December 8, 2018 12:00 PM PT

First Internet Bank Review

Read more about First Internet Bank
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Internet banking may seem new, but First Internet Bank has offered it since the late 1990s. Does their experience in the industry make them the best option?

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First Internet Bank was previously First Internet Bank of Indiana. They offer a whole suite of account options for consumers, giving you a variety of choices. You must handle all banking transactions with First IB online or with an ATM; they don't have any physical branches.

Keep reading to see how First Internet Bank stands up to the competition.

Checking Accounts

Each of the First Internet Bank checking accounts includes a free debit card, free incoming wires, online and mobile bill pay, and free eStatements.

  • Free Checking You can open the Free Checking account with as little as $25. This account doesn't pay interest and there is no monthly service fee. You'll receive your first box of checks free of charge and you'll receive a free debit card. Keep in mind that with this account, you are responsible for all ATM surcharges; there are no reimbursements.

  • Interest Checking With $100, you can open the Interest Checking and earn interest on your money. There is a monthly service fee, but you can avoid it with a $500 average daily balance. First Internet Bank will refund you up to $10 in ATM surcharges per month with this account. You can receive your first box of checks free of charge as well as a free debit card.

Savings Accounts

Each of the First Internet Bank savings accounts includes an ATM card, free incoming wires, free eStatements, unlimited deposits, and unlimited online and mobile banking.

  • Free Savings: With just $25, you can open the Free Savings account. There is no monthly service fee and you'll earn interest on your deposits.

    You won't be eligible for third-party ATM surcharges with this account and you may only make up to six withdrawals per cycle or you'll incur a fee.

  • Regular Savings: With $100, you can increase the amount of interest you receive on your savings. In order to avoid the monthly service fee, you'll need to keep an average daily balance of $1,000.

    You may be eligible to receive up to $10 in ATM surcharge reimbursements and you may only make six withdrawals per month without paying a fee.

  • Money Market Savings: You need $100 to open the Money Market Savings account, but you'll earn higher interest rates. First Internet Bank offers tiered interest rates for balances above $250,000 and below $250,000.

    In order to avoid the monthly service fee, you'll need a minimum daily balance of $4,000. You are eligible for ATM surcharge reimbursements and you may only make six withdrawals per month before incurring a fee.


If you want a low-risk investment that provides higher interest than a savings account, you may want to consider a First Internet Bank CD. You'll need at least $1,000 to open an account and the longer the term chosen, the more interest you will make.

First Internet Bank offers CD terms ranging from 3 months to 60 months. They don't charge any maintenance fees on their CDs and they will automatically roll your money over into another CD upon maturity. You have a 10-day grace period to withdraw the funds before you incur an early withdrawal penalty fee.

Related: Best CD Rates


You can open an IRA at First Internet Bank with as little as $1,000. First Internet Bank offers IRA CDs with varying maturity rates of 12 to 60 months. They also offer a Money Market IRA with tiered interest rates for balances above and below $250,000. Both the traditional and Roth IRA options don't have any annual fees.

Health Savings Account

You don't need a specific amount of money to open a Health Savings Account (HSA).

You do need to have a high-deductible health insurance plan to qualify, though. There is no monthly maintenance fee and you don't have to meet minimum balance requirements. You can use the funds to pay for eligible medical expenses and your money grows tax-free.

Tomorrow's Tycoons

Kids can also open a savings account at First Internet Bank. With just $100, kids up to the age of 18 can open this savings account. It earns interest and doesn't have a monthly maintenance fee. Kids also don't have to worry about meeting minimum balance requirements.

Upon the age of 18, this account automatically converts to a Regular Savings account.

Reasons We Like First Internet Bank

  • First Internet Bank has a large lineup of account options. Internet-only banks usually have only a few account options, but First Internet Bank has options for people of every age and financial need. You can compare the options to see which fit within your financial abilities to avoid unnecessary monthly service charges.

  • You can live anywhere in the U.S. and open an account. Because First Internet Bank is a branchless bank, they can provide bank accounts in all states. As long as you are comfortable dealing with your money electronically or via ATM, you may find this bank beneficial.

  • You can bank on the First Internet Bank app. You can obtain the same information on your mobile app that you could get on the First Internet Bank website. This makes it easy to bank while on the go.

    Whether you need a quick balance check or you want to transfer funds while you are away from home, you can manage your finances from your Apple or Android phone.

  • You can set up free bill pay. You can make manual payments, set up automatic payments, and even receive electronic bills within the First Internet Bank app. This can make it easier to stay on top of your monthly bills and put an end to late payments or missed bills.

  • The excessive withdrawal fee is lower than many other banks. Typically, if you open a savings account, you should do so to save money. In other words, you shouldn't make withdrawals. But, we all know life happens and it can cost money.

    If you make more than the six allowed withdrawals in a cycle, First Internet Bank only charges $5 for excessive withdrawals, which is less than half of what many banks charge.

  • First Internet Bank will replace a lost debit card at no cost the first time. If you lose your card a second time, then you'll be subject to their card replacement fee. They still keep the fee minimal though, compared to other banks.

  • You can set up overdraft transfer protection. If you happen to go over your checking account balance, you can have a First Internet Bank savings account or line of credit (interest charges will apply) set up to cover the overage.

    There is no fee for the overdraft transfer, which is a nice feature. Keep in mind, though, that the First Internet Bank only conducts transfers in $50 increments.

  • You can set up text message banking. With a simple keyword, you can check your account balance or see your last five transactions.

  • Your electronic deposits are available the next business day. As long as you meet the same-day cutoff, your funds will be available in your account the next business day.

  • First Internet Bank is FDIC insured. If First Internet Bank was to go out of business, your deposits, up to $250,000, would be protected. Knowing this can make it easier to take a chance on a bank that you can't physically see.

Reasons You May Want to Look Elsewhere

  • The minimum balance requirements tend to be rather high for a savings account. You need at least $1,000 for Regular Savings and $4,000 for the Money Market Savings to avoid the hefty monthly service fee.

    This may not be feasible for many consumers, especially those new to saving.

  • You have to pay for paper statements. You can receive eStatements free of charge on each of the First Internet Bank accounts. If you prefer paper statements, though, you'll pay a per-statement fee for each one.

  • You may pay a fee to cash out your CD upon maturity. Typically, you can withdraw your funds from a CD upon maturity or within 10 days. At First Internet Bank, you may pay a fee if you don't have the funds deposited into your First Internet Bank checking or savings account.

How It Compares

  • Capital One 360 Capital One 360 has similar account offerings to First Internet Bank. They promote their "fee free" accounts as well. One advantage they have over FIB is the ATM network they belong to - you can find Allpoint ATMs throughout the United States, making it easy to avoid ATM fees from Capital One and the third-party bank.

  • Marcus by Goldman Sachs If you are in the market strictly for a savings vehicle, Marcus by Goldman Sachs offers competitive rates on savings accounts and CDs. You don't need a minimum balance to open an account and they offer competitive interest rates.

Bottom Line

First Internet Bank has a lot of account options to offer consumers. If you prefer all of your bank accounts at the same bank and you want competitive APYs, you may want to put First Internet Bank on your list of options.

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Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Read Next:

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Capital One 360 Review

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