Money Blue Book

Updated Analysis Of FNBO Direct’s High Interest Savings Account Offers

I don’t know about you, but I’ve found that it’s not always easy choosing the perfect online bank to manage one’s high yield savings account or high interest money market deposits. Even when presented with a list of the best online banks, it can be rather confusing trying to distinguish them apart to come up with a top tier choice. After all, many of these online banks have been competing with each other for some time now and have restructured their business and banking practices to offer nearly identical services such as free checking, free online bill pay, free ATM reimbursement, and even free and unlimited external ACH account setups.

While certainly a very important consideration, selecting the best savings account based on who offers the highest annual percentage yield (APY) or interest rate alone may not be the most financially informed way to go. Sometimes it may be a good idea for ordinary consumers such as you and I to take some pointers from reputable and established financial writers who make a professional living from offering their expert opinions through financial product reviews. With this in mind, many of the top financial magazines and news websites such as CNN Money Magazine, Forbes, Smart Money, and Kiplinger’s Personal Finance, maintain lists of the top high yield savings accounts where all of the best bank offers are ranked according to evaluated criteria. One of the online banks that has garnered much positive recognition of late is - FNBO Direct Savings Bank, otherwise known as the online virtual arm of the First National Bank of Omaha.

FNBO Direct Has Consistently Been Voted One Of The Top Online Savings Account Banks By Personal Finance Magazines and Online Websites

Very recently, FNBO Direct was voted the #1 - “best online savings account” by Kiplinger magazine. Citing FNBO Direct’s very competitive high interest rate and low balance requirements (only a $1) to open a new online savings account, Kiplinger’s editorial staff also praised FNBO Direct Bank’s other impressive features such as its account management simplicity and streamlined nature. Since nit picky fees and maintenance charges are features that most customers absolutely loathe, in bestowing FNBO Direct with its highest award for the best online savings account, Kiplinger Finance also commented favorably on the FNBO Direct savings account’s offer of no minimum balance requirements and no annoying maintenance fees. Along with Kiplinger’s commentary, other noteworthy FNBO features also include the ability to link one’s FNBO Direct account to as many as three other external bank or broker accounts, and the ability to access and make free bill payments. Electronic transfers via ACH or via the provided ATM service are also quick and easy.

Like many people, in my attempt to protect my money and financial assets during the current credit crisis and ongoing economic recession, I have sought the reliability and safety offered by FDIC insured savings accounts and CD’s. As with all FDIC member banks, FNBO Direct’s banking accounts are fully protected from loss by FDIC insurance up to the full coverage limit of $250,000. Those customers who are understandably worried about the prospect of failing banks need not worry when it comes to FNBO Direct Bank. FNBO is currently in prime financial condition as the institution was not one of the many major banks that engaged in risky subprime mortgage lending during the past few years. In fact, Bankrate.com, an independent reviewer of financial institutional stability, even awarded FNBO Direct 4 stars on its Safe & Sound bank rating system - placing FNBO Direct among the nation’s highest-rated banks in terms of safety and reliability. In an otherwise unstable financial market, that definitely counts for something.

FNBO Direct’s Best Features Include - Easy To Use Online Banking Functions and High Interest Rate Offers

While many online banks such as E-Trade Bank and EverBank focus on offering a diverse and wide array of features, from free online checking to high yield savings and brokerage trading tools, internet banks such as FNBO Direct appeal to a demographic that prefers a more streamlined and simplistic banking experience with just the essential amenities. Similar to clutter free online savings banks like ING Direct, the First National Bank of Omaha’s virtual savings arm is simplistic, easy to use, and more than sufficient to handle your high interest savings and certificate of deposit (CD) needs.

While its online interface is exceptionally plain and basic, those who desire an efficient online banking interface with the prospect of consistently competitive APY rates for their savings will find FNBO Direct a top savings account contender. Its high interest rate offers are comparable to bank rates offered by the top high yield savings account banks. When FNBO Direct first emerged a few years ago, it came onto the scene and immediately crushed  its online bank competitors with an extremely high 6% APY interest rate offer for new accounts. Since then, though national interest rates among all banks have ebbed and flowed with the Fed’s interest rate changes, FNBO Direct has continued to maintain a fairly reliable rate offer. As noted on its own website, despite the interest rate fluctuations in the market, FNBO Direct Online Savings Account rates continue to earn more than 6x the national average for traditional savings accounts.

Opening A New FNBO Direct High Yield Savings Account and Managing Your Money Online

As FNBO Direct is the online banking department of the First National Bank of Omaha, almost all transactions and account tracking functions are preformed through the Internet via its website. All bank statements and tax information are available online and most correspondence from FNBO Direct is through email. While you can now contact FNBO via its telephone customer service line for additional assistance, most of its banking features are online based.

In addition to the high interest savings account, FNBO Direct also offers several reward credit card possibilities that earn 2% cash back on all purchases, a paperless checking feature (or Bill Pay account), and various high yield CD deposits. However, in order to access these other banking products, you must first open and establish a savings account through FNBO Direct.

1) Visit FNBO Direct and Complete An Online Savings Account Application - To apply for an account, simply proceed to the quick and very straight forward secure FNBO Direct new account application page. You will need to provide the following information:

1. Your social security (SSN) or employer tax ID number (EIN).
2. Your state driver’s license number.
3. Knowledge and information about your current loans or mortgages (to enable the online application to confirm your identity via your credit report).
4. Your current bank account and ABA routing numbers (to set up instant account funding)
5. Your co-applicant’s name, social security number, and date of birth information (only if you’re applying for a joint savings account)

My own FNBO account opening experience was very routine and uneventful, and yours will probably be the same. Along with your basic identity information, you’ll need to provide additional data about your employment and sources of income, as well as provide a source of bank funding to open the account. To verify your identity during the online application process, FNBO Direct will use a series of customized multiple choice questions related to items on your personal credit report (such as the name of your student loan lender, or the amount of your monthly mortgage payments). To pull up your official credit report, FNBO will need to send a credit inquiry to the big three credit rating agencies, however the FNBO credit check is only a soft credit pull for identity verification purposes, and will not have a negative bearing against your FICO credit score.

