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Special Rate Offer From FNBO

Friday, July 1, 2011 - 2:50 PMFNBO Direct - Details
It's easy to earn a great rate on new money!
To qualify, make a deposit of $50 in each of the months of July, August and September into your account. Beginning in October, you'll earn 1.35% APY* on the money above what your balance was on close of business June 30, 2011. Blend that rate with the current 0.85% APY** on the remainder of your Online Savings Account and you'll maximize your interest.

Example:
Your account balance on June 30, 2011 is $1,000.00 and you make a deposit of $50.00 per month for each qualifying month. You are now qualified and will start earning a great rate!
As a qualified customer, beginning October 3, 2011, you earn the promotional rate of 1.35% APY on balances above your balance on the close of business June 30th, 2011 through March 31st, 2012. The remaining balance will continue earning a competitive 0.85% APY**
5
MaeclMaecl83 posts since
Jul 6, 2010
Rep Points: 654
1. Friday, July 1, 2011 - 4:04 PM
This is the most convoluted offer I have seen from a bank. I think it is only for present customers. It can make sense if you have only a small deposit at the bank on June 30 and make these $50 deposits for the next three months.
4
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
2. Friday, July 1, 2011 - 5:28 PM
I called FNBO Direct for more details about this since the email was confusing. I was told that only deposits made in July, August and September would count toward the 1.35% APY. I was surprised by that since the email made it sound that any balance above the June 30th balance would count toward the 1.35%.

I then followed up with an email with some specific examples to ensure what the CSR said was correct. I'm still waiting for the email reply. I'll be sure to post on it when I receive it.
4
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
3. Friday, July 1, 2011 - 7:11 PM
I agree Ken - the email said you would earn the higher rate for balances above the closing balance on June 30, starting  Oct 3 until March 31,2012. I am not surprised their reps don't understand the promotion, it is not easy to figure out.
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
4. Saturday, July 2, 2011 - 1:11 AM
I'll speculate.

They're not going to give 1.35% on just the (3)  $50 deposits. Right?

That would be a .50% rate bump on the entire bal. beging in Oct. lasting for 6 months. But it would only be getting .85% for 3 months, July Aug Sept., so maybe hold off until Sept and dump the FDIC max in the acct.

If only for current members, those that closed this acct. because of the falling rate will be HOWLING soon.

Again to my point about keeping accts open. I only kept about $100 for a retainer.

Faulty Logic Eh?

http://www.depositaccounts.com/blog/2011/06/most-annoying-bank-fees-for-savers.html
2
RicochetRicochet131 posts since
Jan 19, 2010
Rep Points: 358
5. Saturday, July 2, 2011 - 7:30 AM
That was another reason why I'm trying to get more info from FNBO Direct. I had a sense from the email that FNBO Direct intends for the deposits made in July, August and September to be the same amount or close to the same amount.

The email did fail to mention that deposits made after September would not count toward the 1.35% (according to the phone call with a CSR). So I'm concerned there may be other requirements missing from the email.
2
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
6. Saturday, July 2, 2011 - 8:11 AM
The email not only failed to mention that deposits made after September would not count toward 1.35%, it explicitly stated it would:

"As a qualified customer, beginning October 3, 2011, you earn the promotional rate of 1.35% APY on balances above your balance on the close of business June 30th, 2011 through March 31st, 2012. The remaining balance will continue earning a competitive 0.85% APY**"
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
7. Saturday, July 2, 2011 - 8:24 AM
I just read the footnote in the email and there is no doubt that the 1.35% applies to the entire balance during the promotional period in excess of the closing balance on June 30th.

