First Tech Federal Credit Union Review – Forbes Advisor

First Tech Federal Credit Union is a full-service federal credit union that serves affiliated technology companies and their employees. Headquartered in San Jose, California, First Tech operates 33 branch locations, primarily in California, Washington and Oregon, but with a handful of locations sprinkled across Colorado, Georgia, Idaho, Massachusetts and Texas.

The credit union offers members banking and lending services, including checking accounts, savings accounts, credit cards, loans and investment accounts. First Tech Federal offers several paths to credit union membership, although some of them may require paying a fee.

This review focuses on First Tech Federal Credit Union’s personal banking accounts. Here’s a look at First Tech and how it compares.

Annual percentage yields (APYs) and account details are accurate as of Oct. 31, 2022.

Account Basics

Checking

First Tech currently offers five checking accounts, including an account for children and teens.

First Tech Rewards Checking carries a $10 minimum opening balance requirement and earns interest and other rewards if you meet certain requirements. Members can earn 1.50% APY on balances up to $15,000 (0.10% APY on any portion of your balance above $15,000) by meeting all of the following criteria each month:

• Conduct at least 20 transactions
• Spend at least $500 with your First Tech debit/credit card
• Receive at least $1,000 via direct deposit or ACH
• Enroll in eStatements

Accounts that don’t meet monthly requirements earn 0.01% APY. Taking full advantage of the account’s rewards requires having a credit card or select loans through First Tech. Additional rewards include monthly ATM rebates, a $10 monthly streaming subscription rebate, additional cash back on credit card purchases and cashback on First Tech loan and HELOC payments from a linked First Tech account.

First Checking Plus, another interest-bearing account, earns 0.05% APY on all balances. Opening an account requires a $10 minimum deposit. The account carries no monthly service fees and comes with a free debit card and fee-free access to almost 30,000 Co-op ATMs nationwide.

First Tech Carefree Checking requires a $10 $10 minimum deposit to open. The no-frills checking account doesn’t earn interest but it has no monthly fees and comes with a free debit card.

First Tech HSA Checking is a health savings account for customers who want to save money for future qualifying medical expenses. The account requires a $10 opening deposit and currently earns 1.00% APY on all balances.

Start Up Checking is a joint custodial checking account for kids and their parents. The account requires a $10 minimum opening deposit and earns 0.10% APY. The child and parent must both be members of the credit union to open an account. When the child turns 18, First Tech automatically converts the account to a standard checking account. Parents can opt to receive a debit card for their child to use with the account.

Savings

First Tech also offers multiple savings accounts for credit union members.

First Tech Rewards Savings requires a $25 minimum opening balance and comes with access to the same perks as the Rewards Checking account. Additionally, the savings account earns interest according to the following tiers, and the APY (from 0.10% to 2.00%) for each tier will apply only to the portion of your balance that’s within that tier.

• 2.00% APY on balances up to $999.99
• 1.50% APY on balances between $1,000 and $24,999.99
• 0.10% APY on balances of $25,000 or more

The same monthly requirements to earn interest on the Rewards Checking account apply to the Rewards Savings account. Otherwise, the account earns 0.05% APY on all balances.

First Tech Instant Access Savings requires $5,000 to open an account—a much higher minimum than other accounts through the credit union. Members can earn tiered interest based on the account balance:

• 0.35% APY on balances up to $2,499.99
• 0.40% APY on balances between $2,500 and $99,999.99
• 0.45% APY on balances between $100,000 and $249,999.99
• 0.55% APY on balances of $250,000 or more

First Tech Carefree Savings is a basic savings account that requires a $25 opening deposit and earns 0.10% APY on all balances. First Tech Membership Savings only requires a $5 opening deposit but earns a mere 0.05% APY.

First Tech Start Up Savings is another joint custodial account for children up to 17 years of age. The account earns . First Tech automatically converts the account to a Carefree Savings account when the child turns 18.

Certificates of Deposit (Share Certificates)

Share certificates are the equivalent of certificate of deposit (CD) accounts for credit unions. First Tech offers two types of share certificates—Traditional and Bump Up share certificates.

First Tech’s traditional share certificate terms range from six months to five years, with APYs of 1.70% to 2.80%. Rates differ based on whether you open a standard certificate with a minimum of $500 or a jumbo certificate with a minimum of $50,000. First Tech’s jumbo CDs earn slightly more competitive rates.

Bump Up share traditional certificates come in 13, 24, and 36 months and offer APYs of 3.08% to 3.20% (3.13% to 3.25% for Bump Up Jumbo certificates). With Bump Up certificates, account owners can upgrade the account to the current rate periodically during the term.

First Tech charges an early withdrawal penalty on both types of share certificates if you pull funds—other than earned interest—from the account before it reaches maturity. Share certificates carry a penalty of up to 270 days of interest, whether or not it’s been earned, based on the term length. Dividends, like interest, compound monthly and are credited to the account monthly or at certificate maturity.

Other Accounts and Services

In addition to its personal deposit accounts, First Tech Federal Credit Union also offers the following financial products and services for its members:

• Individual retirement accounts (IRAs)
• Business checking and savings accounts
• Credit cards
• Personal loans
• Auto loans
• Home mortgage loans
• Student loan refinancing
• Commercial lending
• Personal insurance
• Business insurance
• Investment services

Distinguishing Features

Like most credit unions, you must become a member to access First Tech’s banking products and services. While First Tech primarily serves employees of partner tech companies, anyone can join the credit union by becoming a member of the Computer History Museum or Financial Fitness Association.  You can apply to join either of those organizations via First Tech’s online application or at a First Tech branch, but you may be required to pay an annual fee.

You’re eligible for membership if you:

• Work for one of First Tech’s hundreds of partner technology companies
• Work for the State of Oregon
• Work or live in Lane County, Oregon
• Are a family member of a First Tech member
• Are a member of the Computer History Museum (requires an annual membership fee)
• Are a member of the Financial Fitness Association (requires an annual membership fee)

Access on the Go

First Tech Credit Union offers digital banking for its members through online and mobile access. The highly rated mobile app is available for iOS (earning 4.7 stars out of 5) and Android (earning 4.7 stars out of 5) and offers features like mobile check deposit, online bill pay, card management and more. Members can also send and receive money through Zelle.

While the credit union only operates 33 branches, members can access funds at over 30,000 surcharge-free Co-op ATMs across the country. You can also receive in-person support at more than 5,600 Co-op Shared Branch locations in the U.S.

Pros

• No monthly maintenance fees
• Competitive rates on deposit accounts
• Interest-bearing checking accounts
• Low minimum opening balance requirements

Cons

• Membership may require paying a fee
• No money market account
• Branch locations limited to eight states

How First Tech Federal Credit Union Stacks Up

If you prefer to bank through a credit union, First Tech Federal Credit Union offers a wide variety of products and services worth considering. The credit union’s banking products come with competitive rates, low fees and low opening deposit requirements.

Given that First Tech offers several ways to gain membership, anyone can become a member and enjoy the credit union’s modern banking features. Membership may come with an additional cost annually, cutting into any dividends earned on deposit accounts. Consider whether you are already eligible for membership or whether you’ll need to purchase a membership to an affiliate organization or museum to qualify.

Frequently Asked Questions (FAQs)