First Internet Bank of Indiana, also simply called First Internet Bank, was (you guessed it!) the very first FDIC-insured, one hundred percent online bank.
To give you an idea of how far things have come for them, take a look at their online presence in 1999 below. We dug up this snapshot in time using the web.archive.org tool. This is their homepage only months after launch.
When First Internet Bank launched their primary focus was on personal, FDIC-insured deposit accounts. Today, they offer a full suite of deposit products for both personal and business accounts and a full suite of loan products consisting of auto loans, home loans, mortgages, personal loans and credit cards.
For the purpose of this review, we will focus on First Internet Bank’s three main deposit products that earn interest. These include:
- First Internet Bank’s CDs (certificates of deposit)
- First Internet Bank’s Money Market Account
- First Internet Bank’s Online Savings Account
To see if First Internet Bank’s savings products are a right fit for you, continue reading our comprehensive review below.
First Internet Bank CD Rates + Account Details
First Internet Bank has eight term CDs with durations ranging from 3 months to 5 years. Their CDs come with a minimum deposit requirement of $1,000 and are federally insured by the FDIC up to the applicable limits.
First Internet Bank CD Rates
To put the yields above in perspective, the current national average for a 12 month CD and a 60 month CD sit at 0.22% APY and 0.46% APY, respectively.
If you unexpectedly need access to your funds prior to maturity, First Internet Bank will impose an early withdrawal fee. Fortunately, they have these penalties clearly laid out on their CD rate page. The penalties are as follows:
First Internet Bank CD Early Withdrawal Penalties
|3 months||90 days’ interest|
|6 months||180 days’ interest|
|12 months||180 days’ interest|
|18 months||180 days’ interest|
|24 months||360 days’ interest|
|36 months||360 days’ interest|
|48 months||360 days’ interest|
|60 months||360 days’ interest|
If you wish to withdraw or add funds to your CD you must wait until maturity. At this time you will be provided a 10 day grace period in which you may add or withdraw funds penalty free.
Please note that if nothing is done during this time, your funds will roll into a new CD with the same terms and the current APY at that time.
First Internet Bank will send you a reminder of your upcoming grace period, but we would recommend setting your own as well. Sometimes these can slip by unnoticed or fall into a junk folder.First Internet Bank Money Market Account Rate + Details
First Internet Bank’s money market account is a variable-rate product that currently boasts an extremely competitive APY.
The account can be opened with just $100 but you will have to maintain an average daily balance of $4,000 to avoid a $5 monthly maintenance fee. Account details and APY below.
First Internet Bank Money Market Account
|Average daily balance to avoid fee||$4,000|
To put this yield in perspective, the current national average for money market account sits at just 0.11% APY.
As per federal regulation D, First Internet Bank allows just 6 transactions per month with this money market account. You will be charged an excessive transaction fee of $5 per transaction if you go over 6 in any given month.
If you need access to cash, First Internet Bank will provide ATM surcharge rebates of up to $10 per month with their money market account.
First Internet Bank Online Savings Account Rate + Details
First Internet Bank’s online savings account is similar to their money market account in many ways but with a few key differences.
For starters, the online savings account requires a minimum deposit of just $25 to open the account. There is zero monthly maintenance fee and no average daily balance you must maintain. The current APY, however, is half that of the money market account at 0.25%.
First Internet Bank Online Savings Account
|Average daily balance to avoid fee||$0|
To put this yield in perspective, the current national average for traditional savings accounts is just 0.07% APY. That said, there are still several online savings accounts featuring APYs near 0.50% with no minimum balance requirements or fees.
First Internet Bank’s online savings account also limits you to just 6 transactions per month per federal regulation.
As with the money market account, the online savings account also features up to $10 in ATM surcharge reimbursement per month.
First Internet Bank has certainly had time to figure out the online banking world, given the fact that they were the first entirely online, FDIC-insured institution.
It shows in their deposit products too. They offer simple , straightforward solutions that are flexible and can accommodate a large percentage of the population.
Both their CD and money market account rates are significantly ahead of the national average for each respective term. Just be sure you can maintain the $4,000 average daily balance on the money market account to avoid the $5 fee.