FNBO Direct Review of Savings, Checking, and CD Rates

Today, FNBO Direct might have popped up on your radar because it offers the top rates in the nation on several of its online bank accounts. We’ll go over each of them — checking, savings, and CDs — to give you the inside scoop on how attractive these accounts really are and what you need to know before opening an account with this bank, including the hidden fees to watch out for.

FNBO Direct’s Most Popular AccountsAPY

Account Type

Account Name

Compare Rates from Similar Accounts

1.85%

Savings

FNBO Direct Online Savings

1.85%

Goldman Sachs Bank USA High-yield Online Savings Account

on Goldman Sachs Bank USA’s secure website

0.31%

CD Rates

FNBO Direct 12 Month CD

2.50%

Ally Bank High Yield 12-Month CD

on Ally Bank’s secure website

0.70%

CD Rates

FNBO Direct 36 Month CD

2.70%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

1.15%

CD Rates

FNBO Direct 60 Month CD

3.00%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

FNBO Direct’s checking account options

FNBO Direct’s savings account options

FNBO Direct’s CD rates

Overall review of FNBO Direct’s banking products

This checking account offers a good rate, but not the ability to write paper checks.APY

Minimum Balance Amount

0.65%

$0.01

If you’re a true digital citizen looking to earn a good rate on the money in your checking account, this might be the right account for you. While this account has a decent interest rate and low minimum opening deposit, it doesn’t come with the ability to write paper checks.

Instead, you can make payments via debit card, online transfer, FNBO Direct’s BillPay service (as long as you’re making a payment of $5 or more), or by the fancy new personal payment service PopMoney. And if you need cold, hard cash, FNBO Direct lets you use any ATM without charging you a fee. You may still be charged a surcharge fee by the ATM’s owner, but with a network of two million ATMs across the world, it shouldn’t be hard to find a free one wherever you are.

To open this account, you’ll need to complete an application online. It typically takes 10-15 minutes, and you’ll need a few pieces of information, such as your driver’s license, employment info, and personal identification information, including Social Security number. It can take up to two days to receive a decision from FNBO Direct, after which time you can fund your account with an online transfer or by sending them a check.

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The biggest drawback with this account is that it doesn’t come with paper checks. That might not be too big of a deal these days, but it’s still not uncommon to find businesses or people that only accept cash or checks for payment.

Even so, FNBO Direct’s ATM policies make it relatively easy to get cash. There are plenty of in-network ATMs to be found around the world, and no FNBO Direct fees to use out-of-network ATMs.

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FNBO Direct’s online savings account has some unusual rules about when your money is available to use and which external accounts you can link to.APY

Minimum Balance Amount

1.85%

$0

Pay attention to some of the restrictions on this account. Your first deposit may be placed on a 10-day hold before you can withdraw it or move it to another account, even though it’ll still be earning interest. Checks deposited via FNBO Direct’s app will face a similar 10-day hold, but with the funds earning interest during this period.

There is also a restriction on which accounts you can add on as linked accounts: You can only link accounts in which you are the sole owner, and by opening an account, you give FNBO Direct the right to ask for account ownership information for your linked accounts at other banks.

Like other savings accounts, Federal Reserve Regulation D limits you to just six phone, online, or preauthorized transfers to other banks each month from this account. However, unlike most other savings accounts, FNBO Direct doesn’t charge you a fee if you go over these limits. Beware, though, as FNBO may choose to close your account and move the money to another one, which could be a non-interest-bearing account.

To open this account, the online application typically takes 10-15 minutes to complete. You’ll need to provide a copy of your driver’s license (or state-issued ID) and other personal information. FNBO Direct will usually make a decision on your account within two days of receiving your application, and from there you can fund your account with an online transfer or via check.

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FNBO’s CDs are callable, and they don’t earn a very good rate.Term

APY

6 month

0.16%

9 month

0.26%

12 month

0.31%

18 month

0.41%

24 month

0.50%

36 month

0.70%

48 month

0.90%

60 month

1.15%

The first thing to note with this account is that you must keep at least $500 in the account at all times. If you make an early withdrawal and the balance dips below $500, FNBO Direct may close the entire account and charge you an early withdrawal penalty.

FNBO Direct also reserves the right to call the CD to maturity at any time after giving you 30 days’ notice. Often, if a bank offers callable CDs, it’ll pay you a premium if you select this option. At FNBO Direct, however, that’s just its standard operating procedure, and you don’t get a premium APY with it.

After your CD matures, it’ll automatically renew for another CD of the same term, but with the interest rate current on the day of renewal. If you don’t want the CD to be automatically renewed, you can notify FNBO Direct not to do so. Even if it does renew and you change your mind, however, you get a 10-day grace period to make any changes to the CD account, including withdrawing the money.

It typically takes only take 10-15 minutes to open a new CD account, and you’ll need a few pieces of information such as your government-issued ID, and personal identification information, including Social Security number or tax ID.

Member FDIC

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We do like the low minimum deposit threshold and reasonable early withdrawal fees. Just don’t withdraw enough to bring the balance below $500, or the account will be closed and you’ll pay a fee.

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FNBO Direct’s accounts are attractive because the interest rates offered on both the online checking and savings accounts are right on-par with the frontrunners in its class. However, there are a lot of quirky rules that make us hesitate to recommend these accounts.

For example, its CDs are callable, but for that right, FNBO doesn’t offer you a higher interest rate as is typical with many other banks. It’s checking account doesn’t offer actual check writing privileges, and its savings account has some cumbersome rules on deposit holds.

FNBO Direct does have liberal ATM policies and offers ATM machine access in many locations. Whether that’s enough to overcome the other shortcomings of this account is for you to decide.

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