Money Blue Book

If you’ve been in the market for a high interest savings bank and have been searching for the highest interest rate offers, you may have come across an unfamiliar online savings bank called Dollar Savings Direct. It’s no wonder few people have heard about Dollar Savings Direct – for many months since its establishment, the online savings bank has been operating under the shadows of its more established and well known divisional cousins – Emigrant Direct and Emigrant Savings Bank.

Until about a year ago, Dollar Savings Direct used to be known as BancoFortuna – Emigrant Savings Bank’s attempt at launching a Spanish language bank to deepen its foothold into the Hispanic and Latino online banking market. Promoting its BancoFortuna.com website and touting a very high annual percentage yield (APY) interest rate on new accounts, Banco Fortuna was intended to appeal to U.S. consumers in the Spanish speaking demographic. After many months, it was ultimately evident and clear that the online bank’s venture into the U.S. Spanish speaking market wasn’t as successful as the bank had planned or hoped. Ultimately, and months into the foray, Emigrant re-branded Banco Fortuna into a new but familiar English based service – establishing a new bank named Dollar Savings Direct. If you visit the old BancoFortuna.com website today, you are automatically redirected to Dollar Savings Direct, confirming the change in marketing approach. While still a relative upstart, Dollar Savings Direct has recently begun to garner some success and much attention with its attractive high interest rate promotions, rates frequently much higher than those offered by the industry’s current top online banks.

Difference Between A Dollar Savings Direct Account Vs. An Emigrant Direct Savings Account

When I first learned the published news that Emigrant Bank was promoting a new high yield savings bank in Dollar Savings Direct, I initially surmised Emigrant was sneakily trying to recruit more savings account deposits and game the market by not having to pay the higher interest rate to their existing Emigrant Direct American Dream Savings Account customers. In the world of consumer marketing, companies and product manufacturers frequently promote identical products in different packaged and advertised forms to appeal to different demographic segments. However, that didn’t appear to be the case with Dollar Savings Direct, as the new bank’s establishment appeared to be due to its previously unproductive foray into the Spanish market rather than a veiled attempt to garner new deposits at a discount.

However, while perhaps it wasn’t Emigrant Bank’s original intent to promote Dollar Savings Direct and Emigrant Direct as mere clones of each other, the end result was that they are essentially that – mirror images of each other. The one thing that new Dollar Savings Direct website visitors and account customers will immediately notice is that in almost every material way, Dollar Savings Direct and Emigrant Direct Bank are nearly identical. Other than a few cosmetic and aesthetic differences between the two in terms of different logos and graphics (such as Dollar Savings Direct featuring Benjamin Franklin as their mascot and Emigrant Direct featuring a red white and blue patriotic top hat), the two banks share nearly identical layouts and color schemes. This obviously shouldn’t come as a surprise to anyone since both Dollar Savings Direct and Emigrant Direct have always been owned and operated as banking divisions by parent company Emigrant Savings Bank, except now Dollar Savings Direct is being brought into the English language fold as well.

While Dollar Savings Direct appears to have all the primary features of Emigrant Direct, there are a few important and key differences with Dollar Savings Direct – namely a much higher APY interest rate for new account customers and a $1,000 minimum balance requirement for the highest APY offer. While there is a $1,000 initial balance requirement to open new accounts, there are no maintenance charges or monthly fees for failing to maintain a certain account balance. A $1,000 minimum balance is required to earn the highest interest rate, but even if your balance falls below $1,000, you still earn interest at 1% APY. While this is noticeably different from Emigrant Direct in that the Emigrant savings account doesn’t require a minimum balance to maintain the highest rate, the Emigrant Direct account offers an interest rate yield that is significantly less than that offered by Dollar Savings Direct. Of course, the one important thing to keep in mind is that all savings account interest rates, whether offered by Dollar Savings Direct, Emigrant Direct, or any of the top online banks in the market, are all variable in nature and therefore subject to periodic increases and decreases as market forces and national interest rates dictate. If you are interested in avoiding the variable nature of bank rate fluctuations, you may want to consider locking yourself into a fixed high CD rate with a certificate of deposit instead.

