November 12, 2023

First Citizens Bank Problems and Solutions

Read more about First Citizens Bank
Editorial Note: This content is not provided by the companies mentioned. Opinions expressed here are author's alone, and have not been reviewed, approved or otherwise endorsed by the companies.
Ad Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by using our links. (read more)

First Citizens Bank provides affordable banking with fee-free checking and savings options. However, they may not be available for you.

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.

What is your biggest challenge with First Citizens Bank?

What is First Citizens Bank known for?
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.

First Citizens Bank imposes a limit of only 2 withdrawals for each month on their Online Savings Account. A $3 fee applies for each withdrawal or transfer beyond that.[2]

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.

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]

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.

Compare Savings Account Offers

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.

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.

Compare Checking Account Offers

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.

Is my money safe at First Citizens Bank?
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.

It helps when your check is properly endorsed according to the bank's guidelines. Typically, you just need to sign the back of the check to endorse it. Make sure it matches the payee's name found on the front side of the check.

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.

Which solution would you most like First Citizens Bank to implement?

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

  1. ^ First Citizens Bank. First Citizens Bank Enters into Whole Bank Purchase of Silicon Valley Bridge Bank, N.A., Retrieved 10/28/2023
  2. ^ First Citizens Bank. Personal account disclosures, Retrieved 10/28/2023
  3. ^ First Citizens Bank. 11-Month CD Addendum, Retrieved 10/28/2023
  4. ^ First Citizens Bank. About Us, Retrieved 10/28/2023
  5. ^ First Citizens Bank. Overdraft Protection and Service, Retrieved 10/28/2023
  6. ^ FDIC. First-Citizens Bank & Trust Company, Retrieved 11/14/23
  7. ^ First Citizens Bank. First Citizens Bank Deposit Account Agreement, Retrieved 10/28/2023
CIT Bank
Member FDIC

CIT Bank Platinum Savings - 5.05% APY

  • 5.05% 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
Member FDIC

Bank of America Advantage Banking - $200 Bonus Offer

Expires 5/31/2024
  • The $200 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 5/31/2024.
  • To qualify, open a 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 account within 90 days of opening.
  • Bank of America will attempt to pay bonus within 60 days.
  • Additional terms and conditions apply. See offer page for more details.
  • Bank of America, N.A. Member FDIC.
HSBC Bank
Member FDIC

HSBC Premier

Start an HSBC Premier relationship today. Premium banking with local and global benefits. Plus, access to wealth solutions offered through HSBC Securities, (USA), Inc.

Chase
Member FDIC

Chase Total Checking® - $300 Bonus

Expires 7/24/2024
  • New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
  • Access to more than 15,000 Chase ATMs and more than 4,700 branches
  • 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*
Discover Bank
Member FDIC

Online Savings Account - Earn 4.25% APY

  • No fees
  • No minimum opening deposit
  • No minimum balance required

Write to Penelope Besana at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Subscribe to CreditDonkey
Get updates on the latest deals and keep up with the best money moves.
Your privacy is important to us. Unsubscribe anytime

Compare:

Save money and build wealth. Sign up to get our FREE email newsletter.
US Bank Savings Account Interest Rate

US Bank Savings Account Interest Rate

U.S. Bank offers a beginner-friendly savings account with a low APY. Is it worth it? Read on to find out.
More Articles in Bank Reviews & Deals

About CreditDonkey
CreditDonkey is a bank comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2024 CreditDonkey Inc. All Rights Reserved.