First National Bank does not offer a dedicated high yield savings account
First National Bank, a regional bank with branches primarily in the Midwest and South, does not market a product specifically labeled as a high yield savings account. The bank offers traditional savings accounts and money market accounts, but the interest rates on these products are typically lower than what online banks and some credit unions advertise for high yield savings.
If you bank with First National Bank and want higher interest on your savings, you have two paths: move money to a different institution that offers higher rates, or keep your account there and understand what rates the bank actually pays on the accounts it does offer. The choice depends on whether you value the convenience of a local branch and existing relationship over the rate difference.
Key Takeaways
- First National Bank offers savings and money market accounts, but neither is marketed as high yield and rates are typically below what online banks pay.
- Interest rates vary by branch location and account type, so you need to check with your specific branch or the bank's website for current rates.
- Online banks and some credit unions often pay two to five times more interest on savings than traditional regional banks do.
- Moving money to a higher-rate account takes three to five business days, and you can keep your First National Bank account open for checking or other purposes.
What First National Bank savings accounts actually pay
First National Bank offers a regular savings account and a money market account. The money market account typically pays a slightly higher rate than the savings account, but both rates are set by the bank and vary by location. You cannot find a single rate posted online that applies everywhere—rates differ between branches and may change based on your account balance and relationship with the bank.
To find out what First National Bank will pay you, contact your local branch directly or log into your online banking portal. Ask specifically for the current annual percentage yield (APY) on both the savings account and the money market account. Write down both numbers so you can compare them to what other banks offer.
How high yield savings accounts work at other banks
A high yield savings account is simply a savings account that pays a higher interest rate than the national average. Online banks like Marcus, Ally, and American Express Personal Savings typically pay between 4% and 5% APY on savings accounts, though rates change frequently. Credit unions sometimes offer competitive rates as well, especially if you are a member.
These accounts are FDIC insured up to $250,000 (or $500,000 if you have a joint account), just like First National Bank accounts. You can withdraw money whenever you need it, though federal rules limit you to six withdrawals per month from a savings account. The main trade-off is that you lose the convenience of a physical branch—most transactions happen online or by phone.
Moving money from First National Bank to a higher-rate account
If you decide to open a high yield savings account elsewhere, you do not have to close your First National Bank account. Many people keep a checking account at their local bank and move savings to an online bank for the better rate.
To transfer money, you can set up an external transfer from your new bank's website. You will need your First National Bank account number and routing number (which you can find on a check or by calling your branch). The transfer typically takes three to five business days. Alternatively, you can withdraw cash and deposit it at the new bank, though this is slower and riskier.
When a local bank account makes sense despite lower rates
Some people choose to keep savings at First National Bank even though the rate is lower. If you need to deposit cash frequently, a physical branch is more convenient than mailing checks or using ATMs. If you have a mortgage, auto loan, or other products with the bank, keeping your savings there might may have access to you for relationship discounts on those products.
The rate difference matters most if you have a large balance. On $10,000, the difference between 0.5% APY and 4.5% APY is about $400 per year. On $1,000, it is about $40 per year. If convenience or relationship benefits are worth that amount to you, staying put makes sense. If not, moving the money takes less than a week.
Comparing First National Bank to online alternatives
| Account Type | First National Bank | Online Banks (typical) | Main Difference |
|---|---|---|---|
| Savings Account APY | Varies by branch, typically under 1% | 4% to 5% | Online banks pay significantly more |
| Physical Branch | Yes | No | First National Bank offers in-person service |
| FDIC Insurance | Yes, up to $250,000 | Yes, up to $250,000 | Both are equally protected |
| Withdrawal Limits | Federal limit of 6 per month | Federal limit of 6 per month | Same rules apply everywhere |
What to do before opening a new account
Before you move money, check the current rates at a few online banks. Rates change frequently, and what is high today might be average next month. Look at Marcus, Ally, American Express Personal Savings, and your own credit union if you belong to one. Compare not just the rate but also the minimum balance required to earn that rate—some banks pay the advertised rate only if you keep a certain amount in the account.
Read the fine print about how interest is calculated and paid. Most high yield savings accounts pay interest monthly, and the rate is variable, meaning the bank can lower it if market conditions change. This is normal and happens at First National Bank too, but online banks tend to raise and lower rates more frequently because they have no branch costs to offset changes.
Frequently Asked Questions
Can I keep my First National Bank account and open a high yield savings account somewhere else?
Yes. You can have accounts at multiple banks. Many people keep a checking account at their local bank for deposits and bill pay, and a high yield savings account at an online bank for money they want to earn interest on. There is no penalty for having both.
How long does it take to transfer money to a new bank?
External transfers between banks typically take three to five business days. Weekends and holidays do not count as business days. If you need the money faster, you can withdraw it in cash and deposit it at the new bank, though this is riskier and not recommended for large amounts.
Will I lose FDIC insurance if I move to an online bank?
No. Online banks are FDIC insured just like First National Bank. Your money is protected up to $250,000 per account type per bank. If you have more than $250,000 in savings, you can split it between multiple banks to keep all of it insured.
What if First National Bank raises its rates to match online banks?
First National Bank could raise rates at any time, but regional banks historically pay less than online banks because they have branch overhead costs. If rates do rise significantly, you can always move money back. For now, check your branch's current rate and compare it to what online banks are paying before you decide.
Do I need a minimum balance to earn interest at First National Bank?
Minimum balance requirements vary by branch and account type. Contact your local First National Bank branch to ask what minimum balance is required to earn interest on a savings account or money market account, and whether the rate changes if you maintain a higher balance.