For savings hunters and those trying to keep their money safe with a bit of earning it's pretty much impossible right now to find a certificate of deposit (CD) interest rate at 2 percent, but the First Internet Bank of Indiana comes somewhat close with a five-year CD offering at 1.6 percent for an annual rate of return.
First Internet Bank operates as a subsidiary bank underneath First Internet Bancorp, and has been doing so since the parent company took over the Bank in 2006. First Internet Bank itself was established in 1999 as Indiana state's first Internet-only banking institution licensed to operate in all 50 states of the U.S.
The Bank offers all the traditional consumer banking tools, including checking accounts, savings, money market accounts, CDs, and individual retirement accounts. First Internet Bank also offers its individual customers access to home loan financing as well as commercial loans for small businesses and lines of credit.
First Internet Bank's CD offerings have been available since the middle of March 2013, and range from a very short duration CD offering of only 0.35 percent for three months' time to the current deal of 1.6 percent annually for a five-year commitment. These earning amounts are fairly competitive versus the general market, and First Internet is able to offer them because it doesn't have near the operating cost of brick-and-mortar storefronts as traditional banks have.
While the CD offering from First Internet Bank of Indiana is not stellar by any means, it is far better than the typical 0.01 percent being offered in savings accounts in most big banks today.