There are plenty of different banks and credit unions for you to use all across the country. Each of them has different products, perks, and disadvantages you’ll need to consider when you’re shopping around for the perfect bank.
What separates one from another?
Today we’re going to look at First Tech Federal Credit Union. We’ll be looking into their account types, products, advantages and disadvantages, and more.
Table of Contents
A Brief History of First Tech Federal Credit Union
As a company, First Tech was established in 1952 as the Tektronix Federal Credit Union. They have only been around for 60 years, but they have made a lot of progress in those 60 years
As their name implies, being on the verge of technological innovations is their goal. They were using computers for their data process in 1976, using ATMs in 1979, and had a 24-hour helpline by 1985.
Additionally, they were one of the first institutions to offer mobile banking, which they started in 2000.
Currently, they have over 465,000 members and over $10 billion in assets, which makes them one of the largest credit unions in the United States.
Through the years, they have received several awards and recognition, in the past two years, they have been selected as one of the Best Banks in both Oregon and California.
Their headquarters is in California, but you don’t have to live in-state to join the credit union. We will discuss the membership requirements in a moment.
Banking With First Tech
Like most financial institutions out there, First Tech has a handful of accounts to meet all of your banking needs.
Each of them is slightly different in how they operate and the benefits you receive from them. In this post, I’ll outline their most popular options to give you an idea of how you can benefit from partnering with First Tech.
Membership Savings Account
Before you can open any other account at First Tech, they will require you to open a Membership Savings Account.
This is the account that solidifies you as a full member of First Tech and allows you to open up one of their other accounts. The Membership Savings Account is an extremely basic plan. There are no maintenance fees, and you will earn a 0.9% APY in monthly dividends.
Dividend Rewards Checking
This is the most popular option at First Tech.
It has no monthly fees and no minimum balance requirement. As you can probably guess from the name, the allure of this account is the dividend rate, which is a 4.00% APY currently.
Carefree Checking
The main difference with the Carefree Checking account is you won’t earn any dividends or APY with this account. There’s a minimum balance of $0.01, but otherwise there are no real requirements. This checking account is designed for anyone who wants a straightforward account without all of the bells, whistles, and fees.
Instant Access Savings
Unlike the basic Membership savings account, Instant Access Savings earns much better dividends and they are tiered depending on how much money you have in the account.
Unlike some other savings accounts out there, you can take out your money at any time. There are no withdrawal fees or monthly fees. If you want a savings account with a decent interest rate which won’t be bogged down with fees, this is an excellent option, with interest ranging rates ranging from .05% to 1.20%.
Carefree Savings
Much like the carefree checking, the carefree savings is a watered down version of their Instant Access savings, and it’s the perfect choice for anyone who wants a simple place to put their money.
You’ll still earn dividends on your savings, but it’s only 0.90% APY, compared to the higher returns you would earn with an Instant Access account.
First Tech Banking Account Options
| Account Type | Key Features | Dividends/Interest Rate |
|---|---|---|
| Membership Savings Account | Essential for First Tech Membership | 0.9% APY in Dividends |
| Dividend Rewards Checking | Most Popular Option | 4.00% APY Dividend Rate |
| Carefree Checking | No Dividends or APY | $0.01 Minimum Balance |
| Instant Access Savings | Tiered Dividends, Flexible Withdrawals, No Fees | Interest Rates: 0.05% to 1.20% |
| Carefree Savings | Simplified Version of Instant Access Savings | 0.90% APY Dividen |
Investing With First Tech Credit Union
You can’t discuss a bank or credit union without looking at their investment options. More and more banks are becoming the premier place for investing. They have both IRA Certificates and IRA Savings accounts you can open. Their certificates range in maturity length, anywhere from 6 months to 60 months.
Borrowing
One reason a lot of customers choose a credit union over banks is for their rates. If you plan on taking out a loan, credit unions are an excellent way to secure lower rates, but how does First Tech stack up against the competition?
If you’re looking to buy a home, First Tech has four different types of mortgage loans. We are going to focus on their traditional fixed-rate home loan.
They have rates as low as 4.125% APR right now. One additional claim they make regarding their mortgage is that “most purchases close within 28 days.”
They also offer several kinds of auto loans, a new car loan, a used auto loan, and auto loan refinancing. With a new car loan, which is for current models or the previous car models, you can get rates as low as 4.74% APR for up to 84 months at the moment. Compared to some other lenders and banks, this is very competitive.