 

*Limited Time Offer: Promotion available to existing FNBO Direct customers (as of June 30, 2011). In order to receive the promotional rate of 1.35% Annual Percentage Yield, you must make and we must receive a minimum of $50.00 in deposits per month in each of the months July, August, and September (all in 2011 and hereinafter referred to as the "Qualifying Months"). The promotional rate is applied to any deposit balance above the balance in your account at close on June 30th, 2011 (hereinafter referred to as the "Initial Balance") during the promotional period. The promotional period begins October 3, 2011 and ends March 31, 2012. For example, if your account balance on June 30, 2011 is $1,000.00 (Initial Balance) and you make the minimum deposit of $50.00 per month for each Qualifying Month, starting October 3, 2011 you will receive the promotional rate on any balances above $1,000 during the promotional period. Your Initial Balance (in this example $1,000) will receive the regular rate, currently 0.85% APY. If you qualify for the promotional rate, anytime your qualifying account falls below the Initial balance you will receive the regular (and not the promotional) rate, currently 0.85% APY. Your statement will not reflect multiple balances with various rates, but rather a blended rate of the entire balance, currently 1.10% APY. Annual Percentage Yields are accurate as of 06/30/2011 and are subject to change after that date. Rates may also change after the account is opened. Fees may reduce earnings. Minimum deposit to open an account is $1.00
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
8. Saturday, July 2, 2011 - 10:39 AM
Here's the reply I received. Instead of using my example, the CSR created her own example which had equal monthly deposits and no deposits after September. My example had minimum deposits for July and August and a large deposit in September. I also included a deposit in November. Here's the CSR's example from the email:
Thank you for contacting FNBO Direct. Please be advised, the promotional rate is applied to any balance above the close of business balance on June 30th, 2011, from October 3, 2011 thru March 31, 2012. Please see the example below:

June 30th ending balance $1,000.00
July deposit (must be >$50.00) $1,000.00
August deposit (must be >$50.00) $1,000.00
September deposit (must be >$50.00) $1,000.00
Total Balance October $4,000.00

1.35% will be paid on $3,000.00 (total balance minus the June 30th ending balance)
0.85% will be paid on the remaining $1,000.00 (June 30th ending balance)

You may withdraw funds from your account, but please be advised that this will affect the amount of interest you would earn on your balance. For example, if you withdraw $1,000.00 from the example above of $4,000.00, the interest of 1.35% would be paid on only $2,000.00.

In the email, the CSR did say that the "promotional rate is applied to any balance above the close of business balance on June 30th, 2011, from October 3, 2011 thru March 31, 2012." That "any balance" suggests to me that the CSR on the phone was wrong since deposits after September should be counted. It also shouldn't matter the size of the deposits just so the minimum $50 deposit per month is met for July, August and September.

I replied to the CSR's email asking about uneven deposits and deposits after September. Hopefully, the CSR will confirm that these deposits should count toward the 1.35% apy.
7
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
9. Saturday, July 2, 2011 - 11:29 AM
The 6 month bump in Apy will only bring the apy back to where it was in March, 1.10% :(

The deposits after Sept seems to be the odd duck in the promo. They more than likely wouldn't be subjected to the .85% apy. And hopefullly they dont muck up the incentive by changing the requirements as they go along.

I don't remember the promo but it happened in some other deal.

 
1
RicochetRicochet131 posts since
Jan 19, 2010
Rep Points: 358
10. Saturday, July 2, 2011 - 3:40 PM
I talked with a CSR at FNBO and they confirmed that deposits of $20,000 each in July, August, and September would indeed qualify for the 1.35% rate.  I asked if an additional $100,000 deposit in October would also earn 1.35%, and the answer was, "No."  Given that the 1.35% rate doesn't become effective until October 1st, and ends in March 2012, the effective rate on the account is much closer to 1.21% than 1.35%.  Incredible Bank currently pays 1.21% with no games.
4
AlanAlan32 posts since
Jun 7, 2010
Rep Points: 202
11. Saturday, July 2, 2011 - 4:32 PM
Alan, the CSR you talked to is flatly contradicting the email they sent to their depositors. If the CSR is right, this bank needs to learn how to communicate with their customers..
2
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
12. Saturday, July 2, 2011 - 5:49 PM
I'm not sure why the phone CSRs are providing different answers than the email CSRs. So far both emails I received do not place any restrictions on the deposits. Here's my latest email and FNBO Direct's reply:

My 2nd email with two questions to FNBO Direct:
1) Can the monthly deposits during July, August and September be uneven. For example, $100 in July, $100 in August and $5,000 in September? Would all of these deposits be included in the balance for the promotional rate?

