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First Midwest Bank Review

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by Javier Simon Updated
First Midwest Bank

First Midwest Bank can trace its roots back to the 1930s when the Union National Bank and Trust Company of Joliet emerged out of the Great Depression. It grew to 20 banks, which then merged under First Midwest Bank in 1983. Today, First Midwest Bank offers a range of banking services including checking, savings and certificate of deposit (CD) accounts. It also offers wealth-management services.

In addition, First Midwest Bank charges generally low fees across its banking products. Still, the bank offers several opportunities to waive those fees. If you're looking to invest in CDs, the bank offers products with terms stretching from just 30 days to six years. And although the bank's savings accounts don't boast the best interest rates, fees are low and these accounts are very easy to manage. Plus, the bank runs several full-service branches across Illinois, northwest Indiana and eastern Iowa. 

Product Key Details
Savings Accounts
  • Tiered interest rates that increase with balance
  • Several opportunities to waive monthly service fees
  • Health Savings Account option with triple tax advantages
Certificates of Deposit
  • Several options with terms ranging from three months to five years
Money Market Accounts
  •  Tiered interest rates
Interest Earning Checking Accounts
  • Low opening deposit
  • Mortgage closing costs rebate
Retirement Planning Solutions
  • Traditional and Roth IRA options available
  • IRA Money Market account available

First Midwest Bank Interest Rate Comparison

Diamond Savings

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees $25 monthly maintenance fee
Current Terms and Rates
  • For balances of $0 - $2,499: 0.03% APY 
  • For balances of $2,500 - $24,999: 0.05% APY
  • For balances of $25,000 - $49,999: 0.08% APY
  • For balances of $50,000 - $99,999: 0.10% APY
  • For balances of $100,000+: 0.15% APY 

The Diamond Savings account serves as First Midwest Bank’s premier savings account. It’s available only to First Midwest Bank customers with a Diamond Checking account. But despite the glamorous name, its annual percentage yield (APY) doesn’t shine too brightly. 

You’d need a minimum balance of $10,000 to earn a 0.15% APY. That figure is on par with the national average. But it can’t compete with the best savings accounts out there. 

Still, the account offers some exclusive benefits. For instance, you can waive the $25 monthly service fee if you meet the following requirements. 

  • Maintain a monthly transfer of $50 from your Diamond Checking account
  • Maintain a minimum daily balance of $1,000 in your account

First Midwest Bank compounds and credits interest on all savings and money market accounts monthly. It’s also important to note that only residents of Illinois, Indiana, Iowa and Wisconsin can open savings accounts with First Midwest Bank online.

Investor Reserve Savings

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees $25 monthly maintenance fee
Current Terms and Rates
  • For balances of $0 - $2,4999: 0.03% APY
  • For balances of $2,500 - $24,999: 0.04% APY
  • For balances of $25,000 - $49,999: 0.06% APY
  • For balances of $50,000 - $99,999: 0.08% APY
  • For balances of $100,000+: 0.13% APY

Investor Reserve Savings offers tiered interest rates, meaning your APY climbs as your balance does. However, its APY peaks at 0.13% with a minimum deposit of $100,000. You can find higher rates with smaller balance requirements by comparing savings accounts offered by banks across the country. 

Statement Savings

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees $5 monthly maintenance fee
Current Terms and Rates 0.02% APY

Statement Savings is First Midwest Bank’s bare-bones savings account. It charges a low $5 monthly maintenance fee. However, the bank waives the fee if you maintain a daily minimum balance of at least $200 in the account. It also will waive the fee for account holders who are younger than 18 or older than 65. With that said, this account may suit young people who are new to saving. Maintaining the minimum daily balance to waive the maintenance fee may also encourage people to stick to a healthy savings routine.

Health Savings Account (HSA)

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees $2 monthly maintenance fee
Current Terms and Rates
  • For balances of $0 - $499: 0.01% APY
  • For balances of $500 - $999: 0.08% APY
  • For balances of $1,000 - $2,499: 0.20% APY
  • For balances of $2,500 - $9,999: 0.35% APY
  • For balances of $10,000+:0.55% APY

If you’re enrolled in a qualified High Deductible Health Plan (HDHP) and are not on Medicare, you can open a health-savings account (HSA) through First Midwest bank. These tax-advantaged savings vehicles are designed to pay for future qualified medical expenses. They offer the following tax breaks. 

