First Tech Federal Credit Union Business Checking Review 2022
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
Ricci Recto has two years of writing experience creating digital marketing content for finance clients. She specializes in business banking.
This article is part of a larger series on Business Banking.
First Tech Federal Credit Union offers two different business checking accounts: the basic Simple Business Checking account and the interest-earning Business Dividend Checking account. Both come with a good number of perks, including a free rewards-earning debit card, free digital banking, and a customizable banking alerts system. Other First Tech FCU products include business savings accounts with competitive rates, business certificates of deposit (CDs), and business insurance.
First Tech Federal Credit Union
What We Like
- Can earn interest at a rate of 0.05% or 0.10%, depending on balance
- Extensive digital banking features
- Highly rated mobile app
- Business insurance products
What's Missing
- High minimum balance requirements to waive monthly fee
- $100 opening deposit requirement
- Lacks lending products
Features
- Higher-tier accounts earn interest
- Rewards-earning Business Debit Mastercard
- Free digital banking with e-deposits, e-statements, and bill payment
- Business CDs, business savings accounts, and business insurance products
How First Tech Federal Credit Union Stacks Up With Its Competitors
Annual Percentage Yield (APY) | Monthly Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
| None for Simple Business Checking 0.05% or 0.10% for Business Dividend Checking | $6 for Simple Business Checking* $15 for Business Dividend Checking* | Free at Co-op and First Tech ATM owned networks | $100 |
 | 0.05% or 0.10% | $0 or $15 | None at Affinity Plus, MoneyPass, Co-op, and SUM ATM networks | None |
 | 0.20% | None | None at Bethpage and Co-op networks | None |
*First Tech FCU’s monthly fees can be waived by meeting each account’s designated minimum balance requirement. For Simple Business Checking, it’s $1,000; for Business Dividend Checking, it’s $5,000.
When First Tech Federal Credit Union Is a Good Fit
- You want to earn interest on your account and can maintain daily balances of $5,000 and over: Accounts under First Tech FCU’s higher tier, Business Dividend Checking, earn interest at a rate of 0.05%. Accounts with balances exceeding $50,000 earn interest at a rate of 0.10%. However, waiving Business Dividend Checking’s $15 monthly fee requires maintaining an average daily balance worth $5,000.
- You want to earn rewards on debit card purchases: Both business checking products come with a free Business Debit Mastercard, a rewards card that earns one point for every $2 spent. Points can be redeemed for travel, merchandise, events, and gift cards.
- Your business needs insurance products: First Tech FCU landed a spot in our roundup of the best credit unions for small businesses because it gives account holders access to business insurance products, which include liability insurance, workers’ compensation policies, builder’s risk policies, and commercial vehicle policies.
When First Tech Federal Credit Union Is Not a Good Fit
- Your business needs lending products: First Tech FCU doesn’t offer any business-specific lending products. Although checking accounts come with free business debit cards, business credit cards remain unavailable. A good alternative would be Self-Help Federal Credit Union, whose wide range of lending products caters specifically to small businesses.
- Your business cannot maintain an average daily balance of $1,000: First Tech FCU’s lower-tier, Simple Business Checking, charges a $6 monthly fee to accounts that fail to maintain the required minimum balance of $1,000. Its interest-earning checking account, Business Dividend Checking, charges a higher monthly fee of $15 to accounts that don’t meet the $5,000 minimum balance requirement. The Minnesota-based Affinity Plus Federal Credit Union offers similar dividend rates with a $0 minimum balance requirement.
- You rely on in-person banking and don’t live within First Tech FCU’s jurisdiction: First Tech FCU only has 41 physical branches, most of which are located in the states of California, Colorado, Oregon, and Washington, although it has additional branches in Georgia, Idaho, Massachusetts, and Texas. Business owners who are more comfortable with in-person banking should consider Chase, which has 5,100 branches across the United States.
