First Internet Bank stands out as an early adopter of online-only banking, offering competitive rates on savings accounts, checking, CDs, and loans since 1999. Its absence of physical branches allows it to pass savings onto customers through higher interest yields. Here’s a detailed look at what First Internet Bank provides and whether it suits your banking needs.
Checking Accounts: Simple and Straightforward
First Internet Bank offers two checking account options: a free checking account with no balance requirements, and an interest-bearing account. While the interest-bearing option includes a $10 monthly fee, this can be waived with an average daily balance of $500.
Key takeaway : Over 80% of U.S. households use checking accounts, making them a fundamental banking product. First Internet Bank keeps its options simple: a low-barrier entry with the free account or a balance-dependent interest option.
Savings Accounts: Competitive Yields, Few Restrictions
First Internet Bank’s savings account stands out with no monthly service fees and higher APYs than many traditional banks. The opening balance is just $25, but withdrawals are limited to six per month.
Context matters : Interest rates on savings accounts directly correlate with broader economic trends. When the Federal Reserve raises rates, banks tend to increase deposit yields, making First Internet Bank’s flexibility an advantage.
Certificates of Deposit (CDs): Fixed Rates for Long-Term Savings
For those with funds they don’t need immediate access to, First Internet Bank offers CDs with terms ranging from 3 to 60 months. A $1,000 minimum deposit is required. This provides a predictable return in exchange for liquidity restrictions.
Money Market Accounts: Balancing Access and Returns
First Internet Bank’s Money Market Savings account offers competitive APYs, with tiered rates depending on balance. Balances under $1 million earn one rate; those over earn a higher yield. A $4,000 monthly balance is required to avoid a $5 maintenance fee, and a $100 minimum opening deposit is needed.
The fine print : The bank reimburses up to $10 per month in ATM fees, but withdrawals are limited to six per month.
Banking Experience: Digital-First Convenience
First Internet Bank excels in digital convenience. Its mobile app and website are user-friendly, with quick loading times and easy navigation. Customers can manage accounts in real-time, deposit checks, transfer funds, and pay bills seamlessly.
Ratings speak volumes : The bank’s mobile app scores 4.1 out of 5 on Google Play and 4.7 out of 5 on the App Store. Security is also prioritized, with encryption protecting personal data.
How First Internet Bank Stacks Up
First Internet Bank differentiates itself from larger institutions like Wells Fargo, Chase, and Bank of America.
- First Internet Bank vs. Wells Fargo : First Internet Bank is fully online, ideal for DIY bankers. Wells Fargo offers branch access, catering to those who prefer in-person service.
- First Internet Bank vs. Chase Bank : Chase emphasizes credit card rewards, while First Internet Bank focuses on higher savings yields.
- First Internet Bank vs. Bank of America : Both offer a range of services, but Bank of America may provide more loan options, including preferential rates for existing customers.
Final assessment : First Internet Bank is a strong choice for customers who prioritize digital convenience and higher savings rates. Those needing in-person banking or extensive branch networks may prefer traditional options. Comparing rates and features across banks remains crucial for maximizing financial gains.
