FNBO Direct is the online version of First National Bank of Omaha. For those comfortable with an online experience, FNBO Direct offers lower fees and higher rates than its brick-and-mortar parent company. As an online bank, FNBO Direct doesn’t have the vast array of product options that many traditional banks do, but it does offer the types of accounts most popular with general customers. Here’s a thorough look at all of the products and services that FNBO offers, along with an analysis of who the bank might best serve.
- Who Is FNBO Direct Best For?
- Who May Want To Skip FNBO Direct?
- Types of Accounts Available
- How To Bank With FNBO Direct
- Availability of Funds
- Should You Bank With FNBO Direct?
Who Is FNBO Direct Best For?
FNBO Direct is a good option if you’re looking for a bank with no standard fees and an adequate array of products. You’ll also have to be comfortable with the online banking experience. Although FNBO Direct is a subsidiary of brick-and-mortar bank First National Bank of Omaha, there is no crossover in terms of accounts and services. It’s imperative you understand that if you open an account with FNBO Direct, you’re getting a completely online banking experience.
For many customers, that’s part of the upside of FNBO Direct. As an online entity, FNBO Direct is able to offer lower fees and higher yields to its customers. Although the online product line isn’t as deep as with other multinational banks, most online customers only need or want the basics: checking, savings and CD accounts wrapped up in a low-cost package. If you’re comfortable with doing your banking on your computer or in the palm of your hand, you’ll likely find that FNBO Direct provides all of the basic features you could hope for, and then some. If those reasons sounds appealing, you may want to look into open an account with FNBO Direct, a member of GOBankingRates’ best banks list.
|FNBO Direct Pros and Cons|
|High checking and savings annual percentage yields
Free bill pay and money transfer services
|High overdraft fee
Limited product line
No branch network
Who May Want To Skip FNBO Direct?
In spite of its many advantages, there are some customers who will likely prefer other banks to FNBO Direct. First and foremost are customers who are not completely comfortable with the online banking experience. Tempting as the high rates and low fees might be, FNBO Direct will not be a good option for you if you still feel more at ease visiting a branch and dealing with bankers in person.
The online bank is also a poor choice if you frequently need quick access to your money. Although you can get some of your money from an ATM at any time, if you want to take all of your money in cash right away, you won’t be able to do that with FNBO Direct.
Lastly, those looking for a one-stop shop in their bank will likely find FNBO Direct’s offerings to be limited. Although the bank does offer a wide range of accounts, you won’t find the type of full-service, comprehensive financial services that you could with a brick-and-mortar bank. Even the bank’s own parent company, FNBO Bank, offers many more accounts than FNBO Direct, including IRAs.
|FNBO Direct: Who’s It For?|
|Best For||Worst For|
|Customers seeking an online banking experience||Customers wanting a vast branch network|
|Customers comfortable with DIY banking||Customers wanting to talk to bankers in person|
|Customers seeking high yields and low fees||Customers willing to pay a fee for additional services|
|Customers who don’t need instant access to their funds||Customers who regularly withdraw large amounts of cash|
|Customers needing only a few basic account types||Customers seeking a one-stop shop with a multitude of account options|
|Customers looking for no-fee, high-rate checking and savings accounts||Customers needing loans, IRAs or investment options|
Types of Accounts Available
Although it doesn’t offer a comprehensive lineup of accounts, FNBO Direct does provide the types of accounts that most customers seek, particularly in an online bank. Here’s a look at the bank’s current product lineup.
|FNBO Product Line|
|Checking||0.40%||$0||Free ATMs and bill pay|
|Savings||0.50%||$0||Free ATMs, $1 minimum|
|CDs||0.16%-1.15%||$500||Automatically renew, terms up to 60 months|
|529 Savings Plan||N/A||Multiple investment options; $0 minimum to invest|
Here’s a closer look at each individual product area offered by FNBO Direct.
FNBO Direct’s Online Checking account provides what most customers want: high yields and low fees. This account offers a high 0.40% APY and is fee-free, which makes it stand out from many competitors who offer either a high yield or a free account, but rarely both. Additional features and benefits include the following:
- Free online banking
- Free bill pay
- Free account alerts
- Free Visa debit card
- Free PopMoney person-to-person payments
- Free fraud monitoring
- Free incoming wires
- Free stop payments
- No fees for withdrawals from more than 2 million global ATMs (third-party fees might apply)
This checking account also comes with a mobile app and digital payment capability. Although FNBO Direct does not assess fees on third-party ATMs, terminal operators might.
An important thing to remember with the FNBO Direct checking account is that in spite of its name, checks cannot be used to access your funds. BillPay requests must be at least $5 and no more than $10,000.
