First Internet Bank CD

First Internet Bank of Indiana has been an online only bank since 1999, which makes it one of the oldest branchless banks in the United States. 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 rather than daily. The best rate on the board is the 6 month term at 3.76% APY, on a 3.70% interest rate. Behind it, the 12 month pays 3.67%, the 18 month 3.38%, the 24 and 36 month terms 3.30%, and the 48 and 60 month terms 3.45%. The curve dips in the middle and recovers slightly at the long end, which is unusual, but the spread across the whole lineup is only 62 basis points. Nothing here is a standout in August 2026, when several online banks pay above 4.00% on comparable terms. The detail that should decide this for you is the early withdrawal penalty, because it is disclosed right in the rate table and it is punishing. The 3 month CD costs 90 days of interest to break, which is the entire term. The 6, 12 and 18 month CDs cost 180 days of interest. On the 6 month CD that means the penalty is larger than all the interest the CD will ever pay, so an early exit comes directly out of principal. The 24 through 60 month terms cost 360 days of interest. First Internet Bank also notes that rates can change daily and are updated by 10:00 a.m. ET, and the posted table carried a June 16, 2026 last updated stamp when checked, so confirm the live rate at application. This makes sense for a saver who wants a six month lock at a long established institution, 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 it if you are rate shopping, because 3.76% for six months is roughly half a point behind the best short CDs available right now, and monthly rather than daily compounding costs you a little more on top. Skip it entirely if the money might be needed early: a 180 day penalty on a 180 day CD is the worst possible shape for an emergency fund, and a plain high yield savings account would pay a similar rate with no lock at all.