In the two months it has been open to the public, First Internet Bank of Indiana (firstib.com), a real-time Internet-only financial institution, has amassed more than $12.6 million in deposits.
firstib.com reports its deposit growth has accelerated tremendously in the past few weeks. On March 31, the bank had just $1.6 million in deposits.
Account applications have been pouring in to firstib.com for all types of deposit accounts. During the first three weeks of April, firstib.com doubled its number of money market savings accounts.
Average account balances are also on the rise. The average firstib.com CD balance is just over $71,000, up nearly $60,000 from the average balances on March 31.
firstib.com cites a number of reasons for its growth, including its high interest rates on deposit accounts as well as the breadth of services available through its website.
As of April 20, firstib.com’s money market savings account paid 5.05% interest (5.17% APY), well above the national average 2.45% interest rate reported on the same day at bankrate.com, an online publication that provides consumers with financial data, research and editorial information. Rates on firstib.com interest checking and CDs were also consistently higher than reported national averages on April 20.
Gomez Advisors Inc., a leading industry analyst for online financial services, last month ranked firstib.com first out of 55 Internet banks in On-Site Resources. firstib.com’s top rating was based on its ability to provide access to a broad suite of loan and savings products in addition to the standard checking accounts. The institutions polled for this edition of the Internet Banker Scorecard include FDIC-insured banks and thrifts with more than $2 billion in deposits as well as a small number of institutions with “progressive offerings,” including branchless banks like First Internet Bank.
“We are excited that we have established ourselves as an industry leader so quickly in the fast-growing Internet banking marketplace,” said David Becker, Chairman of First Internet Bank. “Our customers’ increasing deposits and the Gomez rating further validate our belief that firstib.com offers the best online access to a wide array of financial products.”
firstib.com offers a full suite of banking services that includes checking, money market savings, certificates of deposit, loans, bill payment services, credit cards and ATM cash cards. firstib.com offers significant customer benefits over traditional retail banks including real-time processing of all transactions and continuous services available 24X7X365 via the Internet, ATM, and touch-tone phone. Customers also enjoy industry leading interest rates on checking, savings, money markets and certificates of deposit.
Based in Indianapolis, Indiana, firstib.com is the first state chartered Internet bank with accounts insured by the FDIC. It is the first “Extended Value Online Bank” to deliver a full range of real-time Internet banking products with personalized interactive services, as well as offering competitive rates. Its business model enables customers to facilitate Internet banking in a real-time environment, as well as empower users to better manage their own finances.