I am starting to like FNBO Direct

by Rocket Finance

Last summer, I opened a savings account with FNBO Direct in order to take advantage of their 6.00% APR promotion that lasted until mid-September. I pretty much planned to only keep my money there as long as their APR was the highest around. FNBO seemed like a small bank that was only using a gimmicky savings rate to make a temporary splash on the national stage. When FNBO‘s APR began to slide (along with every other bank), I moved all of our balance transfer arbitrage money to Everbank which was pushing a 6.01% introductory rate on their online checking account. However, I found the Everbank interface to be a little bit difficult to understand. I don’t like complicated interfaces and I only needed an online savings account. My local checking account suits me just fine.

By the time the Everbank promotion was up, interest rates were plummeting at every financial institution, so there was no reason to open another high rate savings account at that point. I transferred our balance back to FNBO Direct whose rate was now down to 3.25% APR – a far cry from last year’s great rate, but better than most. I planned to just leave the money there until rates began to rise again. Then, in April, FNBO offered a  $25 bonus to customers who opened an online bill pay account. Not one to turn down free money – I opened an account immediately and have come to like it so much that I use it for almost all of my online transactions.

Here is why I now pay all my bills through FNBO:

  • The FNBO Billpay has a simple interface. No bells and whistles, just enough to get the job done.
  • For most payees, all you have to enter is the payee name and account number and FNBO takes care of the rest. No laborious filling in the mailing address and phone number for every payee. Frankly, I’m not sure why more banks don’t do this. One of the banks that I used to use, would not accept a payee unless the phone number was entered with exactly this spacing and punctuation: (000) 000-0000. Even when the number was an 800 number.
  • I can schedule when each bill is paid during the month and when the transfer from the savings account to the billpay account will take place. This allows me to earn as much float interest as possible.
  • The money in the Billpay balance earns a competitive 2.5% APR.
  • The best feature of FNBO Billpay is the way it lists all of my payees on one page and gives the last date on which a particular bill was paid. It is a straightforward way to make sure that all of your bills have been paid for the month.
  • Then just this week, FNBO raised it’s savings APR to 3.50%.

After my check is direct deposited into my local checking account, I immediately transfer it to FNBO and pay all of our bills from there.

I plan to be an FNBO customer for sometime.

  1. 2 Responses to “I am starting to like FNBO Direct”

  2. By HMB on Jun 12, 2008 | Reply

    3.5% is good. I’m looking for something better than my 3.3% Wamu right now. How about a link?

  3. By rocketc on Jun 13, 2008 | Reply

    Sorry, for taking so long to respond – I always have to fish your comments out of Askimet. 🙂


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