FNBO Online Savings Account: High APY and No Minimum Balance Requirement

FNBO Direct offers a high online savings account APY.

The First National Bank of Omaha Direct is a subsidiary of the First National Bank of Nebraska, but you don’t have to live in “the Good Life” state to take advantage of its attractive online banking features. FNBO has locations in Colorado, Illinois, Iowa, Kansas, South Dakota and Texas, along with its home state of Nebraska, but FNBO’s online account options make its banking accessible to everyone. Here’s what you need to know about one of the best savings accounts.

First National Bank of Omaha came in at No. 5 on the list of the best brick-and-mortar banks of 2015. Here are some of the reasons why First National Bank of Omaha stands out as a premier choice for banking in Omaha and nationwide.

FNBO Direct Online Savings Account Review

If you’re looking for the best online savings account, interest rates are probably high on your list of features to consider. FNBO Direct advertises that its online savings account offers an APY nine times higher than traditional savings accounts, based on a 2015 passbook/statement savings study. This difference is significant, especially if you’re depositing a large amount of money. But FNBO isn’t just geared toward people with thousands to park in a savings account. An online account can be opened with as little as $1 and with no minimum monthly balance requirement.

By their nature, savings accounts are a place to save money, whereas a checking account is an account from which you usually make payments. FNBO has you covered if you need to make payments from your online savings account. Millennials in particular love to transfer money via mobile banking apps, with Venmo ranking as the third most popular app among 18- to 34-year-olds in 2016, according to a comScore survey. FNBO Direct offers Popmoney, which lets you tap into your FNBO Direct savings account to send mobile or email payments to others.

No review is complete without addressing online banking security. A 2016 survey conducted by Kaspersky Lab found that 45 percent of financial institution representatives cited attacks on online banking services as their top concern. FNBO Direct protects its online savings account holders by encrypting transactions, and utilizing firewalls and virus protection keeps its systems secure. FNBO continually patches its system to make it more resistant to cyberattacks, and transactions time out after several minutes of inactivity.

Check Out: 7 Bank Security Features That Protect Your Money

Opening a Savings Account Online With FNBO Direct

You must be at least 18 years old to open a savings account online. FNBO Direct requires the following information to open an online savings account. Note, if you’re opening a joint account you’ll need the following information for both parties:

  • Your Social Security or Tax ID number
  • Your driver’s license or a state DMV-issued ID card
  • Employment information, including your employer’s name, address and phone number
  • Information on your current loans or mortgages, which is used to confirm your identity
  • Your current bank account and routing numbers if you’re depositing funds to your new online savings account electronically

Be prepared to spend 10 to 15 minutes on the application process. Have all the required information handy, as the application will time out if you’re inactive too long. Once your initial deposit is received, the new online savings account number will be provided to you the first time you log into the FNBO Direct online banking website. If you’re already an FNBO Direct customer, the application lets you fill out a shortened online application.

Pros and Cons of an FNBO Direct Online Savings Account

To better decide whether the FNBO Direct online savings account is right for you, you should fully understand the benefits and drawbacks to this financial tool. Here’s a look at both sides of the account.

Pros of an FNBO Direct Online Savings Account

In addition to the easy accessibility that an online savings account from FNBO Direct offers, there are a number of other advantages you can enjoy. Here are the other benefits to the account:

  • $1 minimum to open an FNBO Direct online savings account
  • No minimum balance requirement
  • High interest rates
  • Mobile banking payment app
  • Multiple security measures to protect your information
  • FDIC insurance

Cons of an FNBO Direct Online Savings Account

  • No access to physical bank branches outside of Colorado, Illinois, Iowa, Kansas, Nebraska and South Dakota
  • Timing out of online banking transactions that take too long

Related: 10 Best Checking Accounts of 2017

If you’re looking for the best online savings account interest rates, FNBO Direct can help make the most of your money, especially if you maintain a high balance. Even if you don’t, there is no penalty for not maintaining a minimum balance. If there are no physical branches nearby, you likely won’t miss them because you can easily open your account and conduct all your business online. If you want to make the most of your money and enjoy the convenience of online banking, FNBO Direct is a solid choice.

About the Author

Barb Nefer has been writing professionally for nearly 30 years, cutting her teeth as a news writer for the Daily Southtown in Chicago. She’s a doctor of psychology, and her eclectic expertise includes personal finance, psychology, travel and the pet industry. Her work reflects that diversity, with pieces appearing in places like About.com, CBS Local, Yahoo.com, WebPsychology, and Animal Wellness magazine.