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First Internet Bank CD review

Competitive rates for short- and long-term savings, but there’s a fee to close your matured CD.’s rating: 4.4 / 5.0


First Internet Bank is an online bank. It offers both short- and long-term CDs with its highest rate at 0.95% APY for its 5-year CD. But if you withdraw your money early, you’ll pay back all or more than what you would’ve made in interest.


1-year APY


3-year APY


5-year APY


Star rate4.4
3-month APY0.25%
6-month APY0.45%
1-year APY0.6%
18-month APY0.65%
2-year APY0.7%
3-year APY0.8%
4-year APY0.85%
5-year APY0.95%
Early withdrawal penalty90 days interest for terms of 1 to 5 months
180 days interest for terms of 6 to 23 months
360 days interest for terms of 24 to 60 months
Minimum deposit to open$1,000
Interest compoundingDaily

Review by

Heather Petty is a personal finance writer at Finder specializing in home loans, banking and insurance. After falling victim to a disreputable mortgage broker when buying her first home, she’s on a mission to help readers avoid similar experiences when managing their own finances. A self-proclaimed word nerd, her writing has been featured on MSN, and, among others. Heather previously worked as a technical writer and editor for the casino systems industry and is an internationally published young adult mystery author. She holds a bachelor’s degree in English with a minor in journalism from the University of Nevada, Reno.

Expert review

With a large selection of CD terms, First Internet Bank offers a variety of high-interest CD rate options to help you meet your savings goals. You have the option of opening a short-term CD ranging from three months to one year or a long-term CD ranging from 18 to 60 months.

But if you don’t have a checking or savings account with First Internet Bank, you’ll pay $5 to receive a check with your money after your CD matures.

How do I open a First Internet Bank CDs account?

If you have a checking or savings account with First Internet Bank, you can open a CD through your online account without filling out any paperwork. For those who don’t:

  1. Go to the provider’s site and follow the steps to apply.
  2. From the First Internet site, select Open an Account.
  3. Note the eligibility requirements and select Get Started.
  4. The CD you selected should be listed. From there, you can select Add Products to select multiple CDs, click the trash icon to delete one of your selections or click Next to open an account for the CDs listed.
  5. Enter your email and phone number, then choose whether to upload a photo of the back of your driver’s license or fill out a form with your personal information instead.
  6. Fund your CD.


You must meet the following requirements to open a CD with First Internet Bank:

  • US citizen or resident
  • At least 18 years old
  • Valid Social Security number
  • Government-issued ID

Required information

Have the following information ready before you apply:

  • Name, address and date of birth
  • Social Security number
  • Driver’s license
  • Email and phone number
  • Mother’s maiden name

Funding options

Fund your CD using one of the following methods:

  • Bank transfer
  • Transfer from your existing First Internet Bank checking or savings account

Benefits of a First Internet Bank CD

Look forward to the following benefits from your CD account:

  • Short-term options. First internet has 3- and 6-month terms to help you with your short-term savings goals.
  • Competitive rates. The interest rates on First Internet’s CDs are equal to or higher than its competitors.
  • Wide selection of terms. This bank offers eight different terms, allowing you to choose a term as short as three months or as long as 60 months. Or both if you want to diversify your savings.

What to watch out for

Keep in mind the following drawbacks before you decide to open a CD with First Internet Bank:

  • No branches. You’ll need to be comfortable doing all of your banking transactions online.
  • High early withdrawal fees. If you withdraw your money early, you may be paying as much or more than you would have made in interest, especially for the shorter CD terms.
  • Fee to close your account. Most CDs allow you to withdraw your funds and close your matured CD without a fee, as long as you do it within the grace period. But First Internet Bank charges $5 to send you the final check. To avoid the fee, you can transfer your funds into a First Internet Bank checking or savings account.

Compare with other CDs

Name Product 1-year APY 18-month APY 2-year APY 3-year APY 5-year APY
Quontic Bank CD
Lock in a high rate. Minimum of $500 required to open. Open your account in 3 minutes or less
State Exchange Bank CD
Locally-owned independent community bank. FDIC insured. No fees.
CIT Bank Term CDs
Choose from a range of terms with no maintenance fees and $1,000 minimum to open.

Compare up to 4 providers

If you’re not interested in investing with an online-only bank or you’re concerned about the early withdrawal fees, you’ll want to keep looking. As always, compare your options when considering a CD.

How do I cash in a CD?

When your CD matures, you have a 10-day grace period to select one of the following options:

  • Do nothing. If you don’t contact the bank, the CD will automatically rollover into a new CD of the same term at the interest rate of the new CD.
  • Withdraw the funds. Withdraw the funds within the 10-day grace period, thereby closing the account. You’ll pay a $5 fee to receive cash with the amount.
  • Use online banking. Transfer the funds into your First Internet Bank checking or savings account for free after it has matured.

What other savings products does First Internet Bank offer?

In addition to CDs, you can find the following savings products:

  • Free savings. A no-fee, no minimum balance account that earns 0.75% APY. You’ll need $25 to open the account.
  • Money market savings. Open this account with $100, but you need to maintain an average daily balance of at least $4,000 to avoid the $5 monthly maintenance fee. The account earns 1.0.5% interest.
  • Tomorrow’s Tycoons. This children’s savings account earns 0.25% APY and you’ll need $100 to open it.
  • Interest Checking account. Free first order of checks and Incoming wires. The account earns 0.3% APY.

Frequently asked questions

CDs ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We rate CDs and share certificates on a scale ranging from one to five stars based on what matters most to you. We consider two factors equally when rating CDs: minimum deposits and annual percentage yields (APYs) relative to term length. If a bank requires a different minimum opening deposit depending on the chosen term, we rate the CD based on the average minimum deposit across all terms. And although some institutions offer CDs with terms ranging from one week to 20 years, we only consider term lengths the FDIC uses in its monthly updates on national rates.

Read the full methodology of how we rate CDs.

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