Can Existing Emigrant Direct Customers Get The New Dollar Savings Direct Interest Rate?

Frankly, I’m a bit perplexed as to why Emigrant chose not to combine Dollar Savings Direct with Emigrant Direct and let all of its aggregate customers enjoy the higher Dollar Savings Direct interest rate without additional effort. But regardless of Emigrant’s reasons for not joining the two nearly identical online banks, current Emigrant Direct savings account customers can certainly reap the interest rate yields of Emigrant’s new Dollar Savings Account. However, while the two banks operate under the same FDIC insurance certificate, they are still considered two separate banks. Thus, as an existing Emigrant customer, you will still need to open a new Dollar Savings Direct account to get the higher interest rate that Dollar Savings Direct is currently offering. Furthermore, since the two banks are regarded as separate financial institutions, to transfer funds between the two high interest savings accounts, you’ll still need to use the services of a third party intermediary checking account.

Despite the hassle of having to open a new account to get the higher rate for what’s apparently a bank clone of what you already have, if you are a current Emigrant Direct customer, you should still do what any smart and savvy bank interest rate chaser would do – open a new Dollar Savings account immediately to snag the interest income benefits of a higher rate. The process of opening a new Dollar Savings Direct online account is actually pretty quick and hassle free. Not only that, since Dollar Savings Direct only performs a soft credit check during the new account opening process, there is also no need to worry about any possible damage to one’s FICO credit score.

Opening A New Dollar Savings Direct Account – No Hidden Fees

The process of opening a new savings account with DollarSavingsDirect is very straightforward and efficiently quick. Simply visit the Dollar Savings Direct application page and follow the directions by filling in the requested information. While the bank account has no minimum balance requirement to earn interest income on deposits, it does require a minimum initial deposit of $1,000 to open a new savings account. So long as you maintain a minimum balance of $1,000, you’ll earn interest income at the highest APY rate offered. If the balance dips below $1,000, you’ll still earn interest, except it’ll be at a lower rate – just 1.00% APY. Otherwise, there are no hidden costs, no fees, no penalties, and no service charges for inactivity. As you are filling out the online application, you will be required to provide the following personal and identifying information:

• Your name, address, birth date, and contact telephone number
• Your Social Security Number (SSN)
• Your driver’s license number
• Electronic funding information (bank’s routing and account numbers)

To finalize the application process once you’ve provided the necessary account information, you’ll need to fund it. Funding your new Dollar Savings Direct account can be made online via an ACH electronic bank transfer from a linked checking or savings account. Before your linked external bank can be used for funding purposes, you’ll need to verify ownership of the account through a series of test trial deposits. Dollar Savings Direct will automatically make two small trial deposits into your funding account, a process which usually takes a few days. Once you’ve received the two test deposits, simply return to your Dollar Savings Account and submit the dollar amounts to complete the initial bank fund transfer and begin banking online. For electronic deposits, Dollar Savings Direct mandates a 5 business day holding period before funds can be withdrawn. Once your Dollar Savings Direct account has been set up with initial funds transferred in, you are free to start banking online via the 24/7 access website. Feel free to transfer funds in and out of your linked up bank account as needed.

Bank Safety, Stability, and FDIC Insurance Coverage Of $250,000

One of the biggest and most serious concerns that many bank consumers have these days when choosing a bank is the ability of the company to stay in business. In this current poor economic climate amidst the shadow of multiple fallen banks, many of us are understandably concerned about the safety and security of our bank accounts in the event of an unpredictable financial catastrophe or bank failure. The high interest rate appeal of high yield savings accounts are alluring, but just how stable and safe are financial institutions like Dollar Savings Direct Bank?

