If you prefer online banking but still need access to a full suite of banking services, First Internet Bank is a great choice. It offers free business checking, savings products, and lending products. Its business checking account, Do More Business Checking, offers unlimited free transactions, cash flow analysis, checking sweep services, and 0.50% annual percentage yield (APY) for accounts with an average daily balance of $10,000 or more.
Pros
- 0.50% APY if average daily balance of $10,000 is met
- Up to $10 worth of ATM refunds
- Free cash flow forecasting
Cons
- No cash deposits
- No physical branches
- Steep wire transfer fees
Features
- Free debit card with first replacement card free as well
- Competitive interest rate over traditional banks
- Integrates with QuickBooks, FreshBooks, and Xero
- Free cash flow forecasting
- Checking sweep services
- Phone and email support available
- Small Business Administration (SBA) loans and commercial loans available
- Other business bank accounts available, such as money market, certificates of deposit (CDs), and savings
How First Internet Bank Stacks Up With Its Competitors
APY | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit | |
---|---|---|---|---|
Do More BusinessTM Checking | 0.50% for accounts with at least $10,000 average daily balance | Cash deposits not accepted | None; reimburses up to $10 per month in ATM fees | None |
Innovator Business Checking | 2.0% on balances of $25,000 to $250,000; 1.0% on balances below $25,000 or greater than $250,000 | Cash deposits not accepted | None at MoneyPass and SUM ATMs | $100 |
Business Standard | 2.0% on balances of $250,000 or less (conditions apply) | $4.95 (Green Dot) or $1 plus 0.5% of deposit (Allpoint+ ATM) | None at MoneyPass locations; $2.50 for nonnetwork | None |
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Bluevine is a financial technology (fintech) platform-backed and Federal Deposit Insurance Corp. (FDIC)-insured by a supporting bank partnership with Coastal Community Bank.
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When First Internet Bank Is a Good Fit
- You want to bank without a monthly fee or transaction limits: First Internet Bank offers unlimited fee-free transactions without a monthly fee and minimum balance requirements.
- You seek to earn uncapped interest: If you maintain an average daily balance of $10,000, you can interest at an APY rate of 0.50%. There is no cap on the amount of interest you can earn.
- You need access to a wide range of lending products: First Internet Bank has robust lending products and is considered a top SBA lender. You can easily apply for additional funding through SBA microloans for business capital, equipment purchase, and real estate construction.
When To Choose a First Internet Bank Alternative
- You run a cash-reliant business: First Internet Bank does not support cash deposits. The best provider for affordable check deposits is Bank of America, which offers a fee-free cash deposit allowance of $7,500 monthly. For more information, refer to our Bank of America business checking review.
- You want to earn competitive APY: Do More Business Checking only earns APY at a rate of 0.50%. With Bluevine’s basic account, Standard, you get an APY rate of 2.0% on balances of $250,000 and less, provided you meet monthly activity requirements. Learn more by reading our review of Bluevine business checking.
- You send and receive wire transfers regularly: Outgoing wire transfers at First Internet Bank cost $20 for domestic recipients and $50 for international recipients. A better option would be Mercury, which offers unlimited incoming and outgoing wire transfers for free. Our Mercury business checking review discusses its cost-saving features.
Check out more providers in our list of the best small business checking accounts.
First Internet Bank Business Checking Overview
First Internet Bank Business Checking Requirements
You can visit First Internet Bank’s website to open a business checking account. You must be a legal United States resident, at least 18 years of age, a signer authorized to open accounts on behalf of the business, and a United States-based business.
The First Internet Bank business checking requirements are relatively simple. They include:
- Proof of identification: This can be verified through documents like your driver’s license and Social Security number. Other acceptable government-issued IDs are a State ID card, passport, and military ID card. All signers and beneficial owners will need to provide this information. A beneficial owner is a natural person with 25% or more ownership in the business or a person with significant managerial control or influence over the business.
- Business information: This will include information about your business, such as its address, employer identification number (EIN), and articles of incorporation or limited liability company (LLC) operating agreement.
Once you apply for the account, an account agreement will be sent to you. After your company’s authorized signers sign it, you can fund your account.
Before opening an account, see our guide on how to open a business bank account, which includes a free downloadable checklist of required documents.
First Internet Bank Business Checking Features
Fee-free Transactions
First Internet Bank doesn’t collect monthly fees and ACH fees. There’s also no set balance to open a small business checking account. In addition, there are no transaction fees or limits to observe.
Interest Rate
First Internet Bank’s Small Business Checking offers 0.50% APY as long as your average daily balance is at least $10,000. It has no maximum limit to earn interest on your account. The interest compounds and credits every month.
Debit Card
First Internet Bank provides each signer with a debit card to make purchases. A free debit card, which also serves as your ATM card for the account, will be mailed out within 10 business days of account opening. First Internet Bank will reimburse up to $10 of US-based ATM fees per month and won’t charge you a fee to use your ATM card.
Bill Payment
First Internet Bank offers online bill payment at no cost, issuing payments electronically or by paper check, based on the payee’s ability to accept payments. Bills can be paid online or with First Internet’s mobile app.
Cash Flow Forecasting
If you link your checking account to any accounting software, such as QuickBooks, Xero, and FreshBooks, First Internet Bank will provide free cash flow analysis. Benefits include the following:
- Automated cash flow forecasting
- Competitive benchmarking
- Digital insights
Balance Optimizer
The Balance Optimizer feature helps you earn higher interest on excess funds. The process is:
- Users set a target balance for their Do More Business Checking Account.
