FNBO Direct

FNBO Direct, a division of First National Bank of Omaha as a virtual bank, started operations in November 2006. FNBO Direct is a member of the Federal Deposit Insurance Corporation (FDIC), however, it is listed under its parent company's certificate number of 5452 . Due to FNBO Direct being a virtual bank, all statements and tax information are available online, and all correspondence from FNBO Direct is through e-mail. FNBO Direct, at its inception, only offered an online savings account. Now, in addition to the savings account, they offer a credit card, a paperless checking account (or Billpay account) and various certificate of deposit (CDs) terms. In order for a person to have these other products, they must first have a savings account through FNBO Direct.
Application Process
People who are interested in opening an online savings account can do so by applying on the bank's website. The application requires the customer to put in their name, address, social security number, date of birth, drivers license information and employment information. Once the person's personal information has been verified, the application will be approved. The applicant would then need to return to their application and electronically sign a signature card. The applicant will then be given a choice on how they would like to initially fund their account. The minimum amount to open a savings account is $1.00. The choices are:
*Electronic Verification-the applicant will need to indicate what their bank's name is, and then they will be asked to enter in their user ID and password with that particular bank. The system will then attempt to log in to verify that the account number is valid and that it is in the customer's name. If this method fails, then the applicant will need to select another method of account verification.
*Trial Deposits-the applicant will need to enter in their bank's routing number (ABA) and their account number (either checking, savings or money market). Within three business days, two small deposits, generally less than one dollar will be deposited into that bank account. The customer will then need to obtain the deposit amounts and input them on the FNBO Direct website. If this method fails, then the applicant will need to select another method of account verification.
*Mail a check-the applicant may also send a check, which the check would need to be made out to themselves and endorsed on the back. This method would be required if the previous two methods fail.
Once the above steps are completed, the customer would then receive notification that their account is ready to be viewed online, where the customer would then need to return to their application, and complete the process to activate their account, where a user ID and password is set up.
Online Savings Account (OSA)
FNBO Direct was launched with the online savings account as its only product. The Annual Percentage Yield (APY) at the start of operations was listed at 5.25%. In an effort to promote the savings account, FNBO Direct announced that the interest rate for the OSA would be at 5.84%, or an APY of 6.00%, starting on May 1, 2007. This rate would remain for 150 days, in honor of First National Bank of Omaha's 150th anniversary, ending on September 28, 2007.
FNBO Direct allows customers to make deposits a number of different ways. The most common option is through an Automated Clearing House, or ACH, transfer, where customers can request to have funds come from an external account that has already been verified as being owned by the customer and accepting ACH transactions. There can be up to three external accounts set up at any one time. Other ways for deposits to be made would be :
*Initiating an ACH transfer from the other bank
*Request a wire transfer from the customer's account with the other bank to FNBO Direct
*Mail in a check made out to the customer and endorsed "For Deposit Only"
*Direct deposit, set up through the customer’s employer
Customers can withdraw their funds by the following ways:
*Initiating an ACH transfer through FNBO Direct website to a verified external account
*Submitting the ACH request through the customers bank
*Wire transfer request to a previously verified external account
*ATM withdrawal, if the customer requested to have ATM card
Credit Card
On September 26, 2007, FNBO Direct launched a credit card that provides a competitive interest rate and cash back rewards that are deposited directly into their FNBO Direct Savings Account.
The FNBO Direct ExtraEarnings Credit Card allows customers to earn 2% cash back for their purchases, which at this time, the customer would have to contact customer service to request their cash back.
Customers can pay their credit card online using their FNBO Direct savings account, or by using any other checking or savings account that the customer may have for no charge.
Online Billpay Account
FNBO Direct launched the online Billpay account on November 28, 2007, which allows customers to pay other merchants through their FNBO Direct account. There are no checks or ATM cards associated with the Billpay accounts. This is also a free service for customers to use. The customer transfers their funds from their online savings account to their Billpay account for the Billpay transactions to take place.
Certificate of Deposit
FNBO Direct also launched their certificates of deposit (CD's) on November 28, 2007. The current available options for CD's start with a minimum of six months, and going up to 24 months. The minimum balance required to open a CD is $500.

Main Menu

See Also

Main Menu