First Internet Bank Review

Pros

• High APY for investment accounts
• Waivable monthly fees
• Investment accounts & lending available

Cons

• High balance required for top APY rates
• Standard savings account APY is less competitive

What Is First Internet Bank?

Living up to its name, First Internet Bank was one of the first banks to be created fully online. Founded in 1999, it claims to be “the first state-chartered, FDIC-insured institution to operate entirely online.”

An innovative entrepreneur founded First Internet Bank, so it serves other entrepreneurs by offering business banking, business funding, and even personal banking services.

Services Offered By First Internet Bank

First Internet Bank gets a solid 5.0/5 rating for services. The company offers business checking, savings, high-yield investment accounts like CDs and money market accounts, plus a slew of business lending options.

If you’re looking for an all-in-one business bank for all of your banking and lending needs, First Internet Bank is a good contender with plenty of services offered, including:

• Savings
• Checkings
• CDs
• Money market accounts
• SBA lending
• Commercial real estate lending
• Commercial lending
• Government & non-profit loans

First Internet Bank Rewards & Perks

First Internet Bank doesn’t have the best reward offerings on the market, but you’ll still find some APY earnings. There are no cashback rewards for First Internet’s business checking account, but you can earn 0.50% APY. If you opt for a First Internet savings account, that APY rate goes up to 0.90%. These numbers are pretty meager compared to other online business bank accounts, earning it a 2.7/5 star rating for this section.

However, where First Internet Bank rewards really shine is in the company’s other account options.

If you choose a Money Market savings account, you can get an APY rate of 3.46%, and if you choose a CD, you’ll pay 4.14%—5.38%, depending on the term length. These APYs earn First Internet Bank a spot on our list of the best high-yield business savings accounts.

First Internet Bank Fees

First Internet Bank has a Commercial Checking account option and a Do More Business Checking option. Unfortunately, the company is not very transparent on its Commercial Checking account, but with the Do More Business Checking account, there’s no monthly fee and unlimited transactions.

For a First Internet Bank savings account, you’ll find a $2 monthly fee (waivable with a balance of $1k) and a transaction limit of 6 transactions per month.

For a First Internet Bank money market savings account, you’ll find a $5 monthly fee (waivable with a balance of $4k) and a transaction limit of six free transactions per month.

With all First Internet Bank business accounts, you’ll find:

• $3.00/per paper account statement
• $30 stop payment fee
• First ATM, debit, or credit replacement card fee, followed by $5 per additional card
• $15 for incoming wire domestic transfers
• $20 for outgoing wire domestic transfers
• $50 for outgoing international wire transfers
• $5.00/per cashier’s check
• $5.00 dormant account fee
• 2% foreign transaction fee
• $20 returned item fee

There’s a handful of other rarely occurring fees as well, but these are the most common fees you’ll encounter with First Internet Bank.

While some of these fees are so infrequent they’re inconsequential, others can pose a serious problem for businesses like the excessive wire transfer fees, earning First Internet Bank a mediocre 2.7/5 star rating for this section. While we appreciate the lack of ATM fees and ACH fees as well as the $10 monthly ATM reimbursement, the wire transfer fees are some of the highest we’ve seen in the online banking world, and the foreign exchange fee is relatively high as well.

It’s also worth noting that First Internet Bank’s CDs do have early withdrawal penalties.

First Internet Bank Eligibility Requirements

First Internet Bank supplies very few details regarding eligibility requirements.

The documentation provided in the application process indicates that First Internet Bank does not base decisions on credit history, credit score, revenue, or time in business. However, there are numerous complaints from customers being declined their application because of “consumer information” pulled about them. We wish that First Internet Bank was more transparent about its eligibility requirements and application process in general.

First Internet Bank does not support any gambling activity on its business bank accounts.

First Internet Bank Features

In terms of features, First Internet Bank earns an average rating of 3.3/5 stars.

The company offers a couple of standout features, like cash flow analysis and a “balance optimizer” that automates moving money from your checking account to your high-yield savings account.

However, some features are missing, like accounting integrations and cash deposits. Other features are available but lacking. For example, First Internet Bank’s savings account transaction limits are fairly limited compared to other options (though there are unlimited checking transactions to help work around this). Overall, First Internet Bank has some room to improve its features but does cover a good amount of the basics businesses need.

