Founded in 1999, First Internet Bank of Indiana made history as the first state-chartered, FDIC-insured bank to operate entirely online. It offers a comprehensive range of financial products, including personal and business banking, health savings accounts (HSAs), and even kids’ accounts, making it a versatile choice for digital banking.
First Internet Bank’s product offerings
First Internet Bank provides a diverse selection of banking products, catering to both personal and business customers. Here’s an overview of its current offerings:
Checking Accounts
- Interest-Bearing Checking – Requires a $100 minimum deposit and comes with a $10 monthly fee.
- Free Checking – No monthly maintenance fees or daily balance requirements, but it does not earn interest.
Savings Accounts
- Standard Savings – Open with just $25, with no monthly fees. However, a high-yield savings option is not available.
- Kids Savings – Parents can open an account with a $100 minimum deposit. At age 18, the account converts to a standard savings account.
Money Market Accounts
- Requires a $100 minimum deposit and offers a tiered APY, with top-tier savers earning over 5% APY.
Certificates of Deposit (CDs)
- Terms range from 3 to 60 months, with a $1,000 minimum deposit.
- Early withdrawal penalties apply, up to 360 days of interest.
- Current CD rates start at 4% APY and higher.
Health Savings Accounts (HSAs)
- No monthly fees or minimum balance requirements.
Credit Cards
- Cash-Back Card – Earn 3% cash back on gas and 1% on all other purchases with no annual fee.
Loans & Financing Options
- Personal Loans – APRs starting at 11.99%, with terms up to 60 months.
- Student Loans – Available for undergraduates, graduates, and parents in partnership with Sallie Mae. No origination fees or prepayment penalties.
- Auto & Specialty Vehicle Loans – Finance cars, boats, RVs, and horse trailers, with rates starting at just over 8%. Minimum loan amount: $10,000.
Business Banking
- Business Checking & Savings – Includes checking accounts, money market savings, standard savings, and business CDs.
Account fees
Here’s a breakdown of the fees First Internet Bank customers may encounter:
- Free Checking Account Monthly Fee: $0
- Free Savings Account Monthly Fee: $0
- Domestic Outgoing Wire Transfer: $20
- Foreign Outgoing Wire Transfer: $50
- Stop Payment Fee: $30
- Returned Deposit Item Fee: $20
- Overdraft Fee: $0
- Statement Copy Fee: $3 per statement
Pros and cons of First Internet Bank
Before opening an account with First Internet Bank, consider these key advantages and drawbacks:
Pros:
- Competitive APYs – Earn interest rates up to 5.46%, helping savers grow their balances faster.
- No Monthly Fees – Basic checking and savings accounts come with zero maintenance fees.
- ATM Fee Reimbursement – Customers with Interest Checking, Money Market Savings, or Regular Savings accounts receive up to $10 in ATM fee rebates per month.
Cons:
- No Physical Branches – As a fully online bank, in-person banking services are not available.
- Higher Minimum Deposits for Some Accounts – Opening a Money Market Account requires $100, while CDs require a $1,000 minimum deposit.
Customer support and mobile banking experience
First, Internet Bank offers multiple ways for customers to get support. Phone support is available Monday through Friday from 7:00 a.m. to 9:00 p.m. EST and on Saturday from 9:00 a.m. to 3:00 p.m. EST. Customers can also connect with a support specialist through live chat, email, or mail for additional assistance.
For on-the-go banking, First Internet Bank provides a highly rated mobile app that can be downloaded on the App Store (4.8-star rating) and Google Play (4.4-star rating). The app allows users to check account balances, deposit checks, transfer funds, pay bills, and more, offering a convenient and efficient digital banking experience.
Social and environmental impact
First Internet Bank highlights its dedication to community engagement and environmental sustainability. During the most recent reporting period, employees contributed over 500 hours to community service efforts. The bank also emphasizes its inclusive lending program, with 35% of its SBA loans going to minority-owned, female-owned, or minority-female-owned businesses.