2) Will deposits made after September count toward the promotional rate? For example, a deposit made in November? When I called yesterday, a FNBO Direct rep explicitly said that only deposits made in July, August and September would count toward the promotional rate which seems to contradict the promotional email and your email.

FNBO Direct email reply:
Thank you for your reply. Please be advised, the promotion requires a minimum of $50.00 deposits in the months of July, August, and September. The deposit amounts can be different each month, but must be a minimum of $50.00.

The promotional rate is applied to any balance above the close of business balance on June 30, 2011. The promotion time frame to earn the interest of 1.35% is from October 3, 2011 thru March 31, 2012. The balance on your account during this time will earn the higher rate except for the balance amount as of June 30, 2011.

For example, the balance as of June 30, 2011 is $1,000.00. Any balance on the account in excess of $1,000.00 would earn the higher rate during the promotional period. You are able to make additional deposits to your account during the promotion to earn the higher rate.

If you have additional questions please visit our help FAQ'S at www.fnbodirect.com, or send us an email.

6
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
13. Saturday, July 2, 2011 - 6:31 PM
The verdict is in: the CSRs are idiots!
6
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
14. Saturday, July 2, 2011 - 7:08 PM
True, CSR's sometimes don't have the correct info.  So I asked the CSR to have a Supervisor call me back.

Here's the scoop!

You must make a deposit of at least $50 per month (July, Aug, Sept) to gain the 1.35%. So I asked if I could make a very large deposit close to the end of Sept and gain the 1.35% for the total deposits from July thru Sept for the complete 6 months. She said, yes I could. 

I proposed, to her, deposits of $50 July, $50 August, and $100K Sept. She said I would gain 1.35% interest from July-Sept until 3/31/2012. Any deposit after Oct 3, 2011 will not gain 1.35%, but revert back to the .85%.  
2
pattyb53pattyb535 posts since
May 22, 2010
Rep Points: 33
15. Saturday, July 2, 2011 - 7:13 PM
pattyb53, this is not what the email said. Any money deposited after Oct 3 (promotional period) would earn the 1.35%. So I would have to tell you that the supervisors are idiots too.
4
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
16. Monday, July 4, 2011 - 12:34 PM
# 10  Alan

Thanks for the rate blend %, never was good at this
2
RicochetRicochet131 posts since
Jan 19, 2010
Rep Points: 358
17. Tuesday, July 5, 2011 - 4:40 PM
I called again today to see if the CSRs would be consistent. At least the ones on the phone seem to be consistent. She said that deposits made after September would NOT count toward the 1.35% APY.

I told her this contradicted their promotional email, and she said she would pass this to the marketing department. Hopefully, they will send another email to clarify this issue.

All CSRs do seem to be consisent on the uneven deposit issue. Any deposits made in July, August and September (if at least $50) should count toward the bonus rate. So I don't see an issue with making a $50 deposit in July and August and then making one big deposit in September.

On the 1.10% APY, this is just the average of 6 months of 0.85% and 6 months of 1.35%. I believe banks are required to refer to blended APYs this way when they advertise a saving account rate that's guaranteed for a certain period of time that's less than a year. EverBank did the same thing on their 3-month promo (when they used to offer it).

So for those who qualify for this promotion and don't have much in their FNBO Direct savings account, this appears to be a good deal that will guarantee you 1.35% from October through March 2012.



 
5
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
18. Tuesday, July 5, 2011 - 6:11 PM
Ken, this is exactly what the Supervisor that called later on 7/2 said.

Only deposits during July, Aug, & Sept count toward the 1.35% interest.

 I withdrew most of my money a few years ago when their good interest rate fell, and just left the account opened with $10.

As I said before, I now will deposit the $50 in July & Aug, and make a large deposiit in Sept and hopefully draw the 1.35% from October through March 2012.