  • Tax-deductible contributions
  • Earnings grow tax-free
  • Withdrawals for qualified medical expenses are tax-free

Many HSAs are tied to investment portfolios and mutual funds. First Midwest Bank offers an option that offers the same tax benefits, but functions more like a traditional savings account. And although it offers tiered interest rates, the APYs are low across the board. So the First Midwest Bank HSA may suit someone with a low risk tolerance who has already put aside a sizable amount for medical expenses. The First Midwest Bank HSA comes with a First Midwest Bank HealthCare debit card. The bank waives its own non-network ATM surcharge twice per statement period. 

However, withdrawals for nonqualified expenses trigger tax penalties. Ask your advisor questions about whether you should invest in this HSA and how to go about doing so.

First Midwest Bank Certificates of Deposit (CDs)

Key Features Details
Minimum Deposit $1,000
Access to Your CD Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees No monthly maintenance fees, but early withdrawal penalties apply. 
Current Terms and Rates 3 Months 
  • For deposits of $1,000: 0.05% APY
  • For deposits of $25,000: 0.07% APY
  • For deposits $50,000: 0.09% APY
  • For deposits of $100,000: 0.11% APY
6 Months 
  • For deposits of $1,000: 0.08% APY
  • For deposits of $25,000: 0.10% APY
  • For deposits of $50,000: 0.12% APY
  • For deposits of $100,000: 0.14% APY
9 Months
  • For deposits of $1,000: 0.10% APY
  • For deposits of $25,000 0.12% APY
  • For deposits of $50,000: 0.14% APY
  • For deposits of $100,000: 0.16% APY
12 Months 
  • For deposits of $1,000: 0.15% APY
  • For deposits of $25,000: 0.17% APY
  • For deposits of $50,000: 0.19% APY
  • For deposits of $100,000 : 0.21% APY
18 Months
  • For deposits of $1,000: 0.20% APY
  • For deposits of $25,000: 0.22% APY
  • For deposits of $50,000: 0.24% APY
  • For deposits of $100,000: 0.26% APY
24 Months 
  • For deposits of $1,000: 0.30% APY
  • For deposits of $25,000: 0.32% APY
  • For deposits of $50,000: 0.34% APY
  • For deposits of $100,000: 0.36% APY
36 Months 
  • For deposits of $1,000: 0.40% APY
  • For deposits of $25,000: 0.42% APY
  • For deposits of $50,000: 0.44% APY
  • For deposits of $100,000: 0.46% APY
48 Months 
  • For deposits of $1,000: 0.50% APY
  • For deposits of $25,000: 0.52% APY
  • For deposits of $50,000: 0.54% APY
  • For deposits of $100,000: 0.56% APY
60 Months 
  • For deposits of $1,000: 0.76% APY
  • For deposits of $25,000: 0.78% APY
  • For deposits of $50,000: 0.80% APY
  • For deposits of $100,000: 0.82% APY

You can open a certificate of deposit (CD) account with First Midwest Bank for terms stretching from just three months to 60 months (5 years). However, the bank’s offerings can’t compete with the best CD rates on the market. 

You’d need to lock in at least $100,000 for five years to generate an APY of 0.82%. You can find better rates for shorter terms by comparing CD rates across different banks. 

But if you’re a loyal First Midwest Bank customer, you may be able to boost your rates by talking to a banker. 

Diamond Money Market Account

Key Features Details
Minimum Deposit $100
Access to Your Money Market Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees $25 monthly maintenance fee
Current Terms and Rates
  • For balances of $0 - $2,499: 0.03% APY
  • For balances of $2,500 - 24,999: 0.05% APY
  • For balances of $25,000 - $49,999: 0.08% APY
  • For balances of $50,000 - $99,999: 0.10% APY
  • For balances of $100,000 - $249,999: 0.22% APY
  • For balances of $250,000+: 0.25% APY

First Midwest Bank offers its Diamond Money Market account exclusively to its Diamond Checking account holders. And while the bank promotes this option as its premium money market account, it doesn’t offer rates that can compete with the best money market accounts in the industry. For example, you need to maintain a minimum balance of $250,000 to earn a dismal interest rate of 0.25%. 