Afterwards, the customary practice is to ask the applicant to mail in a signed signature card for the bank to keep on file for future identity verification purposes. However (and this is where FNBO really shines), FNBO Direct accepts an online authorization mouse click for a mailed in signature form in its place, thus greatly speeding up the time for processing and approval. Before competing the application, you will also need to fund your account.

2) Fund Your Account and Verify Your Test Deposits To Link Your FNBO Direct Savings Account With Your External Funding  Source

Before the application process can be completed, you will need to transfer funds from your designated external bank account into your new FNBO Direct savings account. Because FNBO Direct has no minimum opening balance and no minimum maintenance balance requirements, you are free to open your new savings account with as little as a $1. To enable the system to pull funds from your chosen external bank account and deposit the designated amount into your new FNBO savings, you will need to verify ownership of the external account. You can do so in either of three flexible and convenient ways:

• Electronic Log-In Verification - If you are comfortable with divulging your funding bank’s online login and password, you can instantly complete the external account verification process in a flash by entering your login and password for immediate identity verification and external account link up. If you are reluctant to provide this personal information due to security concerns or if your external bank has no online access to begin with, you will have to select the second trial deposit option.
• Trial Deposits - The other method to verify ownership of your external bank account is to set up a trial deposit test. You will need to provide your external bank’s ABA routing number and your account number (either checking, savings, or money market). Within a few business days, two small random deposits will be placed into your external bank account by FNBO, the amounts which you’ll need to report back to the FNBO Direct website to finalize the new account set up.
• Mailing In A Check - The third and more old fashioned method of funding your new FNBO account is to mail in a check by postal service. Because this method takes a much longer period of time to process and complete, I suggest utilizing one of the other two options first before settling on this method.

3) Create Your New FNBO Direct User ID and Password

Once you’ve funded your new account with one of the above methods, you’ll receive an email notification once your new FNBO Direct high yield savings account is ready to be accessed online (usually after a few days). At that time you’ll be prompted with instructions to set up online access to your new FNBO Direct account by choosing your desired online ID, password, and set of security test questions in case you ever forget your login or password. Example test questions include “your first pet”, “your favorite sports team”, and “your youngest sibling’s nickname” just to name a few. After setting up online access, you’re ready to start banking online with FNBO.

Extra Information and Resource:

• FNBO Direct ABA/Routing Number for direct deposits and ACH transfers: 104000016

Goodbye 2008 and Good Riddance - Hello Year 2009!

Happy New Year everyone! As much as I’d like to be forward looking, sometimes it’s hard not to recap the past. I think 2008 will go down as one of the worst years in American history in terms of the economy and national morale. Since the start of last year, there has been this gloomy gray cloud of recession worries and depression fears that has persistently lingered over the heads of all Americans. Despite our attempts to shake its clutches by turning our attentions to more exciting events such as the media circus and hype surrounding the historic presidential election of  Barack Obama, the first African American to be voted into the White House, it appears the ominous clouds will follow us into 2009 and beyond for the foreseeable future.

Who To Blame and Where To Go From Here

Those who want to take the easy way out by blaming the credit crisis and current economic woes on the Bush administration, or on the Democratic Congress, or even on the ongoing wars in Iraq and Afghanistan - have their sights on the wrong culprits. The primary blame should be placed on ourselves - the credit and home hungry American consumer who pushed housing prices to astronomical and unsustainable levels. Weaned on easy credit and driven to consume to great excess over the last few years, our abandonment of the age-old practice of saving and living within our means put us on the road to financial disaster that finally came to fruition during 2008.

While the spigot of credit offers and home mortgage loans flowed freely and easily, the destructive cycle of revolving debt and high risk investing was triggered. When housing prices finally halted its irrational surge and began to plummet, so too did the fates of dependent investment banks and mortgage lenders. The precipitous downfall took with it - former pillars of American financial might - companies like Bear Stearns, AIG, and Fannie Mae. In 2008 we saw the fall of major savings banks like IndyMac and Washington Mutual, and witnessed the catastrophic destruction of shareholder equity in financial giants like Citibank, Bank of America, and JP Morgan Chase. The domino effect of the housing collapse has caused the entire U.S. economy to pull back, leading to a decrease in consumer spending activity, triggering further scale backs in worldwide economic growth. With the ongoing deterioration and lock up of the credit and banking institutions, we are now entering an unstoppable economic recession, as massive in scale as our nation’s ever experienced, with no end in sight.

Certainly the federal government with its regulatory oversight powers have some share of the blame as it was their responsibility to ensure home mortgages were being priced fairly and sold at levels warranted by the underlying risk. The federal government’s overzealous housing agenda and eagerness to ensure that all Americans became homeowners (when a vast segment had no business ever becoming one), resulted in billions to trillions of dollars worth of risky subprime mortgages being offered to individuals totally unqualified for such loans. The Fed (with its infinite number of financial experts) still managed to fall asleep at the wheel and wind up negligently steering the great American ship into an economic iceberg. If it’s one thing that we hopefully have learned from 2008, it’s that even the most savvy and professional of financial experts fail to get it right sometimes - just ask any one of the trusting and savvy investors who invested their life savings with hell-bound scam artist Bernie Madoff and his $50 billion Ponzi scheme.

