First Citizens Bank Problems and Solutions
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First Citizens Bank provides affordable banking with fee-free checking and savings options. However, they may not be available for you.
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First Citizens Bank is a well-established institution that offers diverse products and services. But like all banks, it has its imperfections.
You may encounter problems or restrictions which could negatively impact your banking experience.
Read on to discover potential issues and figure out if it suits your needs or if you should explore other options.
First Citizens is best known as a regional bank with a long track record, which began more than a century ago. On March 27, 2023, they announced their purchase of Silicon Valley Bank, becoming their division focused on commercial banking services.[1]
Low Savings APY
First Citizens Bank has an Online Savings Account with a 0.10% APY, which is well below the national savings interest rate.
While it may not have fees or balance requirements, your funds won't increase much given the low rate. Unfortunately, this is a common issue among many traditional banks.
What You Can Do:
If you really want to open an account with First Citizens Bank, consider looking at their other savings options.
They have a money market account with unlimited withdrawals and slightly higher rates. But don't expect too much, as the increase is minimal at best.
First Citizens Bank: Money Market
You can also check out their 11-month CD, which has a high promotional APY. But it requires a minimum opening deposit of at least $5,000, which is a rather large amount for many.[3]
First Citizens Bank: CD
If your goal is to earn a higher savings interest, it's best to consider alternatives. Look for online banks with high-yield savings accounts that have no fees and balance requirements.
- Western Alliance Bank:
High-Yield Savings Premier - 4.46% APY - Discover® Online Savings:
$200 Cash Bonus - CIT Bank Platinum Savings:
4.55% APY - Dayspring Bank:
High-Yield Savings Account - 4.45% APY - InRoads Credit Union:
High-Yield Savings Account - 4.45% APY - DR Bank:
High-Yield Savings Account - 4.42% APY - Paprika Capital Bank:
High-Yield Savings Account - 4.36% APY - The State Exchange Bank:
High Yield Savings Account - 4.35% APY - Mission Valley Bank:
High Yield Savings Account - 4.26% APY - First Community Bank:
High-Yield Savings Account - 4.22% APY
Difficult Criteria to Waive Checking Fees
First Citizens' Premier and Prestige checking accounts both have a monthly service fee of $18 and $25, respectively.[2]
While there are several ways to waive the charges, the requirements are quite difficult to meet. The criteria include maintaining a high daily balance, having large ACH direct deposits, and such.
What You Can Do:
If you are a fee-wary person, you can open a First Citizens Free checking account instead. You only need to enroll in paperless statements to avoid fees.
But keep in mind that the Premier and Prestige accounts offer better APY, making them more appealing overall.
First Citizens Bank: Free Checking
- $0 monthly fee when you enroll in paperless statements
- $50 minimum opening deposit
- No minimum balance
Branches in Select States Only
First Citizens Bank only serves 23 states,[4] with the majority of its branches in North Carolina, South Carolina, and California.
Though they allow users to open some accounts online, you still need to be a resident in one of the regions they serve for it to push through.
What You Can Do:
Unfortunately, only those who live in a state that First Citizens Bank serves can open an account with them.
It would be best to consider banks in your state or online banks for better accessibility, regardless of location.
- Bank of America Advantage Banking:
$300 Bonus Offer - HSBC Premier:
Earn Up to $2,500 - Chase Total Checking®:
$300 Bonus - Discover® Cashback Checking:
Up to $30/Month Cashback - Quontic:
High Interest Checking - Up to 1.10% APY - Upgrade:
OneCard with Rewards Checking - $200 Bonus - Consumers Credit Union:
Free Rewards Checking - Earn Up to 5% APY - BMO Smart Advantage Checking Account and BMO Smart Money Checking Account:
Earn $300 Cash Bonus* - U.S. Bank Smartly® Checking:
Up to $450 Bonus - Fifth Third Bank:
Personal Checking Account - $300 Bonus
Fees for Overdraft Items
It is normal for banks to charge for overdrafts when they cover it for you. Sometimes, they charge you a non-sufficient funds fee if they don't.
With First Citizens, even if you use a linked account to cover your overdraft, they still charge you $10 per item, which can be frustrating.[5]
What You Can Do:
The most sensible thing is to stay on top of your finances. You must diligently monitor your transactions, from the checks you write to your incoming credits, so you can avoid accumulating passive fees.