- No account fees
- High APY, particularly for a free account
- Vast network of free global ATMs
- $1 minimum deposit to open
- Although the bank lists it as a “pro,” this account has no paper check capability
- Overdraft fee of $33
The FNBO Direct Online Savings account has one of the highest APYs available and no fees. The account has the same digital payment and mobile capabilities as the bank’s checking account, and there’s only a $1 minimum to open. Thanks to all of its features and benefits, the account ranks as one of the Best Savings Accounts of 2019 in GOBankingRates’ annual study.
The account does have some limitations, however, as outlined below:
|Online Savings Account Limits|
|Transaction Type||Single Transaction Limit||Daily Limit||Monthly Limit|
|Transfer or Withdrawal||$100,000||$100,000||$500,000|
|Maximum Account Size||$1,000,000|
- Very high APY
- No fees
- $1 to open
- No FNBO Direct-initiated ATM fees (might be third-party fees)
- First deposit subject to a 10-day hold
At the present time, FNBO Direct doesn’t offer a money market account.
FNBO Direct offers CD terms from six months to five years. Each CD account carries a $500 minimum deposit and a $500 minimum balance to earn the stated APY. Account maximums are $1 million per CD. CD accounts automatically renew at maturity unless you otherwise direct the bank. You can withdraw your balance for 10 calendar days after the maturity date, at which point the funds will automatically renew.
Here’s a look at the specific terms and rates offered on FNBO Direct’s CDs:
|FNBO Direct CDs|
If you want to withdraw your money before your CD matures, you’ll face early withdrawal penalties as follows:
|FNBO Direct CD Early Withdrawal Penalties|
|0-3 months||All interest|
|Over 3 months up to 1 year||3 months’ interest|
|Longer than 1 year||6 months’ interest|
Individual Retirement Accounts
At the present time, FNBO Direct doesn’t offer any IRA accounts.
Investment (Nonbank) Options
FNBO Direct is a bit limited when it comes to investment options beyond savings and CDs. But the bank does provide access to the NEST 529 College Savings Plan. FNBO Direct is the Nebraska Educational Savings Trust Program Manager, so it’s the perfect institution to help you get started with your college savings. Like all 529 plans, the NEST plan is a way that investors can save for their children’s college while availing of various tax advantages. Nebraska residents are eligible for additional tax benefits, including an annual $10,000 income tax deduction.
The NEST 529 College Savings plan has no income limit or savings caps, and contributions are limited to a generous $400,000 per beneficiary. Contributions can be invested in one of three generic categories: Age-Based Investment Options, Static Options and Individual Options.
Age-Based Investment Options
Age-Based Investment Options change their portfolios as children age. The closer a beneficiary gets to age 18, the more conservative the portfolio becomes. The Age-Based Investment Options are further subdivided into Aggressive, Growth and Index portfolios.
For a child invested in the Aggressive option, here’s an example of how the portfolio composition changes over time:
|Aggressive Age-Based Portfolio|
|0-2 Years||Domestic Equity 71.5%
U.S. Real Estate 5.25%
International Equity 23.25%
|19+ Years||Domestic Equity 18%
U.S. Real Estate 2%
International Equity 5%
International Bond 4%
Fixed Income 50%
Cash Equivalents 21%
Static Options offer a fixed allocation through the life of the investment. The six subcategories of Static Options are:Static Options
- All Equity
- Moderate Growth
- Bank Savings
As Static Options don’t change their investment allocation, you’ll be responsible for determining how much of each type of fund to own, if any.
By way of example, here are the current asset allocations for the Growth and Balanced portfolios, respectively:
|FNBO Direct Static Option Asset Allocations|
|Domestic Equity: 60%
U.S. Real Estate: 5%
International Equity: 20%
International Bond: 2%
Fixed Income: 13%
|Domestic Equity: 39%
U.S. Real Estate: 3.5%
International Equity: 12.5%
International Bond: 3.5%
Fixed Income: 33%
Cash Equivalents: 8.5%
Individual Options allow investors to choose from among 15 premade portfolios from respected portfolio managers such as Vanguard, T. Rowe Price and State Street. Funds are chosen from the following categories:
- Domestic Equity
- U.S. Real Estate
- International Equity
- International Bond
- Fixed Income
- Money Market
FNBO Direct doesn’t offer any standard loan products at the present time, but it does have a student loan refinancing program through a partnership with CommonBond. Every FNBO Direct customer who refinances a student loan with CommonBond receives a $200 bonus, and FNBO Direct Checking account holders can earn an autopay discount as well.