For starters, Dollar Savings Direct is merely an online division of its much larger parent company Emigrant Savings Bank. While for promotional purposes, Dollar Savings Direct and Emigrant Direct seemingly operate independently, they both operate under the same FDIC insurance certificate (FDIC Certificate: 12054). Established during the mid 1800’s, Emigrant Bank is the oldest savings bank in New York City and by some accounts, the largest privately owned bank in the United States. With assets in excess of $14 billion, its primary bank branches thrive in the heavily competitive New York metro area – all traits indicative of an aged and established banking institution.

While certain financial pundits place great weight on a particular banking institution’s ability to garner high ranks on Bankrate.com’s Safe & Sound Ratings or Bauer Financial’s star based rankings, I prefer to recommend a greater attention to FDIC insurance limits instead. Emigrant is a FDIC insured bank and thus its checking, savings, and CD deposit accounts are fully backed by the full faith and credit of the United States government up to the current full FDIC coverage limit of $250,000 for each customer. Both shared Emigrant divisions of DollarSavingsDirect and EmigrantDirect have been fully FDIC insured since the 1930’s. Unless the U.S. government somehow gets annihilated off the face of the planet or winds up in such complete financial disarray that it can no longer sustain its obligations (not very likely), your Dollar Savings Direct funds are safely protected and guaranteed from loss. As a Dollar Savings Direct customer myself with a modest amount sitting in a high yield savings account accruing interest income, I rest easy at night, as I know my deposits are fully secure. However, do keep in mind that because Emigrant Direct and Dollar Savings Direct are online banking divisions of Emigrant Bank that share the same FDIC certificate, any deposits you have at Emigrant Bank, Emigrant Direct, or Dollar Savings Direct are aggregated and FDIC insured up to a single combined limit of $250,000 per depositor.

Extra Information and Resource:

• Dollar Savings Direct ABA/Routing Number for direct deposits and ACH transfers: 226070403

Updated List Of the Top Certificate Of Deposit Deals and Offers

If you’re searching for a definitive and regularly updated list of the best CD rates currently available in the market, you’ve come to the right place. In the CD rate table below, I’ve compiled a list of the top nationally available certificate of deposit bank offers featuring the highest annual percentage yields (APY). While CD rates and certificate of deposit offers rise and fall with market interest changes, they tend to promote much higher interest rates of return than other forms of bank or credit union deposits, such as high yield savings or money market accounts. The trade off in order to enjoy the higher interest rates that CDs afford, is a certain degree of liquidity and access to your money. When you put your savings in a CD account, the money is momentarily locked up for the duration of an agreed upon fixed CD term period. In exchange, banks are willing to pay you a much higher interest rate for your savings than they’d otherwise compensate you for a regular savings account. Typically for certificate of deposits, the longer the CD term you are willing to lock yourself into, the higher the CD interest rate you will receive in return.

For the sake of brevity, I have chosen to only list the best CD rates for 12 month certificate of deposits. Along with the top CD rates, I have also provided comparative rate offers from popular brick and mortar retail banks as well, since many consumers have a lazy tendency to automatically buy CDs from their local banks or credit unions rather than take the time to conduct a thorough online search for better deals. One thing to note when it comes to CDs is that the best CD rates are rarely offered by large retail banking giants like Citibank, Bank of America, JP Morgan Chase, or even Wells Fargo. Usually it’s the small to medium size, or even online banks that market the best CD rate offers.

Comparison Shop For The Best CD Rates and High Yield Savings Accounts

While I believe the updated CD rate chart below reflects the best CD rates available, I also believe in the importance of thorough price comparisons and digestion of all CD rate reviews and bank rate alternatives. Currently there is a rather highly touted online service that’s growing in popularity called – Lending Club, where consumers can engage in peer to peer lending and potentially qualify for interest rate earnings in excess of 9.60% APY. While not fully protected by the FDIC the way ordinary bank CD’s are, the impressive rates of return of Lending Club are at the very least worth some consideration by CD rate chasers.

