High Yield
Our review
First Internet’s top money market tier is above $1 million, so many savers should compare the lower tier.
First Internet Bank Money Market Savings has a headline that needs a balance attached to it. Its higher APY requires more than $1 million. At or below that amount, a different rate applies. For most savers, that lower tier is the useful starting point. There is little value in comparing an advertised return that your intended balance cannot receive.
The million-dollar headline is a distraction for most savers
At a balance of $1 million or less, I would compare the lower applicable tier rather than the advertised top rate, which begins only above $1 million. The $4,000 average-daily-balance requirement for waiving a $5 monthly fee is more relevant to many savers. Average balance differs from a month-end snapshot: withdrawing early in the cycle can affect the waiver. I would not increase an already large concentration at one bank simply to cross a yield threshold.
Compare this account with other savings options →
This is an account where the highest advertised rate can be a distraction. The practical choice for a saver below the top threshold is whether the lower tier and actual access features beat simpler alternatives after the maintenance rule. For someone already banking here, the convenience may justify keeping a stable reserve. For a new customer choosing primarily on yield, I would want the comparison at their own balance to stand on its merits. I would not interpret an unusually high balance tier as encouragement to concentrate more money at one institution, and I would not give the product flexibility it has not established merely because it is called money market savings.
Opening at a smaller balance
The bank has no branches; the outside coverage describes weekday and Saturday phone support and a route from the website chatbot to a live agent. That is a clearer picture of how help can be reached than of how fast a withdrawal is completed. For a large money-market balance, reaching an agent and being able to release the required amount are separate capabilities. I would evaluate the available transfer method and amount before assigning extra value to the highest advertised tier.
The balance threshold should be considered before the account's access features. A saver can open with $100, but that does not put the account in the top yield tier or remove the maintenance condition. At exactly $1 million, the lower rate still applies. Increasing a deposit merely to cross the line can create a much larger uninsured concentration than the additional interest warrants. The relevant decision is not whether the customer can technically reach the advertised tier, but whether doing so fits their coverage and liquidity needs. The ordinary tier is the realistic comparison for nearly everyone using this account as household savings.
The tier boundary and average-balance fee rule
Money Market Savings requires $100 to open. The $5 monthly maintenance charge is waived at a $4,000 average daily balance. The top whole-balance APY begins only above $1 million, not at exactly $1 million. Confirm other service fees and access rules. If a balance of that size is relevant, evaluate FDIC coverage across all accounts at the bank rather than using a high tier as a reason to concentrate uninsured funds.
The average-daily-balance fee rule can matter during a month when money is spent, even if the balance later recovers. A month-end deposit does not rewrite the days when the balance was lower. For someone using the account to cover a sequence of annual bills, that makes the expected pattern more useful than a snapshot on payday. The $5 charge is modest in dollars but can absorb much of the interest on a small balance. I would compare the money-market product with a maintenance-fee-free savings account at the likely low balance, rather than assume the opening minimum is the only financial hurdle.
MyBankTracker's account review examines the money market rate, fees and access methods. The bank's current savings comparison also separates Money Market Savings from its Free Savings account. That distinction matters because the products have different opening and maintenance requirements. A review of one account should not be used to explain the other merely because both are places to hold savings.
Remote help without a branch fallback
The mobile app is part of the day-to-day experience, but a favorable app rating is not a measure of how a transfer dispute will be handled. I would try the live support route and ask an account-specific question before committing a large reserve. First Internet Bank's insured bank identity should be checked separately from its online-only service model. I would not use the absence of branches, or a positive app score, to predict long-term bank stability.
The bank's lack of branches is a design choice rather than evidence of poor financial condition. It means remote support must be sufficient for both ordinary use and the unusual case that requires documents or investigation. Available contact channels and app ratings describe parts of that experience, but I did not find enough well-matched recent evidence to promise a particular resolution time for this account. I would give more weight to a report that follows a savings problem through to completion than a broad institution score mixing business banking, loans and personal deposits. The account's published conditions are clearer than its comparative service reputation.
Bank account information and disclosures ↗
Comments
View full discussion →