First Internet Bank Review: Checking, Savings and CDs

High rates and ATM fee rebates are big draws for First Internet Bank, but customers may be subject to monthly fees on some accounts.
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Written by Chanelle Bessette
Lead Writer
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Edited by Sara Clarke
Assistant Assigning Editor
 
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First Internet Bank
  • Money market
  • Checking
  • Certificates of deposit
  • Customer experience
  • Overdraft fees

Overall institution rating

4.2

NerdWallet rating 
The bottom line:

First Internet Bank is an online-only bank that offers high rates on many of its products. To avoid monthly fees, however, you’ll need to have relatively high daily average account balances. The bank doesn’t have its own ATM network, but customers can get up to $10 per month in ATM fee rebates with certain accounts.

Best for: Customers who are looking for high interest rates and have high enough balances to avoid monthly fees.

Pros

  • No overdraft fees.
  • No monthly fees on some checking and savings accounts.
  • Competitive rates on some checking accounts, savings accounts and certificates of deposit.
  • ATM fee rebates.
  • Highly rated mobile apps.

Cons

  • Monthly fees (though some are avoidable).
  • High minimum balance requirements to avoid fees.
  • No branch access.

Full review

Money market

First Internet Bank Money Market Savings
First Internet Bank Money Market Savings

Money market

Member FDIC

3.8

/5 NerdWallet rating 
APY
3.77%
With $0.01 min. balance for APY
Bonus
N/A

On its Money Market Savings account, First Internet Bank offers a solid 3.77% APY for balances of $1 million or less and a high 5.48% APY for balances over $1 million. While keeping that much cash on hand is not always advised, since you’ll likely earn more by investing it, a savings account is a stable and accessible place for your money. If you’re keeping a large amount on hand for something specific, such as a down payment on a house you’re purchasing soon, it makes sense to keep that money in a savings account.

First Internet Bank partners with the IntraFI Network Deposits program to provide full federal insurance on deposits, even when those deposits exceed the usual $250,000 insurance limit through the Federal Deposit Insurance Corp.

The account has a $5 monthly fee that can be waived with a $4,000 average daily balance, and the minimum opening deposit is $100.

» SHOP AROUND: See the best high-yield savings accounts

First Internet Bank also has a Free Savings account which earns a lesser rate of 0.81% APY, has no monthly fee and has a minimum opening deposit of $25.

Checking

First Internet Bank Interest Checking
First Internet Bank Interest Checking

Checking

Member FDIC

3.8

/5 NerdWallet rating 
Monthly fee
$10.00
Waived with $500 minimum balance
APY
0.50%
With $500 min. balance for APY
Bonus
N/A

First Internet Bank’s Interest Checking account has a solid 0.50% APY, which is well above average for checking accounts that offer interest. The account has a $10 monthly fee, which can be waived with a daily average balance of $500. The bank also requires a $100 minimum opening deposit, which is high for a checking account.

An unusual aspect of First Internet Bank is that it isn’t part of a free ATM network; instead, customers can use any ATM and get reimbursed for the fees, up to $10 per month.

» CONSIDER: See the best checking accounts

The bank also offers a Free Checking account, which has no monthly fee and a minimum opening deposit requirement of $25. This account doesn’t earn interest, and customers don’t get an ATM fee reimbursement.

Certificates of deposit

First Internet Bank CD
First Internet Bank CD

CD

Member FDIC

3.9

/5 NerdWallet rating 
1-year APY
4.42%
3-year APY
3.77%
5-year APY
3.67%
Minimum deposit
$1,000

First Internet Bank offers the typical range of high-yield CDs with term lengths from three months to five years. The minimum to open a CD is $1,000.

» COMPARE: See our list of best CD rates

  • 3-month CD: 3.72% APY.

  • 6-month CD: 4.35% APY.

  • 1-year CD: 4.42% APY.

  • 18-month CD: 4.15% APY.

  • 2-year CD: 3.93% APY.

  • 3-year CD: 3.77% APY.

  • 4-year CD: 3.62% APY.

  • 5-year CD: 3.67% APY.

Customer experience

4.6

NerdWallet rating 

First Internet Bank has no branches as an online-only bank, so customers need to be comfortable using remote customer service options. The bank’s call center is open Monday through Friday from 7 a.m. to 9 p.m. ET and on Saturdays from 9 a.m. to 3 p.m. ET. There’s also live chat on the website. The bank’s mobile app is also highly rated in the Google and Apple app stores.

Overdraft fees

4.9

NerdWallet rating 

First Internet Bank eliminated overdraft fees in 2022. There are a couple of overdraft coverage options available, including an overdraft line of credit and overdraft protection transfers from a linked savings account. There is no fee for the overdraft protection transfer, but customers are subject to a relatively high annual percentage rate for the overdraft line of credit.

Methodology

NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.

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