List Of The Highest Yield Bank CD Rates For 12 Month Deposits (1 Year)

High Yield CDs and Savings Accounts Are Protected By FDIC Insurance

CDs and certificate of deposits are sought out by savvy investors primarily because of the higher interest rate of return that they offer in comparison to other types of bank account deposits. While investments such as stocks and mutual funds usually offer higher rates of return over the long haul during ideal economic times, during periods of major recession or credit-crisis-induced financial turmoil, the benefits of FDIC insured bank deposits really shine. Bank deposits and CD accounts are fully protected from loss in the event of a catastrophic bank failure by the federal government’s FDIC insurance up to the current individual maximum FDIC coverage limit of $250,000 per bank. Backed by the full faith and credit of the U.S. government, bank savings and CDs offer the maximum amount of financial protection afforded in the market today.

Keep Your CD Deposits Accessible and Liquid By Setting Up A CD Ladder

As is generally the case, the longer you are willing to have your CD investment locked up, the higher the CD interest rate your bank will offer you. When you buy a certificate of deposit through a bank or credit union, you transfer money into a CD savings account for a fixed amount of time and agree not to pull the amount out until the time period matures or expires. In the event of a premature CD withdraw before the term limit is up, there is a hefty penalty fee you must pay to the bank. So long as there’s no early CD pullout though, upon maturation, you are free to withdraw your money out along with the accrued interest and decide whether you want to roll it over into another CD deposit or walk away.

However, the best way to maximize your CD rate of return and ensure a reasonable degree of accessibility to your CD money is to set up a CD ladder. A CD ladder is simply an expense-free investment strategy used to manage CDs that both maximizes liquidity and interest rate (by managing multiple long duration CDs utilizing smaller amounts), and at the same time minimizes risk and the potential drawbacks of freezing up your savings for an extended period of time. The process of laddering CDs requires the bank account holder to initially purchase multiple CD’s with different term limits so that they ultimately mature at fixed regular intervals. By staggering multiple CD deposits so that each individual CD account matures at set intervals, this affords the deposit holder additional liquidity, allowing him or her to take advantage of rising interest rates and still be able to continuously seek out the best banks with the highest CD rates possible.

When it comes to choosing the best high yield savings account, many of us look for different things – placing greater weight on certain bank features than others. For myself, when I’m deciding which bank presents the top savings opportunity for my money, I tend to go with the bigger financial institutions – banks that have been around the block a few times and have proven themselves capable of surviving, even thriving during the worst economies. Perhaps one of the oldest, largest, and most established financial institutions in the market today, and one that has indeed joined the “too big to fail” community of super giants, is British banking conglomerate – HSBC Bank. Founded during the mid 1800’s by the British and based in Hong Kong and Shanghai during the early years, the HongKong and Shanghai Banking Corporation grew out of a pressing banking need to facilitate the rapidly growing trade between China and Europe. After the handover of Hong Kong to China, the British banking giant moved its corporate headquarters back to England, and shortened its name to HSBC Bank. To this very day, HSBC continues to maintain a significant presence in East Asia where it had its roots, but has significantly expanded the reach of its multi-national operations, making its banking presence felt in other parts of the world, including Europe and the Americas.

Bigger Is Better – In Terms Of Reputation, Full Service Features, and ATM Branch Convenience

Currently, HSBC is one of the largest banks in the world, if not the largest according to rankings. By some estimates, based on a composite of factors such as sales, profits, assets, and market value, financial publications such as the Economist and Forbes Magazine have actually ranked HSBC Bank Holdings as the world’s  largest banking group and even the world’s #1 company according to size. Such a dominating presence in the banking sector is important because it brings a certain degree of trust and security to those consumers and small businesses who entrust their life savings and investments with the company. While bigger is not always necessarily better, larger banks with a significant history over a longer period of time tend to offer a better indicator of how the bank will continue to run its operations in future years. Certainly amidst the current credit crisis and the ongoing failures of regional banks, having your savings account funds managed by the world’s banking leader (namely HSBC) offers a greater sense of confidence and stability in the financial safety of your precious liquid assets. Bigger banks, and in particular – older banks, offer a historical track record for us as consumers to draw from – allowing us to project whether a bank’s customer service or promotional interest rates are just one time gimmicks, or long lasting offers. In the case of HSBC bank, they’ve proven themselves to be not only a reputable bank with a long storied history, but one that has consistently offered competitive banking features and top interest rates for its customers.

