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 Money Market 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 Money Market |
💰Min Deposit | $100 |
💰APY | |
💳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 0.95%. 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 1.10% APY. However, in this case, you might be better served by one of their other products.
Plus, CIT Bank Savings Builder usually has a great bonus offer.
Check out the CIT Bank Savings Builder here.
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.
Right now, the CIT Bank Money Market account earns 1.00% APY.
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.
The current APY on the 11-month penalty free CD is 0.50%. That's awesome.
They also have a range of other certificate of deposit products that might match your goals.
CIT eChecking
CIT recently launched a checking account called eChecking. It's an online checking account that also pays interest on the amount in your account.
This makes the account compelling and puts it on par with our best free checking accounts.
The account has no monthly maintenance fees, no minimum balance requirements, and offers up to $15 per month in ATM reimbursements. It also offers online check deposit via the mobile app.
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 1.00% APY 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 Features
Account Types | Checking, Savings, Money Market, CDs |
Minimum Deposit | $100 |
Minimum Balance Requirements | None |
APY | Up to 1.00% |
Maintenance Fees | CIT Bank does not charge monthly maintenance fees. |
Branches | None (online-only bank) |
ATM Availability | No fee-free ATM network |
Customer Service Number | (855) 462-2652 |
Customer Service Hours | Phone: M-F 8A-9P ET, Sat 9A-5P ET, Sun 11A-4P ET |
Mobile App Availability | iOS and Android |
Bill Pay | Yes |
FDIC Certificate | 58978 |
Promotions | None |
CIT Bank Review FAQ
Here's some of the most common questions we see about CIT Bank.
Is CIT Bank FDIC Insured?
Yes! CIT Bank is FDIC insured. Their FDIC Certificate is shared with their partner bank OneWest Bank. It's FDIC Certificate #58978.
What products and services does CIT Bank offer?
CIT Bank offers checking, savings, money market, and certificates of deposit. They are most well-known for their savings and money market products.
Does CIT Bank offer loans?
CIT Bank does not offer lending products such as home loans or auto loans.
Does CIT Bank have a network of ATMs?
No, CIT Bank does not have any of their own branded ATMs, and they do not participate in any networks. However, their checking account does reimburse ATM fees up to a certain amount.
CIT Bank Review
- Interest Rates
- Fees and Charges
- Customer Service
- Ease Of Use
- Tools and Resources
- Products and Services
Overall
Summary
CIT Bank is a full-service online bank offering a variety of savings products. They are most known for their high yield savings and money market accounts, which are typically always near the top for paying high interest rates.
Pros
- Top yielding savings and money market account
- Competitive CD rates
- Easy to use online bank
Cons
- Online banking online, no branches
- No lending products
- No ATM Network
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
If I start with a 18 month cd then have an emergency and need my money could I get it out?
Yes, 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.
If I open a savings account over 25k
Will you pass on to me any interest rate increase at that time?
Rates rise and fall. A savings account follows the rates as they change. The only products that are locked in are CDs.
Are the money market at this online bank fdic insured?
Yes, this bank and it’s money market account are FDIC insured.
I’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?
What 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.
CIT 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.
Really !! They have got to change that .. Im sure they will
In Los Angeles, there are several One West Bank locations. One West Bank is one of the CIT Bank’s family of banks. The have CIT ATM machines outside their banks. They have checking accounts too, where you can write checks and cash checks just like other banks. Hopefully, by now, there have these features at the CIT Banks near you.
I 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.
Here’s a direct affiliate link to the correct account (the Savings Builder account): https://thecollegeinvestor.com/go/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
When are dividends deposited in the account? e.g. Quarterly, monthy?
This 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.
Thanks 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%?
It’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.
I am interested in opening an account for approximately 4-5k. How do I proceed? Gerry
Click the link above in the article and get started!
I 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?
There 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.
I’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.
CIT 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.
Does 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
The 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.
Hello,
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?
For 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.
I meant the Money Market account. Is that the same as a high interest Savings account? I thought they were different accounts.
Thanks
I want to deposit 10k into a mma and receive the 2.40% apy…but what if following that initial 10k deposit, I only deposit $100 a month or less, will I still get the 2.40% since my initial deposit was 10k and I do not have plans of touching that money only in case of emergency?
It’s either $25,000 or $100 per month. If you don’t clear the $25k minimum, then you won’t get the 2.40% APY after month 1. As such, you might be better off with another account with a lower minimum – see these here: Best High Yield Savings Accounts. There are other accounts with less restrictions that pay the same or more.
My accounts are all under a revocable living trust. Can I open a money market account that earns the 2.4% interest as a revocable living trust account?
Sadly, you can only open individual accounts currently, not trust account.
Could I open an account via phone being as I don’t have a computer? Or is it safe to use my phone?thanks
Must be on a computer or your phone.
If i make a deposit 20k , how much i get monthly interest ??
At today’s rates of 2.10%, that would be roughly $35.
I have about 20,000 in a PNC savings account drawing very little interest. I am very interested in transferring to a CIT savings.
I am new to online banking and have no bank account at this time. In the market for one. What do I do if I apply and I am turned down?
If you get denied for your past history, take a look at these “second chance” checking accounts that can help.
With the Stock market plunging, I need to shelter my money or lose more.
At 65,000. How much interest would I get per month? Also, if I decide to open up a High Yield Savings how do I transfer the money from my Investment company to CIT?
The interest rate will vary, but right now it’s 1.75% APY for their Savings Builder account (as of March 24, 2020). That’s about $94 per month.
There are many ways to transfer: wire transfer, EFT, write yourself a check…
Please explain a “Savings Builder Account.”
Here’s a full article on the Savings Builder Account.
When they say the are FDIC insured. Where do i go to verify this with the Feds?
You go to FDIC.gov, search for a bank name (CIT Bank), and then it will show you whether they are (or aren’t) – but this bank is.
In order to open a CIT money market account, do I need to have another account with CIT? I have other bank accounts and only want a money market account.
No, you don’t need any other accounts.