- You send wire transfers regularly: Incoming wire transfers, both domestic and international, cost $5. Outgoing domestic wire transfers cost $20 per item while outgoing international wire transfers cost $50. A more affordable alternative would be Relay Financial, which charges $5 for outgoing domestic wire transfers and $10 for outgoing international wire transfers. Under its higher tier, Relay Pro, all wire transfers are free.
If your small business meets one or more of these scenarios, check out our guide to the best small business banks for more recommendations.
First Tech Federal Credit Union Business Checking Overview
Simple Business Checking | Business Dividend Checking | |
|---|---|---|
Required Opening Deposit | $100 | $100 |
Required Balance Minimum | $1,000 to waive monthly fee | $5,000 to waive monthly fee |
Monthly Fee | $6 if under minimum balance requirement | $15 if under minimum balance requirement |
APY | None | 0.05% for balances up to $49,999.99; 0.10% for balances worth $50,000 and up |
Wire Transfer Fees | $5 for incoming, $20 for outgoing domestic, and $50 for outgoing international | $5 for incoming, $20 for outgoing domestic, and $50 for outgoing international |
ATM Fees | Free at Co-op and First Tech ATM owned networks and $2 for third-party networks | Free at Co-op and First Tech ATM owned networks and $2 for third-party networks |
First Tech Federal Credit Union Business Checking Requirements
To open a business bank account, business owners must first become members at First Tech FCU. Those who meet the following criteria qualify for membership:
- Individuals who live or work in Lane County, Oregon
- Employees and their family members who work for the state of Oregon or for an innovative company in First Tech FCU’s partner list
- Members of the Computer History Museum or the Financial Fitness Association
- Family members or household members of existing First Tech members
Those who don’t meet the above criteria may contact First Tech at (855) 855-8805 or stop by a branch to gain more information on other possible ways to gain membership.
First Tech Federal Credit Union Business Checking Features
First Tech FCU offers two business checking products: Simple Business Checking, which doesn’t earn interest, and Business Dividend Checking, which earns interest depending on the account’s balance. Both accounts come with a free rewards-earning debit card, free digital banking, and banking alerts.
Interest-earning Account
Members who choose the higher tier (Business Dividend Checking) earn interest on their accounts at a rate of 0.05%. If the account balance exceeds $50,000, the interest rate rises to 0.10%. Although there’s no minimum balance requirement to earn interest, there’s a minimum balance requirement ($5,000) to waive the $15 monthly fee. Note that opening a Business Dividend Checking account requires a minimum opening deposit of $100.
Rewards-earning Mastercard Debit Card
Accounts under both Simple Business Checking and Business Dividend Checking come with a free Business Debit Mastercard, which earns one rewards point for every $2 spent. Aside from being able to redeem points for travel, merchandise, events, and gift cards, owning a Business Debit Mastercard also comes with benefits, such as discounts on useful business software like Microsoft 365, Salesforce, Intuit QuickBooks® Online, and Intuit TurboTax® Discount™.
The Business Debit Mastercard even comes with a number of fraud prevention tools, including chip-and-PIN technology, real-time fraud monitoring, and theft resolution services.
Digital Banking
Thanks to First Tech FCU’s extensive digital banking features, users can conduct a good majority of their banking transactions online. Through the First Tech FCU website and mobile app, users can view balances, pay bills, deposit checks fee-free, and view e-statements. Making an e-deposit under First Tech FCU digital banking only requires scanning or taking a photo of a physical check.
First Tech FCU’s mobile app, available for iOS and Android, has received a lot of praise from users. Satisfied customers commented on the app’s clean user interface, ease of account fund management, and customer service.
Alerts
To keep users updated on transaction progress, First Tech FCU sends notifications for important events, including cleared checks, completed transactions, transfer failure and success, and insufficient funds. Users receive these alerts through email or mobile, depending on their preference. They’re also free to customize alerts according to their needs.
Other First Tech Federal Credit Union Business Products
Aside from business checking, First Tech FCU also offers business savings and CDs.