Why Open An HSBC Direct Online Savings Account?

The HSBC Direct online savings account is one of the most popular high yield savings options for consumers in the market today. The bank has recently been touted by financial pundits such as Kiplinger’s Finance as the Best Overall Online Savings Account – praised for its quick customer service, free ATM card feature, $1 minimum balance requirement, and consistently high interest rate.

HSBC Direct’s popularity among customers is primarily because of its instant brand name recognition due its association with parent company, HSBC Bank. While most people have come to know the parent HSBC Bank for its extensive worldwide network of bank branches and ATM locations, the Internet-based HSBC Direct has only recently made a strong global push to become a bigger player in the online banking space. However, since its emergence several years ago at the start of the whole online virtual banking movement, HSBC Direct has developed into one of the best online banks, cementing its status as one of the most popular and consistent big-name marketers of online only savings accounts with very appealing interest rate deals. By promoting an Internet-only high interest savings option, retail banks like HSBC are able to bypass the expensive overhead expenses of maintaining brick and mortar branch locations, and pass on the cost savings to customers in the way of higher interest rate yields. As a quick overview, here are some of HSBC Direct’s most appealing online banking features:

1) Convenient Network Of HSBC Bank Branches and ATM’s – Those pondering which high interest savings bank to go with may want to seriously consider a virtual HSBC Direct savings account. With HSBC Direct, not only do you get the high yield rate perks of an Internet bank, but you get to enjoy the benefits of HSBC’s large worldwide network of bank branches and ATM locations, benefits only found with large banks. While HSBC’s physical banking presence in the United States definitely has more room to grow, it already has a significant entrenched presence in many places in the world, especially in Europe and East Asia. With access to the branch network, HSBC Direct account holders have free access to ATM cash deposits and on-demand withdraws with their free HSBC ATM card, benefits provided after bank account activation upon request.

2) Check Writing Option Available - While HSBC Direct does not offer a checking feature, you are free to open a new HSBC checking account to enjoy HSBC’s regular full service check writing privileges. Once your HSBC checking and HSBC Direct savings accounts are linked up, you are free to transfer balances around quickly and conveniently as your check writing requirements demand.

3) High Yield Interest Rates For Savings Accounts – Perhaps the most prominent reason why you ought to choose HSBC Direct as your primary online savings account is to take advantage of its consistent track record of offering competitive high interest yields for its savings deposits. The HSBC Direct high yield savings account was one of the first Internet-only accounts to promote a very high interest rate, and still remains fairly competitive with other offers to this day.

4) No Set Up Charges, No Monthly Fees, And No Minimum Balance Requirements – HSBC Direct accounts have no monthly fees and no minimum balances, which is what you ought to expect from a top ranked online savings bank. Thus, you can literally deposit just $1 into your new HSBC Direct savings account should you desire without worrying about getting slapped with unexpected maintenance charges.

5) HSBC EasyView – HSBC Direct offers online customers free access to its account aggregation service powered by Yodlee. With HSBC Easy View, you can access all of your online investments, banking accounts, credit cards, mortgages, and loans – and keep tabs on all balances and transactions with just a single password. It’s the online tool that I use to monitor my daily balances and track my net worth updates.

6) Unlimited Linked External Accounts – Certain online savings banks place a limit to the number of linked ACH accounts you may have, however, HSBC Direct places no restrictions on such matters. While you will need to verify account ownership of all new linked accounts via a series of trial deposit tests, you are free to have an unlimited number of linked accounts for easy and relatively quick electronic ACH transfers.