Premier Money Market 

Key Features Details
Minimum Deposit $100
Access to Your Money Market Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees $25 monthly maintenance fee
Current Terms and Rates
  • For balances of $0 - $2,499: 0.03% APY
  • For balances of $2,500 - 24,999: 0.04% APY
  • For balances of $25,000 - $49,999: 0.05% APY
  • For balances of $50,000 - $99,999: 0.06% APY
  • For balances of $100,000+: 0.08% APY

The Premier Money Market account by First Midwest Bank is available to all customers. However, it still offers low tiered APYs across the board. The highest current APY of 0.08% requires a minimum balance of $250,000. 

But as with all of the bank’s money market accounts, First Midwest allows complete liquidity. This means you have access to your money any time.

Money Market

Key Features Details
Minimum Deposit $100
Access to Your Money Market Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees $15 monthly maintenance fee
Current Terms and Rates 0.03% APY

This account is as basic as its name. The Money Market account by First Midwest Bank offers a fixed APY of 0.3%. It also charges a $15 monthly maintenance fee, which you can waive by maintaining a minimum balance of $1,000.

IRA Money Market

Key Features Details
Minimum Deposit $100
Access to Your Money Market Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees None but early withdrawal penalties will apply 
Current Terms and Rates
  • For balances of $1,000 - $24,999: 0.05% APY
  • For balances of $25,000 - $49,999: 0.10% APY 
  • For balances of  $50,000+: 0.15% APY

If you’re nearing your golden years, you may be interested in rolling over your 401(k) or individual retirement account (IRA) into a First Midwest IRA Money Market. This savings vehicle offers the same tax advantages as an IRA, but offers the convenience of a fixed interest rate. 

However, the IRA Money Market doesn't offer the strongest APYs. You’d need to park a $50,000 nest egg to secure a current APY of 0.15%. And although you can deposit as little as $100 to open an account, you won’t earn interest until you deposit at least $1,000. 

Thus, this option may be suitable for someone with a low risk tolerance who has saved a substantial amount for retirement and seeks more protection from market swings. But anytime you’re making retirement decisions, you should choose a financial advisor to work with.

