First Horizon Bank Review

First Horizon Savings

0.25% APY

First Horizon Bank, recently known as First Tennessee is one of the largest banks in the state of Tennessee. In addition to commercial banking and lending, it offers customers a full range of personal banking services. There are several types of checking and savings accounts available at First Horizon.

The rates offered on those accounts tend to be on the low side when compared with other banks nationally. Likewise, its service fees and overdraft fees are not especially customer-friendly. While there are account features that will appeal to some customers for their convenience, such as access to the national Allpoint ATM network, there are better options than First Horizon for most personal banking services.

Products Offered

First Horizon Interest Rate Comparison

First Horizon Overview

As its name suggests, First Horizon does most of its business in the Volunteer State, out of its headquarters in Memphis. It has banking locations throughout Tennessee, offering banking personal and commercial banking services. Additionally, through a partnership with Capital Bank (which has the same ownership), First Horizon customers can access bank branches in Florida, Virginia, and North Carolina.

First Horizon Account Features

Most First Horizon deposit accounts have a $50 minimum opening deposit, as well as a monthly service fee. In some cases, the monthly service fee can be waived based on certain benchmarks such a minimum balance or a minimum number of transactions.

There is free online and mobile banking with all First Horizon accounts. Most accounts also come with a Visa debit card, and access to the Allpoint ATM network, with more than 40,000 ATMs throughout the country.

First Horizon Traditional Savings Account

First Horizon's standard savings account, its Traditional Savings account, is low-fee, low-interest and low on features. The minimum balance required to avoid the quarterly $5 charge is $250, which makes the account somewhat more accessible than savings accounts at comparable banks.

That being said, the interest rate on this account is a paltry 0.30%, regardless of deposit level. Furthermore, ATM access is not standard with the account. In order to withdraw your money from an ATM, you will also need to set up a checking account. 

In short, if you are interested in a savings account that will earn you interest or from which you can easily withdraw your money, this is not your best bet. First Horizon does have some other options for deposit accounts with slightly higher rates — read on to learn more about those.

First Horizon Regular CD (Certificates of Deposit)

A certificate of deposit at First Horizon offers somewhat higher rates than the other deposit account options. The minimum deposit required to open a CD is $1,000. You can also earn higher rates on CDs 12-months or longer by linking your CD to a checking account. 

By opening a CD you agree not to withdraw your money for a fixed amount of time, with longer periods earning higher rates. There is a penalty for withdrawing your money early, equal to 90 days of interest for most CDs. 

The highest rate currently offered by First Horizon is 0.10% on a five-year CD. While that rate is certainly better than those offered on most First Horizon deposit accounts, it is lower than the rates offered on comparable CDs at a number of national banks.

First Horizon Add-On CD

An Add-On CD is a slightly more flexible version of a certificate deposit. Where as the amount of a typical CD (and therefore the interest it can earn) is fixed for the length of its term, an Add-On CD allows you to contribute more funds to your CD. First Horizon also allows one free withdrawal from your Add-On CD every six months.

That being said, the rates on the Add-On CD are low enough that there is little justification for choosing this account type over a money market account, or even a regular savings account. For deposits below $25,000, the rate is just 0.10%.

First Horizon Money Market Savings Account

A money market account functions a lot like savings account, with a few extra features. Most importantly, account holders have ATM access without signing up for an additional account, and can also write checks - two features that the standard First Horizon savings account lacks.

First Horizon's Money Market Savings account also has tiered interest rates. These don’t provide much advantage if your deposits are less than $50,000. 

There is a $9 monthly service fee for the money market account. It is waived for accounts that are linked to a checking account and for account holders who have at least $5,000 in total deposits among all First Horizon accounts. 

First Horizon Checking Accounts

If you’re interested in opening a checking account, First Horizon bank has a three options for you to choose from. These include the low-cost FirstView Checking Account, the moderate SmartView Checking Account and the most exclusive TotalView Checking Account.

The FirstView Checking Account is a very basic, standard checking account. It comes with no monthly fees with e-statements, or you can receive paper statements for a $2 fee ($3 if it includes images of checks). It also gives you access to a debit card and fee-free ATM usage at all of First Horizon ATMs.

The SmartView Checking Account takes things a step up, with a $15 monthly fee, unless you can meet the requirements listed in the table above. With this account, you get a few perks, namely all international ATM fees and surcharges refunded, and a complimentary consumer Money Market Savings account. Also, if you're able to waive the monthly fee, you'll receive interest on your balance.

Lastly, the TotalView Checking Account is for the high-rolling banking customer at First Horizon. It comes with a significant $25 monthyl service fee, which is waivable based on the requirements above. You'll also get everything the above account offers, plus free paper statements, higher debit card limits, the ability to link your investment account, service charge refunds on other accounts or yours and more.

Where Can I Find First Horizon?

First Horizon does most of its business in Tennessee. It also has a partnership with Capital Bank (the two companies have the same owner), which has locations Florida, North Carolina and Virginia. First Horizon customers can do business at Capital Bank locations and use Capital Bank ATMs for free.

What Can You Do Online With First Horizon?

First Horizon's online banking platform allows you to transfer money between accounts, set up automatic bill pay and create budgets. Through the mobile app, you can also deposit checks remotely. The mobile app has a moderate rating on the Apple App store with 2.9 stars out of a possible 5.

How Do I Access My Money?

If you need to withdraw or transfer money, there are a few options. Transfers can be made from the mobile app or online. You can also set up wire transfers in one of First Horizon's branches, though there is a fee for this type of transfer.

Withdrawals can be made for free at any First Horizon ATM. First Horizon is also a member of the Allpoint ATM network, which has over 40,000 ATMs nationwide. Note, however, that not all First Horizon deposit accounts come with ATM access, so make sure the type of account you are opening does include that feature if it is important to you.

How Can I Save More Money With First Horizon?

There are not a lot of high-return deposit account options at First Horizon. Your best bet for a decent interest rate is a long-term certificate of deposit, but even those have rates below what other banks offer. In general, if earning a high interest rate is your top priority, First Horizon is not the best choice.

What’s the Process for Opening an Account With First Horizon?

You can apply for a First Horizon deposit account online, through its website. The application process takes less than half an hour, and requires some kind of ID (such as a driver’s license), your Social Security number and your contact information. You will also need to have your opening deposit handy, either through an online transfer from another account, or a debit or credit card number.

If you live in Tennessee, you can also open an account in person. Just head to your local branch and a banker will get you set up. You’ll need the same items and information required for the online process, though you may also be able to open your account with cash or a check if you do so in person. 

What’s the Catch?

As we have mentioned elsewhere, First Horizon does not offer particularly high rates on its deposit accounts. If your priority is a high return, you can find better options elsewhere. 

They also have fee requirements that may be onerous for some. For example, one account requires a monthly direct deposit to avoid the monthly fee. That could be a problem if you are between jobs and do not have a steady source of income.

Bottom Line

First Horizon is a regional bank, with branches throughout the Volunteer State. It offers fairly low rates on deposit accounts such as its savings account and money market account, and its fee requirements may be difficult to meet for some. In short, there are few compelling reasons to go with First Horizon for your checking or savings account needs.