There seems no way to avoid overdraft charges. Unless the overdrawn transaction is under $5 or bounces, you are bound to pay an overdraft fee.
First Citizens Bank deposit accounts are FDIC-insured up to $250,000 per account holder and ownership category.[6] So, if your funds are within that amount, you'll be covered in case the bank closes for some reason.
Longer Clearing For Mobile Check Deposits
Funds from mobile check deposits are typically available within the next business day for many banks.
With First Citizens, however, the money is credited within 3 business days.[7] Certain circumstances can further prolong the processing time as well.
What You Can Do:
Make sure to be aware of the cutoff time because checks deposited after will be processed the next business day. The cutoff for First Citizens is 9 p.m. Eastern time.
If you have any scheduled bill payments, don't depend solely on check deposits. Lastly, wait for your check to clear before using its funds for other transactions like bill payments to avoid overdrafts.
Bottom Line
Before committing to First Citizens Bank, it's really important to take a close look at their problems. Some of their products and services have limitations that may not suit your financial situation and preferences.
Ultimately, if you are eligible to open an account with them and none of the issues above are deal breakers, they are a good option to consider!
References
- ^ First Citizens Bank. First Citizens Bank Enters into Whole Bank Purchase of Silicon Valley Bridge Bank, N.A., Retrieved 10/28/2023
- ^ First Citizens Bank. Personal account disclosures, Retrieved 10/28/2023
- ^ First Citizens Bank. 11-Month CD Addendum, Retrieved 10/28/2023
- ^ First Citizens Bank. About Us, Retrieved 10/28/2023
- ^ First Citizens Bank. Overdraft Protection and Service, Retrieved 10/28/2023
- ^ FDIC. First-Citizens Bank & Trust Company, Retrieved 11/14/23
- ^ First Citizens Bank. First Citizens Bank Deposit Account Agreement, Retrieved 10/28/2023
CIT Bank Platinum Savings - 4.55% APY
- 4.55% APY with a balance of $5,000 or more
- 0.25% APY with a balance of less than $5,000
- $100 minimum opening deposit
- No monthly maintenance fee
- Member FDIC
Bank of America Advantage Banking - $300 Bonus Offer
- The $300 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
- The offer is for new checking customers only.
- Offer expires 01/31/2025.
- To qualify, open a new eligible Bank of America Advantage Banking account through the promotional page and set up and receive Qualifying Direct Deposits* totaling $2,000 or more into that new eligible account within 90 days of account opening. Bank of America Advantage SafeBalance Banking® for Family Banking accounts are not eligible for this offer.
- Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- *A Qualifying Direct Deposit is a direct deposit of regular monthly income – such as your salary, pension or Social Security benefits, which are made by your employer or other payer – using account and routing numbers that you provide to them.
- Bank of America, N.A. Member FDIC.
HSBC Premier - Earn Up to $2,500
Start an HSBC Premier relationship today. You'll enjoy premium banking with both local and global benefits and access to wealth solutions offered through HSBC Securities, (USA), Inc*.
You could earn $1,500 or $2,500 if you open a new, eligible HSBC Premier checking account from July 1, 2024 through November 22, 2024, and complete qualifying activities.
- Get a $1,500 Cash Bonus: Add New Money of $100,000 to $249,999 in deposit and/or eligible investment accounts within 20 days of opening your new checking account and maintain the Qualifying Balance for 3 full consecutive months.
- Get a $2,500 Cash Bonus: Add New Money of $250,000+ in deposit and/or eligible investment accounts within 20 days of opening your new checking account and maintain the Qualifying Balance for 3 full consecutive months.
- Cash Bonus will be deposited into your new checking account within 8 weeks of meeting all the offer requirements.
Chase Total Checking® - $300 Bonus
- New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
- With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.
- Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
- JPMorgan Chase Bank, N.A. Member FDIC
- Open your account online now
- Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
- Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
U.S. Bank Smartly® Checking - Up to $450 Bonus
Earn up to $450 with a new Bank Smartly Checking account. Complete the following within 90 days of account opening:
- Enroll in online banking or the U.S. Bank Mobile App
- Make two or more direct deposits(s) totaling $2,000 to $4,999.99 to earn $250, $5,000 to $7,999.99 to earn $350 or $8,000 or more to earn $450.
Fund your new account within 30 days to start qualifying activities. Offer may not be available if you are an existing U.S. Bank customer or live outside of the U.S. Bank footprint.
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