7) Accessible Customer Service – HSBC Direct’s customer service is generally prompt and accessible (ranked by Kiplinger in 2006 as having the best customer service overall among online banks). Because HSBC offers a large network of bank branches, you are free to visit an HSBC location for extra customer service as needed. However, most day to day questions can easily and quickly be handled and resolved via its online messaging service or via its toll free 24 hour, 7 days a week customer service telephone help line (1-800-404-4050).

8) Full FDIC Insurance Coverage – As with all FDIC insurance member banks, HSBC and HSBC Direct account holders receive full FDIC insurance coverage for their checking, savings, and CD deposits up to the full protected limit of $250,000. In an otherwise unstable financial market, many view FDIC insured bank accounts as the safest place to put your money.

Process Of Opening A New HSBC Direct Savings Account

The HSBC Direct new account signup process is pretty typical of most online savings accounts as it’s comprised of a web-based application process and a short waiting game for account paperwork processing. To apply, visit the HSBC Direct online application page to begin. Simply follow the application directions and provide the following identification information:

• Your full name, your Social Security Number(SSN), your driver’s license number, your mailing address, and any other relevant info that is requested.
• You’ll also need to provide your employer’s name and office address when prompted to do so.

For online identity verification, the HSBC Direct online application will also provide you a series of a short multiple choice test questions pertaining to data found on your credit report that only you should know. Such test questions may include the name of your current home mortgage lender or the amount of your monthly student loan payments. Obviously for this portion of the application, HSBC Direct will need to automatically run a credit report check to pull the desired data in order to formulate the appropriate test questions. The credit pull made on your credit report is for identity verification purposes only and not for the purpose of extending credit. For those worried about the potential negative hit on one’s FICO credit score that comes from a bank or lender’s hard credit inquiry – fear not. HSBC Direct only performs a harmless soft credit check during the online application process, and only for identity confirmation purposes. The inquiry will indeed show up on your credit report as a routine credit inquiry, but your FICO credit score will not be negatively impacted in any way.

Thereafter, you will need to provide a funding source for your newly opened HSBC Direct savings account. The vast majority of applicants will likely select the online ACH electronic transfer option for which you’ll need to provide the ABA routing and account numbers of your funding bank. Such routing and account number information can be easily found on the bottom of your bank checks or requested from your bank or credit union. After selecting your desired funding amount (HSBC Direct only requires a minimum of $1), you will need to verify ownership of your newly linked bank account through a series of two trial deposits into the account that you want to fund your HSBC Direct account from. The trial deposits usually take a few days to execute.

While there is no actual paper work that you will need to mail in, once you have provided your identity information and have properly submitted the electronic funding request, you will need to wait a few days for your new account setup information to be manually mailed to you by HSBC Bank via postal service. For security reasons alone, HSBC Direct has chosen to forgo instant online account activation in favor of a final address verification process. Ultimately after a few short days, two letters will be separately mailed to your mailing address, one containing your new customer ID and the second one containing your new account password. After you have both letters, you can begin to bank online by activating your savings account via the HSBC Direct Internet Banking Activation page.

Extra Information and Resource:

• HSBC Direct ABA/Routing Number for direct deposits and ACH transfers: 022000020

Updated Analysis Of FNBO Direct’s High Interest Savings Account Offers

I don’t know about you, but I’ve found that it’s not always easy choosing the perfect online bank to manage one’s high yield savings account or high interest money market deposits. Even when presented with a list of the best online banks, it can be rather confusing trying to distinguish them apart to come up with a top tier choice. After all, many of these online banks have been competing with each other for some time now and have restructured their business and banking practices to offer nearly identical services such as free checking, free online bill pay, free ATM reimbursement, and even free and unlimited external ACH account setups.

