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Mutual of Omaha Bank Review – Banking Accounts & Mortgage Loans

By David Bakke

mutual of omahaMutual of Omaha Bank offers a wide variety of financial products, including a checking and savings account, a money market account, a credit card, and mortgage loan options. Whether you’re looking to streamline your finances by having all of your accounts in one place, or if you simply want to open a checking or savings account, Mutual of Omaha Bank offers a range of perks that make it worth considering.

Application Process

The application processes for the savings, checking, and money market accounts are similar. Once you choose your state of residence, select which type of account you wish to open and add additional options, such as a debit card, checks, or direct deposit. Next, enter your personal information, then add a beneficiary to your account. Once you’ve completed these steps, you can fund your account with a transfer from an existing bank account or by depositing a check via mail.

Accounts come with free access to more than 20,000 ATMs, free online bill pay and e-statements, and no monthly maintenance fees unless you fall below the minimum required balance, which differs according to the type of account you have. You can also transfer money to or from your existing bank account for free.

To apply for a credit card or mortgage loan, you are asked to input additional financial information. With the exception of the mortgage loan, the approval process for most accounts takes one to two business days. Keep in mind that applying for any account with Mutual of Omaha Bank requires a credit check, which could negatively affect your credit score.

Financial Products

The checking, savings, and money market accounts are FDIC insured up to $250,000.

  • Checking Account. You only need $100 to open a Mutual of Omaha Bank Online Advantage Checking account, and your first box of checks is free. After that, you must pay $6.95 plus shipping. Direct deposit and overdraft protection are available for free as well. If you maintain a balance of $1,500 or more, your account will earn a 0.50% APY. If your balance grows to more than $250,000, this drops to 0.10%. If you fall below the minimum required balance of $100, you’ll be assessed a $10 monthly fee.
  • Savings Account. You can open a savings account with Mutual of Omaha Bank with as little as $25, and you can earn interest on your account as long as your balance remains above $25. Balances from $25 to $500,000 earn a 0.85% APY. If you go over $500,000, this drops to 0.10%. You can transfer money to or from your account online for free, but you’re limited to six electronic transactions per month per federal regulations. If you make more, you’ll be charged $5 for each. If you fall below the minimum required balance of $25, you’ll also be assessed a $5 monthly fee.
  • Money Market Account. To open a money market account, you need to deposit a minimum of $5,000. For balances from $5,000 to $500,000, you earn a 0.85%APY. For balances exceeding $500,000, this drops to 0.38%. You must pay $6.95 plus shipping for each box of checks, including your first. You are also limited to six electronic transactions per month with this account as well. If you make more, you’ll be assessed a $10 fee for each. If your balance drops below the required $5,000, you’ll be charged a $10 fee. Direct deposit and overdraft protection are available.
  • Credit Card. The Mutual of Omaha Platinum MasterCard comes with an APR as low as 9.99%, based on your credit score. There’s no annual fee, no balance transfer charges, and the card comes with fraud protection. You get double the rewards points for the first 60 days, and your points can be redeemed for cash, merchandise, or travel. You receive one point per dollar spent. You can also personalize your card with your photo or other image, also for free.
  • Mortgage Loans. Mutual of Omaha Bank offers a variety of mortgage products. Interest rates may vary depending on your down payment, credit history, income, and where you live. Mutual of Omaha Bank offers mortgages for new home purchases and mortgage refinances, and in addition to conventional mortgages, it offers FHA and VA loans. Currently, adjustable rate mortgages are not available. A Community First Home Loan option is available for first-time home buyers as well. You would need to call to find out current terms, rates, and payment schedules for non-conventional mortgages.

mutual bank omaha

Advantages

  1. Solid Customer Service. The hours of operation for customer service differ slightly depending upon which product you have a question regarding. For checking, savings, and money market accounts, representatives are available from 7am to 7pm (CST), Monday through Friday, and 7am to noon (CST) on Saturdays. For mortgage accounts, hours of operation are Monday through Friday, 8am to 5pm (CST). However, if you have a question on your credit card account, customer service is available 24/7. Service reps are friendly and knowledgeable, and I experienced minimum wait times on the phone before getting through to a real person.
  2. Low Minimum Opening Deposit. Mutual of Omaha Bank offers low minimums for both its checking and savings accounts – $100 for checking and $25 for savings.
  3. Low Minimum to Earn Interest for Savings Account. The savings account earns interest as long as your balance is $25 or more.
  4. Secure Website. The Mutual of Omaha Bank website is protected by 128-bit encryption technology.
  5. Stability. The parent company Mutual of Omaha has been in business since 1909. The company is stable with a sound financial foundation.

Disadvantages

  1. Extended Waiting Period for Funds Availability. If you make a deposit via a bank transfer it can take up to five days before your funds are available. If you mail in a check, it can take anywhere from 5 to 10 days. There are other online bank accounts that have shorter wait times. For instance, most deposits with Ally Bank are available within two business days.
  2. Fees. Mutual of Omaha Bank charges several fees. For instance, you’ll be assessed a fee if your account drops beneath the minimum balance or if you have a dormant account (an account with no activity for a period of one year). See the website for a complete list of fees.
  3. High Minimum to Earn Interest on Checking and Money Market Accounts. You need a minimum balance of $1,500 in order to earn interest for checking and $5,000 for the money market account. However, with Discover Bank, you can earn interest on a money market account starting at only $2,500, and there’s no minimum to earn interest with Ally’s checking account.

Final Word

Mutual of Omaha Bank’s products and loans are generally competitive with other bank offerings, especially if you want to earn interest on a low balance savings account. However, you can find better rewards programs with other credit cards. That said, if you’re looking for a stable, well-established financial institution, it is worth checking out.

Do you have any experience with Mutual of Omaha Bank? Would you recommend it?

David Bakke
David started his own personal finance blog, YourFinances101, in June of 2009 and published his first book on ways to save more and spend less called "Don't Be A Mule..." Since then he has been a regular contributor for Money Crashers. He lives just outside Atlanta, GA and most all of his free time is taken up by his amazing three year old son, Nicholas.

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