First Internet Bank review July 2024: checking, savings, CDs, and more

Founded in 1999, First Internet Bank started as an online-only bank. It is Federal Deposit Insurance Corp. (FDIC)-insured, with headquarters in Indiana. Since it’s a digital bank, it might not be ideal if you want to visit physical branches. 

All rates and fees are current as of July 5, 2024, and are subject to change.

First Internet Bank

Checking accounts:	Include $10 in monthly ATM fee reimbursement
Savings accounts:	Open with as little as $25
Certificate of deposit (CD) rates:	Earn up to 5.26% APY

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Pros and Cons

Pros

• Above-average APYs on MMAs and CDs. Although a few banks have higher APYs on these products, it offers generous rates.
• Checking and savings account options with no monthly fees. No monthly minimum balance requirements or maintenance fees.
• Mobile deposit available. You can use the mobile app to deposit checks remotely. Of, if you prefer, you can also send checks in by mail.

Cons

• No physical locations. It’s even in the name of the bank: First Internet Bank. 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 (ADB) of $4,000.
• 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.

Who is First Internet Bank good for?

Unlike some online banks, which only provide one or two account types, First Internet Bank has nearly everything you’ll need to do all your banking in one place. You can open decent savings, checking, and CD accounts that are all better than what you’d find at a big national bank. The mobile app and website make it easy to access your account at any time. Overall, it’s best for someone who wants a simple, no-frills option for consolidating their accounts.

Who shouldn’t use First Internet Bank?

First Internet Bank is an all-in-one stop for banking, but only if you don’t care about maximizing your APYs. Its CD and money market offerings are near the top of the market, but its other products have lackluster interest rates. Also, First Internet Bank doesn’t have any in-person branches, so if you enjoy in-person support, another bank would suit you better.

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First Internet Bank rates and products

First Internet Bank offers various deposit accounts, such as money market, savings, CDs, and two types of checking accounts. 

Interest Checking Account

The interest checking account is a solid choice if you have more than $500 to leave in your checking account—the average daily balance you’ll need to maintain to waive the $10 monthly fee. While there aren’t any special checking account bonuses, you’ll score a 0.50% APY, more than seven times the national average rate for checking accounts. 

Free Checking Account

The free checking account is better for savers who don’t have a lot of cash to save and 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. 

You can access your money in either account 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.

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 0.81%. The best high-yield savings accounts have APYs that top 5%, so if you’re focused on yield, this account probably isn’t the best choice.

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. 

First Internet Bank savings rates compared to current top rates*

While First Internet Bank is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:

Money market accounts 

Although its savings account has a lackluster APY, its MMA has a competitive interest rate—a 3.77% APY for balances less than $1 million. If your daily balance is over $1 million, you'll earn a 5.33% APY. As with the savings account, customers are limited to six withdrawals per month.

While there are MMAs with higher APYs, First Internet Bank still provides an above-average interest rate as the national average for MMAs is a measly 0.68%. This account, however, is best for people who can maintain an average daily balance of $4,000—the amount needed to waive the $5 monthly maintenance fee.

Certificates of deposit

First Internet Bank offers 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 some.

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: Its personal loans have terms of up to 60 months and APRs starting at 11.99%.
• Auto loans: It has 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 (HSAs): 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 18. It requires a minimum opening deposit of $100 but has no monthly maintenance fees and offers a 0.81% APY.
• Business banking: If you manage your own business, First Internet Bank has an array of banking options, including business checking, business lending, and commercial real estate (CRE) lending.

The First Internet Bank platform and customer support 

Customers can access their First Internet Bank account online or via apps available in the Google Play store or Apple App Store. You can use online banking to view statements, make transfers, deposit checks, and more. You can also try out text message banking, where you receive your account balance, review your transactions, and transfer funds through short message service (SMS).

First Internet Bank has a digital check deposit feature called iScan. When you use it to deposit checks, you can get access to your cash the same business day as long as you scan a check by 3 p.m. Eastern time. 

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 a.m. to 9 p.m. ET and Saturday from 9 a.m. to 3 p.m. ET. Customer service is not available on Sundays.

Is First Internet Bank secure?

In 2023, First Internet Bank was one of 60 banks affected by the MOVEit data breach. MOVEit is a file transfer software that was hacked by the ransomware group CI0p. While this breach wasn't First Internet Bank's fault, some of its customers may have had their personal information stolen.

Otherwise, the bank has not had many security issues. It uses secure sockets layer (SSL) encryption to create a secure session every time you log in and only stores your account information in offline servers protected by firewalls.

First Internet Bank user reviews

Customers have a mixed opinion of First Internet Bank. On the negative side, many customers complain about being denied when applying for a CD—even with credit scores over 800. Most of the time, customer service could not explain the denial. Customers also reported frequent technical issues with the website, ranging from having money deposited in the wrong account to having trouble transferring funds.

It's not all negative, however. Whenever customers contacted customer support, they seemed to get a quick resolution to their problem. Even when reading customer reviews online, it appears that a representative from the bank has read and responded to most complaints.

Compare First Internet Bank alternatives

First Internet Bank	SoFi	Ally Bank
Top savings APY	Top savings APY	Top savings APY
0.81%	Up to 4.60%*	4.20%
Top checking APY	Top checking APY	Top checking APY
0.50%	0.50%	Up to 0.25%
Top CD APY	Top CD APY	Top CD APY
5.26%	N/A	4.50%
Other services	Other services	Other services
Credit cards Personal loans Auto loans HSAs  Accounts for kids Business banking	Investments Student loans and refinancing Personal loans Mortgage loans Auto loan refinancing Credit cards Insurance products Estate planning Financial insights Business financing and solutions	Credit cards  Investment accounts and services Home loans Personal loans
Learn more	Learn more	Learn more
View offer at Fiona	View offer at SoFi	View offer at Fiona

*SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

Is First Internet Bank right for you?

We recommend First Internet Bank for someone who prefers the convenience of online banking from a trusted provider. Founded in 1999, it's a reliable option that may have more staying power than other trendy online-only banks. With its variety of account types, straightforward website, and relatively available customer service, First Internet Bank can meet the needs of consumers who want a no-frills, simple banking experience.

Frequently asked questions