First Internet Bank Raises All CD Rates

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Deal Summary: CDs – 12-month (2.89% APY), 24-month (3.11% APY), 48-month (3.30% APY), $1k minimum deposit.

Availability: Nationwide (pure internet bank)

With rate increases between 16 and 22 bps, First Internet Bank’s (First IB) has positioned its CDs within striking distance of the rate leaders. Of the eight CDs in First IB’s product line, the 12-month continues to be the most competitive. Any First IB CD can be opened with a $1k minimum deposit and there are no stated balance caps.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.25%$1k-First Internet Bank60 Month CD
3.14%$1k-First Internet Bank48 Month CD
3.03%$1k-First Internet Bank36 Month CD
2.96%$1k-First Internet Bank24 Month CD
2.88%$1k-First Internet Bank18 Month CD
2.81%$1k-First Internet Bank12 Month CD
Rates as of March 23, 2019.

The CDs are also available as IRAs (Traditional and Roth), earning the same APYs and with the same funding requirements.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.25%$1k-First Internet Bank60 Month IRA (Traditional, Roth)
3.14%$1k-First Internet Bank48 Month IRA (Traditional, Roth)
3.03%$1k-First Internet Bank36 Month IRA (Traditional, Roth)
2.96%$1k-First Internet Bank24 Month IRA (Traditional, Roth)
2.88%$1k-First Internet Bank18 Month IRA (Traditional, Roth)
2.81%$1k-First Internet Bank12 Month IRA (Traditional, Roth)
Rates as of March 23, 2019.

First IB's CD rates have been steadily increasing for quite some time, with no wild rate fluctuations or flashy rates that disappear quickly. Since the beginning of the year, the 12-month CD has gained 118 bps in 11 rate increases, with no rate decreases. In that same time period, all of First IB’s CDs added between 102 and 126 bps.

Since January, the yield curve (the difference between short- and long-term rates) has continued to flatten, even though overall rates have continued to rise. Based on the latest rates, there is a difference of only 51 bps between First IB's 12- and 60-month CDs, down from the already small 66 bps difference in January.

First Internet Bank CD comparison chart

As stated on First IB’s CD Overview page, the Early Withdrawal Penalty is 180 days interest for 6-, 12- and 18-month CDs, and 360 days interest for 24-, 36-, 48, and 60-month CDs.

Trust Accounts

First IB permits CDs and savings accounts to be opened in the name of a trust. As stated on the online application,

For any trust accounts, we require copies of trust documents verifying trustee(s).
Please submit via recommended instructions listed at the completion of the application.

Accessing Maturing Funds

Accessing maturing CD funds from internet banks can be a concern, as some institutions make it much easier to deposit your money then withdraw it. According to First IB’s FAQs,

If you notify us in writing prior to the maturity date that you do not wish to renew the CD, we will close the CD on the maturity date and mail a check to you for the balance of your CD.

If you’re looking to have immediate access to maturing funds,

If you also have a First IB checking or savings account, you may use online banking by going to Additional Services, then CD Maturity Options. You can transfer the entire balance of your mature CD into your checking or savings account and close the CD.

Availability

Headquartered in Fishers, Indiana, First Internet Bank provides internet banking services and products nationwide. All First IB accounts can be opened online, but First IB does allow CDs/IRA CDs to be opened through the mail.

CD and IRA CD rates are guaranteed as of the postmark date on the
envelope containing the signed application and funding for the account.

Bank Overview

First Internet Bank has an overall health rating of "B+" on DepositAccounts.com, with a Texas Ratio of 1.94% (excellent), based on September 30, 2018 data. First IB has an average capitalization level (8.54%), the result of holding $3.2 billion in assets with $273.16 million in equity. Please refer to our financial overview of First Internet Bank (FDIC Certificate # 34607) for more details.

First Internet Bank was the first state-chartered, FDIC-insured institution to operate solely via the internet when its virtual doors opened for business in early 1999. In the following 19 years, First IB accumulated accolades (including being named #1 Online Bank by Gomez Advisors in 2001), while expanding in size and scope. First IB currently has assets in excess of $3.2 billion and continues to be recognized as a top online bank.

