First Internet Bank Review (2025): Competitive Rates, Minimal Fees & a Fully Digital Banking Experience

Is First Internet Bank the Right Choice for You?

Exploring account options, interest rates, fees, and key features to help you decide.

Summary

Breaking new ground in digital banking, First Internet Bank of Indiana launched in 1999 as the first fully online, state-chartered bank with FDIC insurance. Over two decades later, it continues to stand out with a comprehensive suite of personal and business banking solutions, including checking and savings accounts, health savings accounts (HSAs), youth savings programs, credit cards, and loans. Recognized among the top 10 online banks of 2025, First Internet Bank combines competitive rates, low fees, and a seamless digital experience.

First Internet Bank Product Overview

First Internet Bank provides a diverse selection of financial products tailored to meet the needs of individuals, families, and businesses. Below is a detailed breakdown of its offerings.

Checking Accounts

Two primary checking account options are available, each catering to different financial needs:

• Interest Checking

  • Minimum Opening Deposit: $100

  • Monthly Maintenance Fee: $10(waivedwithanaveragedailybalanceof$500)

  • ATM Fee Reimbursement: Up to $10 per month

  • Interest Earnings: Competitive rates on balances

• Free Checking

  • Minimum Opening Deposit: $25

  • Monthly Maintenance Fee: None

  • ATM Access: No reimbursement, but no balance requirements

  • Best For: Customers seeking a no-frills, fee-free account

Savings Account

• Minimum Opening Deposit: $25

• Monthly Maintenance Fee: None

• Interest Rate: Modest, though not classified as high-yield

• Flexibility: Easy transfers between linked accounts

Money Market Account

• Minimum Opening Deposit: $100

• Tiered Interest Rates:

  • 3.61% APY on balances up to $1,000,000

  • 4.42% APY on balances exceeding $1,000,000

• Liquidity: Limited withdrawals (up to 6 per month)

Certificates of Deposit (CDs)

• Term Lengths: 3 months to 60 months

• Minimum Deposit: $1,000

• Early Withdrawal Penalty: Up to 360 days’ interest

• Competitive Rates: Higher yields compared to traditional savings

Health Savings Account (HSA)

• No Monthly Fees

• No Minimum Balance Requirement

• Tax Advantages: Triple tax benefits (tax-deductible contributions, tax-free growth, tax-free withdrawals for medical expenses)

Kids Savings Account

• Minimum Opening Deposit: $100

• Automatic Conversion: The account seamlessly transitions to a regular savings account once the child turns 18

• Educational Benefits: Encourages early financial literacy

Credit Cards

• Cash Back Rewards:

  • 3% Cash Back on gas purchases

  • 1% Cash Back on all other transactions

• No Annual Fee

Personal Loans

• APR Range: Starting at 11.99%

• Loan Terms: Up to 60 months

• Flexible Use: Debt consolidation, home improvements, major purchases

Student Loans

• Partnership: Sallie Mae

• No Origination Fees or Prepayment Penalties

• Options for Undergraduates, Graduates, and Parents

Specialty Vehicle & Auto Loans

• Financing Options: New/used cars, RVs, boats, horse trailers

• Rates Starting Below 8%

• Minimum Loan Amount: $10,000

Business Banking Solutions

• Business Checking & Savings Accounts

• Money Market Accounts & CDs

• Customized Lending Solutions

Pros and Cons of First Internet Bank

Advantages

✔ High-Yield Opportunities – Money market accounts and CDs offer some of the most competitive rates in the industry.
✔ Fee-Free Banking – Most accounts have no monthly maintenance fees, and those that do provide easy waiver options.
✔ ATM Fee Reimbursements – Eligible accounts receive up to $10 monthly in ATM surcharge rebates.
✔ Strong Digital Tools – User-friendly mobile app with high ratings (4.8 on iOS, 4.5 on Android).

Disadvantages

✖ No Physical Branches – Fully digital operations may not suit customers who prefer in-person banking.
✖ High Minimum Deposits – Money market accounts ($100)andCDs($1,000) require larger initial investments.
✖ Limited High-Yield Savings – The standard savings account does not offer top-tier interest rates.

Customer Support & Mobile Banking Experience

First Internet Bank ensures accessibility through multiple support channels:

• Phone Support: Telephone assistance is available Monday through Friday, 7 AM to 9 PM Eastern Time, and Saturdays from 9 AM to 3 PM.

• Live Chat, Email, & Mail: Additional contact options for convenience.

• Mobile App Features:

  • Mobile check deposits

  • Real-time balance tracking

  • Fund transfers & bill payments

Social & Environmental Responsibility

First Internet Bank emphasizes corporate responsibility through:

• Community Engagement: 500+ employee volunteer hours annually.

• Inclusive Lending: 35% of SBA loans allocated to minority- and women-owned businesses.

• Sustainability Initiatives:

  • 38 energy-efficient project loans

  • EV charging stations & energy-efficient upgrades at headquarters

Frequently Asked Questions (FAQs)

Is First Internet Bank a legitimate bank?

Affirmative. Customer deposits are protected by FDIC insurance with coverage limits of $250,000 per depositor.

Where is First Internet Bank located?

Headquartered in Fishers, Indiana, but operates entirely online.

What is the daily ATM withdrawal limit?

$750 per day, though individual ATM operators may enforce additional restrictions.

Final Verdict

First Internet Bank excels with high-yield deposit options, minimal fees, and a robust digital platform. While the lack of physical branches may deter some, its competitive rates and strong customer service make it a top contender among online banks in 2025.

Ideal For:

• Savers seeking high APYs

• Tech-savvy customers comfortable with digital banking

• Businesses & individuals looking for low-cost accounts

Consider Alternatives If:

• You prefer in-person banking

• The perfect product for you would be a high-earning savings account with no initial deposit needed.

First Internet Bank continues to dominate the online banking sector by successfully merging technological advancement, cost-effectiveness, and superior customer care.