First Internet Bank of Indiana Review 2021

Published January 2021 by Matthew Goldberg

AT A GLANCE
4.5

Bankrate Score

bank-logo

ATM fee refunds

Top CD rates

First Internet Bank of Indiana is best for those looking for a variety of different accounts. It offers two checking accounts, a money market account, a savings account and eight terms of CDs.

  • CDs
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    4.7
  • Savings
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    3.9
  • Checking
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    4.8
  • MMAs
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    3.9
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Quontic Bank

    Member FDIC

    Checking account

    1.01 % APY

    $ 100

    To open

    $ 0

    To avoid fees

    Overall

    4.5

    Bankrate Score

    First Internet Bank of Indiana has been around since February 1999. It is an online bank that serves all 50 states.

    What we like

    • First Internet Bank won’t charge you for ATM withdrawals.

    • You can make deposits at some PLUS ATMs.

    • The bank allows you to send money using Zelle.

    • The Free Savings has no monthly service fee, a low minimum to open it and it reimburses up to $10 of out-of-network ATM fees.

    What we don't

    • First Internet Bank doesn’t have any branches.

    • First Internet Bank’s Interest Checking account reimburses $10 per month for ATM fees charged by other banks. But after that, you’ll be charged those additional fees.

    • The bank’s Money Market Savings requires an average daily balance of $4,000 to avoid the $5 monthly service fee.

    • The bank will charge you $5 for replacement ATM or debit cards after your card is replaced for free the first time.

    CD rates

    4.7

    Bankrate Score

    First Internet Bank offers eight terms of CDs, all paying very competitive APYs. The terms range from three months to five years. First Internet Bank CDs require a minimum of $1,000 to open one.

    There’s an early withdrawal penalty of 90 days interest on a three-month CD and a 180 days of interest penalty on the six month, one year and 18-month CDs. An early withdrawal on a CD of two years or longer will cost you 360 days of interest.

    What we like

    • First Internet Bank offers a variety of traditional CD terms.

    • First Internet Bank clearly lists early withdrawal penalties on its website. It’s not in the fine print or hard to find like at some other banks.

    What we don't

    • An early withdrawal from a First Internet Bank CD ranges from 90 days of interest for a three-month CD to 360 days for CDs two years or longer.

    • First Internet Bank doesn’t offer a no-penalty CD.

    Savings accounts

    3.9

    Bankrate Score

    The Free Savings account requires only $25 to open it. The account gives you up to $10 per month in ATM surcharge rebates and it doesn’t charge a monthly fee.

    What we like

    • The Free Savings account doesn’t have a monthly maintenance fee.

    • First Internet Bank reimburses up to $10 in ATM fees per month and doesn’t charge you for using an ATM in the U.S.

    • The minimum deposit to open the Free Savings is low.

    What we don't

    • A fee applies if an ATM transaction occurs internationally.

    • There are savings accounts that earn higher APYs available.

    Checking accounts

    4.8

    Bankrate Score

    OTHER CHECKING OFFERS YOU MAY LIKE
    Quontic Bank

    Member FDIC

    Checking account

    1.01 % APY

    $ 100

    To open

    $ 0

    To avoid fees

    The First Internet Bank Free Checking account only requires a $25 deposit to open the account.

    The account has a $30 overdraft fee. This is still a costly fee for overdrawing your checking account. But it is a little below the average overdraft fee of $33.47.

    First Internet Bank checking customers get a free first order of checks, free incoming wire transfers, Apple Pay and access to Zelle regardless of which checking account they choose.

    The Free Checking doesn’t offer interest and also doesn’t have ATM surcharge reimbursements.

    Customers looking for up to $10 in reimbursements for ATM out-of-network fees may want to consider the First Internet Bank Interest Checking account. That account requires $100 to open it and you’ll need to keep an average daily balance of $500 in order to avoid the $10 monthly service fee.

