Mutual of Omaha has been a well-known player in the insurance industry for more than a century. In 2007, Mutual of Omaha created an affiliate company, Omaha Financial Holdings, Inc., (OFHI) to explore the banking sector. Omaha Financial Holdings, Inc., opened with $700 million in assets and 13 locations by acquiring three community banks — Nebraska State Bank, Security Federal Bank and Peak National Bank. Now, Mutual of Omaha Bank has grown to 49 locations serving clients nationwide — and they also offer online banking.
Mutual of Omaha Bank offers a wide range of financial products — checking, savings and money market accounts, certificates of deposit (CDs), health savings accounts and retirement accounts. They also offer credit cards, mortgages and wealth-management services. Their online banking services are highlighted in this review, but it’s important to know that the web addresses for the branch banking network and the online bank are differentiated only by adding an “e” to the online bank’s URL.
There is a checking account offered online and a suite of checking products offered at branches. The online checking account can be opened with a minimum balance of $100. Since everything is handled online, eStatements, online bill-pay, and online account transfers are all free. You can even earn interest on a balance over $1,500. The online checking has no monthly maintenance fee so it is considered “free checking,” although there are some fees assessed for things like account research, stop payments, and dormant accounts. Accounts are fully FDIC-insured up to $250,000 per account.
The features of the checking account at Mutual of Omaha’s brick-and-mortar branches depend on your state. For example, for the state of Oregon, the only checking account available is the Online Advantage Checking. If you live in California, there are six different options — Online Advantage checking, Advantage checking, Basic checking, Classic checking, Investment checking and Platinum checking. The minimum deposit required to open an account and to avoid the monthly maintenance fee is $100. Direct deposit, bill pay, eStatements and online banking services are free. For all the products, other than the Investment and Platinum checking, the first box of checks is free; after that, you will pay $6.95 for each box. As with the online checking account, if you maintain a balance of at least $1,500 in your branch checking, your balance will earn interest.
Money market account
There are two money market products: The online money market account is available for everyone; but in selected states, they also offer a premier money market account through their branches. The minimum balance for opening an online money market account and to waive the monthly maintenance fee of $10 is $5,000. A premier money market account offered at a branch requires a $1,000 minimum balance. You can earn the best interest rate with an online money market account.
Click here to open an online Mutual of Omaha money market account
You can open a savings account at a branch (available in selected states) with a minimum deposit of $100. If you maintain a minimum balance of $100, there is no maintenance fee; otherwise the fee is $3 monthly. Interest is compounded daily and paid monthly. Accounts come with free eStatements and bill pay as well.
Certificates of Deposit
Mutual of Omaha offers a variety of certificates of deposit with terms starting from 30 days to five years at their branches. The minimum deposit for opening a CD is $1,000. They have two different CD products — the standard CD and a ladder CD. The standard CD is the most common single term CD. For the ladder CD, four certificates of deposit are opened with initial maturity terms staggered at three, six, nine, and 12 months. A minimum opening balance of $2,500 is required for each CD. The current rate of interest for a 12-month CD will be applied to all four of the CDs. Each CD will renew for a 12-month term at maturity.
Health Savings accounts
Also offered at branches, a Health Savings account helps you save and pay for eligible medical expenses tax-free. They can be opened and maintained for free with a minimum balance of $100. If your balance falls below $100, you will be charged a $2 maintenance fee per month. ATM card, online banking, eStatements and up to 10 withdrawals per month are available for free with this type of account.
Retirement & Education accounts
Mutual of Omaha Bank offers traditional, ROTH and rollover-IRA products for retirement and a Coverdell IRA for education. Any of the saving vehicles — savings account, certificates of deposit, a money market account or a combination of these — can be used as the investment vehicle. The standard limit set by the IRS for each of these accounts applies.
Customer service hours depend on the type of product. For online banking and the deposit accounts at branches — checking, savings and money market — help is available Monday through Friday, 7 am to 7 pm Central, and Saturday, 7 am through noon Central. For credit card products, customer service is available 24/7. The service representatives are friendly and I was able to get through to talk to a real person with minimal waiting. In addition, they offer free access to a large, nationwide network of ATMs.
Mutual of Omaha’s products are generally competitive with other online offerings. If you are looking for a well-established, stable bank with a long history, give Mutual of Omaha Bank — and their online bank — a good look.