While certainly a very important consideration, selecting the best savings account based on who offers the highest annual percentage yield (APY) or interest rate alone may not be the most financially informed way to go. Sometimes it may be a good idea for ordinary consumers such as you and I to take some pointers from reputable and established financial writers who make a professional living from offering their expert opinions through financial product reviews. With this in mind, many of the top financial magazines and news websites such as CNN Money Magazine, Forbes, Smart Money, and Kiplinger’s Personal Finance, maintain lists of the top high yield savings accounts where all of the best bank offers are ranked according to evaluated criteria. One of the online banks that has garnered much positive recognition of late is – FNBO Direct Savings Bank, otherwise known as the online virtual arm of the First National Bank of Omaha.

FNBO Direct Has Consistently Been Voted One Of The Top Online Savings Account Banks By Personal Finance Magazines and Online Websites

Very recently, FNBO Direct was voted the #1 – “best online savings account” by Kiplinger magazine. Citing FNBO Direct’s very competitive high interest rate and low balance requirements (only a $1) to open a new online savings account, Kiplinger’s editorial staff also praised FNBO Direct Bank’s other impressive features such as its account management simplicity and streamlined nature. Since nit picky fees and maintenance charges are features that most customers absolutely loathe, in bestowing FNBO Direct with its highest award for the best online savings account, Kiplinger Finance also commented favorably on the FNBO Direct savings account’s offer of no minimum balance requirements and no annoying maintenance fees. Along with Kiplinger’s commentary, other noteworthy FNBO features also include the ability to link one’s FNBO Direct account to as many as three other external bank or broker accounts, and the ability to access and make free bill payments. Electronic transfers via ACH or via the provided ATM service are also quick and easy.

Like many people, in my attempt to protect my money and financial assets during the current credit crisis and ongoing economic recession, I have sought the reliability and safety offered by FDIC insured savings accounts and CD’s. As with all FDIC member banks, FNBO Direct’s banking accounts are fully protected from loss by FDIC insurance up to the full coverage limit of $250,000. Those customers who are understandably worried about the prospect of failing banks need not worry when it comes to FNBO Direct Bank. FNBO is currently in prime financial condition as the institution was not one of the many major banks that engaged in risky subprime mortgage lending during the past few years. In fact, Bankrate.com, an independent reviewer of financial institutional stability, even awarded FNBO Direct 4 stars on its Safe & Sound bank rating system – placing FNBO Direct among the nation’s highest-rated banks in terms of safety and reliability. In an otherwise unstable financial market, that definitely counts for something.

FNBO Direct’s Best Features Include – Easy To Use Online Banking Functions and High Interest Rate Offers

While many online banks such as E-Trade Bank and EverBank focus on offering a diverse and wide array of features, from free online checking to high yield savings and brokerage trading tools, internet banks such as FNBO Direct appeal to a demographic that prefers a more streamlined and simplistic banking experience with just the essential amenities. Similar to clutter free online savings banks like ING Direct, the First National Bank of Omaha’s virtual savings arm is simplistic, easy to use, and more than sufficient to handle your high interest savings and certificate of deposit (CD) needs.

While its online interface is exceptionally plain and basic, those who desire an efficient online banking interface with the prospect of consistently competitive APY rates for their savings will find FNBO Direct a top savings account contender. Its high interest rate offers are comparable to bank rates offered by the top high yield savings account banks. When FNBO Direct first emerged a few years ago, it came onto the scene and immediately crushed  its online bank competitors with an extremely high 6% APY interest rate offer for new accounts. Since then, though national interest rates among all banks have ebbed and flowed with the Fed’s interest rate changes, FNBO Direct has continued to maintain a fairly reliable rate offer. As noted on its own website, despite the interest rate fluctuations in the market, FNBO Direct Online Savings Account rates continue to earn more than 6x the national average for traditional savings accounts.

Opening A New FNBO Direct High Yield Savings Account and Managing Your Money Online

As FNBO Direct is the online banking department of the First National Bank of Omaha, almost all transactions and account tracking functions are preformed through the Internet via its website. All bank statements and tax information are available online and most correspondence from FNBO Direct is through email. While you can now contact FNBO via its telephone customer service line for additional assistance, most of its banking features are online based.