Without a doubt, 2008 was a terrible year for the economy. Many of my friends, particularly those in the financial and accounting sectors, now find themselves laid off and unemployed for the first time in their lives during what will likely go down in history as the worst economic recession since the Great Depression of 1929. But amidst the financial anger and desperation, I have faith that better times are ahead of us. Unless financial Armageddon is truly looming (and I don’t think it is), there is hope for better days in the years ahead. Until blue skies reign again, we’ll simply have to buckle down and adopt a more defensive financial and savings strategy to weather this economic storm. After all, we are all in this together - each feeling the economic pain in some way or another. We’ll get through the tough times in due time.

One Thing I Learned in 2008 - It’s Impossible To Predict The Direction Of The Economy and World Events With Any Real Precession

At the beginning of 2008, I posted a blog entry about my stock market projections and financial predictions for 2008. The purpose was to compare my plans for the new year with actual reality 12 months after. Well, after examining my predictions for 2008 and comparing my projections with what actually happened, I’ve come to the conclusion that I’m the worst soothsayer in the world. The great majority of my predictions were way off base, but then again, who could have predicted the current events as they ultimately turned out? It just goes to show that despite our best efforts, financial predictions are simply educated guesses at best. Here is how my predictions fared against economic and political reality.

1. In January 2008, I predicted the U.S. economy would be able to stave off a full blown recession during 2008, not realizing just how bad the financial and housing markets were and how much wealth destruction they would ultimately wreck on the overall economy. I was completely way off on this particular prediction. The economy ultimately nose dived into a severe recession and currently we are teetering on the brink of another cataclysmic wave of unemployment increases, surge in credit induced bankruptcies, and further drops in consumer spending. The collapse of the American economic engine due to unsustainable subprime mortgages and plummeting home prices has also managed to bring down down the economies of the rest of the world, as evidenced by staggering stock price wipe outs across the board in most of the U.S. and world stock markets. During the 12 month span of 2008, the Dow Jones Index plummeted 34%, the S&P 500 Index went down 35%, and the NASDAQ dropped 40%. Asian stock markets fared even worse as the Korean KOSPI dropped 41%, Japan’s Nikkei dropped 42%, and China’s FTSE/Xinhua FXI 25 Index plummeted a staggering 50%.
2. Interestingly, I predicted Presidential candidate Hillary Clinton would ultimately win the Democratic nomination and go on to win the U.S. Presidential election as I did not believe the Republicans could produce a sufficiently viable candidate who could sufficiently distance him or herself from President Bush and his administration to compete with the Democrats. A Democratic candidate ultimately did win the national election, but instead of Clinton, it was young Barack Obama who captured the hearts and minds of the American people, inspiring them to vote in the name of change for the nation’s first non-Caucasian president.
3. I’m not sure what to make of my prediction about the direction of oil prices. For 2008, I predicted that crude oil prices would not exceed $100 a barrel and that average fuel pump prices would remain steady at around $3.00. However, after blowing past the $100 mark and reaching highs of $125 during spring 2008, crude oil prices ultimately plummeted in a span of only 9 months due to drastic pullbacks in world wide fuel demand triggered by slowing world economies, eventually causing crude oil prices to plunge below $50 a barrel. Fuel prices now stand at less than $1.50 a gallon at many gas stations across the United States -  absolutely stunning levels we haven’t seen in some time. I suppose that’s one thing we can be thankful for these days - the availability of cheap gas.

In Terms Of the Stock Market, Gas Prices, the Housing Market, and the Economy, Here Are My Financial Predictions For  2009:

1) Doomed U.S. Auto Industry - Despite the vehement protests from a vast majority of American taxpayers, the U.S. President and Congress ultimately chose to ignore the public will and bail out the beleaguered U.S. automobile industry with a series of quick loans and a plan to buy shares in the companies. Unfortunately, I don’t believe the American auto industry as it currently exists today can be saved. Ultimately, I believe the big three car makers of GM, Chrysler, and Ford will need further governmental intervention at the risk of taxpayer expense sometime during 2009 to stay afloat, and will be back for more urgent federal bailout money. As it currently stands, the collective business model of the entire American auto industry is extremely flawed and the biggest crippling factor of the car makers’ ability to become profitable is the United Auto Workers (UAW) union. Unless the U.S. automakers can be freed from the high cost of its union strong-armed pension packages, health plans, and high wages, the U.S. auto makers will never be able to compete with their more financially efficient foreigner competitors like Toyota or Honda.

2) Low Gas Prices - I predict fuel prices will stay low for the entire extent of 2009 due to diminishing fuel demand and persistent economic drag attributed to the current economic recession. The only event that may trigger a significant increase in fuel prices sufficient to counter the recession effects would be some type of significant geo-political event such as an act of significant terrorism similar to that which occurred on 9-11 (which I don’t believe will come to fruition).

3) Continued Bad Economy and Recession - I believe the U.S. economy will get worse before it gets better. The first two economic quarters of 2009 will be absolutely horrendous as unemployment rates will surge and businesses will continue to lay off employees and shut down due to deteriorating conditions. In the latter half of 2009, during 3Q and 4Q, the U.S. economy will continue to suffer, although to a lesser degree than the first half. However, I don’t expect any type of notable economic recovery during 2009. Even if Obama pushes through his rumored $1 trillion economic stimulus plan complete with another round of tax rebate checks, the economy will still need a significant amount of time to work itself out. The banking industry and credit markets have simply suffered too much damage, and a new way of doing business must emerge before the economy will improve. Get ready for tough times ahead - grumpy bears are here to stay, and beat up bulls have left the building. I’m not predicting an outright economic depression, but it’ll be close to one.

