It’s historically been the case that to earn the highest interest rates on your savings account, you had to deposit a large sum of money. We’re talking about $100,000+ to get the top rates available.
However, banks are now competing for your business more than ever, and CIT Bank (which we rank as already having one of the best money market accounts and best CD accounts), has recently launched a new product that rewards you with one of the best interest rates available - without having a huge balance.
The new product - Savings Builder - rewards both individuals with higher balances AND those who are good savers. Now, even if you just have $100 to save each month, you can get top tier interest on your money.
Let’s break it down.
CIT Savings Builder Quick Summary
- High yield savings account
- Requires a $25,000 minimum balance OR a single deposit of $100 or more each month
- Rewards individuals who save!
CIT Bank Details
CIT Bank Savings Builder
Min To Earn Highest APY
$100 per month in deposits or $25,000
How CIT Savings Builder Works
CIT Savings Builder is basically a savings account with two options to earn the highest amount of interest possible - currently 0.40% APY.
First, you can either maintain a balance of $25,000 or more, and you’ll get the higher rate.
However, if you don’t quite have that in savings yet, you can still earn that high rate - if you commit to making at least one (1) single deposit of $100 or more each month.
So, you can actually open this account with just $100, and then if you deposit $100 per month, you’ll still earn that 0.40% APY (which is one of the highest available right now).
Now, if you miss a month or can’t swing that $100 deposit, well then your APY drops to around 0.25%. (The actual APY may be greater or less depending on the date the account is opened.) Honestly, it’s still probably better than most banks and credit unions out there.
Remember, all rates and terms are subject to change. While we strive to maintain the most up to date information, you need to check out CIT Bank’s website to ensure accuracy.
Why We Like The Product
We love this product (and yes, they are an affiliate, but we only recommend them because we do like them). The CIT Savings Builder is awesome.
First, they are great because they have one of the highest yields currently available for a savings account product - much higher than you’d likely find at your local bank or credit union.
Second, this rate isn’t just for people with high balances. Because of their unique “savings builder” angle, just making monthly deposits of $100 can earn you that higher rate (which is almost double the interest than the lower rate). You can easily accomplish this with direct deposit from your paycheck if you’re worried about forgetting.
Finally, like all CIT Bank products, there are no account opening or maintenance fees, monthly service fees, or ACH transfer fees. They really do try to create a very low fee/fee free experience.
Any Important Fine Print?
As with anything in the financial space, there is always fine print. The biggest thing with the CIT Bank Savings Builder Account is that you have to maintain your balance or make your deposit before “evaluation day”. This is the cutoff for your “monthly payment”.
Also, if you’re making deposits, and don’t have a $25,000 balance, you’ll need to make the r first deposit during the first Evaluation Period, which starts the third business day before the end of the month you opened the account. This is explained on the website.
If you don’t have a $25,000 balance, or if you haven’t made your $100 deposit by evaluation day, then your interest for the next month will drop to the lower base tier.
However, if you get back on track that month, come next evaluation day, they will bump your account back to the higher level. For reference, evaluation day is the fourth business day prior to the end of a month. The first Evaluation Day will occur at the end of the first full month after account opening.
Also, this is a savings account, so there is a limit to just 6 transfers or withdrawals per month (statement cycle). This is a Federal rule governing savings accounts, but something that you should be aware of if you’re considering this account.
A Great Compliment To CIT Bank's Other Products
This product is a great compliment to the other products in CIT Bank’s lineup that we really like.
For example, CIT Bank has an 11-month Penalty-free CD that currently pays 0.30% APY. If you have a lump sum, but not quite $25,000, and don’t think you can make that $100 per month commitment, this is a great alternative to the Savings Builder. With just a little less interest, you can get very close, with less commitment.
However, if you know you’re going to clear $25,000 or make sure that you have a $100 monthly deposit going in, then stick with the Savings Builder account and get the highest rate possible.
One Of The Best Places To Save Your Money
The fact is, you should always have an emergency fund, and you don’t want that money to sit there and go to waste. Instead, make sure that you are earning the highest amount possible on this cash. The Savings Builder account is a fantastic tool to make this happen.
And if you’re still building your emergency savings, then this account is still the right tool to make it happen. It’s great to be able to set a goal (in this case, at least $100), and start taking action AND being rewarded for saving more money. That’s pretty cool.
You’ll be hard pressed to find a better savings account right now.
We love this new Savings Builder account from CIT Bank. If you’re looking for a savings account, make sure that you strongly consider this one. It has one of the top interest rates available, and an easy balanced approach to get it.
Even if you don’t have a large deposit, you can get started with just $100! That’s awesome.
Sign up for a Savings Builder Account here and get started.
CIT Savings Builder Review
- Interest Rate - 80
- Fees - 100
- Terms and Conditions - 80
- Customer Service - 90
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 on the About Page, or on his personal site RobertFarrington.com.
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.