- Whenever funds go above the target balance, First Internet Bank will sweep the excess into a First Internet Bank Savings, which earns 0.91% APY, or Money Market account, which earns 3.46% if you have a daily balance of $5 million or below and 5.48% if you have a daily balance exceeding $5 million. Member FDIC.
- First Internet Bank will transfer savings account funds back into the main checking account should checking funds fall below the target.
Mobile App
First Internet Bank’s mobile app allows you to open an account online, view balances of all bank accounts, even from other banks, and deposit checks through your mobile device.
Most reviews for the app are positive. It has a rating of 4.8 (based on more than 800 reviews) on the App Store[1] and 4.4 on Google Play[2] (based on 600-plus reviews). While most users found the app easy to use, a few found the user interface outdated compared to its competitors. Others claimed that the mobile check deposit function lacked reliability.
Customer Service
First Internet Bank operates as a fully online bank and offers business clients both email and phone banking support to help resolve banking issues. You can reach a bank representative at the toll-free number (888) 873-3424 or call (317) 532-7900. Business hours are from 7 a.m. to 9 p.m. ET on Mondays to Fridays and 9 a.m. to 3 p.m. ET on Saturdays. You can also send an email to bank@firstib.com.
The bank provides a business online banking demo through an informative webinar and quick-start guides for standard bank services on its website.
Other First Internet Bank Business Products
First Internet Bank offers commercial checking, business savings, CDs, and lending solutions.
Commercial Checking is available for mid-sized and large businesses with high transaction volumes needing treasury management services. These include business online banking, sweep services, remote deposit capture, check fraud protection, zero balance accounts, wire transfers, and ACH origination:
- Commercial Premium Checking: You need a $1,000 deposit to open this account. It provides 300 fee-free transactions each month and free electronic statements.
- Commercial Analysis Checking: A $1,000 opening deposit is required to open this account, which offers unlimited transactions and free electronic statements. The monthly fees can be offset with an earnings credit.
First Internet Bank offers two savings accounts with a limit of six monthly transfers or withdrawals:
- Regular Savings: For a $100 minimum opening deposit, you can open a regular business savings account and earn 0.91% APY. The $2 monthly fee can be waived if you maintain a $1,000 average daily balance. An ATM card is issued to sole proprietors only.
- Money Market Savings: You need a $100 minimum deposit to open this account. You can earn 3.46% APY if you have a daily balance of $5 million or below. For daily balances above the $5 million mark, 5.48% APY can be earned. The $5 monthly fee can be waived if you maintain a $4,000 average daily balance. An ATM card is issued to sole proprietors only.
First Internet Bank offers CDs with terms ranging from three months to five years. Interest rates start at 4.10% and can reach up to 5.22%, depending on the account’s term length.
First Internet Bank is an SBA-preferred lender and extends several SBA loans to business owners needing to refinance, purchase equipment, and construct properties:
- SBA 7(A) loan of up to $5 million is available, and it covers terms of up to 10 years for business acquisition, working capital and inventory, and equipment or tenant improvement. For real estate, the terms can reach up to 25 years. The bank also provides flexible collateral options.
- SBA Express loan provides up to $350,000 for long- or short-term operating capital and is offered as term loans or lines of credit. Flexible collateral options are available, and credit decisions can be made in 48 hours.
- SBA 504 loan of up to $5 million with long-term fixed-rate financing and terms of up to 25 years is offered.
To learn more about these loans, read our guide on SBA loan types, rates, and requirements.
The bank extends customized CRE loans with competitive rates:
- Single-tenant net lease financing is provided to real estate investors in the bank’s growing network of real estate professionals.
- Residential development/construction financing is offered to established custom homebuilders and lot developers in Central Indiana.
- Commercial construction/multi-tenant financing is accessible by commercial real estate owners and developers within Indiana. These loan options are available for offices, retail, industrial, and multi-family units.
First Internet Bank has several lending options that provide working capital and financing and assist in debt consolidation. They’re available to small and midsized businesses (SMBs) in Indiana and Arizona:
- Lines of credit start at $100,000 and are available to businesses with short-term working capital needs.
- Term loans with fixed or variable rates are offered to help businesses finance equipment, meet inventory or expansion needs, and consolidate commercial debt.
- Real estate loans are extended for purchasing, refinancing, or upgrading owner-occupied properties.
- Public finance: The bank has lending solutions for government entities, public K–12 schools, municipal utilities, higher education schools, and not-for-profit institutions. It also offers to fund capital equipment needs and energy-related projects.
- Dealer services: First Internet Bank offers competitive rates to dealers needing funding for motorhomes, travel trailers, horse trailers, motorcycles, and more.
First Internet Bank Business Checking Reviews From Users
Very few First Internet Bank business checking reviews have been published within the past year. Most reviews instead focused on the bank’s CDs, lending products, and customer service.
Here are the bank’s scores on third-party sites:
- WalletHub[3]: 3.7 out of 5, based on More than 250 reviews
- ConsumerAffairs[4]: 5.0 out of 5, based on 400-plus reviews
Some customers said that the bank’s staff provide good, professional customer service. However, some reviewers mentioned that the account opening process was inefficient because it required submitting a lot of paperwork back and forth.
Bottom Line
First Internet Bank’s Do More BusinessTM Checking is a great option for non-cash-reliant businesses with minimal in-person banking needs. Its 0.50% APY, cash flow forecasting, and balance sweep services can help you boost earnings on your checking funds. The bank also provides an extensive line of banking products and services, from savings and CDs to commercial and SBA loans, which are excellent offerings for small businesses with growing financial needs.
[1]App Store
[2]Google Play
[3]WalletHub
[4]ConsumerAffairs