First Horizon is a regional bank with low account minimums and no monthly fees on checking, but limited branch access outside the Southeast

First Horizon Bank operates primarily in Tennessee, Arkansas, Mississippi, and Alabama, with a smaller presence in a few other states. The bank offers no-fee checking accounts with no minimum balance requirement, which appeals to people who want to avoid monthly maintenance charges. However, whether it is a good fit depends on where you live and how you bank—if you need in-person branch access or live outside the Southeast, you will face real constraints.

The bank is owned by First Horizon Corporation, a publicly traded company, and has been operating since 1864. It is FDIC-insured, meaning deposits up to $250,000 per account type are protected. First Horizon also offers savings accounts, money market accounts, CDs, and basic lending products like mortgages and auto loans, but does not offer investment services or wealth management through its own platform.

Key Takeaways

  • First Horizon checking accounts have no monthly fee and no minimum balance, making them low-cost if you live in or near the Southeast.
  • The bank has fewer than 200 branches, all in four core states, so branch access is limited if you travel or live outside that region.
  • First Horizon's savings and money market accounts earn interest rates that vary by account type and balance, and you should compare these rates to online banks before opening.
  • ATM access outside First Horizon's network may cost you money unless you use a shared branching network or partner ATMs.
  • Customer service is available by phone and online, but the bank does not offer in-person investment information or premium account tiers.

Checking and savings account structure

First Horizon's main checking product is called the First Horizon Checking Account. It charges no monthly maintenance fee, requires no minimum opening deposit, and comes with a debit card and online banking access. You can set up direct deposit and automatic bill pay at no extra cost. The account includes access to First Horizon's ATM network and shared branching through CO-OP and Allpoint networks, which extends your ATM options beyond the bank's own machines.

Savings accounts at First Horizon earn interest, but the rate depends on your balance tier and current market conditions. The bank publishes rates on its website, but these change regularly and are typically lower than what online-only banks offer. If you are comparing savings rates, you should check First Horizon's current rate against competitors like Ally, Marcus, or Discover before deciding. Money market accounts follow the same structure—higher balances earn higher rates, but the rates themselves are not competitive with online alternatives.

CDs (certificates of deposit) are available in terms ranging from a few months to several years. Early withdrawal penalties explore if you take your money out before the term ends, and the penalty amount varies by term length. First Horizon publishes these terms on its website, and you should read them carefully before committing.

Branch and ATM access in practice

First Horizon has approximately 180 branches across Tennessee, Arkansas, Mississippi, and Alabama. If you live in one of these states and near a branch, in-person banking is straightforward. If you live outside this region or in a rural area within it, you will rely on ATMs and online banking for most transactions.

The bank participates in the CO-OP and Allpoint ATM networks, which means you can use thousands of ATMs nationwide without a fee. However, if you use an ATM outside these networks, First Horizon typically charges a fee (usually $2 to $3), and the ATM operator may charge an additional fee. Over time, these charges add up if you travel frequently or live far from a First Horizon branch.

Shared branching is available through CO-OP, meaning you can conduct certain transactions at other banks' branches if they participate in the network. This is useful for deposits or withdrawals but does not replace having your own bank's branch nearby for complex transactions.

Interest rates and fees compared to alternatives

First Horizon's checking account has no monthly fee, which is a genuine advantage over banks that charge $10 to $15 per month for basic checking. However, the savings and money market rates are typically 0.5% to 1% lower than what online banks offer. If you keep a large balance in savings, this difference compounds over time.

For example, if you hold $10,000 in a First Horizon savings account earning 0.25% annually, you earn $25 per year. The same $10,000 at an online bank earning 4.5% would earn $450 per year. The difference is substantial if you are saving money rather than just using the account for checking.

First Horizon does not charge overdraft fees on some accounts if you opt into overdraft protection, but you should confirm the specific terms for your account type. The bank also does not charge fees for wire transfers, ACH transfers, or stop payments, which is standard across most banks.

Who First Horizon works well for

First Horizon is a reasonable choice if you live in Tennessee, Arkansas, Mississippi, or Alabama and want a local bank with no monthly checking fees. The lack of minimum balance and no-fee structure appeals to people who do not want to maintain a large deposit just to avoid charges. If you do most of your banking online and do not need frequent in-person branch visits, the limited branch network is less of a problem.

The bank also works for people who want FDIC insurance and a traditional bank relationship but do not need investment services, wealth management, or premium account features. First Horizon does not offer credit cards, investment accounts, or brokerage services, so if you want those products, you would need to use another institution.

When First Horizon is not the best option

If you live outside the Southeast or travel frequently, First Horizon's limited branch and ATM network becomes a real drawback. You will pay fees for out-of-network ATM use, and you cannot visit a First Horizon branch for help. Online banks like Ally or Charles Schwab offer better ATM access nationwide and often higher savings rates.

If you are looking for competitive savings or money market rates, online banks consistently offer higher yields. First Horizon's rates are designed to be acceptable, not competitive. If you want investment accounts, credit cards, or wealth management services, you will need to open accounts elsewhere or use a larger national bank.

If you are comparing First Horizon to a large national bank like Chase or Bank of America, the national banks have more branches and ATMs, though they typically charge monthly fees unless you maintain a high balance. The trade-off is between First Horizon's no-fee structure and limited reach versus a national bank's wider access and higher fees.

How to evaluate First Horizon against your actual needs

Start by asking whether you live in or near a First Horizon branch. If the answer is no, the bank is less practical unless you are comfortable banking entirely online and paying out-of-network ATM fees. If the answer is yes, check whether you need in-person service regularly or only occasionally.

Next, compare First Horizon's current savings and money market rates to online banks. Visit the websites of Ally, Marcus, Discover, and American Express Bank and note their rates for the balance you plan to keep. If you are saving money, the rate difference matters more than the checking account fee structure.

Finally, consider whether you need services First Horizon does not offer—credit cards, investment accounts, or premium checking tiers. If you do, you will need another bank regardless, so the question becomes whether First Horizon is worth keeping as a secondary account for checking.

Frequently Asked Questions

Does First Horizon have mobile banking?

Yes, First Horizon offers a mobile app for iOS and Android that allows you to check balances, transfer money, deposit checks by photo, and pay bills. The app is standard for a regional bank and works the same way as apps from larger banks.

Can I open a First Horizon account online if I do not live in their service area?

First Horizon generally requires you to live in or near their service area to open an account. You should contact the bank directly to ask about exceptions, but most regional banks do not open accounts for people outside their footprint.

What happens if I overdraw my First Horizon checking account?

First Horizon offers overdraft protection options, but the specific terms depend on your account type and whether you opt in. You should review your account agreement or call the bank to understand what happens if you spend more than your balance.

Is First Horizon FDIC insured?

Yes, First Horizon is FDIC-insured, meaning deposits up to $250,000 per account type are protected if the bank fails. This is standard for all banks that accept deposits.

How do First Horizon's rates compare to online banks?

First Horizon's savings and money market rates are typically lower than online banks like Ally or Marcus. If you are comparing rates, check both banks' websites directly, as rates change frequently and vary by balance tier.