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Heritage Bank Review

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We maintain strict editorial integrity in our writing and assessments. This post contains links from our advertisers, and we may receive compensation when you click these links. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone. | Advertiser Disclosure
Heritage Bank Peak Savings
0.03% APY

Founded in 1927, Heritage Bank has been serving the state of Washington for more than 90 years. The bank offers a number of savings account and checking account options, as well as a money market account (MMA) and several certificates of deposit (CDs).

Accounts at the bank are very accessible for the most part, with low minimum opening balances and waivable monthly fees. Plus, ownership of some of the more premium deposit accounts will gain you access to higher interest rates and various perks.

On the other hand, interest rates at Heritage Bank aren’t competitive. If you invest enough money to be in the highest interest rate tiers, odds are you could be making better use of that money in a less liquid account. Moreover, there are no free accounts at Heritage Bank, as every savings and checking account comes with a monthly fee. You can waive most of these fees without much difficulty, but that’s still one more thing to think about.

Products Offered

Products Key Details
Savings Accounts
  • $100 minimum opening balance
  • Two different account options
  • Waivable monthly fees
Money Market Account
  • Tiered interest rates
  • $1,000 minimum opening balance
  • $10 monthly service fee
Certificates of Deposit
  • Terms from three months to five years
  • $2,500 minimum opening deposit
  • Tiered interest rates
Checking Accounts
  • $100 minimum opening balance
  • Unlimited check writing ability
  • Four different account options

Heritage Bank Interest Rate Comparison

Heritage Bank Overview

Heritage Bank operates 60 branch locations in Western Washington and Portland, Oregon. Its headquarters are in Olympia, Washington. Interest rates can vary based on county, so we’ll refer to rates in Skagit County, Washington for the purposes of this article.

Although this article will focus on the personal banking options, Heritage Bank also offers business banking services, commercial real estate lending and agribusiness services. In the personal realm, the bank offers two types of savings accounts, one money market account, four checking accounts and several different CDs. Read on to learn more about each of these options.

Heritage Bank Account Features

Many of the deposit accounts at Heritage Bank are accessible online or via the bank’s mobile app. Accounts also come with a Visa debit or ATM card, depending on the type of account.

With the exception of CDs, all the accounts and Heritage Bank come with monthly service fees, and all but one are waivable provided you meet certain requirements that vary in difficulty. You may also face fees for excessive transactions with the savings accounts and money market account.

Compare Heritage Bank to Other Competitive Offers

Alpine Savings Account

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile, ATM and branch access
Security FDIC insured up to the maximum amount allowed by law
Fees $3 monthly service fee, which can be waived with a minimum balance of $300
Current Terms and Rates 0.03% APY

The Alpine Savings account is the basic savings option at Heritage bank. There is a monthly service fee of $3, and you need a fairly reachable $300 in order to waive it. You’ll earn interest at a rate of 0.03%, which is quite low compared to the best savings accounts available today.

Like any savings account, you’re limited to six pre-authorized withdrawals or transfers during each statement cycle. If you exceed that limit, you’ll incur a fine, and if you exceed it on a regular basis, you’ll run the risk of having the bank close or convert your account.

Peak Savings Account

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile, ATM and branch access
Security FDIC insured up to the maximum amount allowed by law
Fees $10 monthly service fee, which can be waived with a minimum balance of $2,500
Current Terms and Rates
  • Account balances of less than $10,000: 0.03% APY
  • Account balances of $10,000 - $24,999.99: 0.05% APY
  • Account balances of $25,000 - $49,999.99: 0.08% APY
  • Account balances of $50,000 - $74,999.99: 0.10% APY
  • Account balances of $75,000 and above: 0.13% APY

A step up from the Alpine Savings account, the Peak Savings account offers tiered interest rates depending on your account balance. The higher your balance, the higher your rate. The monthly service fee is a bit higher at $10, and you’ll need a balance of at least $2,500 to make it disappear, so if you expect that might be an issue, you may be better off with the Alpine Savings account.

Cascade Money Market Account

Key Features Details
Minimum Deposit $1,000
Access to Your Savings Account Online, mobile, ATM and branch access
Security FDIC insured up to the maximum amount allowed by law
Fees $10 monthly service fee, which can be waived with a minimum balance of $1,000
Current Terms and Rates
  • Account balances of less than $5,000: 0.08% APY
  • Account balances of $5,000 - $24,999.99: 0.10% APY
  • Account balances of $25,000 - $99,999.99: 0.15% APY
  • Account balances of $100,000 - $499,999.99: 0.20% APY
  • Account balances of $500,000 and above: 0.25% APY

A hybrid between a savings and checking account, the Cascade Money Market account has tiered interest rates like the Peak Savings account. Customers will also have access to limited check writing ability with this account, although you’ll still be beholden to the six pre-authorized transfer/withdrawal per statement cycle limit.

