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