4) Worsening Real Estate Market - Housing prices will continue to plummet in 2009 with no stability in sight. Certainly housing prices are ultimately local and regionally based, but nationally, I project average home prices to drop about 15% in 2009 and another 5% in 2010.  The current national glut of homes for sale is simply tremendous and the available housing inventory exceeds a 12 month supply. Furthermore, the rate of home foreclosures continue to increase and the ongoing credit crisis continues to make home mortgage refinancing difficult for most home owners. While mortgage interest rates for prime borrowers have dropped to lows of nearly 4%, the vast majority of prospective home buyers seem content to wait it out, knowing that time is on their side in terms of finding their dream bargain home in the next few years. I would know - I’m one of them. As a prospective single family home buyer myself, I’m in no hurry to buy a home anytime soon. I’m currently waiting for home prices in my area to drop another 20-25% before I step in. Knowing that many home sellers are refusing to sell their homes at present day low prices and are hoping to wait out the housing recession as well, it’s my belief that their collective refusal to sell at today’s low levels are only contributing to the worsening condition of the real estate market. Eventually, sellers will have to face the grim reality that home prices will not be returning to the highly leveraged levels of 2006 or 2007 for decades to come.

5) Gloomy Stock Market - Financial pundits frequently cite the truisms that the stock market is a forward looking beast and that it usually responds about 6 months before the actual economy does. Those two traits certainly may be true, but I don’t think the U.S. or world stock markets will be pricing in any type of economic recovery during 2009. The earliest we will likely see a bounce back will be sometime during 2010, at that’s being optimistic in my opinion. The high stock market prices of years past will not return again for many years. Remember, stock prices from 2002-2007 were buttressed through the power of leverage and debt financing via the unsustainable mechanisms of fancy mortgage backed securities and free flowing loans. With the current housing market destroyed, financial markets ruined, and banking institutions clutching their federal bailout money for life support and afraid to lend it out, it will be some time before we can expect stock prices to recover. Because investment and consumer sentiments are so pessimistic, and leveraged plays have all but disappeared, a quick V-shaped recovery is almost unthinkable. Perhaps it’s time to buy gold or save money in high yield savings accounts with the best banks online. For the majority of 2009, I plan to adopt a defensive turtle strategy and seek out protective investments such as FDIC insured savings accounts or high yield CD’s.

6) End Of Lucrative Credit Card Offers - With the recent passage of the new credit card rules by the federal government that greatly favor credit card consumers, scheduled for effect on July 1, 2010, major credit card issuers like Citibank, Capital One, Bank of America, Discover Card, and American Express will be forced to restructure their existing credit card agreements to respond to the new regulatory demands. During 2009, the major credit card issuers are likely to increase credit card interest rates for all consumers across the board, for both good and bad credit card customers alike. To compensate for the less favorable profitability standards of the new credit card regulations, formerly lucrative 0% balance transfer offers will be gradually be fazed out, with FICO credit score standards increased substantially to weed out those applicants with questionable credit ratings. While the new credit card rules don’t officially take effect until the summer of 2010, the credit card companies are likely to start implementing significant changes over the span of 2009. The era of the App-O-Rama and 0% APR balance transfer credit card deals is coming to an end.

Review of MonaVie and The Acai Berry Fruit Juice Company’s Health and Marketing Claims

MonaVie. Mona Vie. The word actually sounds like a spin off of some french phrase (mon ami), but when I hear the name, two things immediately come to mind - acai berry juice and multi level marketing pyramid scheme. The MLM business scheme or pyramid marketing concept usually elicits a series of red alert alarm bells in my brain’s BS scam detector, however, I’m willing to take a closer look at MonaVie before rendering my personal critique and verdict. After having tried out and actually tasted the MonaVie acai berry fruit drink, I have to admit, it’s a rather sweet and tasty beverage - sort of a crisp combination of grape juice, blue berries, black berries, and a hint of dark chocolate. There’s not much negative commentary I can sling at the MonaVie product in terms of taste alone, but the outrageously expensive price tag and the rather suspicious marketing approach of the company leave much to be desired.

As an ordinary American consumer and a casual observer, I’m not sure what to make of this whole MonaVie acai berry fruit juice craze that seems to be sweeping the health and fitness world. The product’s been featured on the Food Network and on daytime talk shows for women like the Rachel Ray show, and eagerly touted by popular television hosts like Oprah Winfrey as the ultimate nectar of the gods. At least several medical commentators have appeared on The Oprah Winfrey Show recently to promote the acai berry as an invaluable source of super food nutrients and as a magical method to promote youth and bodily rejuvenation. While most of the on-air health commentators were on the Oprah show to promote their individual books, even Oprah herself seemed to jump on the acai berry bandwagon, endorsing the nutritional claims of the tiny purple berry in her own boisterous way.

And it’s not just celebrity women either (who in my sexist opinion tend to be very ultra health conscious). Even celebrity guys seem to be getting in on the acai super fruit craze as well. There are numerous photos floating around on the internet of well known celebrities (both male and female) photographed with  their MonaVie acai juice bottles. I’ve seen hip hop stars and motor sport athletes on MTV’s Cribs show opening up their refrigerator doors for the camera to proudly display their prized rows of ultra-expensive MonaVie branded acai juice bottles. To top it off, when the Boston Red Sox won the Major League Baseball World Series in 2007, you even had several pitchers and players publicly thanking the Mona Vie company and attributing their athletic success to the seemingly magical healing powers of the MonaVie acai berry drink. When professional athletes who have just won the most competitive pinnacle award of their profession celebrate their triumph by giving a ringing endorsement of a particular enhancement product, citing the competitive advantages it allegedly provided their bodies through the grueling eight month long baseball season, I definitely take notice. However at the same time, my curiosity is greatly tempered with a strong dose of skepticism and suspicion at the celebrity’s personal motivations for such a resounding product recommendation - and I find myself wondering if the celebrity was partly motivated by financial considerations.