CommonBond offers low rates, payment protections and award-winning service. Here’s the current rate structure for student loan refinancing through CommonBond:
|CommonBond Student Loan Refinancing Options|
|Fixed||5, 7, 10, 15 or 20 years||3.21%-6.45%|
|Variable||5, 7, 10, 15 or 20 years||2.02%-6.30%|
Student loans refinanced through CommonBond have no origination fees or prepayment penalties. The company also offers up to 24 months of forbearance over the life of the loan.
How To Bank With FNBO Direct
You can open an account online with FNBO Direct in about 15 minutes. You’ll need the following information to get started:
- Social Security or tax ID number
- Driver’s license or state ID issued by the Department of Motor Vehicles
- Employment information
- Information about existing loans or mortgages for identity verification
- Current bank account and routing numbers for funding purposes
You must be a U.S. resident at least 18 years of age to open an account with FNBO Direct.
Once you’ve established your account, you can bank with FNBO Direct either from your desktop or via the bank’s mobile app. The FNBO Direct app has full functionality, meaning you can use it to manage your entire account. Features available on the app include bill pay, funds transfer and mobile check deposit. You can also use the app to locate nearby ATMs or contact the bank via a phone call. The app uses industry-standard mobile security, including firewalls, customer authentication techniques and data encryption to keep client information secure.
Although FNBO Direct doesn’t charge monthly maintenance fees on its checking and savings accounts, it does have fees for certain transaction types. Most notably, its overdraft fees are relatively high. Here’s a look at the most notable FNBO Direct fees:
|FNBO Direct Fee Schedule|
|Overdraft item fee (maximum four per day)||$33|
|Return item (maximum four per day)||$33|
|Domestic wire transfer (outgoing)||$15|
|Next-day transfer fee (per withdrawal)||$10|
|PopMoney standard transfer fee||$0|
|PopMoney next-day delivery fee||$10|
|PopMoney check issuance fee (per item)||$5|
Note that FNBO Direct provides one free overdraft or return item every 12 months. Also, FNBO Direct does not permit outgoing international wire transfers.
Availability of Funds
FNBO Direct aims to make client funds available on the first business after receipt. Electronic direct deposits are available more rapidly, usually on the day the bank receives the deposit. The bank considers a deposit as having been received on the same day if it is made before 3 p.m. CST on a business day that the bank is open. Deposits made after 3 p.m. CST or on a day the bank isn’t open are considered made as of the next business day that the bank is open.
Depending on the type of deposit, FNBO Direct might hold your funds until the second business day after the day of your deposit. In this instance, the first $200 of your deposit might be available on the first business day. The bank will notify you if it is going to hold a portion of your deposit and will also tell you when the funds will be available. Under the following circumstances, check deposits might be held for a longer period of time:
- The bank believes the check will not be paid
- You deposit checks exceeding $5,000 on any one day
- You redeposit a previously unpaid check
- You have numerous overdrafts in your account over the prior six months
- There is a failure of communications, computer equipment or other emergencies
The bank will also notify you of a delay due to any of the above circumstances. Even in these cases, funds are generally available no later than the seventh business day following your day of deposit.
Special Rules for New Accounts
For the first 30 days after opening a new account, customers have special rules regarding funds availability.
As with all customers, funds from electronic deposits are available on the day the bank receives your deposit.
The first $5,000 of deposits from cash, wire transfers, certified checks, teller’s checks, cashier’s checks, traveler’s checks and federal, state and local government checks are available on the second business day after the day of deposit. In the case of a U.S. Treasury check, funds become available on the first business day after deposit. Deposited amounts exceeding $5,000 are not available until the ninth business day from the day of deposit.
For all other types of check deposits, funds are available on the seventh business day after deposit.
Mobile deposits have a longer deadline for determining the day of the deposit than other methods. As long as your deposit is made by 8 p.m. CST/7 p.m. MST, that day is considered your day of deposit. Funds deposited in this manner are generally available in no more than two business days. For deposits made on weekends or holidays, the next business day will be considered your day of deposit.
Should You Bank With FNBO Direct?
FNBO Direct might have a limited product roster, but it excels at what it does. Both the checking and savings accounts are fee-free and high-yield, but the checking account doesn’t quite crack the annual GOBankingRates Best Checking Accounts of 2019 list. Although there are no branches you can visit, the bank’s interface allows comprehensive account management via its website and mobile app. For anyone comfortable with an online bank and is looking for basic account types, FNBO Direct can be a solid option to open an account with today.
- Fee-free, high-yield checking and savings accounts
- Online CD accounts
- Bill pay and person-to-person transfers
- Mobile check deposit
- No branch network
- Limited account roster
- High overdraft fees
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Rates and fees are accurate as of Nov. 20, 2019, and are subject to change. This content is not provided by FNBO Direct. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by FNBO Direct.