First Internet Bank CD

First Internet Bank of Indiana has been an online only bank since 1999. Its CD line runs eight terms from 3 months to 60 months, each with a $1,000 minimum, no monthly maintenance fee, and interest compounded and credited monthly. As of October 2, 2026, the date shown on First Internet Bank's page, the 12, 18, 24, 36, 48 and 60 month terms all pay 4.00% APY, on a 3.93% interest rate. The 6 month term pays 3.60% on a 3.54% interest rate, and the 3 month pays 3.40% on a 3.35% interest rate. The curve is flat at 4.00% from 12 months out, so a longer lock does not earn a higher rate, and the spread across the whole lineup is 60 basis points. The detail that should decide this for you is the early withdrawal penalty, because it is disclosed right in the rate table and it varies a lot by term. The 3 month CD costs 90 days of interest to break, which is about the entire term. The 6, 12 and 18 month CDs cost 180 days of interest. On the 6 month CD that penalty can exceed the interest the CD has earned if you break it early. The 24 to 60 month terms cost 360 days of interest. First Internet Bank also notes that rates can change on any day and are updated by 10:00 AM EST, and the page carried a last updated stamp of October 2, 2026 when we read it on October 14, so confirm the live rate at application. This makes sense for a saver who wants a fixed term at 4.00% from 12 months, has $1,000 to commit, and is certain about the timing. Self service tools for renewal, redemption and transfers are built into online banking, and deposits are FDIC insured to $250,000 per depositor per ownership category. Skip the 3 and 6 month terms unless you need a short lock, since they pay 3.40% and 3.60% against 4.00% from 12 months. Skip it entirely if the money might be needed early: the 6, 12 and 18 month CDs carry a 180 day interest penalty and the 24 to 60 month terms carry 360 days.