Thanks for making this offer clear!
1
pattyb53pattyb535 posts since
May 22, 2010
Rep Points: 33
19. Tuesday, July 5, 2011 - 6:27 PM
 I don't have a lot of confidence in this bank when they send out a email (see footnote in my previous post) contradicting what the csr's are telling us. I am not sure I am willing to deposit money there if they can **** this up so easily. How easy will it be to get money out of the bank if there this mistake-prone.
2
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
20. Thursday, July 14, 2011 - 9:47 AM
I was ready to close my account at FNBO until this offer came along. So, I went ahead and set up an ACH to take place. But I agree that when we see what the average percentage is, it's easier to go with another bank's rate where all that work or even figuring out what exactly will take place is a non-issue. After the promo is over in March, I will definitely be closing my accounts at FNBO. They've gone downhill for me.

It makes me wonder if their promo was purposefully worded to confuse in order to keep customers from closing accounts and put money back into their accounts in hopes of making a huge return. Gotta wonder.
1
GaelicwenchGaelicwench2 posts since
Jan 19, 2010
Rep Points: 78
21. Thursday, July 14, 2011 - 1:04 PM

 

*Limited Time Offer: Promotion available to existing FNBO Direct customers (as of June 30, 2011). In order to receive the promotional rate of 1.35% Annual Percentage Yield, you must make and we must receive a minimum of $50.00 in deposits per month in each of the months July, August, and September (all in 2011 and hereinafter referred to as the "Qualifying Months"). The promotional rate is applied to any deposit balance above the balance in your account at close on June 30th, 2011 (hereinafter referred to as the "Initial Balance") during the promotional period. The promotional period begins October 3, 2011 and ends March 31, 2012. For example, if your account balance on June 30, 2011 is $1,000.00 (Initial Balance) and you make the minimum deposit of $50.00 per month for each Qualifying Month, starting October 3, 2011 you will receive the promotional rate on any balances above $1,000 during the promotional period. Your Initial Balance (in this example $1,000) will receive the regular rate, currently 0.85% APY. If you qualify for the promotional rate, anytime your qualifying account falls below the Initial balance you will receive the regular (and not the promotional) rate, currently 0.85% APY. Your statement will not reflect multiple balances with various rates, but rather a blended rate of the entire balance, currently 1.10% APY. Annual Percentage Yields are accurate as of 06/30/2011 and are subject to change after that date. Rates may also change after the account is opened. Fees may reduce earnings. Minimum deposit to open an account is $1.00
Really... By now, Stop making a mountain out of a mole hill.  The 3 months to qualify is plain. The (qualiification period) deposit requirements are plain. The promotional duration is plain. The rate is good!

 



 
2
RicochetRicochet131 posts since
Jan 19, 2010
Rep Points: 358
22. Thursday, July 14, 2011 - 4:26 PM
Ricochet,

The promotional duration is plain (Oct 3- March 31) and the language you cited says, "The promotional rate is applied to any deposit balance above the balance in your account at close on June 30, 2011" DURING THE PROMOTIONAL PERIOD.

How do you interpret that?
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
23. Thursday, July 14, 2011 - 5:57 PM
I'd say the Qualifying period is July, Aug, Sept. So that is the only time you can add money that will pay the optimum 1.35%. The promotional duration is Oct 3-March 31, 2012. So just deposit all the money you can afford to tie up for the 6 months, during the first 3 months period. Now is this complicated or not?

Deposit the minimum $50 during July, August, Sept. I'm going to deposit my optimum during the latter part of Sept. Then sit tight until March 31, 2012!
3
pattyb53pattyb535 posts since
May 22, 2010
Rep Points: 33
24. Thursday, July 14, 2011 - 6:47 PM
Patty,  Are you reading the same thing I am?
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
25. Thursday, July 14, 2011 - 10:27 PM
Lou, read what it says and to what it applies to.

The promotional rate is applied to any deposit balance above the balance in your account at close on June 30th, 2011 (hereinafter referred to as the "Initial Balance") during the promotional period.  You dont get it?

They are saying during the "promotional period" the deposits you had at the end of June 30, 2011 will be called "INTIAL BALANCE".   It is not that complicated.