Without a doubt, MonaVie is a popular and highly promoted superfruit juice product, frequently mentioned in popular entertainment and athletic circles among the rich and trendy. It also has a strong growing presence online and on TV, but then again, so do many of the numerous get rich quick schemes and snake oil scams out there, featuring all types of facial cleaning products and useless weight loss shakes and pills. All such popular products have their own legion of compensated celebrities ready to help make the sales pitch and enthusiastically promote the product to the audience. Just because a product is heavily marketed and seems popular does not make it legit. Thus I wanted to take a more objective look into the MonaVie product itself, its health claims, and its marketing approach to decipher for myself the legitimacy of the brand. My primary goal is to answer these series of questions - Is MonaVie a scam? Does MonaVie acai juice berry drinks actually provide the health benefits re-soundly touted by its army of rabid distributors? And finally, is MonaVie a product I would actually purchase and consume for myself as an average, everyday mildly health conscious consumer?

The MonaVie Acai Berry Juice Product

MonaVie is a fruit juice drink made up of a blend of 19 different fruits. In a nut shell, it’s like Odwalla or Naked branded smoothie drinks - except the drink is marketed as an acai berry product and it comes in a fancy looking wine bottle to give it allure. While the company refuses to disclose the actual numbers detailing individual juice makeup, it eagerly markets the fruit juice cocktail as some type of specially formulated super fruit juice, citing its composition of acai berries for its supposed magical ability to cure all sorts of physical and mental ailments. While the company does not expressly state that the MonaVie acai berry juice drink is capable of amazing healing properties, that is the marketing direction the company seems to strongly hint at. Obviously due to legality reasons, MonaVie can’t officially claim its juice drink to be a health elixir, but it sure seems like it unofficially wants to based on the promotional dance it’s constantly engaging in.

Inside of its fruit juice drinks, MonaVie lists as one of its primary ingredients - the acai berry (pronounced ah-sai-ee) - a small purple black fruit about an inch in size and produced from the acai palm tree in the Amazon of Brazil. Through its network of distributors, the MonaVie company promotes the message that its unique acai berry juice blend contains many of the antioxidant related health benefits associated with the acai berry and other special fruits. Supposedly, these super fruits are packed with powerful nutrients and antioxidant compounds that uniquely protect the body’s cells from damage and disease, boost the immune system, and slow down the otherwise inevitable process of aging. However, much of the alleged health benefits of MonaVie and the extent of the nutritional value of acai have been called into constant debate and frequently questioned by naysayers that cast suspicion at what exactly is contained in MonaVie and the extent of its alleged nutritional value if any. Certainly, the company’s reluctance to share detailed information about the specific acai berry concentration found in its bottles and its mysterious refusal to reveal detailed proportional make up of how the  fruit juices in the MonaVie blend are made up continue to fuel discussions abut the health claims made by the product’s distributors.

Monavie Acai Is Sold Exclusively Via A Questionable Multi Level Direct Sales Approach (AKA Pyramid Scheme)

Mona Vie acai juice drinks are not available in traditional supermarket chains or grocery stores like Safeway, Kroger, or Wegmans, and they’re not even available via specialty health minded retailers like Whole Foods or Trader Joe’s. You definitely won’t find the company’s products at discounters like Walmart or Costco - no, the MonaVie company shuns the traditional sales outlets in favor of a more personalized and almost cult like marketing approach.

MonaVie was launched in January 2005 by a long time direct sales marketing veteran and since then, the company has relied exclusively on a multi level marketing strategy to promote and sell its expensive juice drinks. For all intents and purposes, the company’s more of a powerful marketing machine than a health food provider. Certainly there may be substantially better fruit juice products out there at much cheaper prices, but frankly, and somewhat commendably, MonaVie does a pretty powerful job of hyping and cleverly convincing health fanatics that they absolutely must drink this product everyday to live their lives to the fullest.

By tapping into a sales stream that takes advantage of trusted personal relationships to generate sales, the company has become wildly successful - at least on the sales side. Those unfamiliar with multi level marketing (MLM) may be more familiar with its common nickname - the pyramid scheme. A MLM or pyramid scheme relies on a direct sales technique based on a relationship referral business model whereby trusted people are the engine components that drive the commission based sales. Whenever a sale is made, a lofty commission is paid out, not only to you (the person who made the sale), but also to the person who referred you into the marketing program as well as to the person who referred your direct referrer - hence the pyramid nature of the arrangement. Because these multi level marketing programs are so potentially lucrative for those at the top of the pyramid (the upline), the system strongly encourages and incentivizes participants to zealously promote the product and heavily recruit new entrants into the program (the downline) to further earn sales and commissions for those on the up line.

Now, the one thing that must be made clear is that not all multi level marketing programs or pyramid schemes are inherently evil or illegal. Not all pyramid schemes are blatant scams or disreputable shell games the same way that Ponzi Schemes are. In fact, there are many otherwise thinly legitimate multi level marketing programs out there such as Amway, Avon, Mary Kay, Herbalife, Tupperware, and all sorts of online affiliate programs. However, many of these MLM based companies suffer from the same stigma and questionable scrutiny that MonaVie faces as well. While not outright scams, the scammy questions arise because many of these MLM programs really only benefit those at the top of the marketing pyramid and often encourage overzealous sales techniques that frequently lead to almost predatory recruiting tactics and pitches. Oftentimes as well, many of these MLM programs demand contractually obligated sales quotas that members must satisfy every month or face having to purchase the products themselves to meet the sales quota requirement. In the case of MonaVie’s contractually obligated arrangement for wannabe new distributors into the program, new entrants are obligated to buy at least 4 bottles a month of the pricey acai berry juice. They don’t come cheap and failure to sell enough bottles every month will require that the distributor contractually purchase the required quota for personal use.