For their used car loans, which is defined as cars within 2 – 10 model years, you can be looking at rates as low as 4.89% for up to 84 months. Just like with their new car loans, this is competitive with the national average for auto loans.
Joining First Tech Federal Credit Union
Like most credit unions, there are several ways you can qualify to be a member. Thankfully, First Tech makes it incredibly easy to qualify to join their credit union. There are 7 different ways you can become a member:
- Work for One of the Tech or Telecom Companies Which Sponsor First Tech
- Work for the State of Oregon
- Work in Lane County, Oregon
- Live in Lane County, Oregon
- Be a Family Member of Someone Who Is a First Tech Member
- Be a member of the Computer History Museum (Which Is Quick and Easy to Join)
- Be a Member of the Financial Fitness Association (Which Is Also Quick and Easy to Join)
Because of the last two qualifications, anyone can become a member of First Tech Credit Union.
FTFCU’s Advantages
The obvious draw of First Tech is their Dividend Rewards Checking account.
Their 2.00% is drastically higher interest than you’ll find at a traditional bank, and it’s higher than what most credit unions offer. There are a few requirements you have to meet to get the interest rate, but it’s worth it.
Another benefit of choosing First Tech is the access to their fee-free ATMs.
They have over 30,000 ATMs you can use across the U.S., without having to pay any fees. Not only can you use those ATMs, but you can also walk into one of their 5,000 partner credit union branches. These credit unions are a part of their Co-Op network.
With these branches, you can walk in, make a deposit, withdraw, or buy a money order.
Pitfalls of Using First Tech Credit Union
I’ve discussed the benefits of being a First Tech member, but there are a few reasons they may not be the best choice for you. One of those is the lack of branches.
Unless you live in Oregon or around California, you probably won’t have access to one of their branches. They have their co-op network, but even still, there is a good chance you won’t live near one of those. If you want face-to-face interaction, you should choose a larger bank.
I’m hesitant to include this in the review, because every person is different, and some people give poor ratings as an overreaction, but their customer service quality kept popping up. Hopefully, you will never have any complaints about their customer service, but it’s something to be aware of when you’re shopping around for a bank or credit union.
My Final Verdict for FTFCU
Every person is different, and everyone has different preferences for their money and how they save and spend it. It’s impossible to say which credit union is “best,” because they all have different advantages.
If you’re looking for a place that is always on the leading edge of technology and can give you good rates for a checking account, then give First Tech a chance. Joining and opening an account is simple and easy, which means you won’t lose much if you don’t like it.
Hopefully, this review has helped you wade through the thousands of options out there. Get your money out from under your mattress and find a bank or credit union or trust.
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First Tech Federal Credit Union Review
Product Name: First Tech Federal Credit Union
Product Description: First Tech Federal Credit Union is a member-owned financial institution founded in 1952, serving over 600,000 members across the United States. They offer a wide range of banking and financial products, including savings and checking accounts, credit cards, and various loan options, such as mortgages, auto loans, and personal loans. With a strong emphasis on technology and innovation, First Tech provides convenient digital banking services alongside its physical branch locations.
Summary of First Tech Federal Credit Union
First Tech Federal Credit Union, established in 1952, has grown to become one of the largest credit unions in the United States, serving a diverse membership of over 600,000 individuals and businesses. They provide a comprehensive suite of financial products and services, including traditional savings and checking accounts, credit cards with various rewards options, and an array of loan products, such as mortgages, auto loans, and personal loans.
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Cost and Fees
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Customer Service
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User Experience
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Product Offerings
Overall
Pros
- Technology-Focused Services
- Diverse Financial Products
- Nationwide Branch Network
- Member-Centric Approach
Cons
- Membership Requirements
- Limited Branch Network
- Account Fees
- Competitive Rates
If ever your identity is ever stolen, pray to the heavens that the thieves don’t open an account here! A brick wall gets things done faster than this CU. No other institution gave me any trouble – it’s a fraudulent account? Oh let’s close that! Thank you, done, the end.
When this started on Nov 6th, 2020 these guys had me fill out a 5 page form (which I sent back the same day) with no promise of when to expect a follow up. We’ve called so many times I’ve lost count. They verify me like I’m a member and give me the same line – this situation is in review. Their fraud department doesn’t take phone calls – but hasn’t sent any of the communications that the phone reps have promised. Now they’ve sent me a tax form saying that I have earned interest! I’m so fed up.