    People who choose the Free Checking account won’t be charged a fee from First Internet Bank for withdrawals in the U.S. or in a U.S. territory. But the out-of-network ATM will likely charge you a fee.

    It's not clear on its website how many free ATMs the bank makes available to customers. But First Internet Bank customers may be able to make deposits at Plus ATM locations.

    At First Internet Bank you’ll be able to use Zelle to send money to others. It also allows you to use Apple Pay with your debit card to pay vendors that accept mobile wallet payments.

    What we like

    • You only need $25 to open the Free Checking.

    • The Free Checking account doesn’t have a monthly service fee.

    • The Interest Checking account lets you earn interest and get up to $10 of ATM surcharge rebates per month.

    • It doesn’t matter which checking account you choose, your first order of checks is free at First Internet Bank.

    What we don't

    • You’ll need to keep at least $500 in the Interest Checking account to avoid the $10 monthly maintenance fee.

    • The Free Checking account doesn’t earn interest.

    • The Free Checking account doesn’t reimburse out-of-network ATM fees.

    Money market accounts

    3.9

    Bankrate Score

    First Internet Bank has a Money Market Savings account that offers a competitive APY. The account also has an ATM card and doesn’t charge a fee for incoming wire transfers.

    The Money Market Savings also refunds up to $10 of monthly ATM surcharges.

    The bank doesn’t offer check-writing privileges.

    What we like

    • An ATM card is available for the Money Market Savings Account.

    • You only need $100 to open the Money Market Savings Account.

    What we don't

    • You need to keep an average daily balance of $4,000 to avoid the $5 monthly fee.

    • Other accounts may offer a higher ATM surcharge rebate or better ATM benefits.

    Bank experience

    First Internet Bank’s app had a 4.8 rating on the Apple App Store and a 4.4 rating on Google Play, during our review. First Internet Bank doesn’t have any branches. It does have customer service available on the phone from 7 a.m. to 9 p.m. Eastern during the week and 9 a.m. to 3 p.m. on Saturday.

    The bank’s website also allows you to chat with relationship bankers.

    About First Internet Bank of Indiana

    First Internet Bank of Indiana is an online bank that has been around for more than 20 years. First Internet Bank was the first FDIC-insured bank to operate entirely online, according to the bank. It offers checking accounts, a savings account, a money market account and CDs.

    Matthew Goldberg Twitter Created with Sketch. @MATTATBANKRATE

    Matthew Goldberg Twitter Created with Sketch. @MATTATBANKRATE

    Matthew Goldberg is a consumer banking reporter at Bankrate. He uses his banking and financial services experience to help readers with personal finance. Nearly his entire career has either been as a reporter or working in financial services, in banking and insurance. He’s been in financial services for more than a decade. His career includes being a banker in New York City. His reporting career includes working as a staff reporter at two daily newspapers. He earned his first newspaper bylines in 1998. He has been honored by both the Illinois Associated Press Editors Association and the Illinois Press Association. His writing has been featured online on MSN, the Miami Herald, the Houston Chronicle, the Omaha World-Herald, The Kansas City Star, the Arizona Daily Star, and appeared in Sports Illustrated On Campus, The Atlanta Journal-Constitution, The Buffalo News and other publications. Matthew’s radio experience includes being a weekly panelist on the SportsWriter’s show on WGEM AM ESPN 1440 in Quincy, Illinois. He was also an occasional co-host and call-in guest on WGEM SportsCenter. He’s also been a guest on other stations throughout the country. Matthew is currently a member of the Board of Governors at the Society for Advancing Business Editing and Writing (SABEW), which is the world's largest and oldest organization of business and financial journalists. He is on the organization’s training and finance committees. He has previously served on conference planning committees and has been a Best in Business contest judge for the organization. Matthew earned a bachelor’s degree at Illinois State University and an MBA at William Paterson University. Media mentions CNBC CNBC Acorns + CNBC WGN Radio 720 in Chicago 1080 KRLD Dallas-Fort Worth