As noted by an investigative news article from Newsweek, according to income disclosures, most of the million strong sales team of MonaVie appear to be really just drinking the juice themselves rather than selling them as originally intended. More than 90% of supposed distributors of MonaVie are actually considered wholesale customers, whose earnings were mostly discounts on sales to themselves. Remarkably according to the article, fewer than 1% of the MonaVie marketing pyramid’s sales people qualified for commissions and of those, only 10% made more than $100 a week. The Newsweek article even goes on to state that according to a top MonaVie recruiter, while obviously not disclosed by the company, the MonaVie multi level marketing program’s drop out rate’s around 70%. It’s certainly a fascinating tidbit to keep in mind as you ponder the question of whether MonaVie’s a scam. While I personally don’t think MonaVie is a scam as they do offer an otherwise legitimate fruit juice product, the acai juice company sure has rather unsavory fringe elements to it.

In regards to the secret world of direct sales and pyramid marketing, I had my first negative exposure to MLM programs when I was recruited by a company called Vector Marketing to sell Cutco branded knives back when I was just an 18 year old high school student. For some odd reason, many fellow high school students such as myself were targeted with elaborate marketing sales pitches by Vector Marketing recruiters to become trained in the art of tapping personal relationships to sell ridiculously and insanely overpriced Cutco steak knives to our friends and family members. Obviously, our recruiters were eager to train us into becoming their commission earning downline so that they could profit from our sales as our upline referrals. While the Cutco knives we lugged around and sold were of obvious high quality, they were no where even close to being worth the exorbitant price demanded of each individual cutlery. Quality is one thing, but they were and to this very day, are still vastly overpriced. While I was able to tap into my personal relationships and beg a few neighbors to shell out hundreds of dollars for a few knives out of pity, I remember always feeling extremely scammy and sleazy during my rehearsed sales pitches to supposed loved ones. As a mere 18 year old at the time, I wasn’t too fond of  having to take advantage of my close relationships for financial gain. There was nothing illegal or deliberately evil about the whole sales system, but the whole multi level marketing approach simply felt shady and rather manipulative to me.

Mova Vie Is Extremely Expensive and Overpriced Despite Its Alleged Acai Berry Health Properties

The MonaVie acai berry juice product is not cheap. In fact it’s downright expensive - ridiculously overpriced at astronomically rip off levels if you ask me. A single MonaVie juice bottle will cost you $30-$40 per bottle, for a little more than 25 fluid ounces of the fruit berry mixture. According to the promotional material, to fully appreciate the nutritional benefits of acai berry juicing, you’re supposed to drink at least 2 fluid ounces of the purple stuff in the morning, and another 1 ounce at night. At the rate suggested by the MonaVie company, a single bottle will last you about a week. At $30-40 a bottle, that comes out to $120-$160 a month, and $1,440-$1,920 a year. Unless you are swimming in money and flush with dollars like the professional athletes or financially well off  like celebrities Oprah Winfrey or Rachel Ray, chances are, you’re going to find regular consumption of this product to be well beyond your financial means. The lucrative price of each expensive bottle of Mona Vie can probably be traced back to the high cost of commission maintenance that must be paid out to the entire pyramid marketing chain upon each sale.

Because of the multi level marketing nature and aggressive direct sales promotional tactics of MonaVie distributors, a wide array of ridiculous health and nutritional claims seem to have blanketed the internet. Sometimes it’s a little difficult figuring out which writer is trustworthy and which one is blatantly a sales guy. I have personal gut-feeling suspicions that sizable portions of these favorable web-based health comments and supposed online testimonials were made by MonaVie distributors and financially interested sales promoters trying to hype up the appeal of their pricey cash cow via fake product reviews. A quick browse of the internet quickly reveals all sorts of outlandish testimonies and anecdotal stories by random people - claims of how MonaVie acai juice drinking cured their heart disease, healed their arthritis, alleviated stress and depression, cured their acne, reversed their aging, repaired joint damage, got rid of joint and back pain, cured their cancer, treated their diabetes, made them more energetic, and even improved their sex life. The craziest claim I’ve seen was some gentlemen who claimed that his steady diet of Mona Vie acai berry juice made his special male anatomy organ larger and more virile. I’ve even read a few ridiculous claims by anonymous female commentators on various Mona Vie related blog posts touting how acai berry juicing grew their chests and helped make their breasts larger. The myriad of outlandish and totally unsubstantiated claims are quite abundantly available online - an unfortunate side effect that distorts the truth, whenever there is a lot of sales money to be had.

Now it’s one thing for a product to be expensive and it’s a whole different matter altogether if the product doesn’t actually do what it says it is supposed to do. The literature and research on the amazing health benefits of drinking MonaVie and the supposed God-like healing properties of acai berry juice are still not entirely definitive. While there is little doubt that berries and fruits such as acai, blue berries, blackberries, and pomegranates common loads of nutritional vitamins and powerful compounds such as cell repairing antioxidants, the research is not yet entirely supportive that these are indeed super fruits that can cure all and heal all. There is scientific evidence that the acai fruit and other dark berries are uniquely high in Oxygen Radical Absorption Capacity (ORAC), a rating system that evaluates a food product’s ability to fight harmful free radicals in the body, but that doesn’t mean that a single fruit can potentially replace all other alternative sources of vital nutrients.