Business Savings
First Tech FCU’s business savings accounts come in three tiers: Simple Business Savings, Business Membership Savings, and Business Instant Access. Simple Business Savings, which is available to non-members, offers an APY of 0.05% and requires a minimum opening deposit of $25. Business Membership Savings, which is exclusive to First Tech FCU members, offers the same APY for a lower opening deposit of $5.
Of the available savings accounts, Business Instant Access offers the highest interest rates. APY rates for Business Instant Access accounts range from 0.05% to 0.25%, depending on the account’s average daily balance. Its highest APY of 0.25% can be accessed by maintaining a balance of $250,000. Account holders must also maintain a minimum average daily balance of $5,000 to avoid the $10 monthly fee.
Business Certificates of Deposit
To access First Tech FCU’s highest-earning interest rates, account holders must look into business certificates of deposit. First Tech FCU’s business CDs earn interest at an APY of 0.40% for its shortest terms (six months) and 1.70% for its longest terms (60 months). Dividend rates are fixed, making profit predictable.
Business Insurance
To protect businesses from unforeseen circumstances and accidents, First Tech FCU offers a wide range of business insurance products, which include
- Directors & officers (D&O) liability
- Inland marine policy
- Business umbrella policy
- Professional liability
- Workers’ compensation policy
- Commercial vehicle policy
- Employment practices liability
- Crime insurance
- Business owner’s policy (BOP)
- Builders risk policy
First Tech FCU can offer these products and services through its partnership with Addison Avenue Financial Partners, LLC.
First Tech Federal Credit Union Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Higher tier accounts earn interest | High minimum balance requirements |
| Rewards on debit card purchases | Monthly fees |
| Free digital banking | Limited physical branches |
Through First Tech FCU’s Business Dividend Checking, business owners can earn interest on balances with dividend rates as high as 0.10%. Transactions on First Tech FCU’s Business Debit Mastercard earn points that users can redeem for travel, merchandise, events, and gift cards. First Tech FCU also has extensive digital banking options, which allow customers to pay bills, deposit checks, transfer money, view e-statements, locate ATMS and branches, and contact customer support online.
However, accessing its most competitive interest rates requires maintaining average daily balances worth $50,000. Even just waiving the $15 monthly fee charged by Business Dividend Checking requires an average daily balance of $5,000. Lastly, business owners who rely on in-person banking may struggle with First Tech FCU’s lack of brick-and-mortar branches.
Alternatives to First Tech Federal Credit Union Business Checking
Though First Tech FCU’s business checking accounts earn interest, businesses that cannot maintain high average daily balances may not be able to access their best rates. Additionally, the bank’s lack of lending services might be a major drawback for businesses needing extended financing options.
Here are three options to consider:
- First Online Bank: First Tech FCU has a high minimum balance requirement for its most competitive interest rates. Through internet-only banks, businesses comfortable with banking exclusively online can access higher rates for lower minimum balances. First Online Bank offers an APY of 0.30% to accounts that hold balances worth $10,000 or more.
- Bluevine: Like First Tech FCU, Bluevine offers competitive interest rates to account holders who meet their requirements. Business checking accounts that receive more than $2,500 each month through automated clearing house (ACH) transfers, wire transfers, mobile check deposits, or merchant payment processing unlock Bluevine’s competitive APY of 2.0%. Business owners can also get Bluevine’s highest APY by achieving a monthly spending total of $500 or more using the Bluevine debit card.
- Chase: Businesses needing lending options might find First Tech FCU’s product selection lacking. Chase offers several banking products, including loans, credit cards, and merchant services, which is why it’s on our list of best small business checking accounts.
Bottom Line
While First Tech FCU offers competitive rates and comprehensive digital banking services, its high minimum balance requirements for interest-earning accounts makes it slightly inaccessible to small businesses. However, thanks to its extensive insurance product offerings, it’s a particularly good choice for businesses wanting to keep their business checking and insurance products under one establishment.
