First Citizens Bank business banking review: Free checking account with a low minimum opening deposit

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First Citizens Bank business banking review: Free checking account with a low minimum opening deposit

First Citizens Bank; Rachel Mendelson/Insider

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Overall bank ratingPros and consBusiness savings

Annual Percentage Yield (APY)

0.03% APY

Pros & Cons

Details

Pros

Possible to waive monthly fees
Interest compounded daily

Cons

Low APY
$5 monthly maintenance fee
First two withdrawals are free, $3 fee for each additional withdrawal or transfer

Branches and ATMs in 19 US states: AZ, CA, CO, FL, GA, KS, MD, MO, NM, NC, OK, OR, SC, TN, TX, VA, WA, WI, WV
$100 minimum opening deposit
To waive $3 service fee, maintain at least $300 in your account daily
To waive $5 monthly maintenance fee, keep at least $2,500 in your account daily
Interest compounded daily, paid monthly
Member FDIC

The First Citizens Bank Business Savings Account may be a solid option if you can keep at least $2,500 in your account daily — that way you can avoid monthly fees. 

However, the interest rate is fairly low, and there are better options available through

online banks
.

Business checking

Annual Percentage Yield (APY)

None

Pros & Cons

Details

Pros

$100 minimum opening deposit
No monthly service fees
175 transactions per month
$5,000 in money or coin deposits per month
No out-of-network ATM fees

Cons

$0.50 fee for each monthly transaction exceeding the 175 limit
$0.20 fee per $100 cash deposited exceeding the monthly $5,000 limit
Doesn’t reimburse any fees charged by out-of-network ATM providers
No free incoming or outgoing wire transfer fees

Branches and ATMs in 19 US states: AZ, CA, CO, FL, GA, KS, MD, MO, NM, NC, OK, OR, SC, TN, TX, VA, WA, WI, WV
Make 175 free transactions per month, then pay $0.50 per transaction
Deposit $5,000 in cash per month, then pay $0.20 per $100
FDIC insured

The First Citizens Bank Basic Business Checking Account is the bank’s strongest business account. It can be a good option if you’re looking for an account with a low minimum opening deposit, and you make fewer than 175 transactions per month. You can also deposit $5,000 in cash in your account monthly.

However, if you’re likely to make more than 175 monthly transactions or deal with many wire transfer fees, then this account may not be the best option for you. You may be bogged down with additional fees. 

Business CD

Annual Percentage Yield (APY)

0.10%-0.25% APY

Pros & Cons

Details

Pros

Higher APY than many brick-and-mortar banks
$500 minimum opening deposit

Cons

Low APY compared to online banks
Early withdrawal penalties: 6 months of interest
Limited term options

Terms range from 1 year to 3 years
Withdrawal penalties: 6 months of interest
More competitive rates if you have Premier Business Checking or Professional Business Checking; must be able to deposit a minimum of $5,000
To get competitive rates or learn about additional CD offerings, contact your local branch
Branches and ATMs in 19 US states: AZ, CA, CO, FL, GA, KS, MD, MO, NM, NC, OK, OR, SC, TN, TX, VA, WA, WI, WV
Member FDIC

First Citizens Bank offers decent rates on CDs and only requires a $500 minimum opening deposit. However, there are limited term lengths and online banks can offer higher interest rates. 

You can also get more competitive rates if you have a Premier Business Checking account or Professional Business Checking account and can deposit a minimum of $5,000. However, you’ll need to contact your local branch to learn more about additional CD offerings.

Business money market account

Annual Percentage Yield (APY)

0.01% – 0.03% APY

Pros & Cons

Details

Pros

Visa business debit card option
ATM card available with account
Interest compounded daily, deposited monthly
Possible to waive the monthly maintenance fee

Cons

$25,000 minimum opening deposit
Low APY
$10 monthly maintenance fee
$0.50 fee for each transaction, if you go over 50 items

Branches and ATMs in 19 US states: AZ, CA, CO, FL, GA, KS, MD, MO, NM, NC, OK, OR, SC, TN, TX, VA, WA, WI, WV
To waive $10 monthly maintenance fee, keep at least $25,000 in your account daily
$0.50 fee for each monthly transaction going over the 50 limit
Interest compounded daily, deposited monthly
Member FDIC

The First Citizens Bank Premium Money Market Account is a decent option if you’re looking for an account that comes with an ATM card or a Visa business debit card option. However, the interest rate is fairly low and the minimum deposit is fairly steep at $25,000.

If you can manage to maintain $25,000 in your account daily, you can avoid the $10 monthly maintenance fee. However, if you don’t think you can keep up with managing your account to avoid monthly fees, then this account may not be for you. 

How First Citizens Bank worksFirst Citizens Bank has both personal banking and business banking.  Branches and ATMs are located across 19 states, including:

ArizonaCaliforniaColoradoFloridaGeorgiaKansasMarylandMissouriNew MexicoNorth CarolinaOklahomaSouth CarolinaTennesseeTexasVirginiaWashingtonWest VirginiaWisconsinCustomer service hours tend to vary at the location. However, many are available from 9 a.m. to 5 p.m. If you aren’t able to go to a location in person, telephone customer service is available.  You can call an automated system if it’s after hours or gets help from customer service reps who are available from 7 a.m. to 11 p.m. ET.

If you are a fan of mobile banking, the bank’s mobile app may be one of the best features for you. The banking app has a 4.6 out of 5 rating from the Apple Store and a 4.5 out of 5 rating from the Google Play store.   

First Citizens Bank is FDIC insured. If a bank is FDIC insured, that means your business banking deposits are insured for up to $250,000 on individual accounts and $500,000 on joint accounts. 

Is First Citizens Bank trustworthy?First Citizens Bank received an A+ rating from the Better Business Bureau.

We use BBB ratings to help you understand how a bank deals with customer complaints. A good BBB rating won’t necessarily mean that your relationship with a bank will be great, so look for feedback from other business owners so that you can make the best choice.

First Citizens Bank also hasn’t been involved in any recent public controversies.

How First Citizens Bank compares to similar institutionsWe compared First Citizens Bank business banking with two other institutions: Citizens Bank and IberiaBank.

First Citizens Bank vs Citizens BankSomething important to consider is that First Citizens Bank business banking is available in 19 states, whereas you can get Citizens Bank business accounts in 12 states. Depending on where you live, one may be available to you. 

If you are looking for a checking account with no minimum opening deposit or a variety of short CD options, Citizens Bank may be the better option. But if you are looking for a checking account that doesn’t charge out-of-network ATM fees or has longer term CDs, then First Citizens Bank may be more appealing.

First Citizens Bank vs IberiaBankBoth banks offer a variety of business banking accounts, so either could be a good option if you’re looking for a bank where you can do it all.

The IberiaBank Statement Savings account has a lower minimum opening deposit and a slightly higher APY. However, it’s only available in 10 states, while First Citizens Bank is available in 19 states. 

Another factor to consider is how many transactions you’ll make monthly. If you think you’ll make more than 175 transactions per month on your checking account, then IberiaBank may be better. You can make up to 500 free monthly transactions through the business checking account. 

Sophia Acevedo

Personal Finance Reviews Fellow

Sophia Acevedo is a Personal Finance Reviews Fellow at Insider. She works with the Personal Finance Insider Team to produce content on banking and savings. Before joining the Insider team, she was a freelancer based in Los Angeles and worked briefly in publishing. She…

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First Citizens Bank
First Citizens Bank Business Banking
First Citizens Bank Basic Business Checking
First Citizens Bank Business Savings Account

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