First Internet Bank's 12-Month CD APY Raised

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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 opened with a $1k minimum deposit; there are no stated balance caps.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.68%$1k-First Internet Bank48 Month CD
2.68%$1k-First Internet Bank48 Month IRA (Traditional, Roth)
2.22%$1k-First Internet Bank12 Month CD
2.22%$1k-First Internet Bank12 Month IRA (Traditional, Roth)
Rates as of April 22, 2018.

In the past year, the 12-month CD has gained 77 bps in 14 rate increases, with the 48-month CD gaining 71 bps in seven rate increases.

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

First IB CDs exhibit the same flattening yield curve (relatively small difference between short- and long-term rates) that the majority of CDs being offered today are experiencing. Based on today's new rates, there is only a difference of 63 bps between First IB's 12- and 60-month CDs.

First Internet Bank CD comparison chart

According to First IB’s CD Overview page, the Early Withdrawal Penalty for the 12-month CD 180 days interest, and 360 days interest for the 48-month CD.

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 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 "A" on DepositAccounts.com, with a Texas Ratio of 2.47% (excellent), based on December 31, 2017 data. In the past year, First IB has increased its total non-brokered deposits by $554.48 million, excellent annual growth rate of 37.3% growth rate. Please refer to our financial overview of First Internet Bank (FDIC Certificate # 34607) for more details.

Opening its virtual doors in early 1999, First Internet Bank was the first state-chartered, FDIC-insured institution to operate solely via the internet. In the following 18 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 $2.76 billion and continues to be recognized as a top online bank.

In an December 2017 American Bank article, First IB’s CEO, David Becker, discussed his goal of “convincing doubters a branchless model works."

Do you anticipate such growth continuing?

We’re at 40% growth when the industry is at 3.5% to 5%. We anticipate somewhere in the 30% range next year. The key is great quality assets. We don’t want to grow for the sake of growth. There are good opportunities and we’re able to generate good assets. We have a great deposit base. The advantage we have with a national footprint is, if the economy is a little soft in one part of the country, you have the rest of the country to pull from. Our model makes us stronger in tough economic times than a traditional bank because we aren’t landlocked with a certain set of customers.

How the CDs Compare

When compared to 204 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 169 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 3/14/2018.

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
JRuoff
JRuoff   |     |   Comment #1
My daughter (a college student) started an account at this bank and set it up that it would NOT allow overdraws. She has a subscription that was set up on monthly EFT (for $10). While she was home for winter break...the subscription charge attempted a withdrawal. The bank declined the charge. So they company attempted again....and it was declined. But the 2 attempts resulted in two $38 charges even though the account never went negative. As a result of the two $38 charges....the account became a negative balance. So they sent her a letter to her college address. Since she did not get the letter until she got back to school....they started charging daily fees. When she got back to school...she was informed that she owed over $320 in fees!!! And this is for 2 attempts to withdraw from her account that they did not even honor!!! Absolutely absurd. I talked to the bank and they would not waive the fees. I instructed my daughter to close the account and open one at a different bank. I would advise anyone considering this bank to look elsewhere!!!
RJM
RJM   |     |   Comment #2
That's terrible. However, that could keep her from opening an account at other banks for many years. If they use Chexsystems and they probably do. Did you ask for a supervisor?
Reader
Reader   |     |   Comment #3
A few years ago, a relative, also a college student, had an unexpected debit to her Bank of America account which caused her account to be overdrawn. Before she learned about the overdraft, she used her debit card 6 or 7 times at Starbucks. BoA did NOT decline the transactions but charged her $38 overdraft fee for EACH cup of coffee!! The bank refused to waive or reduce the fees and she ended up closing her account. I think all banks love to have students as customers for this very reason.
Reader
Reader   |     |   Comment #5
I should add that she actually paid the fees and closed her account so as not to ruin her credit.
Sam
Sam   |     |   Comment #4
This would make a good local news story. I bet the bank would reverse all of those charges in a heartbeat if the story was aired.
Ted
Ted   |     |   Comment #6
Why would not have ample funds in her account? That makes no sense, she's in college so obviously she has some smarts.
Bogie
Bogie   |     |   Comment #7
My first thoughts also.

It falls under "personal responsibility".
First Internet Bank Increases All CD Rates
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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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Availability: Nationwide (internet bank)

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Availability: Nationwide (internet bank)

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The minimum deposit for any First IB CD is $1k, with no...

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Availability: Nationwide (internet bank)

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Deal Summary: 12-month CD (1.47% APY) and 18-month CD (1.56% APY), $1k minimum deposit

Availability: Nationwide (internet bank)

Four months ago, I reported that First Internet Bank (First IB) had raised the rates on most of its CDs, resulting in some of the best APYs offered by internet banks. First IB has added 8-9 bps to its short term CDs, with its 12- and 18-month CDs the most competitive when compared to both brick-and-mortar banks and internet banks.

The minimum deposit for any First IB CD is $1k, with...

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