FNBO's new rate is under lock and key

FNBO Direct, an online bank that the bulk of my savings is in, currently offers 6.0% APY on its savings accounts. That is a limited offer, and the offer is set to expire on September 28. Next week!

No one seems to know what the new rate will be after that. I called customer service and inquired with one of the reps and they couldn't tell me. She implied that she didn't even know herself, so it is possible that FNBO is keeping a tight lid on the news.

The logical rate for them to return to is 5.25%, the same as the rate before the promotion. But there are two problems with that. First is the Federal rate cut, which could trickle down to lower the rate on savings accounts. Second is that they may undercut their previous rate in order to make up for a little on their promotion. Then again, cutting it below 5% would put it below average and may encourage too many customers to transfer their money elsewhere.

What I found interesting was that they are still advertising the rate with less than 5 business days remaining in the promotion. With the time that it takes to sign up for an account, get it verified, transfer funds, and wait for the funds to clear, no one signing up today or anytime next week is going to see that rate! If you are considering FNBO, you need to wait until after the 28th.

If I were to hazard a guess, I would say that FNBO's new rate will fall between 5.00-5.25%.