This account rewards you for higher balances with incrementally higher interest rates. That said, you’d need $500,000 to get a 0.25% rate, and you can double that rate just by putting that money in a 12-month CD at Heritage Bank. If you don’t need immediate access to that kind of money and you’re looking for a good rate, you might be less interested in this account.

Flex Term Certificate of Deposit

Key Features Details
Minimum Deposit $2,500
Access to Your Savings Account Online, mobile, ATM and branch access
Security FDIC insured up to the maximum amount allowed by law
Fees No monthly service fee, but early withdrawal penalties may apply
Current Terms and Rates Account balances of less than $25,000:
  • 3 - 5 Months: 0.05% APY
  • 6 - 11 Months: 0.10% APY
Account balances of $25,000 - $49,999.99:
  • 3 - 5 Months: 0.10% APY
  • 6 - 11 Months: 0.20% APY
Account balances of $50,000 and above:
  • 3 - 5 Months: 0.20% APY
  • 6 - 11 Months: 0.30% APY

The Flex Term CD is named a bit confusingly, as what makes it distinctive isn’t really about the term length. What’s different about the Flex Term CD is that you’re allowed to increase your deposit after you open the account. As long as your depositing at least $1,000 at a time, you’re allowed to increase your balance up to double your original deposit. The same early withdrawal penalties that apply to the Fixed Rate CDs also apply to these CDs.

Fixed Rate Certificate of Deposit

Key Features Details
Minimum Deposit $2,500
Access to Your Savings Account Online, mobile, ATM and branch access
Security FDIC insured up to the maximum amount allowed by law
Fees No monthly service fee, but early withdrawal penalties may apply
Current Terms and Rates Account balances of less than $24,999.99:
  • 12 - 18 Months: 0.20% APY
  • 19 - 24 Months: 0.30% APY
  • 30 Months: 0.60% APY
  • 36 Months: 0.50% APY
  • 48 Months: 0.70% APY
  • 60 Months: 0.95% APY
Account balances of less than $25,000 - $49,999.99:
  • 12 - 18 Months: 0.30% APY
  • 19 - 24 Months: 0.35% APY
  • 30 Months: 0.65% APY
  • 36 Months: 0.65% APY
  • 48 Months: 0.80% APY
  • 60 Months: 1.00% APY
Account balances of less than $24,999.99:
  • 12 - 17 Months: 0.50% APY
  • 18 Months: 0.60% APY
  • 19 - 24 Months: 0.65% APY
  • 30 Months: 0.70% APY
  • 36 Months: 0.90% APY
  • 48 Months: 1.00% APY
  • 60 Months: 1.98% APY

Heritage Bank offers many different certificate of deposit (CD) accounts, with term lengths ranging from one to five years (you can access shorter term lengths with Flex Term CDs). Rates are as low as 0.20% and as high as 1.98%, They can vary depending on the size of your investment.

If you need to withdraw your money before the end of your term, you’ll be forced to pay an early withdrawal penalty. The exact amount of the penalty will depend on the amount you’re withdrawing, how far into your term you are and the original length of your term. Once your term matures, you’ll have 10 days to withdraw your money before the bank renews you automatically for a new CD of the same term.

Base Checking Account

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile, ATM and branch access
Security FDIC insured up to the maximum amount allowed by law
Fees $7 monthly service fee, which can be waived with a minimum balance of $100

If you’re looking for a checking account with just the basics, then you may be interested in considering the Base Checking account at Heritage Bank. While the $7 monthly service fee is a bit high for a basic checking account, you only need $100 to waive it.

You’ll also earn $0.10 for every signature transaction with your Visa debit card through the Heritage Bank Dime a Time Rewards program. You’ll also have access to online bill pay, mobile deposit and overdraft coverage.

Ascent Checking Account

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile, ATM and branch access
Security FDIC insured up to the maximum amount allowed by law
Fees $6 monthly service fee

The Ascent Checking account is the only account at Heritage Bank with a monthly fee that you can’t waive. You’ll have to pay $6 a month no matter what, but you won’t have to worry about a minimum balance requirement once the account is open.

