First Internet Bank Money Market Savings

First Internet Bank of Indiana opened in 1999 and claims to be the first state chartered, FDIC insured institution to operate entirely online. Its Money Market Savings account is a straightforward deposit product with ATM access, aimed at savers who want a debit card attached to their reserve cash without opening a checking account. The posted APY is 3.09% on daily balances of $1,000,000 or less, rising to 3.64% on the portion above $1,000,000, with rates last updated on the bank's site June 16, 2026. The account opens with $100. First Internet Bank states there is no balance requirement to obtain the disclosed annual percentage yield, so the 3.09% applies from the first dollar. Deposits are FDIC insured up to $250,000 per depositor for each ownership category. The catch is the monthly fee, and it is the single most important number on this page. First Internet Bank charges $5 a month unless you maintain a $4,000 average daily balance. On a $2,000 balance that $60 annual fee wipes out roughly the entire year of interest and then some, turning a 3.09% account into a losing proposition. Below about $4,000 this account should simply not be used. Above the waiver threshold the fee disappears and the math works normally. Access is partial. The account comes with a debit card for ATM withdrawals and First Internet Bank rebates up to $10 per month in surcharges from other banks' ATMs, with a $750 daily ATM withdrawal limit. It does not include paper checks, so if you need to write a check you are buying a cashier's check at $5 each. That is an odd omission for a money market account, since check writing is the feature that normally distinguishes the category from plain savings. Consider it if you keep a comfortable five figure balance, want ATM access to that money, and value a long running online bank with a real deposit franchise behind it. The upper tier at 3.64% is also genuinely competitive for balances above $1,000,000, which is a bracket most online banks ignore. Skip it if your balance is small or fluctuates near $4,000, because the fee risk is real and the waiver is measured on average daily balance, not the balance on any single day. Skip it if you need check writing. And skip it on yield alone: at 3.09% the base tier trails the roughly 4.00% top of the money market market by close to a full point, which is about $90 a year on a $10,000 balance.