1st Source Bank Review

1st Source Bank Savings

0.06% APY

1st Source Bank can trace its roots to the First National Bank of South Bend established during the 1800s. Today, it operates as 1st Source Bank and still calls Indiana home. The bank runs more than 81 branches throughout the state and has also expanded into Michigan and even Florida. 

You can find a range of banking options at 1st Source Bank including checking, savings and certificate of deposit (CD) accounts, as well as individual retirement accounts (IRAs) and an array of wealth management services. 

Read on to learn more about current offerings, interest rates, special features and more.

Products Offered

1st Source Bank Interest Rate Comparison

EveryDay Interest Savings

For those seeking a simple savings option, 1st Source offers the EveryDay Savings account. You can avoid its $3 monthly service fee by meeting any one of the following conditions.

• Maintain a minimum balance of $300
• Direct deposit Social Security or Disability benefits
• Are under the age of 18

In addition, account holders get free access to Money Management. This interactive budgeting tool integrates with the 1st Source online banking platform. It helps you build a budget, track spending, categorize expenses and create an online blueprint of all your financials. 

Furthermore, 1st Source bank offers the following free benefits to all its savings deposit account customers. 

• Telephone banking
• Online and mobile banking
• Paperless eStatements

Nonetheless, the EveryDay Savings account doesn’t offer the strongest interest rates. So it may not be the best option to deposit a large sum into if you’re looking for a decent return. You may find higher rates and terms by exploring our study of the best savings accounts available today. 

Holiday Savings

As its name implies, the 1st Source Holiday Savings account is designed to help customers build up a reserve for vacations or holiday spending. It earns interest daily. The account also charges no monthly service fees. 

However, the bank will charge you a $10 fee for closing your Holiday Savings account. 

Portfolio Investment Account

This account is geared toward the more affluent customer. For starters, you need to deposit a minimum of $15,000 to open the account. You’d also need to maintain a $25,000 minimum daily balance to avoid its hefty $20 monthly service fee.

But although the bank offers tiered interest rates with this account, you’d need to keep a balance of at least $100,000 to generate its current peak APY of 0.25%. That level barely steps over the national average for savings account interest rates. 

You may find better rates with less stringent terms and conditions by comparing savings accounts from local banks as well as online entities without geographic restrictions.

e-Student Savings

Designed for customers between the ages of 16 and 24, this account offers a competitive APY of 1.02%. Those eligible can open an account with as little or as much as they’d like. Account holders also get access to the Money Management tool and online savings calculators. 

Certificates of Deposit (CDs)

1st Source Bank offers certificate of deposit (CD) options for all types of savers. Minimum deposits stretch from $500 to $25,000. You can open a CD for terms ranging from seven days to six years. However, certain terms require higher opening deposits. Across its CD menu, however, 1st Source Bank offers generous rates on longer-term options. 

On occasion, the bank will also offer CD specials allowing you to lock in higher interest rates for specific term lengths. You can stop by a local branch for the latest details. But if you’re looking to invest in a high-yield CD now, you can examine our analysis of the best CD rates we’ve gathered as well as their terms. 

Individual Retirement Accounts 

Through 1st Source bank, you can open an individual retirement account (IRA) to begin building your nest egg or to supplement the rest of your retirement-savings arsenal. You can open one with as little as $500. The bank also allows you to make periodic contributions, establish direct deposit or make automatic transfers as your budget allows.  

But whenever you’re contemplating serious retirement planning decisions, you should consult a tax advisor and find a financial advisor to help you develop a personalized savings strategy based on your individual budget, needs and goals. 

Easy Banking Checking

This standard checking account by 1st Source Bank offers several useful features. The bank will also waive the excessive $10 monthly maintenance fee if you set up direct deposit from payroll or Social Security. 

You also get the following free of charge: 

• Online banking and eStatements
• Unlimited fee-free check writing
• Front check images on your monthly checking statement

In addition, 1st Source bank extends the following to all of its checking account customers. 

• Up to four ATM-fee rebates per year
• Access to the Money Management tool
• Mobile banking
• Option to sign up for Deluxe ID theft protections

Nonetheless, this checking account doesn’t deliver the strongest punch when it comes to APY. You may find higher-yielding options by visiting our analysis of the best checking accounts on the market today. 

Cubs 1st Club

In partnership with the South Bend Cubs, 1st Source Bank launched its Cubs 1st Club savings account. To open one, you’d also need a Cubs 1st Checking account. With the savings option, you get 10% discounts on the following purchases: 

• Game tickets
• Select event tickets at the ballpark
• South Bend Cubs Merchandise
• Food and nonalcoholic beverages

Furthermore, card holders get access to CardValet. This app helps you to control and monitor your card for fraudulent activity. 

1st Checking

This is another basic checking account by 1st Source Bank. It offers some neat features and it’s very easy to manage. For instance, you can avoid the $6 monthly service fee by keeping an average daily balance of $500. 

Portfolio Checking Account

In addition to its savings account, 1st Source Bank also offers the Portfolio Investment Checking option. The bank will waive the $25 monthly service fee on this account if you keep a minimum daily balance of $5,000.

The account earns interest on a tiered basis. This means it climbs as your balance breaches certain thresholds. 

e-Student Checking

Like its e-Student Savings counterpart, this account is meant for those between the ages of 16 and 24. It charges no monthly service fee and you don’t need to maintain any minimum balance requirements. 

The bank even allows one overdraft fee refund. Account holders also get up to three ATM-fee reimbursements per statement cycle. In addition, they get free access to PopMoney, a payment service similar to platforms like Venmo and PayPal. 

Branch Locations

1st Source Bank runs more than 81 branches throughout its home state of Indiana as well as Michigan. It also recently opened one in Sarasota, Florida. You can reach a customer service representative by dialing (574) 235-2000 or (800) 513-2360 Monday through Friday from 8 a.m. to 8 p.m. (EST).

Financial Statistics & Bank Health Rating

1st Source Bank has $8.66 billion in assets along with $6.42 billion in loans and $7.06 billion in deposits, according to the latest data from the FDIC. If you’re thinking about adding to those deposits, a good benchmark that gauges a bank’s risk level is known as the Texas Ratio. This industry-recognized metric is calculated by dividing non-performing assets (unbacked current loans and real estate owned) by the total value of the bank’s tangible equity capital and its loan loss allowances. Banks that measure at 5% or lower are recognized for excellent reliability. 1st Source Bank holds a current Texas Ratio of 1.81%. 

SmartAsset experts gathered the preceding rates during a call to a 1st Source Bank branch located in South Bend, Indiana, where the bank’s headquarters are based. The rates listed are subject to change.