FNBO Direct Raises Rate On Online Savings Account

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Availability: Nationwide (internet bank)

FNBO Direct has just raised the rate on its Online Savings account to 0.95% APY. This increase places FNBO Direct's Online Savings in the mid-range of all the Savings/Money Market accounts listed in DA’s Best Bank Account Interest Rates Summary.

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.95%-$1mFNBO DirectOnline Savings
Accounts mentioned in this post. Rates as of July 26, 2016.

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.

FNBO Direct is a division of First National Bank of Omaha (FNBO), as is First National Bank of Kansas (FNBK). Both FNBO and FNBK have just raised rates on their CDs/IRA CDs by 15 basis points across the board. While the resulting CD/IRA CD rates are just below "wow-worthy" level, it’s a nice start.

I’m aware that "one robin does not a spring make," but these rate increases could be signs of what may come.

Availability

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 accounts at FNBO must be opened online, and are available to U.S. residents, 18 years or older.

Bank Overview

FNBO Direct (FDIC Certificate # 5452) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 4.67% (excellent) based on September 30, 2015 data. FNBO Direct has an excellent capitalization level of 11.80%, a result of holding $17.63 Billion in assets with $2.08 Billion in equity. Please refer to our financial overview of FNBO Direct for more details.

Comments
Anonymous
Anonymous   |     |   Comment #1
Interesting blog. It would be nice if rates were higher on savings accounts, might make it more worthwhile.
carly
carly   |     |   Comment #2
I just did a review of my accounts yesterday, deciding to close FNBO as my lowest-paying account--really nice to see the jump today.
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