With interest rates still terribly low by historical standards, it seems stocks are the only place to get any type of return. Even the 10-year U.S. Treasury note is yielding less than 3%.
While it is true that interest rates are low, things are slowly changing. The Fed raised rates three times last year and is on track for at least three more this year.
The good news is that savings account rates are increasing as well. There are rates offered by large institutions such as Citibank, Chase, and Wells Fargo that are still very low, require fairly high initial deposits, and often charge a fee if certain deposits aren’t met.
Then there are what’s called high-yield savings accounts. These types of accounts are very different: much better rates, low deposits, and no fees. They are often banks that you have probably never heard of and keep most of their activity online (i.e., no branch offices). One such bank is CIT bank, not to be confused with Citibank. They are two independent companies.
Check out our CIT Bank review, and see why CIT Bank is usually in our top 10 money market account list. Plus, CIT Bank's new Savings Builder Account is one of our top picks for savings accounts! One of the best yields out there!
Quick Summary
- Online bank with some of the best yields available
- Top notch savings and money market accounts
- They offer one of our favorite CD products
CIT Bank Details | |
|---|---|
Product Name | CIT Bank |
Min Invesment | $0 |
APY | 2.40% APY on Savings Builder |
Account Types | Checking, Saving, CDs |
Promotions | None |
Who Is CIT Bank?
As mentioned above, CIT Bank isn’t associated with Citi. They even have two different stock tickers: CIT Bank = CIT and Citi = C. The CIT ticker actually belongs to CIT Group Inc., which owns CIT Bank.
CIT Bank has been around for quite a while and provides a wide range of services. From their website:
Founded in 1908, CIT (NYSE: CIT) is a financial holding company with approximately $50 billion in assets as of Dec. 31, 2017. Its principal bank subsidiary, CIT Bank, N.A., (Member FDIC, Equal Housing Lender) has approximately $30 billion of deposits and more than $40 billion of assets. CIT provides financing, leasing, and advisory services principally to middle-market companies and small businesses across a wide variety of industries. It also offers products and services to consumers through its Internet bank franchise and a network of retail branches in Southern California, operating as OneWest Bank, a division of CIT Bank, N.A.
In other words, they’re not a fly-by-night operation by any means. You can feel confident your money will be safe with them.
What Rate Does CIT Bank Offer on Savings Accounts?
The CIT Bank currently offers their Savings Builder account which offers an APY of 2.40% as of May 1, 2019. That's one of the highest interest rates we've seen on savings accounts.
We love CIT Bank because they consistently offer some of the best rates on savings products out there. The cool thing with this product is that you can earn that high rate by either depositing $25,000, or by ensuring that you deposit at least $100 per month.
If you can't make that commitment, you still earn a decent rate of 1.00% APY as of May 1, 2019. However, in this case, you might be better served by one of their other products.
CIT Bank Money Market Accounts
CIT Bank also offers one of the most competitive money market accounts out there. They always make our list of the best money market accounts.
If you can't meet the requirements of the Savings Builder account, their money market accounts might make the most sense to save your money in. With no commitments required, and rates that are consistently competitive, CIT Bank has a great money market product.
CIT Bank CD Products
Finally, CIT Bank has one of our favorite Certificate of Deposit products available. They offer an 11-month penalty-free CD, which makes our list of the best CD rates available.
This product is awesome because, unlike most CD products that charge a penalty if you withdraw your funds early, this CD product from CIT Bank doesn't charge a penalty after 7 days. Plus, it offers a really competitive interest rate for an 11-month CD.
As of January 3, 2019, the current APY on the 11-month penalty free CD is 2.05%. That's awesome.
They also have a range of other certificate of deposit products that might match your goals.
Fees, Opening Deposit, and All the Other Stuff
As mentioned above, there aren’t any monthly fees for maintaining a CIT Bank savings account. The initial deposit is only $100. Also, there are no fees for opening the account. The website does not mention anything about fees if the balance drops below $100. But given they prominently print that there are no fees at the top of the savings account page, it’s a good indication that you won’t need to be concerned if the balance falls below $100.
Security
Security is always a concern with any financial institution, especially one you’ve probably never heard of. CIT Bank takes security very seriously, as it should given all of the federal regulations required of financial intuitions in the U.S.
There are degrees of security across financial institutions. It’s good to see that CIT Bank doesn’t seem to just settle for what is required of it in regards to federal security regulations. On their security page, they discuss in detail the measures the bank takes to ensure customer data is safe.
Some notable features include:
- Antivirus protection of their computers
- 128-bit encryption
- Automatic sign-out
As well, communication with the bank is secure through their message portal. On the same page are links to their policies on privacy and fraud protection.
The Verdict
There are a large number of banks that are currently offering savings accounts well above 1.00% APY. But 2.40% seems to be the top offering for now. As the Fed continues to hike rates, you are likely to see savings account rates increase. Although, with some lag.
Banks offering savings rates in the top tier should continue their trend up and remain right at the top of savings rates. Being in the top tier, CIT Bank should continue to be one of the best offerings out there for high-yield savings.
If you’d like to open a CIT Bank high-yield savings account, just click here.
CIT Bank Review
-
Interest Rates - 90
-
Fees and Charges - 90
-
Customer Service - 90
-
Ease Of Use - 90
-
Tools and Resources - 90
-
Products and Services - 60
DLorah Alva-Castles says
August 31, 2018 at 8:27 pmIf I start with a 18 month cd then have an emergency and need my money could I get it out?
Robert Farrington says
September 1, 2018 at 8:18 amYes, but you do pay a penalty with longer CDs. I would suggest you keep your emergency fund in a high yield savings account or money market, or you stick to CIT Bank’s penalty free CD – a shorter term, but no penalty for early withdrawal.
