The last time I wrote about FNBO Direct was two years ago, when the rate on its Online Savings account had just increased to 0.95% APY. To quote that December 2015 blog post,
Ordinarily, this somewhat unspectacular rate change wouldn’t merit a blog post, but with this rate increase, FNBO Direct has become the first internet bank to raise rates following the Federal Reserve's rate hike on Wednesday.
Here we are again - two days after the latest Fed rate hike and FNBO Direct just added 25 bps to its Online Savings (1.40% APY).
The Online Savings account can be opened with as little as $1. There is no monthly service fee or minimum balance requirement. The maximum principal deposit balance is $1 million.
The Online Savings Account Disclosure does list a few limitations, including,
You may not transfer or withdraw more than: (i) $100,000 from your account in any one transaction; (ii) $100,000 from your account on any one business day; or (iii) $500,000 from your account in any one month.
If our Next Day Transfer Service is made available on your account, you may use that service to transfer up to (i) $3,000 from your account in any one transaction; (ii) $3,000 from your account on any one business day; or (iii) $10,000 from your account in any one month.
You may not deposit more than: (i) $250,000 into your account in any one transaction; or (ii) $250,000 into your account on any one business day.3 You may not make a deposit that would bring your total principal balance on all your accounts with us to more than $1,000,000.
Thanks to DA reader, Maecl, for spotting today’s FNBO Direct’s rate increase.
Headquartered in Omaha, FNBO Direct is the internet division of First National Bank of Omaha, which in turn is a subsidiary of First National of Nebraska (a multi-state holding company with a history that dates back to 1857).
All FNBO Direct accounts, including the Online Savings, must be opened online, and are available to U.S. residents, 18 years or older who have a valid Social Security or Tax ID number.
As an internet division of First National Bank of Omaha (FNBO), FNBO Direct operates under the FNBO’s FDIC Certificate and shares its financial history.
FNBO Direct/FBNO has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.09% (excellent) as on June 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $376.82 million, an above average annual growth rate of 2.54%. Please refer to our financial overview of FNBO Direct/FNBP (FDIC Certificate # 5452) for more details.
Founded in 1857 by brothers, Herman and Augustus Kountze, First National Bank of Omaha is in its sixth generation of family ownership. The Bank is one of the largest family-owned holding companies, in addition to being the largest privately owned banking company. With assets in excess of $19.3 billion and nearly 895,000 customer accounts, First National Bank of Omaha is Nebraska’s largest bank. Committed to serving the local community, the Bank is one of the largest commercial finance provides to the ethanol industry and the fifth largest agricultural lender in the country.
How the Online Savings Compares
When compared to the 204 Savings Accounts and 178 Money Market Accounts tracked by DepositAccounts.com that have small minimum balance requirements and are not limited by small balance caps, only four banks have higher rates than FNBO Direct’s Online Savings Account. Two of the top four are shown below with FNBO Direct as a comparison.
The above rates are accurate as of 12/15/2017.
To find the top Savings and Money Market rates, both nationwide and state specific, please refer to our Savings Account rates table and Money Market Account rates table. To find higher rates, raise the deposit amount at the top of the tables.