If you're seeking high interest rates on certificates of deposit (CDs) and money market accounts (MMAs), you should consider stashing your cash with First Internet Bank—but only if you already have some money saved up. First Internet Bank has a variety of account options, but its checking and savings accounts only offer modest annual percentage yields (APYs).
Founded in 1999, First Internet Bank started as an online-only bank. It is FDIC-insured, with headquarters in Indiana. Since it’s a digital bank, it might not be ideal if you want to visit a physical branch.
All rates and fees are current as of August 25, 2023, and are subject to change.
First Internet Bank offerings
First Internet Bank offers various deposit accounts such as money market, savings, CDs, and two types of checking accounts.
Fees applicable to all personal accounts
There are also many fees on First Internet accounts that you may be unaware of, so if you plan on initiating a wire transfer or spending money with your debit card abroad, you’ll want to read the fine print to ensure you don’t incur unexpected costs.
Consumer account fees
- Returned item fee (similar to an overdraft fee): $20 per occurrence
- Stop payment fee: $30 per occurrence
- Statement copies: $3 per statement
- Outgoing domestic wire transfers: $20
- Outgoing foreign wire transfers: $50
- Cashiers checks: $5 each
- Dormant account fee: $5 per account per month
- Foreign transaction fee for ATMs, debit card, and checks: 2%
- Uncollected Funds Fee: $30 each
- Returned deposit item: $20
- Overnight delivery: $30
- Garnishments, executions, and levies: $50
- Account reconcilement assistance: $20 per hour
- Research: $20 per hour
Checking and savings accounts
Checking accounts
First Internet Bank has two types of checking accounts: an interest-bearing account and a non-interest-bearing one.
The interest checking account is a solid choice if you have more than $500 to leave in your checking account—as that’s the average daily balance you’ll need to maintain to waive the $10 monthly fee. You’ll score a 0.50% APY, more than seven times the national average rate for checking accounts.
On the other hand, the free checking account is better for savers who don’t have a lot of cash to save and just want a no-frills account with no monthly maintenance fees. You won’t earn any interest with this account, and you’ll need at least $25 to start.
Interest Checking Account
- Minimum opening deposit: $100
- APY: 0.50%
- Compounding frequency: Interest is calculated and credited monthly
- Monthly maintenance fee: $10
- Minimum balance to waive maintenance fee (and earn interest): $500 average daily balance
- ATM reimbursement: up to $10 per month
Free Checking Account
- Minimum opening deposit: $25
- APY: None
- Monthly maintenance fee: None
- ATM reimbursement: None
When you want to access your money in either account, you can do so with a debit card or checks. First Internet doesn’t have an ATM network, so if you opt for the interest checking account, you’ll be reimbursed up to $10 per month for your ATM costs. With the free checking account, you won’t receive any ATM reimbursements.
First Internet Bank savings rates compared to current top rates*
View this interactive chart on Fortune.com
Savings accounts
First Internet Bank’s Free Savings account is not a high-yield savings account, so you won’t earn much interest by stashing money in it: The APY is 0.80%. There are high-yield savings accounts with APYs that top 5% on the market, so if you’re focused on yield, this account probably isn’t the best choice.
Free Savings Account
- Minimum opening deposit: $25
- APY: 0.80%
- Compounding frequency: Interest is calculated and credited monthly
- Monthly maintenance fee: None
- ATM reimbursement: up to $10 per month
The upside of this account is that there’s a modest minimum opening deposit requirement and no monthly fees. This savings account is meant for long-term saving, so customers are limited to six withdrawals per month.
Money market accounts
Though their savings account has a lackluster APY, their money market account has a competitive interest rate—a 3.76% APY for balances less than $1 million. Like the savings account, customers are limited to six withdrawals per month.
Money Market Savings Account
- Minimum opening deposit: $100
- APY: 3.76% for balances less than $1 million or 5.46% for balances above $1 million
- Compounding frequency: Interest is calculated and credited monthly
- Monthly maintenance fee: $5
- Minimum balance to waive maintenance fee: $4,000 average daily balance
- ATM reimbursement: up to $10 per month
- Excessive withdrawal fee: $5 per item fee
While there are money market accounts with higher APYs, First Internet Bank still provides an above-average interest rate, as the national average for money market accounts is a measly 0.63%. This account, however, is best for people who can maintain an average daily balance of $4,000—which is the amount needed to waive the $5 monthly maintenance fee.
This account offers neither a debit card nor check-writing privileges.
Certificates of deposit
First Internet Bank has competitive APYs on many CDs, with terms ranging from three to 60 months. To open an account, customers must deposit at least $1,000, which could be steep for those who don’t have a lot to save.
| Term | APY |
| 3 months | 4.18% |
| 6 months | 5.22% |
| 12 months | 5.35% |
| 18 months | 5.07% |
| 24 months | 4.85% |
| 36 months | 4.75% |
| 48 months | 4.54% |
| 60 months | 4.59% |
- Minimum opening deposit: $1,000
- Compounding frequency: Interest is calculated and credited monthly
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Early withdrawal penalty: Varies by term length
- 3 months: 90 days interest
- 6 to 18 months: 180 days interest
- 24 to 60 months: 360 days interest
Other services First Internet Bank offers
- Credit Cards: First Internet has a cashback card, which provides 3% back on gas and 1% on all other purchases.
- Personal loans: Their personal loans have terms of up to 60 months and APRs starting at 11.99%.
- Auto loans: They have auto loans for horse trailers, boats, recreational vehicles, and cards. Term lengths and APRs vary, but loans must have a minimum value of $10,000.
- Health Savings Accounts: These investment accounts are available to people invested in high-deductible healthcare plans. There are no monthly fees or minimum balance requirements.
- Accounts for kids: This is a free savings account available to children under the age 18. It has a minimum opening deposit of $100 but no monthly maintenance fees. It offers a 0.80% APY.
The First Internet Bank platform and customer support
Customers can access their First Internet Bank account online or via apps that are available in the Google Play or Apple App Stores.
And if you ever need to contact customer service, you can do so via email, phone call, or online chat. Phone assistance is available Monday through Friday from 7:00 a.m. to 9:00 p.m EST and Saturday from 9:00 a.m. to 3:00 p.m EST.
Pros and cons of First Internet Bank
Pros
- Above-average APYs on money market accounts and CDs. Though there are banks with higher APYs on these products, their MMA and CDs offer generous rates.
- Checking and savings account options with no monthly fees. Their free checking and savings accounts don’t have monthly minimum balance requirements or maintenance fees.
Cons
- No physical locations. It’s even in the name of the bank: First Internet Bank. It is an online-only bank, so if you want to visit a physical location, it’s not a great option.
- High minimum balance requirements for MMAs. To get the monthly maintenance fee waived, you must maintain an average daily balance of $4,000, which can be a hefty amount for some.
- Low APYs on checking and savings accounts. There are checking and savings accounts with much higher APYs.
- High minimum opening deposit for CDs. You’ll need at least $1,000 to start.
Frequently asked questions
Is First Internet Bank a real bank?
Yes, First Internet Bank is a digital bank founded in 1999 with headquarters in Indiana.
Is First Internet Bank stable?
First Internet Bank is FDIC-insured, so depositors are covered up to $250,000.
