First Internet Bank of Indiana review

First Internet Bank of Indiana offers great CD rates if you're happy to lock your funds away.

First Internet Bank of Indiana review
(Image: © First Internet Bank of Indiana)

Top Ten Reviews Verdict

First Internet Bank of Indiana consistently offers attractive rates on its CDs, making it the perfect destination if you're comfortable locking your funds away for a better return. As an online bank overall, it has much more to offer too, including ATM fee refunds up to $10 a month and fee waivers for meeting certain conditions.


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    Highly competitive CD rates

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    ATM reimbursement


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    No interest on free checking account

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    Fees if you can't meet balance requirements

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Founded in 1999, First Internet Bank of Indiana has been making its mark among the best online banks ever since. As well as being the first FDIC-insured institution to operate entirely online, First Internet Bank takes pride in its community involvement and the many accolades it receives for being a good place to work.

Besides offering a wide range of banking and saving services to customers nationwide, this online bank caters to borrowers and home owners too. Credit cards, personal loans and auto loans are all available, alongside purchase and refinance mortgages as well. 

  • Note that rates were correct as at September 2020, but may have changed since.

First Internet Bank review: Account options

With an initial deposit requirement of $25, First Internet Bank of Indiana provides a very accessible free checking account. It has no monthly maintenance fee and no minimum balance requirement, but there's a small monthly fee if you want online and mobile bill payment. You won't earn interest with the basic checking account, but that's typical of internet banks. 

Key figures

Basic checking: 0%
Premium checking: 0.60%
Savings: 0.40%
Money market: 0.80%
Short term CD: 0.25%
Long term CD: 1.05%
Fund availability: 1-5 business days
Number of ATMs in Network: 450,000

Its interest checking account pays 0.60% and requires an initial deposit of $100. However, in order to earn interest and avoid a $10 monthly maintenance fee, you have to keep your minimum daily balance above $500. With both checking accounts, you receive a debit card and a free first order of checks.

The free online savings account can be opened with an initial deposit of $25 and will pay 0.40% - plus there's no monthly maintenance fee and no minimum balance. The money market interest rate of 0.80% is competitive and requires a $100 initial deposit. To avoid the $5 monthly maintenance fee, you need to keep your balance above $4,000.

Where First Internet bank really excels, however, is with its CDs, which must be opened with at least $1,000. Options are available for between three and 60 months, with the rates of interest rising gradually from 0.25% through to 1.05% the longer the term you are willing to take. However long you're happy to lock your money away for, the rate will be among the best that there is.  

First Internet Bank review: Features

When you are with an online bank, ATM access is critical - thankfully First Internet Bank of Indiana has more than 450,000 at its disposal. Incoming money transfers are free, but outgoing ACH transfers are $5 each and outgoing domestic wire transfers are $20 each. However, if you have a premium checking account, savings account or money market account, you get up to $10 in ATM fee reimbursements each month. 

The First Internet Bank mobile app is available for iPhone, iPad and Android phones and can be downloaded from the App Store or Google Play. Be aware, however, that the mobile banking system does not provide for fund transfers to or from accounts you hold with other banks. You must sign in to the online system to do this. 

First Internet Bank of Indiana review

(Image credit: First Internet Bank of Indiana)

First Internet Bank review: Service

When you need customer service, you can contact the bank via email by filling out the secure form on its website. You can also call or use live chat during the online-only bank's extended business hours. Funds are available between one and five days after you make a deposit, which is a little longer than average for online-only banks.

First Internet Bank review:  Security

Of course, First Internet Bank of Indiana is FDIC insured, which means your money is recoverable in the event the bank fails. All of the usual security measures are in place to protect you too, including two-factor authentication and notifications to alert you when certain activities occur on your account. If you suspect anything untoward, you should contact the bank by phone as soon as possible. 

Should you choose First Internet Bank? 

First Internet Bank of Indiana offers great rates for its CDs and a wide range of terms too. If there are fees to be paid on any of its other accounts, these can usually be waived by meeting minimum balance requirements. Its network of ATMs is impressive, while the reimbursement of up to $10 of fees will appeal to online banking customers too. 

Tim Leonard

With over 20 years’ experience in the financial services industry, Tim has spent most of his career working for a financial data firm, where he was Online Editor of the consumer-facing Moneyfacts site, and regularly penned articles for the financial advice publication Investment Life and Pensions Moneyfacts. As a result, he has an excellent knowledge of almost areas of personal finance and, in particular, the retirement, investment, protection, mortgage and savings sectors.