To be fair, the MonaVie company doesn’t actually go out of its way to blatantly promote the MonaVie product as a magical berry elixir anymore. MonaVie does not actually make the health and nutritional claims itself. Due to stricter federal scrutiny of Mona Vie’s official claims, the company has drastically cut back on its previous assertions of health benefits and healing properties. The company is now content with marketing the MonaVie drink as merely a high end fruit juice product, letting its legion of cult like Mona Vie acai berry drinkers and promoters hype the unbelievable health benefit innuendos on their own. After all, the motto of the MonaVie company is - “Drink It, Feel It, Share It” - which sounds more like a sales focused marketing directive of sorts to me.

Acai Berries Do Contain Lots Of Nutrients - They Just Don’t Have Super Healing Powers As Suggested By Some Independent MonaVie Distributors

As a mild defense for the key heralded component of MonaVie’s juice product - the acai berry does indeed contain abundant nutritional value. There is quite a bit of research touting the health benefits of acai berry as a good source of fiber, minerals, vitamins, polyphenols, and antioxidants for healthy bodily performance. The expensive acai fruit does indeed contain a wealth of nutritional benefits compressed into each little purple berry, but then again, much of the same health benefits can easily be found in large concentrations in other more common and cheaper fruits such as bananas, blue berries, and apples as well.

Despite my admitted fondness for the taste of acai, I’m extremely wary of buying into the whole MonaVie acai juice product because I simply do not know how much of acai can be found in each bottle. Because MonaVie refuses to disclose the actual composition of its juice drinks, we do not know for certain the exact breakdown of its juice cocktail and the exact amount of expensive acai berry concentrate in the blend. It’s very important to keep in mind that the MonaVie juice mixture doesn’t contain acai berries exclusively. It’s comprised of an admitted blend of 19 fruits - including many common and cheap fruits like bananas and apples, easily found in your neighborhood grocery store. If you really buy into the claimed health benefits of juicing and nutritional potency of acai berries, there are much easier and cheaper ways to get your purple berry fix. Most grocery stores sell acai berry juice variations and even certain online stores sell similar acai berry laden juice drinks, acai powders, and acai capsules for much, much less.

The fact of the matter is that people are always looking for the easy way out and frequently are all too eager for a magic potion that will make take away the need to put in effort. There is plenty of research touting the overwhelming health benefits of a low fat, low sugar diet comprised of lots of fish and whole grain foods. There is also overwhelming evidence that smoking and excessive alcohol drinking wrecks havoc on physical and mental health, and that daily consistent exercise is absolutely essential to healthy living. Yet, we as humans seem to ignore those simple practices and remain perpetually enamored with the possibility that there are super fruits out there that can serve as magic silver bullets to our health problems and ailments. The reality is that there is no such thing as a one size fits all super fruit. Proper health and nutrition requires a good moderated balance of fruits, vegetables, and proper exercise - not the services of a single food product - especially not one that is so expensively priced.

How To Buy MonaVie Online And Test Out Acai Berry Juices For Yourself (Remember, It’s Not Cheap and Its Health Claims Are Not Fully Substantiated Yet)

Recently, I purchased a few bottles of MonaVie online simply to test out and review the juice product for myself since I didn’t know how else to try it out for free. While I have no intention of actually signing up as a distributor or getting myself locked into some multi level marketing contract, I think it’s perfectly understandable if there are people out there who remain curious about the fruit juice blend. It’s admittedly rather tasty, albeit extremely expensive and somewhat overrated. Personally, I don’t buy the magical juice berry claims of the MonaVie supporters and chose to consume the drink on a one time limited basis as I would any new drink. If you really want to start juicing, buy a fruit juicer for yourself or buy pre-made fruit smoothies from the grocery store. Many of these pre-made blends contain acai berry and they’re a much cheaper way to get exposed to the nutritional value of acai should you so choose to partake. If you really insist on joining the MonaVie acai berry craze, there are plenty of equally good generic acai berry brands out there as well - in various just-add-water powder products and pills.

In the event you are determined to test out MonaVie acai berry drinks or similar acai berry products based on curiosity, here are a few ways to buy them online. Remember, it’s not an endorsement, and I’m just pointing the way for you if you insist:

1. MonaVie Active Health Juice With Acai (Amazon) - 1 Bottle of the dark purple stuff.
2. MonaVie Active Juice Bottles With Acai (Amazon) - 4 bottles - A way to buy MonaVie online without having to agree to some recurring sales contract.
3. MonaVie Juice Bottles With Acai (eBay) - Cheapest method to buy MonaVie online without commiting to a distributorship agreement, but requires eBay auction bidding.
4. Natrol - Acai Berries 1000mg Per Serving 60 Capsules (Amazon) - 60 capsules
   
5. Organic Acai Fruit Capsules with Camu Camu (Amazon) - 60 capsules - The Brazilian acai berry in pill form.
6. 100% Pure Acai Fruit Powder with Camu Camu (Amazon) - 90 grams - Just add water to make an acai powder juice drink.

When most people think of ETrade, the popular online discount brokerage firm with the cutesy talking baby commercials probably comes to mind. Since 2000, E-Trade has been well known for its slew of strange, but memorably funny TV commercials, starting with its series of odd-ball Superbowl monkey commercials in 1999 and 2000. Who can forget the grand daddy of them all - the one with a monkey dancing a jig on an upside down bucket for a quarter of a minute with two old fellas on rocking chairs clapping away to some goofy Latin beat - followed by the message “Well we just wasted 2 million bucks. What are you doing with your money?” While the message might have been a bit lost in the commercial’s zaniness, it certainly was good for future brand name recognition.

