! Leave it to FNBO to come up with a callable CD that never will be called. What WILL these people think of next!!! I recall well their treatment of me as a customer. It was simply outrageous, and it was as outlandish as these callable CD's. There must be something in the water in Omaha. Those folks are in a world of their own. It's one I do not want to share.

Unrelated: Banking Guy please delete first post in this thread. Somebody is trying to use your blog to advertise their products. It's confusing. Of course if they are paying you ignore this comment. :-)

Comment #5 by Anonymous posted on
I don't mind the posting for Revolution Card.

At least they pay 10% interest for couple of months. It is much better deal then FNBO.

I might even apply for the card.
I spend about $1000 a month anyway on my BofA credit card.

Worth a try.

Comment #6 by Anonymous posted on
First of all, what has the Revolution card have to do with FNBO? Seems like a spam sender to me. Second, you get 10% off for every $50 spent, so you have buy at least $50 items 20 times (total of at least $1000) in order to get $100. I can spend $1000 easily, but not broken down into $50 increments. None of my local grocery stores are listed, so the chance of making $100 is slim.

Comment #7 by Anonymous posted on
FNBO can close any CD whether callable or not, if they think your money is not legit. They have very ****y way of doing business.

I opened an account with them last year using my wife saving account as opening deposit and they created alarm and involved the Feds about the source of the money and all sorts of mails and e-mail back and forth for two months. They made my wife to sign an affidavit that the money are hers and that will allow me to use her saving account as opening pull.

All that for $100 opening deposit.
I will never deal with them again ever.