FNBO Direct
I recently opened up another online savings account — this time with FNBO Direct. Currently they are having a 6% APY promotion, which means that money deposited while the promotion is in effect will have a 6% annual percentage yield until September 28, 2007. (See the fine print on their web site for details.) After that, funds will earn whatever interest rate is in effect at the time, but it’s likely to be competitive since prior to the promotion they were paying 5.25% APY. They offer an ATM card as well, although I did not get one.
There were a couple of glitches during the account opening process, but they were very minor and easily gotten around. (All that happened was I got a web error and had to re-login and pickup my application where I left off.) It took me about 15 minutes to apply, and my application was approved shortly thereafter. By the next morning, my account was entirely set up and my funds transfer arrived within 2 days. You’re able to link your account to either a savings or a checking account, which meant that I was able to link directly to my HSBC account and transfer the money from that. (All I needed was their routing number and my account number.) I’m pleased with the entire process so far, and happy about earning more interest on my money.
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June 22nd, 2007 at 6:48 am
Even though I currently have a VirtualBank and e*trade online savings account, I decided the give this one a try. I just completed the application and was verified in about 5 minutes. Very easy considering the previously mentioned providers both required me to fax them copies of drivers license/social security card. I might end up closing the others in favor of this one (I like the ATM card option).
June 22nd, 2007 at 9:51 am
Do you close out your other accounts, like ING, when you open new accounts like this? Or do you just have many accounts? What’s your cut off, for when you think it’s worthwile to switch?
June 22nd, 2007 at 9:59 am
No, I don’t close out the old accounts. I just have zillions of accounts…
As far as switching most of my money to the new account goes, my own cutoff is more than half a percent.
June 22nd, 2007 at 10:51 am
Can you still earn good interest on your money even though it’s in lots of different places or do you earn more when you build up a lot in one place?
June 22nd, 2007 at 11:13 am
The number of places you have your money doesn’t really matter as far as how interest is calculated goes, what matters is the interest rate you’re earning in each account.
For example, if I have $2000 in one account earning 5% interest and I just leave it there without adding or withdrawing any money, I’ll have $2100 at the end of the year. If I have $1000 in one account at 5%, and $1000 in another account that’s also at 5%, I’ll end up with $1050 in each at the end of the year. (Which is still the exact same $2100.)
But if I have $1000 at 4.5% and another $1000 at 5%, I’ll end up with $2095 total using the same assumptions. So I want to have my money where it’s going to earn the most interest, unless there are other reasons for leaving it elsewhere.
June 22nd, 2007 at 11:17 am
So have you reduced your money in accounts like ING, to much smaller amounts….since it is 4.5%?
Just thinking about what to do. I like ING. And I have a Wamu CD that is maturing on July 5th.
June 22nd, 2007 at 11:29 am
Yes, I have some money in ING that I’m planning to spend very soon anyway, so I haven’t bothered moving it. And I have a couple of CDs there which are earning 5.1%. Once those are up, I will leave a little there to keep the account open unless interests rates have changed. Likewise, I now have hardly any money in HSBC and I have only the minimum required in my credit union. It doesn’t hurt anything to leave the accounts open though as far as I can tell.
June 22nd, 2007 at 12:44 pm
Well, I just went for it! Thanks again BM….
I funded it with $5 from my checking account to start…when do I set up my online password/userid?
Do you know if I can have more than one account linked to the account?
June 22nd, 2007 at 3:41 pm
I got the info I needed to finish setting up the account up the next day. I think you can link more than one account, but I’m not sure. The FAQs on their web site will probably say though.