In addition to the high interest savings account, FNBO Direct also offers several reward credit card possibilities that earn 2% cash back on all purchases, a paperless checking feature (or Bill Pay account), and various high yield CD deposits. However, in order to access these other banking products, you must first open and establish a savings account through FNBO Direct.

1) Visit FNBO Direct and Complete An Online Savings Account Application – To apply for an account, simply proceed to the quick and very straight forward secure FNBO Direct new account application page. You will need to provide the following information:

1. Your social security (SSN) or employer tax ID number (EIN).
2. Your state driver’s license number.
3. Knowledge and information about your current loans or mortgages (to enable the online application to confirm your identity via your credit report).
4. Your current bank account and ABA routing numbers (to set up instant account funding)
5. Your co-applicant’s name, social security number, and date of birth information (only if you’re applying for a joint savings account)

My own FNBO account opening experience was very routine and uneventful, and yours will probably be the same. Along with your basic identity information, you’ll need to provide additional data about your employment and sources of income, as well as provide a source of bank funding to open the account. To verify your identity during the online application process, FNBO Direct will use a series of customized multiple choice questions related to items on your personal credit report (such as the name of your student loan lender, or the amount of your monthly mortgage payments). To pull up your official credit report, FNBO will need to send a credit inquiry to the big three credit rating agencies, however the FNBO credit check is only a soft credit pull for identity verification purposes, and will not have a negative bearing against your FICO credit score.

Afterwards, the customary practice is to ask the applicant to mail in a signed signature card for the bank to keep on file for future identity verification purposes. However (and this is where FNBO really shines), FNBO Direct accepts an online authorization mouse click for a mailed in signature form in its place, thus greatly speeding up the time for processing and approval. Before competing the application, you will also need to fund your account.

2) Fund Your Account and Verify Your Test Deposits To Link Your FNBO Direct Savings Account With Your External Funding  Source

Before the application process can be completed, you will need to transfer funds from your designated external bank account into your new FNBO Direct savings account. Because FNBO Direct has no minimum opening balance and no minimum maintenance balance requirements, you are free to open your new savings account with as little as a $1. To enable the system to pull funds from your chosen external bank account and deposit the designated amount into your new FNBO savings, you will need to verify ownership of the external account. You can do so in either of three flexible and convenient ways:

• Electronic Log-In Verification – If you are comfortable with divulging your funding bank’s online login and password, you can instantly complete the external account verification process in a flash by entering your login and password for immediate identity verification and external account link up. If you are reluctant to provide this personal information due to security concerns or if your external bank has no online access to begin with, you will have to select the second trial deposit option.
• Trial Deposits – The other method to verify ownership of your external bank account is to set up a trial deposit test. You will need to provide your external bank’s ABA routing number and your account number (either checking, savings, or money market). Within a few business days, two small random deposits will be placed into your external bank account by FNBO, the amounts which you’ll need to report back to the FNBO Direct website to finalize the new account set up.
• Mailing In A Check – The third and more old fashioned method of funding your new FNBO account is to mail in a check by postal service. Because this method takes a much longer period of time to process and complete, I suggest utilizing one of the other two options first before settling on this method.

3) Create Your New FNBO Direct User ID and Password

Once you’ve funded your new account with one of the above methods, you’ll receive an email notification once your new FNBO Direct high yield savings account is ready to be accessed online (usually after a few days). At that time you’ll be prompted with instructions to set up online access to your new FNBO Direct account by choosing your desired online ID, password, and set of security test questions in case you ever forget your login or password. Example test questions include “your first pet”, “your favorite sports team”, and “your youngest sibling’s nickname” just to name a few. After setting up online access, you’re ready to start banking online with FNBO.

Extra Information and Resource:

• FNBO Direct ABA/Routing Number for direct deposits and ACH transfers: 104000016