On the environmental front, First Internet Bank has issued 38 loans to governmental entities to support energy efficiency and renewable energy projects. Additionally, the bank has made strides in improving the sustainability of its headquarters by installing electric vehicle charging stations and implementing energy-efficient lighting.
Is First Internet Bank Right for You?
Who Benefits Most from First Internet Bank?
First Internet Bank is best suited for individuals and businesses looking for a highly competitive online banking experience. Savers who want to maximize their returns will benefit from the bank’s high-yield APYs, which currently reach up to 5.46% on select deposit accounts. With no monthly fees on its basic checking and savings accounts, it is also an attractive option for fee-conscious consumers who prefer a low-cost banking experience.
Tech-savvy individuals who are comfortable managing their finances entirely online will find First Internet Bank’s mobile app and digital banking tools convenient and easy to use. Additionally, small business owners and entrepreneurs can take advantage of its business checking, savings, and SBA loan options, making it a solid choice for those looking to grow their businesses. Borrowers seeking personal loans, student loans, or auto and specialty vehicle financing may also find First Internet Bank’s lending options appealing due to competitive rates and flexible repayment terms.
Alternative Banking Options for Comparison
While First Internet Bank offers a strong lineup of banking products, some customers may prefer alternatives depending on their specific needs. Ally Bank is an excellent choice for those looking for high-yield savings and checking accounts with no minimum deposit requirements. Discover Bank stands out for its cashback checking account and fee-free online banking, making it a solid choice for everyday banking.
For those who prioritize early direct deposit and automated savings tools, Chime may be a better fit. Customers who want a mix of online banking with some physical branch access can consider Capital One 360, which offers select branch locations. Axos Bank caters to high-tech users, providing AI-driven financial tools and advanced banking solutions. Lastly, Marcus by Goldman Sachs is an excellent alternative for high-yield savings accounts and no-fee personal loans, making it a strong competitor for those focused on savings and borrowing.
Frequently Asked Question
Is First Internet Bank a legitimate and safe bank?
Yes, First Internet Bank is a legitimate, FDIC-insured financial institution. It was founded in 1999 as the first state-chartered, fully online bank and ensures secure digital banking with encryption and fraud protection.
What types of accounts does First Internet Bank offer?
First Internet Bank provides checking, savings, money market accounts, and certificates of deposit (CDs). It also offers health savings accounts (HSAs), business banking products, and various loan options.
Does First Internet Bank charge monthly fees?
No, First Internet Bank’s basic checking and savings accounts do not have monthly maintenance fees. However, some accounts, such as the interest-bearing checking account, may have fees unless balance requirements are met.
What are the APYs offered by First Internet Bank?
APYs vary by account type. The bank’s money market and CD accounts offer some of the highest interest rates, currently reaching 5.46% APY on select products.
Can I withdraw cash from an ATM with First Internet Bank?
Yes, First Internet Bank customers can withdraw cash at any ATM. Certain accounts, like Interest Checking, Money Market Savings, and Regular Savings, qualify for up to $10 in ATM fee reimbursements per month.
Does First Internet Bank offer loans?
Yes, First Internet Bank provides personal loans, student loans (through Sallie Mae), auto and specialty vehicle loans, and SBA loans for businesses.
How do I deposit checks with First Internet Bank?
Deposits can be made through the First Internet Bank mobile app using mobile check deposit, direct deposit, or electronic transfers from another bank.
Conclusion
First Internet Bank stands out as a top-tier online bank, offering competitive APYs, a diverse range of banking products, and a seamless digital experience. With high-yield savings, CDs, money market accounts, and low-fee checking options, it caters to savvy savers and budget-conscious consumers looking to grow their money without unnecessary fees.
The bank’s loan offerings, business banking solutions, and cashback credit cards make it a well-rounded choice for both individuals and entrepreneurs. Its mobile app and online banking tools ensure convenience, though the absence of physical branches may be a drawback for those who prefer in-person banking.