When we called today, 2/11/2021, I told the rep that no other company has given me this much trouble, they just closed the fraudulent account and it was done, and she said that THAT WAS ACTUALLY A COMPLEMENT! She said that they don’t want to make it easy for fraudsters – but the fraudsters had no problems at all opening this account! It’s me trying to close it that is having problems! She kept saying that their fraud department would email me (I’m not holding my breath…) We asked how long before this was resolved. She said it can take up to 90 days. IT’S ALREADY BEEN MORE THAN 90 DAYS!
I would like to speak with someone from the Mortgage Service Division. I work at Provident Savings Bank in Riverside, California. I would like to discuss with this person if First Tech Credit Union is interested in doing business with my company, You can also contact me at 951-782-6100.
Look Forward to talking with someone soon.
Thank you.
Having been a member since about 1981, I have a slightly different perspective than you do and also some changes to suggest.
1. For the first 40 years of their existence, they were a small organization with awesome benefits and customer service. There were no service charges for checking or savings (share) accounts. Checking did not earn interest, but savings earned 5.75% – at least during the ’80s. But the real biggie was that at the end of the year they would calculate their profits and then distribute them back to the members in the form of an annual dividend. This dividend was often 8 to 12 percent of your average share balance. Think about that. As you can imagine, the pathetic returns that they now provide are unimpressive to me and only marginally better than you can get elsewhere. In fact, my retirement accounts are managed and maintained elsewhere and provide better returns, even for basic CDs.
2. First Tech actually had bank-by-phone in the 1980s and online banking in the early 1990s. I know because I was a beta tester of both. They wrote their own first online banking software and it was excellent for the time. Later they sold it to some other company and could no longer use it, so they signed up with some other online banking provider and their website went to hell. It’s better now, but not what it could have been if they had continued to develop it themselves.
3. They were an Oregon based credit union until a few years ago when they combined with HP’s credit union. At that time HQ moved to California and customer service went all to hell. Yes, it is truly awful now. The worst I can imagine. Prior to the merger you could call the main number, poke a single menu choice and talk to a live CS person who often was an actual teller. Now you get someone in a contract call center who can’t answer any question that it not on their script. Why would I call to ask the easy questions?
4. There are very few branches, but in this modern world you rarely need a branch. Almost everything can be done online. It is impersonal, but the whole world is going that way. The only thing I’ve found I needed a branch for was to deposit a large check (over the maximum for online deposit) and for a safe deposit box. You could mail in a large deposit, but that makes me uncomfortable and I gave up my deposit box when I moved out of Oregon and the branches don’t have them anyway.
Just an observation: in the early days the credit union was run by people you could go meet, the branches were in our workplace and you got to know the tellers because you saw them every day as you walked by, ate with them in the cafeteria, etc. The credit union existed for the members. Eventually it grew to be very large and isolated from the members. The executives and staff became “professionals” which is a good way to ruin anything. The focus changed. First Tech no longer exists for the members. It is now just another vehicle for bankers to generate resume’s and advance their careers. It no longer strives to provide the best possible return to its members. All proceeds are sucked up by managers who, as all managers seem to do, value each other based on the size of their budgets and the amount of corporate profits that they are able to spend.
I still think they are better than most banks, but not by much.
The worst bank/c.u. in my lifetime. That’s 45 years of banking. While BofA and WF were incredibly inept at their responsibilities, along came 1TFCU and makes any word describing them insufficient. Reprehensible is a good start. I don’t even want to relive their incredible lack of professional engagement in a review. I will say just a few things as it got unacceptably complicated. They took everything from my primary bank as their online verification when it was supposed to be a .02 tap. Now that money is held hostage in their coffers for 60 days because it exceeds $100. Every phone call has been a long wait or eventual after hours callback and then be on a 1 hour plus call with them where their promise failed to deliver. The agents on the phone seemed to care and were seemingly helpful however resulted in 100% failure. Their overflow calls go to someone working from home. STAY AWAY FROM THIS CROOKED INSTITUTION. They have no power or ability to help you.
How can I become a member. I have read most of information on web site but does not tell.me how to become a member. Thanks
Hi Marilyn – You can sign up here: https://banking.firsttechfed.com/Registration?_ga=2.165331004.2067806116.1541026766-1647587282.1541026766