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Another Reason to Love FNBO Direct

May 7, 2009

About a month ago, I switched my emergency fund account to FNBO Direct, primarily because of its competitive rate and good user reviews overall. Today, I found another reason that has really gotten me impressed with FNBO.

FNBO sent me an email announcing their “Pay Yourself First Challenge” winners, which was the first time I had even heard of it, so I checked the website out. Here is an excerpt of what the Challenge is about:

The Challenge will follow five everyday people in their quest for savings greatness by using the Pay Yourself First method. FNBO Direct will match, dollar-for-dollar1, what each of the five finalists has saved at the end of the Challenge. The grand prize winner will also be whisked away to a luxurious spa destination to restore his or her personal balance2.

Pay Yourself First means depositing your paycheck into an FNBO Direct Online Savings Account (OSA). When bills are due you simply transfer just what you need from savings to your FNBO Direct Online BillPay account. Whatever’s left over – whether it’s $25 or $500 — stays in your OSA and earns an interest rate that is seven times higher than traditional saving accounts3.

It takes even more discipline in these difficult economic times to save. FNBO Direct recognizes the hardship that comes with increasing costs for gas, food and other basic necessities. According to a Federal Reserve study, about 43 percent of U.S. families spend more than they earn. In February 2008 alone, consumer debt continued to grow as Americans tacked on nearly $5.0 billion in net new debt (Source: Federal Reserve; revised figures as of 4/7/08). The main idea behind the Pay Yourself First Challenge is to deposit paychecks into an OSA, but the end goal is for consumers to see the value of growing their money through a disciplined approach to saving.

How awesome is that?! I really commend FNBO for taking a pro-active approach to help people save more. This would be a great program for all banks and credit unions to do and a wonderful business model to boot.

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