First Internet Bank of Indiana (First IB) is an online bank that was established in 1999. Functioning as one of the largest online banks in the U.S., First IB offers competitive, high-yield interest rates and a variety of account options to its users. Its two certificate of deposit (CD) options include personal and business CDs. Whether you choose a personal or business CD, both offer some of the best CD rates and terms around.
You’ll also be able to access your First IB CDs through online and mobile means. The bank compounds the interest for both CD options on a monthly basis.
To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.
First IB High-Yield Personal Certificates of Deposit
The First IB high-yield certificates of deposit function as the bank’s standard CDs. The terms range from three months to 60 months and come with fixed interest rates. This means that you’ll earn higher interest the longer you keep your money in a CD.
Furthermore, First IB’s CDs come without monthly maintenance fees, and the bank automatically renews your CD. However, you will be charged an early withdrawal penalty if you take out money prior to maturity. But after the maturity date, you’ll have a 10-day grace period to make any withdrawals without being charged.
| High-yield personal CD | Minimum Deposit | APY | |
| 3 Month | $1,000 | 4.14% | Compare CD Rates |
| 6 Month | $1,000 | 5.13% | Compare CD Rates |
| 12 Month | $1,000 | 5.26% | Compare CD Rates |
| 18 Month | $1,000 | 4.98% | Compare CD Rates |
| 24 Month | $1,000 | 4.76% | Compare CD Rates |
| 36 Month | $1,000 | 4.61% | Compare CD Rates |
| 48 Month | $1,000 | 4.45% | Compare CD Rates |
| 60 Month | $1,000 | 4.50% | Compare CD Rates |
3-Month CD Interest Rate Comparison
Overview of First IB CDs
First IB is an online bank, so you’ll only be able to access your accounts and funds through online and mobile means. In addition, you won’t have to pay any maintenance fees to keep a certificate account. Furthermore, all of First IB’s CDs are FDIC-insured to the maximum amount allowed by federal law.
It’s important to keep in mind that you can’t make any additional deposits into your CD account until it reaches maturity. At this point, you can withdraw, deposit or transfer funds. If you’d like to renew the CD, First IB will do it for you.
If you make any early withdrawals from your CD, you’ll be charged a withdrawal penalty. This ultimately lowers the amount of interest you can earn during your CD’s term. Specifically, First IB will charge you 90 days’ worth of interest for an early withdrawal.
How Much You Earn With First IB Certificate of Deposits Over Time
As with most interest-earning accounts, the longer you keep your money in a CD account, the more money you’ll make in the long run. Additionally, as with most online and non-online banks, longer CD terms typically generate higher interest rates. So it’s likely that you’ll be making more money if you choose a 12-month CD over a 6-month CD. Longer-term accounts will help you earn hundreds more in savings than you would with a shorter terms.
Interest is compounded monthly through First IB CDs, meaning your interest builds upon itself every month. First IB’s longest term offers competitive rates. However, you may want to consider other options if you want your money to grow at a faster rate. For instance, some banks compound interest daily. This means that your interest increases by reinforcing itself every day. The table below shows how much you could earn at various deposits and terms through First IB.
| Initial Deposit | 6-Month CD | 12-Month CD | 60-Month CD |
| $1,000 | $1,025.33 | $1,052.60 | $1,246.18 |
| $2,500 | $2,563.32 | $2,631.50 | $3,115.45 |
| $5,000 | $5,126.65 | $5,263 | $6,230.91 |
| $10,000 | $10,253.29 | $10,526 | $12,461.82 |
Compare First Internet Bank to Other Competitive Offers
How First IB CDs Rates Compare to Other Banks’
Another online bank that offers a variety of competitive interest rates and terms is Marcus by Goldman Sachs. You’ll have to pay a $500 minimum to open a high-yield Marcus CD, and you’ll be able to earn at higher rates the longer your term is. You’ll additionally want to consider that First IB requires a $1,000 minimum, while Marcus only requires $500. The rates listed below apply to the $500 minimum category. Though Marcus’ six-month CD rates aren’t as competitive with First IB’s, its five-year rates (4.00% APY) put up more of a fight.
Though not an online bank, a similar interest rate competitor is Capital One. Its rates almost resemble Marcus’ rates a little closer, though they come up a little short. In addition, you won’t need a minimum balance to open a Capital One 360 CD.
| CD Account | First IB | Marcus by Goldman Sachs | Capital One | Chase |
| 6 Month | 5.13% | 5.10% | 4.25% APY (as of 4/11/24) | 0.01% |
| 1 Year | 5.26% | 5.00% | 5.00% APY (as of 5/9/24) | 0.01% |
| 3 Year | 4.61% | 4.15% | 4.00% APY (as of 4/11/24) | 0.01% |
| 5 Year | 4.50% | 4.00% | 3.90% APY (as of 4/11/24) | 0.01% |
Should You Get a First IB CD Account?
All in all, if you meet the eligibility requirements for a First IB CD, and don’t mind the $1,000 balance minimum, you should consider opening an account. First IB offers some of the highest online interest rates among online banks. The bank also doesn’t require maintenance fees to keep your certificate account. While both First IB’s high-yield personal and business certificates offer the same rates, each account will ultimately allow you to build a lot of interest over time.
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