IRA

Key Features Details
Minimum Deposit $500
Access to Your IRA Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees None but early withdrawal penalties will apply 
Current Terms and Rates 6 Months
  • For deposits of $500: 0.8% APY
  • For deposits of $25,000: 0.10% APY
  • For deposits of $50,000: 0.12% APY
  • For deposits of $100,000: 0.14% APY
9 Months
  • For deposits of $500: 0.10% APY
  • For deposits of $25,000: 0.12% APY 
  • For deposits of $50,000: 0.14% APY
  • For deposits of $100,000: 0.16% APY 
12 Months
  • For deposits of $500: 0.15% APY
  • For deposits of $25,000: 0.17 APY
  • For deposits of $50,000: 0.19% APY
  • For deposits of $100,000: 0.21% APY
18 Months
  • For deposits of $500: 0.20% APY
  • For deposits of $25,000: 0.22% APY
  • For deposits of $50,000: 0.24% APY
  • For deposits of $100,000: 0.26% APY
24 Months
  • For deposits of $500: 0.30% APY
  • For deposits of $25,000: 0.32% APY
  • For deposits of $50,000: 0.34% APY 
  • For deposits of $100,000: 0.36% APY
36 Months
  • For deposits of $500: 0.40% APY 
  • For deposits of $25,000: 0.42% APY
  • For deposits of $50,000: 0.44% APY
  • For deposits of $100,000: 0.46% APY
48 Months
  • For deposits of $500: 0.50% APY
  • For deposits of $25,000: 0.52% APY
  • For deposits of $50,000: 0.54% APY
  • For deposits of $100,000: 0.56% APY
60 Months
  • For deposits of $500: 0.76% APY
  • For deposits of $25,000: 0.78% APY
  • For deposits of $50,000: 0.80% APY
  • For deposits of $100,000: 0.82% APY
With Diamond Checking account 6 Months
  • For deposits of $500: 0.30% APY
  • For deposits of $25,000: 0.35% APY
  • For deposits of $50,000: 0.40% APY
  • For deposits of $100,000: 0.45% APY
9 Months
  • For deposits of $500: 0.45% APY
  • For deposits of $25,000: 0.50% APY 
  • For deposits of $50,000: 0.55% APY
  • For deposits of $100,000: 0.60% APY 
12 Months
  • For deposits of $500: 0.60% APY
  • For deposits of $25,000: 0.65 APY
  • For deposits of $50,000: 0.70% APY
  • For deposits of $100,000: 0.75% APY
18 Months
  • For deposits of $500: 0.75% APY
  • For deposits of $25,000: 0.80% APY
  • For deposits of $50,000: 0.85% APY
  • For deposits of $100,000: 0.90% APY
24 Months
  • For deposits of $500: 0.90% APY
  • For deposits of $25,000: 0.95% APY
  • For deposits of $50,000: 1.00% APY 
  • For deposits of $100,000: 1.05% APY
36 Months
  • For deposits of $500: 1.09% APY 
  • For deposits of $25,000: 1.14% APY
  • For deposits of $50,000: 1.19% APY
  • For deposits of $100,000: 1.24% APY
48 Months
  • For deposits of $500: 1.40% APY
  • For deposits of $25,000: 1.45% APY
  • For deposits of $50,000: 1.50% APY
  • For deposits of $100,000: 1.55% APY
60 Months
  • For deposits of $500: 1.94% APY
  • For deposits of $25,000: 1.99% APY
  • For deposits of $50,000: 2.05% APY
  • For deposits of $100,000: 2.10% APY
With Midwest Checking Account 6 Months
  • For deposits of $500: 0.14% APY
  • For deposits of $25,000: 0.16% APY
  • For deposits of $50,000: 0.18% APY
  • For deposits of $100,000: 0.20% APY
9 Months
  • For deposits of $500: 0.15% APY
  • For deposits of $25,000: 0.20% APY 
  • For deposits of $50,000: 0.25% APY
  • For deposits of $100,000: 0.30% APY 
12 Months
  • For deposits of $500: 0.20% APY
  • For deposits of $25,000: 0.25 APY
  • For deposits of $50,000: 0.30% APY
  • For deposits of $100,000: 0.35% APY
18 Months
  • For deposits of $500: 0.30% APY
  • For deposits of $25,000: 0.35% APY
  • For deposits of $50,000: 0.40% APY
  • For deposits of $100,000: 0.45% APY
24 Months
  • For deposits of $500: 0.40% APY
  • For deposits of $25,000: 0.45% APY
  • For deposits of $50,000: 0.50% APY 
  • For deposits of $100,000: 0.55% APY
36 Months
  • For deposits of $500: 0.51% APY 
  • For deposits of $25,000: 0.56% APY
  • For deposits of $50,000: 0.61% APY
  • For deposits of $100,000: 0.66% APY
48 Months
  • For deposits of $500: 0.81% APY
  • For deposits of $25,000: 0.86% APY
  • For deposits of $50,000: 0.91% APY
  • For deposits of $100,000: 0.96% APY
60 Months
  • For deposits of $500: 1.15% APY
  • For deposits of $25,000: 1.21% APY
  • For deposits of $50,000: 1.26% APY
  • For deposits of $100,000: 1.31% APY

First Midwest Bank also offers a standard IRA and a Roth IRA. The Roth options are funded with after-tax dollars. So qualified withdrawals are tax free. 

Each of these accounts at First Midwest Bank functions much like  an IRA CD. You earn a higher interest rate if you deposit a large amount for a long term. But the rates are still low compared to similar options at other banks. 

However, you can considerably boost your interest rates on an IRA or Roth IRA if you link it to First Midwest Bank’s Diamond Checking account. Consult your tax advisor to weigh the pros and cons as they apply to your individual situation. 

Diamond Checking

Key Features Details
Minimum Deposit $100
Access to Your Checking Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees $20 monthly maintenance fee
Current Terms and Rates
  • For balances of $0 - $9,999: 0.01% APY
  • For balances of $10,000 - $24,999: 0.03% APY
  • For balances of $25,000 - $49,999: 0.05% APY
  • For balances of $50,000 - $99,999: 0.06% APY
  • For balances of $100,000+: 0.08% APY

First Midwest Bank promotes its Diamond Checking option as its top-tier checking account. It’s best suited for those who have a home loan or wealth management relationship with First Midwest Bank. And although its tiered interest rates can’t compete with the best savings accounts out there, not many banks offer interest-bearing checking accounts at all. 

As with all First Midwest checking options, this account gives you surcharge-free access to your money via its branches and more than 55,000 national ATMs in the AllPoint network. First Midwest will also waive four of its own non-network fees per statement period when you use your card at ATMs run by other banks. However, the fees charged by the other banks or ATM owners may still apply. 

In addition, First Midwest Bank will waive the $20 monthly maintenance fee if you meet the following requirements. 

  • Maintain a mortgage, home equity loan or line, personal trust or private banking relationship with First Midwest Bank 
  • Maintain a $25,000 combined average daily balance in all First Midwest Bank accounts including savings, CDs and money market options. 

