First Internet Bank Small Business Checking Review 2022

Like many online-only banks, First Internet Bank’s business checking account offers no transaction limits and lacks a required minimum balance to avoid fees. What sets it apart from other providers, however, is that it offers the rare combination of full-service banking and online convenience. It’s also one of the few online banks that offer accounts for both personal and business needs as well as lending options for qualified applicants.

First Internet Bank Small Business Checking

What We Like

• Fee-free banking
• Other interest-bearing business accounts available
• Up to $10 refund for third-party ATM fees

What's Missing

• Average balance of $10,000 required to earn annual percentage yield (APY)
• No cash deposit functionality

Features

• Small Business Administration (SBA) loans and commercial loans
• Other business bank accounts available, including savings, money markets, and certificates of deposits (CDs)—ranked among the best business savings accounts
• Personal accounts
• Health savings accounts (HSAs)

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When First Internet Bank Is a Good Fit

First Internet Bank is one of our recommendations for the best banks for small business and best banks for startups because of its fee-free banking and the ability to have multiple bank accounts. We recommend First Internet Bank for the following scenarios:

• Businesses that need a full suite of banking services without having to deposit cash
• Businesses that can conduct their banking online without access to physical locations
• Small businesses that want a checking account without a balance requirement
• Small businesses that may have a lending need

When First Internet Bank Is Not a Good Fit

While First Internet Bank is a good solution for several business needs, it may not be the best choice for your business in any of the following scenarios:

• Your business needs to deposit cash. First Internet Bank doesn’t accept cash deposits. Consider Bank of America, Chase, or U.S. Bank for cash deposit needs
• Your business needs a physical branch. If you live in Capital One’s geographic footprint, it may be a good fit
• You want a high interest rate on your deposits. While First Internet Bank offers good interest rates compared to other banks, Bluevine may be worth considering for its higher interest rate on qualified deposits

If your small business meets one or more of these scenarios, check out our guide to the best small business banks for additional recommendations.

First Internet Bank Small Business Checking Overview

First Internet Bank’s business checking requirements for opening a business bank account are relatively simple. They include:

• Proof of identification: This can be verified either through documents like your driver’s license and social security number. All signers will need to provide this information.
• 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. Upon your company’s authorized signers signing it, you can fund your account.

First Internet Bank Small Business Checking Features

First Internet Bank’s Small Business Checking account offers a competitive interest rate, a debit card, integration with accounting software, the ability to create sub-accounts, and more.

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.

Debit Card

First Internet Bank provides each signer with a debit card to make purchases. A 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 United States-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.

Accounting Software Integration

First Internet Bank’s Small Business Checking integrates with QuickBooks and Xero, among other popular accounting software applications. Unlike Bluevine, which offers a QuickBooks tutorial on its website, First Internet Bank doesn’t offer that. However, if you’re comfortable with connecting your bank account information on the accounting software you use, you should be able to sync with First Internet Bank easily.

Other Features

First Internet Bank offers remote deposit services that will scan your check deposits. This comes in handy for busier businesses that receive a lot of checks. Those with fewer checks to deposit can take advantage of First Internet Bank’s mobile app. First Internet Bank’s mobile app is available for both Android and iOS mobile devices.

Other First Internet Bank Business Products

First Internet Bank offers a full suite of banking products and services to meet business needs, including savings accounts, CDs, and loans. Among online-only banks, First Internet is one of the few that offers as wide a selection of additional services. Here’s a breakdown of their additional product offerings:

• Money market & savings accounts: Both accounts offer a competitive interest rate for small businesses, provided they can maintain the balance requirements of $1,000 in savings or $4,000 in First Internet Bank’s money market.
• Commercial checking: As your business grows, you may need remote deposit capture, wire transfer services, and other treasury management services. First Internet Bank has a business checking account and options to assist larger business needs.
• CDs: First Internet Bank offers CDs from three months out to five years.
• Lending: SBA loans, conventional commercial loans, and commercial real estate loans are all available. First Internet Bank is an SBA-preferred lender.
• Personal banking: A full array of personal checking, savings, lending, and health savings account options are available.

First Internet Bank Small Business Checking Pros & Cons

First Internet Bank’s Small Business Checking account is a good option for many different types of businesses. Businesses that don’t need a physical branch and can conduct their business online can appreciate the full-service array of banking products that are available, in addition to a checking account that offers a competitive internet rate.

However, the biggest drawback with First Internet Bank is the inability to deposit cash into your accounts. The workaround for this is to purchase a money order and then deposit that via First Internet Bank’s app on your phone.

Alternatives to First Internet Bank Small Business Checking

First Internet Bank’s Small Business Checking might not be ideal for every business as there are some limits to what the account offers, such as a lower interest rate and the lack of physical branch locations. If your business wants higher interest rates on its money, a brick-and-mortar branch network, or needs to deposit cash, there are other small business checking accounts available for you to consider.

Bottom Line

First Internet Bank’s Small Business Checking has a quality set of features and very few fees. If you have a business that doesn’t need to deposit cash, would like the ability to have a savings account, and doesn’t need traditional branch banks to conduct business, First Internet Bank is a great option to consider. It’s also a good choice for those businesses that may need a commercial loan or SBA loan to help finance their growing business needs.