This direct bank offers a 1.55% APY with no fees or minimum daily balances.
- Total Balances 0-$250,000 is 1.55% APY
- Total Balances over $250,000 is 1.55% APY
- $100 minimum opening deposit
- No fees to open or maintain
What is CIT Bank known for?
CIT Bank is the principal bank subsidiary of CIT Group, a financial holding company founded and headquartered in New York City.
CIT Bank is a nationwide online bank that offers FDIC-insured high-yield savings accounts and flexible term CDs.
What are the benefits of a savings account with CIT Bank?
CIT Bank’s high-yield savings account comes with several perks:
- 1.55% APY. CIT Bank’s tiered interest rates offer 1.55% APY on balances of up to $250,000 and 1.55% APY on balances of $250,000 or more.
- No minimum daily balance. Save on as little or as much as you’d like.
- No fees. Open this account for free and pay no maintenance fees.
- Interest compounded daily. CIT Bank calculates interest daily so that your money can grow efficiently.
What should I look out for?
The CIT Bank savings account has profitable benefits but also a few potential drawbacks.
- $100 minimum deposit. It’s not much, but you’ll need an initial deposit of $100 to open this account.
- Five-day hold on deposits. Funds are held for five business days from the day of deposit before they’re available for your use.
- $10 wire transfers. Outgoing wire transfers are subject to a $10 fee.
- Limited transactions. Like other high-interest online accounts, you’re limited to six transactions a month.
What are the eligibility requirements for a CIT Bank savings account?
In order to open up a savings account with CIT Bank, you’ll need to be a US citizen and provide the following details:
- Primary home address
- Valid email address
- Valid phone number
- Social Security number
- Driver’s license or valid state ID
- Names and personal details of any joint account holders and/or designated beneficiaries
What other savings options does CIT Bank offer?
Besides its online savings account, CIT Bank also offers the following savings options:
- Term CDs. No maintenance fees, a minimum $1,000 opening deposit, terms from six months to five years and APYs of 0.72% to 1.70%.
- No-Penalty CD. An 11-month fixed-term CD with 1.55% APY, a minimum $1,000 opening deposit, and no penalty for withdrawing funds seven days after initial deposit.
- RampUp CDs. A three-year term at 1.20% APY is available with a $25,000 deposit, or take advantage of a four-year term at 1.38% APY with a $50,000 deposit.
- RampUp Plus CDs. One- and two-year terms with 1.26% to 1.27% APY available. A minimum deposit of $25,000 is required. Once during the term of your CD, you may add to your initial deposit or increase your rate if CIT Bank’s rates go up.
- Jumbo CDs. Terms range from two to five years and offer APYs of 1.45% to 1.75% with a minimum opening deposit of $100,000.
CIT Bank partners with Allstate to form CIT Northbridge
On July 10, 2017, CIT Bank announced a proposed partnership with Allstate, the second-largest personal lines insurer in the United States.
Together, CIT and Allstate will provide term loans to middle-market companies through CIT Northbridge Credit LLC. These loans are typically offered by traditional banks, but CIT Northbridge plans to deliver debt solutions to companies needing more flexible terms and rates.
Bottom line
An FDIC-insured online savings account with CIT Bank offers 1.55% APY with no associated fees and daily compounded interest, but it does require a $100 initial deposit to open and limit you to six transactions per month.
For those willing to overlook this and the five-day hold on deposits, the CIT Bank savings account could be a solid way to save.