 

 
1
RicochetRicochet131 posts since
Jan 19, 2010
Rep Points: 358
26. Thursday, July 14, 2011 - 11:34 PM
Ricochet, I think you are not reading this carefully. Ken has read this a number of times and he agrees with my interpretation. They are saying the promotional rate (1.35%) is applied to ANY deposit above the balance at close on June 30, 20ll DURING THE PROMOTIONAL PERIOD, meaning the balance in your account at anytime through March 31 in excess of what you had in there on June 30 will receive the promotional rate. There is nothing in this language suggesting that deposits after Oct 3 will not receive the promotional rate. Look at their example: If you had $1,000 in there on June 30 and deposited $50 each qualifying month for a total of $150, starting on Oct 3 YOU WILL RECEIVE THE PROMOTIONAL RATE ON ANY BALANCE ABOVE $1,000. Therefore, one would have to logically conclude that if you had a balance of $5,150 on Nov 1 because you deposited $4,000 on Oct 30, you would receive the promotional rate on $4,150, your balance of $5,150 less the initial balance of $1,000.
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
27. Friday, July 15, 2011 - 1:30 AM
I believe Ken has it correct in post #17.  Deposits made after September 30th, earn 0.85%.  Deposits made in July, August, and September qualify for 1.35%.  I was told the same thing by a CSR.  Definitely one of the strangest arrangements posted on Deposit Accounts . . . the amount of confusion thus created does not bode well for a quality savings arrangement with FNBO.  If you currently have $50,000 to invest, you would be better off putting it in a 1.21% account at Incredible Bank now rather than having the money sit in another account waiting to pounce and put it into FNBO on September 30th.  A bank playing this type of game does not believe in direct, honest banking.
1
AlanAlan32 posts since
Jun 7, 2010
Rep Points: 202
28. Friday, July 15, 2011 - 3:40 AM
Ken said in post # 17, that the CSRs are contradicting their email. My only point is the email they sent to all existing depositors is WRONG. I would like to see this stupid bank send out another email correcting the first one. How hard is that?
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
29. Friday, July 15, 2011 - 1:32 PM
Well we all know the bottom line. Kens' site is where we rake the deals over the coals until the facts come to light. No matter how confusing. Long live D/A.
1
RicochetRicochet131 posts since
Jan 19, 2010
Rep Points: 358
30. Tuesday, July 19, 2011 - 5:56 AM
I just noticed FNBO Direct has the email on its website @

www.fnbodirect.com/template_email/pages/newsletter/onboarding/recurring_deposit_lp.html

Unfortunately, they have not added any clarifications regarding the qualifications of deposits made after September.
1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
31. Tuesday, July 19, 2011 - 2:25 PM
Ken, Teresa from FNBO left a comment on the blog thread for this deal. She said all the money above your June 30 balance gets the promotion rate through March 2012. So the email is correct.
2
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
32. Tuesday, July 19, 2011 - 8:37 PM
I am totally confused...

30 information exchanges (which indicate level of interest) for a 1.35% APY promotional rate offer?

Unless I am missing something huge, that is pretty sad in my book:-)
1
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
33. Wednesday, July 20, 2011 - 5:47 AM
@lou, Thanks for alerting me to this. I'm trying to get an email confirmation with Teresa.

@51hh, Yes a 1.35% apy is low, but in today's rate environment, a 1.35% apy that's liquid with no balance cap and guaranteed for 6 months is a good deal.
1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
34. Wednesday, July 20, 2011 - 9:47 PM
51hh, yeah I agree - 1.35% is nothing to write home about; however,  I have CDs coming due in late Sept and this deal may be useful to park some of the money until I can find a suitable replacement.

Ken, I spoke to a CSR today and she told me that the marketing dept has sent out a memo clarifying the promotion. The email is correct; all money in excess of the June 30 balance will be eligible for the 1.35%.
2
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
35. Thursday, July 21, 2011 - 5:57 AM
@Lou, thanks for calling. I had to guess at Teresa's email address, and I never received a reply. I've updated the blog post with this info and added a note in this thread's quick summary.
1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
36. Saturday, July 23, 2011 - 10:23 AM
Has anyone positively determined what money gets the 1.35%.

Is it only the money added in Jul, Aug & Sept or does it also apply to money added after Sept?
1
doglardoglar1 posts since
Jul 23, 2011
Rep Points: 1
37. Saturday, July 23, 2011 - 2:16 PM
Both
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
Reply