In May 2018, First Internet Bank was honored for its corporate culture and communications.

In a ceremony held May 3 to celebrate 125 companies in Indiana, First Internet Bank was ranked #8 among medium-sized (75-249 employees) companies. This marked the Bank’s fourth appearance among the “Best Places to Work.

In a separate ceremony held May 3, the Bank earned an award for marketing excellence from the Indiana Bankers Association. A panel of bankers reviewed entries and selected the honorees. The creative elements and messaging of the Bank’s winning digital marketing campaign summed up the Bank’s branchless banking value proposition with the reminder: “Money doesn’t grow on trees. But it does grow faster without branches."TM

How the CDs Compare

When compared to 215 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationally, First Internet Bank’s 12-month CD APY currently ranks third.

When compared to 212 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationally, First Internet Bank’s 24-month CD APY currently ranks third.

When compared to 177 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationally, First Internet Bank’s 48-month CD APY currently ranks third.

The above rates are accurate as of 12/27/2018.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Indianapolis CD rates, 1-year CD rates, 5-year CD rates, nationwide deals, Internet banks

Comments
First Internet Bank Ups All CD Rates
Deal Summary: 12-month CD (2.68% APY), $1k minimum deposit

Availability: Nationwide (pure internet bank)

About a month ago, I removed all of First Internet Bank’s (First IB) CDs from the bi-weekly Summary, because the APYs were falling behind in the quickly changing competitive rates race. Most of First IB’s CDs will be reinstated in next week’s Summary following this week’s rate increases.

The rate increases were either 15 or 16 bps for all CDs, with the exception of the 60-month CD which added 10 bps. Of all the...

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First Internet Bank Raises 12-Month CD Rate
Deal Summary: 12-month CD (2.22% APY), 18-month CD (2.32% AYP), 36-month CD (2.58% APY), and 48-month CD (2.68% APY), $1k minimum deposit

Availability: Nationwide (pure internet bank)

Last week, First Internet Bank (First IB) raised the rates on all its CDs for the fifth time in the past four months. The rate increases were 5 bps for all CDs, with the exception of the 60-month CD, which added 6 bps. Any First IB CD can be opened with a $1k minimum deposit and there are no stated balance...

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First Internet Bank's 12-Month CD APY Raised
Deal Summary: 12-month CD (2.10% APY), 48-month CD (2.58% APY), $1k minimum deposit

Availability: Nationwide (internet bank)

In the first two months of the year, First Internet Bank (First IB) raised the rates on all its CDs twice. First IB has upped its CD rates today for a third time in as many months, with increases between 3 and 16 bps. While the new APYs are not outstanding, the 12-month CD (2.10% APY) and 48-month CD (2.58% APY) are still quite competitive. First IB CDs can be...

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First Internet Bank Increases All CD Rates
Deal Summary: 12-month CD (1.87% APY), 18-month CD (1.97% APY), $1k minimum deposit

Availability: Nationwide (internet bank)

First Internet Bank (First IB) has ended the week by raising the rates on all its CDs, with increases between 5 and 16 bps. While none of the new rates are really “wow-worthy,” the 12-month CD (1.87% APY) and 18-month CD (1.97% APY) are nonetheless competitive. In the past year, the 12-month CD has gained 71 bps in twelve rate increases, with the 18-month CD gaining 66 bps in ten rate...

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First Internet Bank Raises Short-Term CD Rates Again
Deal Summary: 12-month CD (1.71% APY), 18-month CD (1.79% APY), $1k minimum deposit

Availability: Nationwide (internet bank)

At the beginning of the year, First Internet Bank (First IB) began raising the rates on its 12- and 18-month CDs in small but steady steps. The latest increases happened this week, with the 12-month (1.71% APY) and 18-month (1.79% APY) reaching their highest rates in almost eight years. Since early January, the 12-month CD has gained 55 bps in ten rate increases, with the 18-month CD gaining 45 bps in...

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