First Internet Bank Review: The Best CD Accounts and Online Banking

GOBankingRates Score

First Internet Bank of Indiana
4.9
SCORE
GOBankingRates Best Banks 2023 scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks.
Quick Take: First Internet Bank of Indiana claims to be the first financial institution to provide online banking. It has years of experience providing full-featured, low-cost banking services. Its early adoption of online banking may have given the bank an advantage as First Internet Bank is ranked as one of the Best Online Banks and is the winner of the Best CD Accounts for 2023 by GOBankingRates.
  • Checking Accounts
    4.8
  • Savings Accounts
    4.7
  • CD Accounts
    5.0
  • Banking Experience
    4.9
How did we calculate this?

Pros

  • Free checking and savings accounts
  • Great CD account options
  • Text message customer support available 

Cons

  • No physical branches
  • No ATM networks
  • Customer service is not available 24/7

First Internet Bank Overview

First Internet Bank was founded in 1999 in Indiana. According to First Internet’s name and website, it was the first FDIC-insured online bank. GOBankingRates has ranked First Internet Bank as one of the Best Online Banks and the winner of the Best CD Account for 2023.

Anyone who is comfortable with skipping the brick-and-mortar banking experience and banking online will appreciate the full-service bank’s options for accounts, financial planning and loans.

Key Features

Here are some of the key features of why First Internet Bank ranked in multiple categories.

First Internet Bank Checking Accounts

First Internet Bank keeps it simple by providing two different types of checking accounts.

  • Free Checking: A good starter choice for individuals who keep lower bank balances and want to avoid fees. As a finalist of the annual GOBankingRates study on Best Checking Accounts, you only need $25 to open an account.
  • Interest Checking: You’ll earn APY with Interest Checking, but you’ll be charged a $10 monthly maintenance fee, which can be waived with an average daily balance of $500. Make sure your monthly balance is large enough to offset the fee.

First Internet Bank Savings Accounts

First Internet Bank offers only one type of savings account, but it is worthwhile thanks to the account’s lack of fees and high-yield rate of APY. That’s higher than what many brick-and-mortar banks currently offer.

The opening balance requirement is $25 to open an account. The only other requirement is the federally-mandated limit of six withdrawals per month with which all banks must comply. First Internet Bank will provide you with a free debit card and reimburse up to $10 per month in ATM fees.

Make sure to keep track of your account transfers and withdrawals to avoid the penalty of $5 per transaction if you surpass the transaction limits.

Money Market Accounts

The best money market accounts provide you with the flexibility of writing checks and paying bills while earning savings rates. First Internet Bank’s money market account earns you more than its savings product with APY, but you need to maintain at least $4,000 per month to avoid the $5 maintenance fee.

A $100 minimum opening balance is required. However, you’ll earn one of the highest yields around and receive up to $10 per month in ATM fee reimbursements.

Be aware that a money market account is considered a savings account and therefore, you’ll be limited to six transfers or withdrawals per month. If you don’t have many bills to worry about, a money market account can be more lucrative due to the higher interest rate. Otherwise, you might want to add a checking account to cover additional transfers, bills and withdrawals to avoid the excess-transaction penalty.

First Internet Bank CD Accounts

If you have a lump sum of money you don’t need for a while, a certificate of deposit will guarantee you a set amount of interest for the term of your choice. To earn the best CD rates, choose a longer term. 

First Internet Bank of Indiana’s CDs are the number one pick for GOBankingRates’ Best CD Accounts of 2023. There are eight different term lengths from three months to five years and a $1,000 minimum is required to open an account.

First Internet Bank Banking Experience

If you’re at ease with handling all your banking online, you’ll be pleased with what First Internet Bank has to offer. Even if you’re just getting started with online banking, the process should be pretty simple to follow.

Online banks often focus on a limited number of accounts and services. First Internet Bank is a full-service financial institution providing a variety of bank accounts, retirement planning, mortgages, loans and business banking.

Mobile & Digital Experience

Although First Internet Bank offers award-winning accounts, the best part may be the ease of use and navigation available through the mobile app and online website. The website loads quickly and uses a clean white backdrop with minimal images and graphics. The knowledge base available through the search bar in the upper right-hand corner makes it simple to find the information you need.

The mobile banking app and website are simply designed and easy to follow. View your account information in real-time, deposit checks, transfer funds, pay bills and even use the app on your Apple Watch. First Internet Bank has a highly-rated mobile app.

