First Internet Bank review 2024: Competitive rates on money market and CDs, plus a range of other bank products

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For an online bank, Internet Bank really does live up to its name. It’s the first state-chartered, FDIC-insured institution to operate completely online.

By eliminating the overhead costs of traditional brick-and-mortar banks, First Internet can offer customers a variety of bank products, competitive rates, and a seamless digital experience.

In this review, we'll take a deep dive into First Internet Bank's offerings, looking at their account types, rates, fees, and overall customer experience. 

First Internet Bank accounts 

One of First Internet Bank's key strengths is the variety of its product lineup. While many online banks limit their focus to one or two account types, First Internet Bank offers a full suite of options.  

First Internet Bank Savings account

• Minimum deposit to open: $25 
• APY: 0.81% 
• Monthly maintenance fee: None 
• Minimum balance requirement: None 
• ATM rebate: $10 per month

The one notable gap in First Internet Bank's arsenal is the lack of a high-yield savings account.  

While their regular savings account does offer some attractive features, like ATM rebates and no monthly fees, its 0.81% APY pales in comparison to the 4.00% APY (or higher) rates some online competitors are touting.

However, for some savers, the bank's other offerings largely offset this shortcoming, particularly its competitive money market and CD rates.

You can open a savings account with as little as $25. There are no monthly maintenance fees or average daily balance requirements. You can get up to $10 in ATM rebates each month.  

First Internet Bank Checking accounts

First Internet Bank provides two checking options: an interest-bearing account and a free account. Here’s a closer look at each:  

The Free Checking account has no monthly fees and no minimum balance requirements. It's a great choice for those who want a simple, no-frills checking account. The Interest Checking account allows you to earn interest on your balance. It has a $10 monthly fee you can waive if you maintain a minimum daily balance.

Determining which account is better for you will depend on the size of your balance and your ATM needs.

Both accounts come with features that aren't always standard among online banks, like a free first order of checks, debit card access, mobile bill pay, and Zelle compatibility. This makes them well-suited for day-to-day money management.

First Internet Bank money market account

• Minimum deposit to open: $100 
• APY: 3.77% (5.48% if daily balance above $1,000,000) 
• Monthly maintenance fee: $5 
• Minimum balance requirement: $4,000 to avoid fee 
• ATM rebate: $10 per month 

First Internet Bank doesn’t have a high-yield savings account. But it does offer a money market account that combines high rates with the flexibility of check-writing privileges. This account is best for those who want to earn a competitive APY while maintaining easy access to their funds. 

This account offers 3.77% APY on balances up to $1 million and a 5.48% APY beyond that threshold. If you have a sizable amount of money to save, this account offers one of the most competitive yields on the market.

While there is a $5 monthly fee, it's waived with a $4,000 minimum balance. The account also includes $10 in monthly ATM rebates.  

First Internet Bank CDs

• Minimum deposit to open: $1,000 
• APY: 4.14%-5.31% 
• Monthly maintenance fee: None 
• Early withdrawal penalty: 90 days’ interest (3 month CDs), 180 days’ interest (6-18 month CDs), 360 days’ interest (24-60 month CDs) 

First Internet Bank offers competitive rates on its CDs, with terms ranging from three months to five years. By locking in your funds for a set period, you can earn higher interest rates than traditional savings accounts. 

As of May 2024, First Internet’s CD rates are as follows: 

• 3 months: 4.14% APY 
• 6 months: 5.18% APY 
• 12 months: 5.31% APY 
• 18 months: 5.04% APY 
• 24 months: 4.82% APY 
• 36 months: 4.66% APY 
• 48 months: 4.50% APY 
• 60 months: 4.55% APY 

The standout product is the 12-month CD at 5.31% APY — one of the most competitive rates currently available. The $1,000 minimum deposit is higher than what some online banks require. But the high rates may be worth it for those with extra funds to invest.  

Other products First Internet Bank offers

In addition to its core banking accounts, First Internet Bank offers a range of other personal banking products, including:

• Personal loans: First Internet offers personal loans for up to 60 months at competitive fixed rates. There are no prepayment penalties.
• Auto loans: You can qualify for an auto loan to finance your car, recreational vehicle, boat, or horse trailer (rates and terms vary).
• Student loans: First Internet Bank partners with Sallie Mae to offer student loans to help students pursue their higher education goals.
• Credit cards: First Internet Bank’s Cashback Card offers 3% cashback on gas and 1% on all other purchases.
• Health savings accounts: If you have a high-deductible health plan, this is a great way to set aside some money for medical expenses. These accounts have no monthly maintenance fees or minimum balance requirements. Contributions and interest earnings are tax free.
• Accounts for kids: You can start your child’s financial education early with First Internet’s A Tomorrow’s Tycoon account. This account has no monthly maintenance fees and converts to a Free Savings account when your child reaches 18. 

