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First Internet Bank of Indiana has the distinction of being the first FDIC-insured online bank. The full-service online bank was founded in Indiana in 1999 and continues to operate entirely online.
First Internet Bank of Indiana offers a host of personal banking products, including several high-yield interest-earning accounts, lending solutions and business services.
This review focuses on the online bank’s personal bank accounts and services. Here’s a detailed look at what First Internet Bank of Indiana has to offer consumers and how it stacks up next to other banking institutions.
There are two checking accounts available through First Internet Bank of Indiana:
- Interest Checking is an interest-bearing checking account that earns 0.65% APY. It requires a $100 opening deposit. Customers need to keep a $500 average daily balance to avoid its $10 monthly maintenance fee. This checking account also comes with up to $10 in ATM fee reimbursements each month.
- Free Checking is First Internet Bank’s other checking option. While it doesn’t earn interest, it also doesn’t charge a monthly maintenance fee. Free Checking accounts require a $25 initial deposit to open. And, unlike the bank’s interest-bearing checking account, there are no ATM fee reimbursements with its free checking option.
Both accounts feature free debit cards and a free first order of checks.
First Internet Bank of Indiana has one personal savings account for adults: Free Savings. Opening a savings account requires a minimum opening deposit of $25. There are no ongoing balance requirements and no monthly maintenance fees.
The bank’s Free Savings account option currently earns 0.70% APY, which is better than you’ll find at most national brick-and-mortar banks. But its rate isn’t as competitive when compared to the best online savings accounts.
Although recent changes to Regulation D have eased excess withdrawal limits on savings deposits, banks can still charge a fee for excessive withdrawals. Like most banks, First Internet Bank imposes a fee for making more than six transfers or withdrawals each month. Customers over the limit are subject to a fee of $5 per excess withdrawal.
Free Savings accounts come with a free ATM card, which isn’t the case with many online savings accounts. Account holders also get up to $10 per month in ATM fee reimbursements.
For even better interest earning, First Internet bank offers the Money Market Savings account. This money market account earns 0.91% APY, a better-than-average rate, and can be opened with a $100 minimum opening deposit. However, you’ll need to keep an average daily balance of $4,000 to waive the $5 monthly maintenance fee associated with the account.
Like its savings account, Money Market Savings accounts come with a free ATM card and monthly ATM fee reimbursements of up to $10. First Internet Bank of Indiana’s money market account also has a six transaction limit per month.
As with the savings account, money market account withdrawals in excess of six per month incur a $5 fee per withdrawal. (Despite recent Regulation D changes, banks can still charge a fee for excessive withdrawals.)
CDs from First Internet Bank of Indiana offer high-yield interest earning in exchange for letting your money sit for a longer term. There are eight CD term options ranging from three months to five years, earning up to 1.26% APY. A minimum deposit of $1,000 is required to open a CD account.
Interest on the online bank’s CDs is compounded and credited on a monthly basis. CDs automatically renew once they reach maturity unless written notice is sent before the CD reaches maturity.
Withdrawals from First Internet Bank CDs made before it reaches maturity are subject to an early withdrawal penalty between 90 and 360 days’ worth of interest depending on the CD term.
Other Accounts and Services
First Internet Bank of Indiana offers a few other accounts outside of its traditional bank account offerings:
- Tomorrow’s Tycoons children’s savings accounts
- Coverdell Education Savings accounts
- Health Savings Accounts (HSAs)
- Credit cards
Along with personal banking products, First Internet Bank has a host of lending services available to its customers:
- Personal loans
- Student loans
- Auto and recreational vehicle financing
- Home equity loans
- Fixed and adjustable-rate mortgages
- FHA loans
- VA loans
- Jumbo loans
- Home equity lines of credit (HELOCs)
- Mortgage refinancing
As one of the oldest online banks, it makes sense that First Internet Bank of Indiana offers both online and mobile banking. There’s even an option for text banking, although it’s limited to checking balances and recent transactions.
First Internet Bank’s mobile app is available on iOS (rated by customers as 4.8 of 5 on the App Store) and Android (rated 4.4 of 5 on Google Play). Customers can manage their accounts, view transaction history, pay bills, transfer funds and make mobile check deposits.
Most of the bank’s accounts come with a free ATM card and access. First Internet Bank of Indiana customers have access to thousands of fee-free ATMs in the Plus Alliance ATM Network.
- Full-service online banking
- Very competitive rates on money market accounts and CDs
- No fees or waivable fees on most accounts
- Large ATM network
- No physical locations
- Savings account rate is less competitive
How First Internet Bank of Indiana Stacks Up
First Internet Bank of Indiana checks most of the boxes if you’re looking for full-service banking online. Despite its moderate rate on savings, First Internet Bank offers competitive yields on its money market account, interest-bearing checking account and CDs. And you won’t face any monthly fees banking with First Internet Bank.
But the $4,000 minimum balance needed to waive the money market account’s monthly fees may not be ideal for many potential customers. First Internet Bank of Indiana is also not the right choice if you need in-person banking service and support, since it’s an online bank.
Frequently Asked Questions
Is First Internet Bank of Indiana FDIC insured?
Yes, First Internet Bank of Indiana is FDIC insured (FDIC# 34607). The federal government protects your money up to $250,000 per depositor, per ownership category, in the event of a bank failure.
Does First Internet Bank of Indiana offer business accounts?
Yes, First Internet Bank of Indiana offers both business and commercial banking solutions, including deposit accounts and lending options.
Does First Internet Bank of Indiana offer any loans?
Yes, First Internet Bank of Indiana offers a variety of loan options, including auto and recreational vehicle financing, personal loans, student loans and several mortgage options.
Does First Internet Bank of Indiana have credit cards?
Yes, First Internet Bank of Indiana has a cash back credit card available. It earns 3% cash back on gas purchases and 1% cash back on all other purchases.
Does First Internet Bank of Indiana have local branches?
No, First Internet Bank of Indiana is an online bank with no physical branches.
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