August 2023’s Top 5 Banks and Credit Unions in North Carolina

August 2023's Top 5 Banks and Credit Unions in North Carolina

The Best Banks and Credit Unions in North Carolina

Our experts have chosen the best banks and credit unions in North Carolina to help you make smart decisions with your money. We have carefully selected the following institutions based on their minimal bank fees and appealing features. These top picks have consistently stood out for their exceptional services and unique perks over the last few months. Let’s take a closer look at our top choices:

Ally: Best for opening a savings account

Ally is an excellent online option that offers high-yield savings accounts with competitive interest rates and no standard bank fees. With the Ally Savings Account, you can also benefit from budgeting tools that allow you to allocate your funds into individual savings goals through savings buckets. Additionally, Ally provides round-the-clock customer service via phone or live chat.

First National Bank: Best for opening a checking account

First National Bank offers a solid free checking account with various advantages. If you open the First National Bank Freestyle Checking Account at a local branch, no initial deposit is required. With access to 800 ATMs across seven states on the East Coast, you’ll never be far from your money. However, be cautious of potential fees for overdrawing your account.

First Citizens Bank: Best for opening a savings and checking account

First Citizens Bank provides a great option for traditional banking. As the third-largest financial institution in the state, it offers free savings and checking accounts. With the First Citizens Bank Free Checking Account, you gain access to a budgeting tool that tracks expenses, creates budgets, and monitors debt. The First Citizens Bank Online Savings Account requires a minimum opening deposit of $50, with no minimum balance requirements or monthly service fees.

State Employees Credit Union: Best local credit union

State Employees Credit Union is a top choice if you prefer banking with a credit union. With over 270 locations and 1,100 free ATMs, it is one of the largest financial institutions in the state. The State Employees Credit Union Share Account offers slightly higher interest rates than most brick-and-mortar bank accounts, and their CDs provide a decent rate with a low minimum opening deposit of $250. Please note that there is a $1 monthly service fee for their checking account.

Mechanics & Farmers Bank: Best local bank

Mechanics & Farmers Bank, as a Black-owned bank with eight branches, actively fosters a strong connection to the community. They host financial literacy workshops and actively participate in around 80 community events each year. Mechanics & Farmers Bank’s standout account is the Mechanics & Farmers Bank Dash Checking Account, which offers a competitive Annual Percentage Yield (APY) of up to 3.00% on balances below $10,000 if certain monthly criteria are met. However, keep in mind the monthly service fee and requirements for their savings account.

All of the aforementioned financial institutions are protected by FDIC or NCUA insurance, ensuring the safety of your deposits. Although First Republic Bank recently closed down, it is crucial to remember that your money is secure at federally insured financial institutions, with up to $250,000 per depositor protected in a bank account.

To determine the best banks in North Carolina, our experts reviewed the ten largest banks and credit unions in the state, as well as local financial institutions recognized as minority depository institutions by the FDIC or NCUA. We also considered online banks in our assessment of the best savings accounts.

Expert Advice: Choosing the Best Financial Institution

We consulted banking and financial planning experts to gather their insights and advice on selecting the best financial institution in North Carolina. Here are the key areas our experts recommend focusing on:

Fees

Be aware of monthly maintenance fees that some banks charge for checking and savings accounts. However, many fees can be waived by fulfilling certain requirements. Research the fee structure of each bank and determine if you qualify for waivers.

Accessibility

Consider your preferred banking methods – whether it’s in-person transactions at local branches or a seamless online interface for convenient money transfers. Additionally, take note of the availability of customer service and the various channels through which you can contact them.

Priorities

Identify your financial priorities, such as earning interest on your savings or specific account features like budgeting tools. Choose a bank that aligns with your current priorities while also considering potential changes in the future.

Methodology: How We Chose the Best Banks in North Carolina

Personal Finance Insider’s mission is to help individuals make informed decisions with their money. To select the best banks in North Carolina, we meticulously evaluated the features and fine print of various products. Our research included reviewing the ten largest banks and credit unions in the state, along with financial institutions listed in our guides for Black-owned banks and credit unions and Hispanic American-owned banks and credit unions.

We considered accounts that offer minimal fees and unique features, such as competitive interest rates or budgeting tools. When choosing the best local bank and credit union, we prioritized institutions with exceptional customer service, accessible membership requirements, and low minimum opening deposits.

You can find our full ratings methodology for checking, business checking, savings, and money market accounts on our website.

Frequently Asked Questions

Best Bank for Opening a Savings Account – Ally

Ally is recommended for opening a high-yield savings account due to its competitive interest rates and no standard bank fees. It also includes budgeting tools to help you manage your finances effectively. The absence of physical branches may require you to transfer money from another bank account for cash deposits.

Best Bank for Opening a Checking Account – First National Bank

First National Bank stands out with its solid free checking account, offering accessibility to a wide range of ATMs. However, it is important to be mindful of potential fees for overdrawing your account.

Best Bank for Opening a Checking and Savings Account – First Citizens Bank

First Citizens Bank offers free savings and checking accounts, complemented by a budgeting tool to track expenses, create budgets, and monitor debt. Be aware of overdraft fees and excess withdrawal fees associated with certain account activities.

Best Local Credit Union – State Employees Credit Union

State Employees Credit Union is a recommended choice for those preferring credit unions. They offer competitive interest rates, a low minimum opening deposit for CDs, and numerous ATMs across the state. While their checking account has a low minimum opening deposit, there is a monthly service fee.

Best Local Bank – Mechanics & Farmers Bank

Mechanics & Farmers Bank, as a Black-owned bank, prioritizes community engagement and financial literacy. Their standout account, the Mechanics & Farmers Bank Dash Checking Account, offers high APY and potential fee refunds for meeting specific criteria. However, be cautious of the monthly service fee and requirements for their savings account.

Other Institutions That Didn’t Make Our List and Why

Although Truist Bank has the most branches in the state, its accounts do not offer standout features compared to our top picks. Wells Fargo has a substantial presence, but its poor BBB rating and involvement in public controversies raise concerns. Bank of America requires meeting certain requirements to waive monthly maintenance fees, and PNC Bank’s notable product is not available in North Carolina. First Bank has monthly service fees for most accounts, and Woodforest National Bank may not suit heavy mobile banking users. Southern Bank offers limited interest rates on savings accounts, and Fifth Third Bank’s savings account is not as strong. Coastal Federal Credit Union and Truliant Federal Credit Union have free checking and savings accounts, but our top picks provide more competitive rates and unique features. While Latino Community Credit Union caters specifically to immigrant and low-income Latinos, our top picks offer higher rates and more unique perks with their bank accounts.

Banks and Credit Unions Trustworthiness and BBB Ratings

We utilize Better Business Bureau ratings to assess how financial institutions handle customer issues and maintain transparency. Although Ally, First Citizens Bank, and State Employees Credit Union have some unresolved customer complaints and customer complaints on the BBB website, a good BBB rating does not guarantee a perfect banking experience. Consider speaking with current customers or reading online reviews for a broader understanding. It is worth noting that none of the featured financial institutions have recent public scandals.

Savings Rates at the Largest Banks in North Carolina

Below are the savings rates offered by the largest banks in North Carolina. As of August 2023, the national average interest rate for savings accounts is 0.42% APY according to the FDIC. While none of these banks offer competitive interest rates meeting our criteria for the best savings account category, you may still find one that suits your needs.

By considering these insightful reviews and recommendations, you can confidently choose the best bank or credit union in North Carolina that aligns with your financial goals and preferences. Remember that financial institutions should not only meet your current needs but also provide flexibility for your changing circumstances.