First Internet Bank Review: Pros, Cons, And Alternatives

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First Internet Bank was one of the original online-only banks.

Online banks are known for offering low fee accounts, attractive APYs on savings, and other convenient banking features. But not all online banks are created equal, so it's important to shop around and compare features before opening an account.

First Internet Bank is the original online bank, and offers an interest-bearing checking account, a high-yield money market savings, CDs, and more. How does it compare to top names such as Ally and CIT Bank? We explore everything First Internet Bank has to offer in this review.

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Quick Summary

• Online bank with no physical branches.
• Interest-bearing checking account and CDs with attractive rates.
• Money Market Savings Account offers most savers a 3.77% APY.

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First Internet Bank Details​
Product Name​	Personal and Business Banking, CDs​
Savings APY​	3.77% (Money Market Savings)​
Monthly Fee​	$0 to $10 (waivable)​
Promotions​	None​

Table of Contents
What Is First Internet Bank?
What Does It Offer?
Are There Any Fees?
How Does First Internet Bank Compare?
How Do I Open An Account?
Is It Safe And Secure?
How Do I Contact First Internet Bank?
Is It Worth It?
First Internet Bank Features

What Is First Internet Bank?​

First Internet Bank was founded in 1999 by David Becker. This financial institution was the first state-chartered and FDIC-insured institution to operate entirely online. You can work with this bank from any state, if you are comfortable conducting all of your banking business online.

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What Does It Offer?​

First Internet Bank offers several different types of financial products, including business loans. But for the purposes of this review, we're focusing on the deposit account products.

Business Checking​

First Internet Bank offers business owners an interest-bearing checking account. As of writing, you can earn 0.50% APY, if you maintain an average daily balance of at least $10,000. You won’t face a monthly fee or minimum balance requirement to use this account.

In addition to earning interest, this account allows for unlimited business transactions and cash flow analysis tools.

Business Savings​

You can access a Business Money Market Savings and a Business Regular Savings account through First Internet Bank.

The Business Money Market Savings account comes with a 3.46% APY for balances of less than $5 million. With a balance above $5 million, the APY shoots up to 5.48%. The monthly maintenance fee of $5 can be waived if you maintain a daily balance of $4,000.

The Business Regular Savings account comes with a 0.91% APY for all balances. If you maintain an average daily balance of $1,000, you can avoid the $2 monthly fee.

Money Market Savings Account​

First Internet Bank offers a money market savings account.

As of writing, this account comes with a 3.77% APY for accounts with a daily balance of less than $1 million. If you have over $1 million to tuck away in this savings account, you’ll tap into a 5.48% APY.

The account comes with a monthly maintenance fee of $5. But you can avoid the fee by maintaining an average daily balance of at least $4,000. You’ll need at least $100 to open this account.

Free Savings Account​

If you don’t want to worry about a monthly maintenance fee at any balance, First Internet's Free Savings account is an option. It currently comes with a 0.81% APY.

You’ll need at least $25 to open this account.

Interest-Bearing Checking Account​

You can tuck your funds into an interest-bearing checking account with First Internet Bank. As of writing, the account comes with a 0.50% APY. While there is a $10 monthly maintenance fee, you can avoid the fee by maintaining an average daily balance of $500.

You’ll need at least $100 to open this account. If you prefer a free checking option without any monthly fees, you’ll miss out on the interest-bearing features.

Certificates Of Deposit​

First Internet Bank offers a wide range of CD terms, many of which have attractive APYs attached. Here’s a look at the current CD rates:

• Earn 4.14% APY through a 3-month CD.
• Earn 5.18% APY through a 6-month CD.
• Earn 5.31% APY through a 12-month CD.
• Earn 5.04% APY through an 18-month CD.
• Earn 4.82% APY through a 24-month CD.
• Earn 4.66% APY through a 36-month CD.
• Earn 4.50% APY through a 48-month CD.
• Earn 4.55% APY through a 60-month CD.

When you open a CD, you are expected to keep the funds tucked away for the entire CD term. If you need to get your funds out early, you’ll face an early withdrawal penalty.

Business owners who want to save can also tap into CDs.

Are There Any Fees?​

Some of the accounts offered by First Internet Bank come with a monthly fee. But most allow you to waive the fee if you maintain a particular daily balance.

Other fees you might encounter vary based on how you plan to use the account. Some include a $3 paper statement fee, a $30 stop payment fee, a $20 outgoing domestic wire transfer fee, and a $5 cashier's check fee.

How Does First Internet Bank Compare?​

First Internet Bank might be the first online-only bank, but it’s far from the only option anymore. If you are looking for an online-only banking experience, here’s a look at the competition.

Ally Bank is a full-service online bank with attractive rates for savers. In addition to an interest-bearing checking account, Ally offers credit cards, retirement accounts, auto loans, personal loans, and mortgages. If you want to manage all of your finances under a single umbrella, Ally Bank might be a better fit.

CIT Bank is another online banking option that offers an interest-bearing checking account, CDs, and more. One perk is that you can choose accounts without monthly fees through CIT Bank.

Header
Rating​
Monthly Fee​	$0 to $10​	$0​	$0​
APY On Savings​	3.77% (MMS)​	4.20%​	5.05%​
CDs​
Fee-Free ATMs​
Cell	OPEN AN ACCOUNT	READ THE REVIEW	READ THE REVIEW

How Do I Open An Account?​

If you want to open an account with First Internet Bank, it only takes a few minutes. Be ready to provide your name, email, physical address, Social Security number, and other personal details to get started.

Is It Safe And Secure?​

First Internet Bank is an FDIC-insured bank, which means that your funds are protected from loss for up to $250,000 per person, per account type.

How Do I Contact First Internet Bank?​

If you need to get in touch with First Internet Bank, you can call 1-88-973-3424 or 317-532-7900. You also have the option of emailing [email protected]. The support team is available on weekdays from 7 a.m. to 9 p.m. and Saturdays from 9 a.m. to 3 p.m. EST.

The bank has earned 3.3 out of 5 stars on Trustpilot, 4.4 out of 5 stars in the Google Play Store, and 4.8 out of 5 stars in the Apple App Store. The generally positive reviews suggest you should have a pleasant experience with the bank.

Is It Worth It?​

First Internet Bank offers relatively attractive APYs. But for savers, you’ll need a whopping $1 million to tap into their top rates. Not only that, there's a $5 monthly fee on the Money Market Savings. Most online banks, including Ally and CIT Bank don't charge any monthly maintenance fees. They also offer higher savings APYs.

You can find attractive rates through the bank’s CD options if you're willing to lock your money in.

Overall, First Internet Bank is a worthwhile choice for savers who want to lock in high savings rates, especially on CDs. But make sure to shop around to confirm you are getting the best possible rates when you choose to open your account.

Check out First Internet Bank here >>

First Internet Bank Features​

Account Types​	Personal Checking and Savings Money Market Savings Business Checking and Savings CDs Cash Back Credit Card Personal Loans
Monthly Fees​	$0 to $10 (Waivable)​
Money Market Savings APY​	3.77%​
Branches	No
ATM Availability	Yes
Customer Service Email	[email protected]
Customer Service Numbers	1-888-973-3424 or 317-532-7900
Customer Service Hours	Mon-Fri: 7 AM to 9 PM Sat: 9 AM to 3 PM EST
Mobile App Availability	iOS and Android
Web/Desktop Account Access	Yes
Direct Deposit	Yes
Bill Pay	Yes
FDIC Certificate	#34607
Promotions	None

Editor: Colin Graves


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