First Interstate Bank is a financial institution that serves customers across 12 Western U.S. states. While it doesn’t have the broad reach of national giants like Capital One, it focuses on community-based banking with personalized service. This review breaks down First Interstate’s key offerings—checking, savings, CDs, and money market accounts—to help you decide if it’s the right bank for you.
Checking Accounts: Options for Everyday Transactions
First Interstate offers four checking account tiers: Simple, Basic, Select, and Premier. All require a minimum opening deposit of $25. The Simple Checking account carries a flat $5 monthly fee, while Basic Checking waives the $5 fee with a $250 daily balance or a recurring direct deposit.
Select and Premier Checking earn interest but come with higher maintenance fees unless minimum balance requirements are met ($1,500 for Select, $10,000 for Premier). These higher tiers include perks such as overdraft protection and discounts on safety deposit boxes.
Why this matters: Checking account fees are a major source of revenue for banks. Understanding these fees upfront is crucial. Over 80% of U.S. households maintain a checking account, making it the most common banking product.
Savings Accounts: Modest Yields with Accessibility
First Interstate’s Regular Savings account requires a $25 minimum opening deposit. While accessible, the interest rates are relatively low compared to online banks. A $5 monthly fee applies unless a $200 daily balance is maintained. The account limits transactions to six per month; exceeding this incurs a $10 fee per extra transaction.
Why this matters: Savings rates have been historically low, but the current economic environment is pushing them higher. If maximizing interest is a priority, online banks or credit unions may offer better returns.
Certificates of Deposit (CDs): A Stable but Limited Option
First Interstate Bank CDs require a $1,000 minimum deposit and offer terms ranging from one month to 60 months. APYs vary but remain competitive. Early withdrawal incurs a fee. CDs are FDIC-insured, ensuring your principal is protected up to $250,000.
Why this matters: CDs lock in a fixed interest rate for a specific term, offering stability but limiting liquidity. They’re a good option if you don’t need immediate access to funds.
Money Market Accounts: Blending Access and Interest
First Interstate’s money market account requires a $100 minimum opening deposit. Tiered interest rates are applied based on balance. A $15 monthly fee applies unless a $1,500 daily balance is maintained. The account is FDIC-insured.
Banking Experience: Regional Strength, Digital Accessibility
First Interstate Bank operates 280 branches across the Western U.S. Customer service is available Monday through Friday from 7 a.m. to 7 p.m. MT and Saturday from 9 a.m. to 2 p.m. MT. The bank’s mobile app has strong ratings—4.5 out of 5 stars on Google Play and 4.7 out of 5 stars in the Apple Store.
Why this matters: Branch access is becoming less important for many customers, but it still matters for those who prefer in-person service. Digital tools are essential for modern banking.
How First Interstate Compares: Regional vs. National
First Interstate competes with larger banks like Capital One, online banks like CIT Bank, and fellow regional banks like Western Alliance Bank. Capital One offers higher savings rates and a national footprint, while CIT Bank is entirely online with competitive APYs. Western Alliance Bank also focuses on regional banking but with different priorities.
Why this matters: Competition drives innovation and better rates. Comparing options is essential. First Interstate’s strength lies in personalized service within its geographic footprint.
Is First Interstate Safe?
Yes. First Interstate Bank is a regulated financial institution insured by the FDIC up to $250,000 per depositor. This protection ensures your money is safe even if the bank fails. You can verify FDIC insurance using the BankFind database.
Pros and Cons at a Glance
Pros:
– Strong regional branch network.
– Personalized community banking approach.
– Wide range of financial services.
– Robust digital tools.
Cons:
– Limited geographic reach.
– Savings rates may be lower than online banks.
– Digital tools may not be as advanced as larger banks.
Conclusion
First Interstate Bank is a solid option for customers who value community-based banking with personalized service. Its strengths lie in its regional presence, diverse financial products, and strong digital tools. However, those seeking nationwide branch access or the highest savings rates may find better options elsewhere. Before opening an account, review fee disclosures and compare rates to ensure it aligns with your financial goals.