Those looking forward to buying a home may be interested in opening this account as the bank offers a $250 closing costs rebate. 

 In addition, Diamond checking holders receive the following benefits. 

  • 50% discount on safe deposit boxes when you set up an auto payment from your savings account
  • Opportunity to boost your First Midwest Bank CD rates
  • Unlimited check writing privileges
  • Free teller services including cashier's checks, money orders and single signature traveler's checks 

Frequent flyers may also be interested in opening an account as the bank provides a free World Debit Mastercard. It offers the following features.

  • Travel accident insurance up to $25,000
  • Baggage delay insurance up to $300
  • Lost or damaged luggage insurance

Midwest Checking Account

Key Features Details
Minimum Deposit $100
Access to Your Checking Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees $12 monthly maintenance fee
Current Terms and Rates
  • For balances of $0 - $9,999: 0.01% APY
  • For balances of $10,000 - $24,999: 0.02% APY 
  • For balances of $25,000+: 0.03% APY

Anyone looking for a standard checking account with a little kick should look no further than Midwest Checking. This card offers tiered interest rates and requires a low monthly maintenance fee. However, it can be waived if you meet one of the following requirements. 

  • Deposit at least $1,000 a month into your account
  • Maintain a $2,500 minimum daily balance on your account

First time homebuyers may also be interested in this account as it offers a $150 mortgage closing cost rebate. In addition, Midwest Checking account holders get the following perks. 

  • 20% discount on safe deposit boxes
  • Opportunity to boost First Midwest CD rates

Easy Checking Account

Key Features Details
Minimum Deposit $100
Access to Your Checking Account Online, mobile and at physical branches.
Security FDIC insurance up to the maximum amount allowed by law.
Fees None

The Easy Checking account is First Midwest’s bare bones checking option. It doesn’t earn any interest. However, it does require the same $100 opening deposit as its counterparts. As with all of First Midwest’s Accounts, Easy checking offers free mobile banking and eStatements. In addition, you’d get free unlimited check writing privileges. Would-be homeowners can also benefit from a $150 rebate on mortgage closing costs.

Branch Locations

First Midwest Bank operates more than 125 branches across Illinois, northwest Indiana and eastern Iowa. However, First Midwest is also part of the Allpoint network. This means you can use your First Midwest debit Mastercard at more than 55,000 ATMs throughout the country without incurring a surcharge.

Financial Statistics & Bank Health Rating

First Midwest Bank has $14 billion in assets and about $10 billion in outstanding loans, according to the FDIC. The Texas Ratio stands as an important indicator that helps you determine how risky a bank is to work with. It is calculated by dividing the amount of non-performing assets (unbacked current loans and real estate owned) by the sum of the bank’s tangible equity capital and its loan loss allowances. First Midwest Bank currently scores a 4.80% in this metric. Banks with a Texas Ratio under 5% boast excellent reliability. 

But if you’re still hesitant to commit to a bank to serve your financial needs, you can consult a qualified financial advisor who can guide you through financial wellness regardless of your current income. If you’ve yet to work with one, you can use our SmartAdvisor tool. It connects you to local advisors based on your answers to simple questions about your financial situation and goals. You can then examine the credentials and qualifications of each match and set up interviews in person or by phone before making a decision.

Best Places to Save

SmartAsset’s interactive map highlights the places in the country where people have the opportunity to save money. Zoom between states and the national map to see the best places to save.

Worse
Better
Rank County Median Household Income Cost of Living Purchasing Power Estimated Tax Rate

Methodology Where you live can have a big impact on how easy it is to save money based on several regional factors. Our study aims to find the most suitable places for people to save based on median household income, average living expenses and income tax burden.

First, we calculated the average cost of living in each county for a household with two adults (one working). We then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living.

To better compare income tax burdens across counties, we applied relevant deductions and exemptions before calculating federal, state and local income taxes for a family making $50,000 annual income in each location. Next, we created an effective tax rate index for each county, which reflects the counties with the lowest ratio of income taxes to the assumed $50,000 annual income.

Finally, we calculated the weighted average of the indices to yield an overall best places to save score. We used a three-fourths weighting for purchasing power and a one-fourth weighting for tax rates. We indexed the final number so higher values reflect places that are better to save.

Sources: US Census Bureau 2016 5-Year American Community Survey, MIT Living Wage Study