FNBO CDs review and rates. The cd account term from FNBO that has the highest rates are found below.
FNBO CD – And the recession hits . . .
Several months ago, we wrote a review about First National Bank of Omaha and how they had very competitive rates. Now, however, the best CD rates are not to be found at FNBO. Still, what does it take to open an account there and how are their fees? These are some of the questions we will answer in this post.
First National Bank of Omaha Certificates of Deposit Account requirements
FNBO has quite a few term options for their cds. You can open any of these with a minimum deposit of $500. Terms start from 91 days and go monthly until 2 months beyond the year mark. Then, the terms are 18 months, 20 and 21 months, 2 years, 30 months, then 3 years, 4 years and 5 years. The interest is compounded daily and paid according to the term you chose. FNBO is FDIC insured and they are making strides to bring you the high interest rates you would expect. They just have not gotten there as yet.
Rates and Fees at First National Bank of Omaha
The interest rates for these CDs are pretty dismal for the terms up to the 14 month term. One could say FNBO is being competitive with banks like Chase Bank, however, that is scrapping the bottom of the barrel at .05% APY. At 18 months the APY rate jumps to .31% but this still does not come close to the national average and certainly not among the highest CD rates in the country. In order to come closer to the national average (as quoted by bankrate.com) you need to go for at least the 3 year CD. Even then, the APY rate is only at 0.85% (decreased from 1% in 21 October 2010). The good news here is they will not exact principal if you need to withdraw money early. They will basically take all the accumulated interest, so it is best to leave your money where you put it for the duration. I did not find any other fees associated with basic FNBO CDs. However, if you have a CD that is also an IRA, they may charge you $25 for taking your money out early.
Summary of First National Bank of Omaha
As this recession is still on our doorstep, so is it with some of these banks as well. FNBO has not recovered as yet and therefore cannot be considered as having the best cd rates yet. Aurora Bank and Ally Bank have the highest interest rates for short term CDs. Giantbank.com and MetLife bank have decent 1 year term rates and if you are looking for longer term, look to Discover Bank. You can find all these and more on our website. Please take a moment and help yourself find the best rates in the nation.