Garry White says
October 16, 2018 at 9:55 amIf I open a savings account over 25k
Will you pass on to me any interest rate increase at that time?
Robert Farrington says
October 16, 2018 at 9:58 amRates rise and fall. A savings account follows the rates as they change. The only products that are locked in are CDs.
Vince says
November 28, 2018 at 3:30 amAre the money market at this online bank fdic insured?
Robert Farrington says
November 28, 2018 at 10:34 amYes, this bank and it’s money market account are FDIC insured.
vanilla says
February 1, 2019 at 8:50 pmI’ve searched the website and I can’t find how to withdraw money. Also is there a limit to how many times I can withdraw money?
Robert Farrington says
February 2, 2019 at 8:27 amWhat do you mean? There are different accounts at CIT Bank with different rules (all based on Federal law). For example, savings accounts don’t let you have more than 6 withdrawals per month.
A checking account, however, is unlimited.
How do you get your money? You can get an ATM card, you can transfer via ACH or wire.
Kaycee says
February 20, 2019 at 9:05 amCIT Bank does not offer ATM cards or checks. To withdraw your money, you attach an external bank account and transfer funds between the accounts. It takes a few days, so if you need immediate access to your money, this may not be the ideal bank for you.
Alan Jaffe says
February 8, 2019 at 2:53 pmI would like to open an account with you, but want to make sure I open the one that offers 2.45%. Is that your money market account? And if I open it with over $400,000, as a joint account, would it be FDIC insured? Thx.
Robert Farrington says
February 8, 2019 at 2:55 pmHere’s a direct affiliate link to the correct account (the Savings Builder account): http://go.thecollegeinvestor.com/CITBankPromo
If it’s a joint account, you are FDIC insured up to $500,000 (each of you gets $250,000). See limits here: https://www.fdic.gov/deposit/deposits/brochures/deposit-insurance-at-a-glance-english.html
John says
February 24, 2019 at 8:13 amWhen are dividends deposited in the account? e.g. Quarterly, monthy?
Robert Farrington says
February 24, 2019 at 2:36 pmThis is a bank account – so it’s interest, not dividends. If you get a savings account or money market account that pays interest (i.e. not a checking account), your interest is paid monthly.
Phil says
March 10, 2019 at 11:58 pmThanks for your insights. Please help me with my calculations, if you could:
My first month in the savings builder account, I deposited $100 and saw a nickel gain (interest).
The second month, I deposited another hundred dollars and have seen no gain yet. When do I see interest reflecting 2.45%?
Robert Farrington says
March 11, 2019 at 10:08 amIt’s based on daily interest. So, it all depends on when you deposited your funds. A $100 deposit would earn $0.16 for the month of February if it was deposited for the entire month.
Gerry Gellner says
March 11, 2019 at 12:12 pmI am interested in opening an account for approximately 4-5k. How do I proceed? Gerry
Robert Farrington says
March 11, 2019 at 12:13 pmClick the link above in the article and get started!
Mike Lee says
April 3, 2019 at 1:45 pmI have about $100000 in my savings at another bank that is getting very low interest. Yours is high and I am considering to move it there. I know the Savings Builder account offers ACH transfers with another bank. Is there any limit on how much I can move money from CIT account to, say my Wells Fargo and US Bank accounts via ACH?
Robert Farrington says
April 4, 2019 at 11:04 amThere is no limit on the amount of money you can move, but there is a limit on the number of times you can do it. Since this is a savings account, Federal law limits withdrawals to 6 times per statement month.
Michael Walls says
April 13, 2019 at 6:35 pmI’m interested in your money market account. I’m trying to understand the features and requirements. I can open a MMA with $100, right? I need to deposit or transfer at least $100 into my MMA each month, correct? I can write checks if and when I need money from my MMA, correct? My money is protected by FDIC, right? CIT has an app I can use plus I can log into my account from a computer at any time, correct? If all the questions are answered “yes”, it sounds too good to be true, but it sounds like what I’m looking for. Please respond.
Robert Farrington says
April 15, 2019 at 10:22 amCIT Bank is a full service bank, will all types of accounts. Specifically, I think you’re interested in their Savings Builder account based on your comment. You need $100 to open a Savings Builder Account, and to get the 2.45% APY (as of today). It’s a money market account, so it’s FDIC insured. It is a money market account, so you’re limited to 6 outgoing transfers/checks per month. You also don’t get check writing privileges, but you can request a check or do an electronic transfer.
Ettie Boren says
May 9, 2019 at 5:46 pmDoes your app handles check deposit?
Looking to open mm account for roughly160k,
can I make initial bank to bank transfer for that amount?
Post deposit, do I have to make any transactions to prevent freezing idle account? If yes, how often?
Thank you
Robert Farrington says
May 9, 2019 at 8:06 pmThe app has mobile check deposit. ACH limits vary by bank, but most cap them at $100k. You can always wire that amount.
No transactions required.
Carrie says
May 20, 2019 at 8:20 amHello,
Do I need to make at least a 100 $dep a month after my initial startup in a MM account? Or can I make no dep or 5$ dep a month, for example?
Robert Farrington says
May 20, 2019 at 8:22 amFor the savings builder account, you need to either maintain the $25k balance or make a $100 monthly deposit to get the highest interest rate. If you fail to meet those criteria, you simply get the lower interest rate.
Carrie says
May 21, 2019 at 10:17 amI meant the Money Market account. Is that the same as a high interest Savings account? I thought they were different accounts.
Thanks