With this account, you’ll receive all the benefits of the Base Checking account, as well as cell phone protection, roadside assistance and personal identity protection. You’ll receive free eStatements, and if you want paper statements, you’ll have to pay a $3 fee.

Summit Checking Account

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile, ATM and branch access
Security FDIC insured up to the maximum amount allowed by law
Fees $8 monthly service fee, which can be waived with a minimum balance of $1,500
Current Terms and Rates
  • Account balances of less than $10,000: 0.02% APY
  • Account balances of $10,000 - $24,999.99: 0.03% APY
  • Account balances of $25,000 - $49,999.99: 0.05% APY
  • Account balances of $50,000 and above: 0.08% APY

The Summit Checking account is the more accessible of the two interest-bearing checking accounts at Heritage Bank. While you only need $100 to open the account, you need a balance of at least $1,500 in order to waive the monthly fee.

Your interest rate will depend on your account balance, but the range - 0.02% to 0.08% - is fairly narrow. In addition to interest, you’ll receive all the benefits of the other checking account options except for the Dime a Time Rewards program.

Premier Checking Account

Key Features Details
Minimum Deposit $100
Access to Your Savings Account Online, mobile, ATM and branch access
Security FDIC insured up to the maximum amount allowed by law
Fees $25 monthly service fee, which can be waived by a combined daily balance of at least $50,000
Current Terms and Rates
  • Account balances of less than $10,000: 0.05% APY
  • Account balances of $10,000 - $24,999.99: 0.08% APY
  • Account balances of $25,000 - $49,999.99: 0.10% APY
  • Account balances of $50,000 - $99,999.99: 0.15% APY
  • Account balances of $100,000 - $249,999.99: 0.25% APY
  • Account balances of $250,000 and above: 0.35% APY

If you have at least $50,000 in combined deposits at Heritage Bank, then you qualify to open the Premier Checking account. You’ll be able to earn at higher interest rates with this account than with the Summit Checking account, but the monthly fee is also higher at $25, and the balance required to waive the fee is the highest of all accounts by far.

Where Can I Find Heritage Bank?

Heritage Bank operates 60 branch locations in Washington and Oregon, mostly clustered around Tacoma and Olympia, where the bank has its headquarters. The bank also partners with the MoneyPass®? ATM network, which operates ATMs across the country.

What Can You Do Online With Heritage Bank?

You can manage most of your deposit accounts on the Heritage Bank website, and you can also apply to open several accounts online. You can also manage your accounts with your smartphone via the Heritage Bank Mobile app. On iTunes, the app has a 4.8 star rating and 230 ratings as of this article’s publication.

How Do I Access My Money?

You can access funds online or via the mobile app. You can also make deposits or withdrawals at any Heritage Bank ATM or MoneyPass®? ATM. If you use an out-of-network ATM, you may face fees from both Heritage Bank and whichever third party operates the ATM, although you should be able to avoid this given the number of MoneyPass®? ATMs in the country. And, of course, you can visit a Heritage Bank branch to access funds.

How Can I Save More Money With Heritage Bank?

The best interest rate of any Heritage Bank offering is the 60-month CD at 1.98%. This is a fairly competitive rate for that term length, especially among other brick-and-mortar banks. However, you’ll need to deposit at least $50,000 to even gain access to this rate. Other than that CD, rates at Heritage Bank are quite low.

What’s the Process for Opening an Account With Heritage Bank?

You can open certain deposit accounts at Heritage Bank online, and you can also visit your nearest branch in person to open any account. To open an account, you’ll need enough money to meet the minimum opening deposit requirement for your desired account as well as a driver’s license or other form of government-issued ID. You’ll also need your Social Security number, date of birth, current home address and possibly your phone number and email address.

What’s the Catch?

The most disappointing feature of Heritage Bank is probably the interest rates, particularly with the savings account. 0.03% is far below the national average, and it’s even further behind what you can find online. The rates offered with the long-term CDs are more competitive, but none of the rates at Heritage Bank really pop out when you compare CD rates at other institutions.

Bottom Line

If you live in Heritage Bank’s service area and you’re looking for an in-person banking experience with a high level of accessibility and multiple account options, then you may want to consider giving Heritage Bank a chance. If you live near a Heritage branch, but your number one priority is earning the most interest possible on your money, then you will most likely want to look elsewhere for your banking needs.

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