You’ll find:

• Bill pay
• Cash flow analysis
• Automated savings
• Wire transfers
•  ATM withdrawals & reimbursements
• ACH transactions
• Physical & mobile check
• Higher than average FDIC insurance
• Expense tracking

First Internet Bank Application Process

First Internet Bank boasts an easy application process that takes just minutes to complete. However, there aren’t many specifics besides that information. We can guess that you’ll need the standard documents required to open a business bank account. You’ll also need a $100 minimum deposit for certain First Internet Bank account types.

While the company boasts an easy application, there are numerous complaints about the application process, including application rejections with no explanation provided.

First Internet Bank Sales & Advertising Transparency

First Internet gets a low 2.3/5 star rating for sales and advertising transparency for two reasons.

First, First Internet does not disclose information regarding eligibility requirements or the application process. The company does provide a decent amount of information on banking fees, but it’s difficult to find on the website.

Second, there are quite a few negative customer reviews regarding the company’s sales tactics and unprofessional experiences. These two elements make up the poor score for this section.

First Internet Bank Customer Support

First Internet Bank customer support can be reached by email or phone. Phone support is available on Monday – Friday from 7:00 AM – 9:00 PM EST and Saturday from 9:00 AM – 3:00 PM EST.

There is also an FAQ section. While the FAQ section is quite built out, we found it missing several key FAQs, like what’s needed to open a bank account.

In addition to the limited FAQ section, there are quite a few complaints from customers regarding First Internet Bank’s customer support, resulting in a 2.6/5 star rating for this section.

First Internet Bank User Reviews

Unfortunately, First Internet Bank’s customer reviews definitely lean toward the negative.

Most complaints revolve around applications not being approved or bad customer service experiences. That said, the company is accredited by the BBB with an A+ rating. First Internet receives an aggregate third-party review score of 3.0/5, but most recent complaints are much lower in rating.

Negative First Internet Bank Reviews & Complaints

• Complicated application process
• Application takes longer than promised
• Application denied with no explanation
• Poor customer support

Positive First Internet Bank Reviews

• High APY
• App is easy to use
• Users appreciate the lack of debit card usage requirements

Is First Internet Bank Safe?

First Internet Bank is one of the most established online banks around with over 25 years of experience in online banking. The company also offers up to $500K in FDIC insurance (which is double the standard FDIC insurance amount).

How Does First Internet Bank Compare To Other Business Banks?

Overall, First Internet Bank compares favorably in certain aspects, and less favorably in others.

First Internet Bank’s savings accounts are competitive, and the money market account option offers a high APY rate. The company also offers a lot more services than many other online banking options, so if you want to do your banking, lending, and investing with the same company, then First Internet Bank is a good option.

First Internet Bank’s checking account is less competitive. Many other online banks offer better checking rewards, like cashback, and higher APY (First Internet Bank’s checking APY is 0.5%, whereas companies like Bluevine offer 2.0%).

Final Verdict: Is A First Internet Bank Account Worth It?

First Internet Bank has an impressive claim to fame being one of the first fully online banks. The company offers high APY for its savings accounts and a large array of business services, making it a good fit for businesses that want an online bank with lending and investing options available.

First Internet Bank is particularly competitive for money market accounts and certificates of deposit (CDs).

However, some of the company’s fees are very high, including its wire transfer fees and foreign exchange fees, the company’s checking account rewards are lacking compared to other online banks, and there are a slew of negative customer complaints.

So, depending on your company’s needs, First Internet Bank could be a good option, or an alternative could be better. If you want better checking rewards, Bluevine or LendingClub offer great checking account rewards. If you want less fees, Axos or Lili are good options. Or, if you want to keep the high APY but without some of the cons, Live Oak Bank has an APY of 4.00%.

Business Banking Review Methodology

Merchant Maverick has been researching and reviewing business banking services since 2015. Our writers have tested over thirty different banking products, including checking accounts, savings accounts, employee spending cards, and more. In each review, we evaluate rates and fees, services, rewards, features, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business banking products.

When comparing different banks and banking services, we consider many data points, including the ease and transparency of the account application process, account fees, sales ethics, minimum deposit requirements, and revenue, time in business, and credit score requirements. Our lists of the best banking services include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, valuable rewards, numerous transaction options, and competitive APY.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the banking services included meet our internal standards for quality and reputation.

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