First Internet Bank also offers business checking accounts, savings, CDs, and loans. 

Is First Internet Bank a good bank to bank with?

First Internet Bank is a great choice if you're comfortable with online banking and want to manage your money in one place.

Plus, if you have a lot of money to set aside and want to earn the highest possible yields, you'll appreciate First Internet Bank's competitive rates on its CDs and money market accounts. With APYs of up to 5.31% on 12-month CDs and 5.48% on high-balance money market accounts, the bank offers plenty of potential to grow your savings.

First Internet Bank's wide range of products and well-rated online platform makes it a standout choice, especially if you value the simplicity of handling all your financial needs with one bank.

But First Internet Bank may not be the perfect fit for everyone. If your top priority is securing the absolute highest interest rates on your savings, you might find better yields at other online banks. Plus, a traditional brick-and-mortar bank may be better for your needs if you rely on in-person banking services.

First Internet Bank fees 

One of the perks of banking with First Internet Bank is the relatively low fee structure. Most accounts, including the free checking and savings accounts, have no monthly maintenance fees. But, there are a few fees to be aware of:

• Monthly fee for free checking account: $0 
• Monthly fee for interest checking:  $10 (unless conditions are met) 
• Monthly fee for savings account: $0
• Monthly fee for money market account: $5
• Monthly fee for CDs: $0 
• Overdraft items: $0 
• Nonsufficient funds (NSF) fee: $30 per occurrence 
• Outgoing domestic wire transfer fee: $20 per transfer
• Outgoing international wire transfer fee: $50 per transfer
• Stop payment fee: $30 per occurrence

While these fees are comparable to those charged by other banks, it's important to be aware of them to avoid incurring unnecessary charges.

First Internet Bank online banking experience

First Internet Bank was founded on the idea of innovation. To this day, they’ve maintained this core value by keeping pace with technology as it continues to evolve.

Their online banking platform and mobile app help customers manage their accounts, pay bills, and transfer funds. Some key features include:

• Intuitive interface for easy navigation
• Mobile check deposit
• Online bill pay
• Funds transfer between First Internet Bank accounts and external accounts
• 24/7 account access
• Customizable account alerts
• Secure login with two-factor authentication

The bank's commitment to providing a seamless digital banking experience is apparent in its positive reviews. As of May 2024, the mobile app has 4.8/5.0 stars on the App Store and 4.4/5.0 stars on Google Play. 

Many of the reviews highlight the app's user-friendly interface. Others mention the bank’s diverse products, fair rates, positive online banking experience, and excellent customer service. 

It’s important to note there are some recurring complaints that the mobile deposit feature can sometimes be slow and glitchy. 

You can reach customer service by phone at 1-888-873-3424 or by email at [email protected]. While there is no 24/7 customer service available — which many online banks offer — First Internet Bank does provide more robust hours than traditional, brick-and-mortar institutions. Customer service is available Monday through Friday from 7 a.m. to 9 p.m. ET and Saturday from 9 a.m. to 3 p.m. ET.

The bottom line

After 25 years of innovation, First Internet Bank has established itself as a formidable player in the online banking arena. While it may not have the absolute highest yields across the board, its consistently competitive rates, diverse product suite, and customer service record make it a compelling choice for savers. 

As with any financial decision, it's essential to consider your finances and goals before committing your money. However, First Internet Bank is well worth a closer look for those seeking a reliable online banking partner.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.

 

How we rated this bank

Every bank review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity.

We rate all banks on a 10-point system, with 10 being the highest possible score and 1 being the lowest possible score. We assess each card across several key factors, weighted based on what our research shows matters most to readers like you. Learn more about our methodology here.

Here are some of the factors that influenced this bank’s overall score: 
 

• Interest rates: First Internet Bank stands out for its competitive rates on CDs and money market accounts, particularly for those with high balances. But, its savings account rates are lower compared to some other online banks.
• Fees: The bank's fee structure is generally favorable, with no monthly maintenance fees on most accounts. The ability to waive monthly fees on interest checking and money market accounts by maintaining minimum balances is a plus.
• Requirements: Minimum deposit requirements are reasonable for most accounts, although the $1,000 minimum for CDs may be high for some customers. The $4,000 balance requirement to waive the monthly fee on the money market account is also on the higher end.
• Product mix: First Internet Bank offers a wide range of accounts and additional products like loans, credit cards, and specialized accounts. 
• Customer service: First Internet offers extended hours and positive customer reviews. However, the lack of 24/7 support may be a drawback for some.
• Digital experience: The bank's digital experience is highly rated, with user-friendly platforms and useful features. The high mobile app ratings reflect customer satisfaction. 
• ATM & branch access: As an online-only bank, First Internet Bank's lack of physical branches may be inconvenient for some customers, particularly those who frequently deal with cash. The ATM fee rebates on some accounts are a nice perk.