  • Google Play: 4.4 out of 5 stars
  • App Store: 4.8 out of 5 stars

Security-wise, information can only be accessed through the mobile app when your phone is unlocked. First Internet Bank uses encryption to ensure your privacy and assets are safe.

Customer Service

There are no physical branches available, but customer service can be reached by phone at 1-888-873-3424 or by emailing bank@firstib.com. Customer service hours are 7:00 a.m. to 9:00 p.m. EST on weekdays and 9:00 a.m. to 3:00 p.m. EST on Saturdays.

First Internet Bank vs. Competitors

Take a look at how First Internet Bank compares to similar banks.

First Internet Bank vs. Wells Fargo

Wells Fargo has thousands of locations, raising the odds that there is a physical branch near you. In contrast, First Internet Bank is online only and best for customers who prefer a DIY approach to banking. 

First Internet Bank vs. Chase Bank

Chase is well known for its suite of quality credit cards that range in function from travel to rewards to cash back. First Internet Bank only offers account holders one cash-back credit card. However, First Internet Bank’s accounts earn a significantly higher yield than the Chase savings account offers.

First Internet Bank vs. Bank of America

Both banks provide a variety of services including bank accounts, loans and mortgages. Bank of America, Member FDIC, is one of the largest lenders in the country when it comes to auto loans, mortgages and more. If you foresee needing a home mortgage or other type of loan in the future, banking with Bank of America could give you access to more loan options including relationship interest rates.

Final Take

If you’d like to simplify your banking and handle all your money needs through one financial institution, First Internet Bank is a great choice. You’ll have access to checking, savings, loans and mortgages all in one place. Best of all, the fees are low and interest rates are higher-yield when compared to traditional brick-and-mortar banks. If you are considering making the switch to all mobile banking, be sure to check out why GOBankingRates has named it as one of the Best Online Banks and the winner of the Best CD Account for 2023.

First Internet Bank FAQ

Here are the answers to some commonly asked questions about First Internet Bank.
  • What was the first full-service internet bank?
    • First Internet Bank of Indiana claims to be the first FDIC-insured internet bank
  • Can I bank with First Internet Bank if I am not from Indiana?
    • First Internet Bank is an online-only bank and is available to customers in all states.
  • Is First Internet Bank legitimate?
    • Yes, First Internet Bank of Indiana is a legitimate institution. It has been an online bank for over 20 years and was the first of its kind to be FDIC insured.
  • Is First Internet Bank FDIC insured?
    • Yes, First Internet Bank is FDIC insured covering all checking, savings, CD and IRA accounts.
  • Does First Internet Bank have Zelle?
    • Yes, First Internet Bank has Zelle as a free payment option.

Cynthia Bowman contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 3, 2022. 

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

To determine rankings for the Best Checking Accounts, GOBankingRates looked at the following factors from all banks (excluding credit unions): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (5) APY on the checking account; (6) overdraft fee amount; and (7) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factors (1), (2 and (5) were weighted 0.5 times, and factor (4) was weighted 1.5 times. 

To determine rankings for the Best CD Accounts, GOBankingRates looked at the following factors from all banks (excluding credit unions): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) 12-month CD APY; (5) 60-month CD APY; and (6) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factors (1) and (2) were weighted 0.5 times, factor (3) was weighted 2 times, and factors (4) and (5) were weighted 4 times.

To determine rankings for the Best Online Banks, GOBankingRates looked at the following factors across exclusively online banks: (1) total assets as sourced from the FDIC; (2) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (3) savings APY; (4) 1-year CD APY; (5) customer service options and mobile products offered (24/7 customer service, live chat with a human, mobile app and remote check deposit); (6) Bauer rating (out of 5 stars); (7) products/services offered (auto loans, mortgage loans, credit cards, investment services and insurance); and (8) the average mobile app rating between the Android and Apple app stores. Factors (1) and (2) were weighted 0.5 times, and factors (3) and (7) were weighted 2 times. For all savings and checking account data, only the basic accounts/products offered at each institution were analyzed. 

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Editorial Note: This content is not provided by Chase. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Chase.

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About the Author

Caitlyn Moorhead has written content for a variety of businesses and publications. After graduating from Central Michigan University cum laude, she moved to New York City where she wrote columns, articles and plays for several years before relocating to Austin, Texas in the fall of 2020.
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