CIT Bank, headquartered in Pasadena, CA, and previously known as the Commercial Investment Trust, was founded back in 1908 in St. Louis, Missouri. The bank’s holding company, based in New York City, is the CIT Group, Inc.
CIT Bank is a very innovative online-only bank that provides a variety of competitive banking products. Prominent among those products are its personal banking services which comprise of the following:
- High-yield savings account
- Checking Account
- Money Market Account
- Certificate of Deposit (CD) account
CIT Bank also offers home loans, as well as business and commercial banking. But those will be
the subjects of subsequent reviews. Right now, we’re covering CIT Bank’s personal banking products, and we will see how those products stack up against the competition.
CIT Bank High-Yield Savings Accounts
CIT Bank provides a significantly higher-than-average APY for both of its two-tiered savings accounts– the Savings Builder and the Premier High Yield Savings.
While CIT Bank stands out among online-only banks and would be a good choice for someone wanting to make the most of their money, there are some things we wish they will improve. We’re going to discuss the good and not so good parts of the CIT Bank high yield savings accounts.
CIT Bank Savings Builder Account
The Savings Builder account is excellent if you are saving towards a goal. Its $25,000 minimum daily balance or $100 minimum monthly deposit ensures that you interact with the account to get the highest possible APY.
You will need to deposit at least $100 to open the account.
There are two APY applicable to the account, and which one you get depends on whether on not you meet the minimum balance requirements. Those rates are 1.7% APY for the upper-tier and 1.14% for the base tier.
[READ: 10 Ways To Save Money On A Tight Budget]
Accounts that meet the minimum balance requirements during the evaluation period will get a 1.7% APY, and those that fall short will get a 1.14% APY for the period under consideration.
Pros of the CIT Savings Builder Account
- High APY– over 20 times the national average
- High interest rates
- No monthly fees
- Daily compounding interest to maximize your earnings
- Ability to deposit checks and make transfers
- FDIC insured up to $250,000
Cons of the CIT Savings Builder Account
- $25,000 minimum balance or $100 monthly minimum deposit
- No direct ATM access
- Penalty for failing to meet minimum balance/deposit requirements
- No physical branches
- $100 required to open an account is high
CIT Bank Premier High-Yield Savings Account
The CIT Bank Premiere high-yield savings account provides a 1.55% APY, and unlike the savings builder account, it does not require a minimum account balance or a minimum monthly deposit. It does, however, require at least a $100 deposit to open your account and set the ball rolling.
The account is FDIC insured and requires no monthly service fees. It is an excellent way to save up money for the rainy days without the pressure of minimum daily balance or a monthly minimum deposit.
Pros of CIT Bank Premier High-Yield Savings Account
- FDIC Insured account
- No monthly service fees
- No minimum account balance or minimum monthly deposit requirement
- Daily compounding interest to maximize your earnings
- Ability to deposit checks remotely and make transfers.
Cons of CIT Bank Premier High-Yield Savings Account
- $100 required to open an account. That’s high.
- No physical branches
- No direct ATM access
Though we’ve listed some “minor issues” with the CIT Bank savings accounts, those issues pale in comparison to the more than 20 times higher-than-average APY the bank offers.
Most online-only banks are only able to provide this phenomenal APY because they save a lot of money by not operating local bank branches. They save money in rent, employee salaries, furniture, office equipment, and more. Those savings are then passed on to customers in the form of higher-than-average APYs.
[READ: Police and Fire Federal Credit Union (PFFCU) Review – Everything You Need to Know]CIT Bank Checking Accounts
Interest-bearing checking accounts are not standard, that’s why the CIT Bank’s interest checking account is something that deserves your attention. The account comes with all the trappings of a full-fledged checking account, but with no monthly charges, and the ability to earn up to 0.25% APY.
Who Is CIT Bank Interest Checking Account Good For?
This account is good for internet-savvy people who need all the functionality of a full checking account but without all the fees and monthly charges.
The fact that CIT Bank pays interest to its customers to have them maintain a checking account with the organization is astounding.
Between the monthly services charge, overdraft fees, ATM fees, and other miscellaneous charges, the average cash-strapped brick and mortar bank customer will pay up to $473.75 in annual bank fees.
That same cash-strapped customer would pay zero in bank fees if they were to get the CIT Bank checking account. It makes you wonder why so many people are still paying hundreds of dollars in bank fees to their brick and mortar banks.
Most Americans do their banking with one of the four largest banks in the country — Wells Fargo, Bank of America, Chase Bank, and Citibank. These banks do not offer interest-bearing checking accounts, and their interest-bearing savings accounts pay about twenty times less interest than what CIT Bank Savings Account offers. Community banks and credit unions don’t do any better.
If you want to save money on bank fees, or you want a bank to pay you for the privilege of keeping your money, CIT Bank might be the place to achieve both those ends.
Though CIT Bank is free, there are some limitations to that freedom. For example, if you run an overdraft on your account, it will cost you $30 per item. Foreign transaction fees are 1% of the transaction. Finally, you get one free debit card during the calendar year. But if for some reason you need another debit card, that will cost you $10. And if you want the debit card delivered to you in a rush, that will cost you an additional $45 for the express service.
Pros of CIT Bank Interest Checking Account
- Interest checking account (0.25% APY > $25,000, and 0.10% APY < $25,000)
- Free ATM, and $15 reimbursement in ATM fees from other banks
- Intuitive mobile app
- Integration with Zelle, Bill Pay, Samsung Pay, and Apple Pay
- Unlimited withdrawals and check deposit via CIT Bank’s mobile app
- Debit card with EMV chip technology
- FDIC insured
Cons of CIT Bank Interest Checking Account
- No checkbook for eChecking account
- $100 minimum of open an account
- Overseas transaction fees of 1% of the transaction
- No physical branches
CIT Bank Interest-bearing checking account is an all-around great bank account that will save you a lot of money.
CIT Bank Money Market Accounts
The Money Market account at CIT Bank is similar to its high-yield savings account. The most significant difference between the two accounts is the slight difference in APY.
The money market accounts pay 1.75% APY, while its high-yield savings account pays 1.7% APY.
CIT Bank Certificate Of Deposit (CD) Accounts
A CD is an excellent way to save money for a long-term goal. You get the benefit of a high APY and a disincentive to take your money out before the CD matures. If you’re someone who struggles to save money, a certificate of deposit might be the best route for you.
CIT Bank’s Certificate of Deposit comes with some astounding features. For example, they do not level a penalty for accessing your funds before maturity. They also pay a pretty decent APY of 1.65% on their 11-month CD.
There are some of the high points of the CIT Bank CD.
[READ: Safe Credit Union Review: What You Should Know]Pros of The CIT Bank CD
- FDIC Insured
- No maintenance fees
- Daily compounding interest to maximize your earning potential
- No penalty for accessing funds before maturity
Cons of The CIT Bank CD
- $1000 to open an account
How To Open An Account With CIT Bank
To open an account with CIT Bank, regardless of the product, you must be at least 18 years old, have a valid social security number or taxpayer ID, and you must provide your address, phone number, and e-mail address. You also need to have the minimum amount required to open your account.
Contact CIT Bank by telephone on 1 (855) 462-2652.
Bottom Line
CIT Bank is a great all-around online-only bank. Most of their accounts are free, which makes them a good choice if you want to save money on bank fees.
The post CIT Bank Review – High-Yield Savings, checking Account & CDs appeared first on WholesomeWallet - Get Better With Money.