What First Citizens offers in high yield savings

First Citizens Bank does not currently offer a dedicated high yield savings account. The bank's standard savings accounts earn rates well below what you would find at online banks or credit unions specializing in high yield products. As of early 2024, First Citizens' regular savings accounts typically earn between 0.01% and 0.05% APY, depending on the account type and balance tier.

If you bank with First Citizens and want higher returns on savings, you have two realistic paths: move money to a separate high yield account elsewhere, or check whether First Citizens has introduced new products since this was written. Bank product lines change, so calling your local branch or visiting their website directly will confirm their current offerings.

Key Takeaways

  • First Citizens Bank's savings accounts earn significantly less than high yield savings accounts at online banks, which typically offer 4% to 5% APY.
  • The bank's standard savings rates are competitive with traditional brick-and-mortar banks but not with institutions focused on savings products.
  • You can keep your checking account at First Citizens while moving savings to a higher-rate account at another bank.
  • Money market accounts at First Citizens may offer slightly higher rates than savings accounts, though still below high yield benchmarks.

How First Citizens' savings rates compare

First Citizens is a regional bank with branches across the Southeast and Mid-Atlantic. Like most traditional banks with physical locations, they prioritize checking accounts and lending products over savings rates. Their cost structure—maintaining branches, staffing, and technology—means they cannot match the rates of online-only banks that have lower overhead.

A high yield savings account at an online bank like Marcus, Ally, or American Express Personal Savings typically earns 4% to 5% APY. At First Citizens, the same $10,000 would earn roughly $5 to $50 per year instead of $400 to $500. Over time, that difference compounds significantly.

First Citizens does offer money market accounts, which sometimes earn slightly more than savings accounts. Check the current rate on these accounts, as they occasionally move closer to what other regional banks offer—but they still lag behind dedicated high yield products.

Why First Citizens keeps savings rates low

Banks set savings rates based on what they pay to borrow money and what they earn by lending it out. First Citizens, like other regional banks, borrows at rates set by the Federal Reserve and the broader market. They then lend that money through mortgages, auto loans, and business lines of credit.

When the Federal Reserve raises its benchmark rate, all banks eventually raise savings rates—but by how much varies. Online banks raise rates faster because they have no branch network to maintain and can pass savings directly to depositors. First Citizens, with hundreds of branches and employees, keeps more of the rate increase for operations.

This is not unique to First Citizens. It is how regional and national banks with physical locations operate. If you want the highest rate available, you move money to a bank whose business model is built around attracting deposits through rate competition.

Moving money to a high yield account without closing First Citizens

You do not have to choose between First Citizens and a high yield savings account. Many people keep their checking account at a traditional bank for convenience (local branches, ATMs, in-person service) and move savings to a separate institution for rate.

To set this up, open a high yield savings account at an online bank. Link your First Citizens checking account to it. You can then transfer money between the two accounts in one to three business days. Your First Citizens account stays open and active; you are straightforward using two banks for different purposes.

This approach works well if you use First Citizens' checking account frequently or value having a local branch. If you do not, you might consider moving your entire relationship to an online bank or credit union that offers both checking and high yield savings in one place.

What to look for in a high yield savings account

If you decide to open a high yield account elsewhere, focus on three things: the current APY, whether the rate is variable or fixed, and the bank's deposit insurance coverage.

APY (annual percentage yield) is the rate you actually earn, including compounding. It changes frequently—sometimes weekly—as market conditions shift. A bank advertising 5% today might drop to 4.5% in three months if the Federal Reserve cuts rates. Read the fine print to see whether the rate is may provide or promotional.

All deposits at FDIC-insured banks are covered up to $250,000 per account holder per institution. If you have more than $250,000 in savings, you would need to split it across multiple banks or use a service like IntraFi that spreads your money across multiple FDIC-insured institutions automatically.

When to keep money at First Citizens instead

First Citizens makes sense for your savings if you value convenience over rate—for example, if you frequently deposit cash or checks at a branch and do not want to wait for transfers to clear. The rate difference is real, but it matters less if you are saving small amounts or only keeping money there temporarily.

You might also keep savings at First Citizens if you have a relationship discount or if the bank waives fees on other accounts in exchange for maintaining a minimum balance. Ask your branch manager what rates and incentives explore to your specific situation.

For most people, though, the rate difference is large enough to justify the small effort of opening an account elsewhere. Moving $10,000 to a high yield account earns you roughly $400 to $500 per year instead of $5 to $50. That is money you do not have to earn through work.

Frequently Asked Questions

Can I transfer money from First Citizens to a high yield account online?

Yes. Once you open a high yield account at another bank, you can link your First Citizens checking account and transfer money electronically. Transfers typically take one to three business days. You can also withdraw cash at a First Citizens ATM and deposit it at the new bank, though this is slower and less convenient.

Will opening a high yield account hurt my credit score?

No. Opening a savings account does not trigger a hard credit inquiry and does not affect your credit score. Banks may do a soft check to verify your identity, but this does not show up on your credit report.

What if First Citizens raises their savings rates in the future?

It is possible, especially if the Federal Reserve raises rates again. However, First Citizens' rates have historically lagged behind online banks even during rate increases. You can check their rates periodically, but do not expect them to match high yield products. If they do improve significantly, you can always move money back.

Is my money safe in a high yield account at an online bank?

If the bank is FDIC-insured, your deposits are protected up to $250,000 per account holder. Most major online banks—Marcus, Ally, American Express Personal Savings, Discover—are FDIC-insured. Check the bank's website or call to confirm before opening an account.

Do I need to close my First Citizens account to open a high yield account elsewhere?

No. You can keep your First Citizens account open and active while using another bank for savings. Many people do this to maintain local branch access while earning higher rates on savings.