First Internet Bank is an online bank with no physical locations. It was founded by David Becker in 1997and is one of the first banks of its kind. First IB became a subsidiary of First Internet Bancorp in 2006. Their portfolio includes retail banking, investments, and commercial real estate and lending. The First IB headquarters is in Indianapolis, Indiana. They pride themselves in using the money they save by not having branch offices to offer high interest rates on savings, efficient technology features and low fees.
First IB is an online bank, only. Customers access their accounts and conduct transactions from the online website, mobile website, or their mobile app. The online website is updated and allows customers to experience the same services that they would have if inside an actual bank.
The account information online is presented in real time, meaning customers view information that has up to the moment accuracy. They can make unlimited outside transfers and payments. Customers can also glance at their most recent transactions, or view multiple accounts simultaneously.
Mobile banking options are just as helpful:
A First IB banker can choose to use a computer, a mobile app or a mobile web address to access any of the personal banking products. With the Interest Checking and Free Checking accounts, they both offer free, unlimited online and mobile banking, a debit card, deposit options, free e-statements and overdraft protection. However, there are differences:
|INTEREST CHECKING||FREE CHECKING|
|$100 minimum deposit||$25 minimum deposit|
|0.55% AYP||no interest|
|$10 monthly fee for less than $500||no fee|
All personal savings accounts offer free, unlimited online and mobile banking, an ATM card, and free e-statements. Except for the Free Savings, they require a $100 minimum payment.
The Money Market Savings has 0.80% AYP and a $5 monthly fee; the Regular Savings has 0.60% AYP and a $2 monthly fee.
Open a CD or an IRA with a minimum payment of $1000, with an interest rate from 1.00% AYP for 1 year, up to 2.17% AYP for 5 years.
First IB has competitive interest rates on mortgage and home equity loans. They have the FHA and VA government loans that allow borrowers to make lower than average down payments. Their standard fixed and adjustable rate loans, Jumbo and HARP refinance loans, as well as the government loans can all be applied for online or over the phone.
Small and mid-sized business bankers enjoy the same advantages as those who have personal accounts. They have the business counterpart to the products they offer personal account holders, with those wonderful high interest rates on savings accounts and comparatively low interest rates on loans. They can bank and run their businesses simultaneously through the use of the latest technology tools First IB has. Business bankers also have an online treasury they can use to keep track of and complete transactions. The account holder can select users on the account and adjust each person's capabilities on it.
Live customer service is not outdated. It definitely has value and, in some cases, can bring about a better experience than technology can. Hence, being a totally online bank definitely has its disadvantages. For example, a person's true identity can be hidden or their information stolen online. Such was the case with one customer whose card information was compromised. The thief used his card number to make purchases in excess of $500. Other drawbacks include:
Two First IB products could have a better package. Their personal loan has a 10.99+% interest rate, which is somewhat higher than the rate most banks offer. They also have a savings account for kids. This account must have an adult co-signer, however, it requires a steep $100 minimum deposit. This is surprisingly more than the minimum deposit for a regular savings account.
First IB is not as accommodating to their business account holders as they are to the personal account holders, in some instances. Of course they enjoy the fantastic interest rates and modern technology features. However, there is no indication that the online and mobile banking is unlimited. Also, the business commercial lending service is only available in Indiana and Arizona.