Since its days as a leader in the do-it-yourself stock investing movement, E-Trade has grown and developed itself into a full service financial holding company with a wide array of banking and trading related services. Eager to shed and change its old image as merely a low cost discount broker, the company has  jumped into the online banking business. Hoping to change the public’s perception, E-Trade has heavily promoted its rapidly growing online savings and checking products in an attempt to leverage its established reputation as one of the best brokers into a similar position in the online banking market. Despite the presence of formidable competing online banks like ING Direct, HSBC Direct, and FNBO Direct, E-Trade seems to have thrived and undergone quite a transformation. Today, it’s not only one of the most popular discount brokers in the market, it’s also one of the best online bank options in terms of interest rate and website features.

The Combined E-Trade Savings Bank and Discount Broker Company Offers One-Stop Shopping For All Of Your Banking and Trading Needs

Today, not only can E-Trade customers buy, sell, and trade stocks, options, and mutual funds via its highly sophisticated electronic trading website, ETrade customers can also take advantage of a wealth of lending and bank deposit products like high interest checking, high yield savings accounts, certificate of deposits (CD’s), and even E-Trade branded reward credit cards. Because of its strong beginnings and expertise in the brokerage business (voted by SmartMoney as 2008’s best discount broker and a top 10 winner according to Barron’s 2008 online broker survey), E-Trade has also been able to successfully integrate its online broker and banking business together into a fairly seamless one stop full service financial platform for its customers - an important feature that is lacking and not always available with other online banks.

After much development, Etrade’s current banking centerpiece is comprised of two primary high interest bearing banking products:

• The high APY rate yielding Max Rate Checking Account
• And the high interest Complete Savings Account

ETrade Bank Offers High Interest Rates, and Fast Electronic Fund Transfers Between Banks, Brokers, and External Accounts

One of the combined E-Trade company’s most attractive key features is its consistently high interest rate offers. While the company does have a few banking and brokerage branches scattered throughout numerous states in the United States, E-Trade has always been primarily an online institution. Because of its website presence and ability to maintain substantially lower overhead costs compared to most traditional banks with regular branches, E-Trade has been able to pass on the cost savings to its customers in the way of consistently high annual percentage yields (APY) on its line up of checking deposits and savings accounts.

E-Trade Bank’s other strong feature is its well known ability to offer fast transfers. ETrade currently features on its online website the Free Quick Transfer service, an improved way for customers to make one click electronic fund transfers from one linked account to another without having to go through numerous pages of clicks. Electronic transfers between Etrade bank and its discount brokerage accounts are instantaneous (a great advantage for those that use Etrade for both banking and stock trading). Banking customers also have the ability to link up all of their online financial accounts with their E-Trade platform, and transfer money around quickly as needed via ACH transfers at a comparatively rapid speed.

Opening and Funding An E-Trade Banking Account Is Quick and Easy, and Involves Only A Harmless Soft Credit Check

ETrade Bank offers a quick account opening process with minimal paperwork. Other than the nice welcome package you’ll receive via snail mail after getting your accounts approved, everything is done online. After clicking through the online application for your desired checking or savings account option, you’ll be required to verify your identity through a soft credit pull that is performed on your credit report. Fear not, the credit check is a soft inquiry for ID purposes and has no negative effect on your FICO credit score.

1) E-Trade Max Rate Complete Savings Account

After taking a look the interest rate offers promoted by other banks, I do not doubt E-Trade’s marketing claim that the APY interest rates of its Complete Savings Account has consistently stayed more than 8 times the national average APY for savings accounts. Its interest rate levels have indeed consistently remained one of the best deals out there for those seeking the best rate of return for their conservative assets. It is also interesting to note that the E-Trade Complete Savings Account has no account fees, no maintenance charges, and no minimum balance requirement to earn interest. The initial deposit requirement is only $1, something I think most of us can easily afford. All savings (and checking) deposits are also fully FDIC insured, up to the current federal coverage limit of $250,000.

2) E-Trade Max Rate Checking Account

As E-trade aptly puts it, the online bank’s Max Rate Checking Account is checking on steroids - due to its overabundance of account benefits. You can apply for the standard checking option, but if you want the most bang for your checking buck, you should select the Max Rate Checking offer when applying. Not only does its checking account offer a notable interest rate on checking deposits (something almost unheard of among most traditional brick and mortar banks like Bank of America or Citibank), its Max Rate Checking APY is more than 10 times the national average according to Etrade sources.

Its checking account perks include no ATM fees at any machine, at any bank, or anywhere nationwide, via (get this) unlimited ATM fee refunds. Max Rate Checking customers also receive unlimited check writing privileges, online check deposit images (so you don’t have to fumble with canceled paper checks), payment alerts, and free online bill pay reporting services. Free quick one click electronic transfers among verified and linked external financial accounts are offered as well.

While all checking deposits will earn the standard interest rate regardless of how much you have deposited, to receive the highest interest rate level requires a minimum balance of $5,000. A minimum checking balance of $5,000 is required to bypass the monthly $15 fee, but there are many ways to have this minimum balance requirement waived. By signing up for direct deposit of at least $200 a month, linking up your ETrade discount broker account with your bank accounts to maintain at least a totalof $50,000, or executing at least 30 stock trades per quarter, you can avoid the hassles of checking account minimums (which is how I personally have my monthly fee automatically waived every month with E-Trade).

Extra Information and Resource:

• ETrade ABA/Routing Number for direct deposits and ACH transfers: 256072691