CIT Bank Reviewed 2024: Good E-checking Account and Saving Options

If you want to earn a more impactful return on your savings with the help of CIT Bank Reviewed, look beyond traditional bank savings accounts that pay very little interest. Moreover, CIT Bank is already tempting and you can find other savings options that offer higher returns on this page.

CIT Bank Reviewed

CIT Bank Review

CIT Bank offers a checking account and savings products at higher interest rates and no monthly fees. But it has no physical locations.

CIT Bank is the online bank of CIT Group Inc., a financial holding company with over 100 years in business. It’s headquartered in Pasadena, California, and has about $30 billion in deposits.

Who is CIT Bank for?

CIT Bank is a good option for anyone who is completely comfortable with an all-digital banking experience and does not require access to local branches.

The bank delivers competitive checking, savings, money market accounts, and CDs. It has one of the best high-yield savings accounts obtainable, as well as some attractive shorter-term CDs.

Still, prospective clients need to be aware that CIT Bank does not offer paper checks with its checking accounts, and it limits loan products to home loans. It also does not provide any business banking services.

Pros & Cons of Banking with CIT Bank

Pros

  • Higher interest rates than traditional banks
  • No monthly fees on any CIT bank account
  • Low opening deposits ($100 for checking & savings accounts and $1,000 for CDs)
  • Minimal banking fees
  • Up to $15 monthly in ATM fee reimbursements
  • Remote check deposits

Cons

  • No physical bank locations
  • No check writing from the checking account
  • CD rates are not as high as other online banks
  • No IRAs
  • May experience long wait times on the phone

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What CIT Bank Offers?

CIT Bank Reviewed

1. E-checking Account

CIT Bank recently launched a new checking account with tiered interest. You need $100 to open. There are no monthly maintenance fees.

Account features include a free MasterCard debit card with EMV chip technology, no ATM fees charged by CIT, and Up to $15 in other banks’ ATM fees are reimbursed per month among others.

They also run 24/7 mobile banking, including mobile check deposits and online bill pay

You can obtain overdraft protection when you link up a CIT Savings or Money Market account, and there is no fee to have money transferred to cover the transaction.

2. Savings Builder Account

Savings Builder account offers one of the highest savings APYs currently on the market. It rewards active savers or high-balance savers with a higher interest rate.

You can earn 1.75% APY if you Keep a balance of $25,000+, or open an account with a $100 minimum, and deposit at least $100 per month

If you fail to meet the requirements, your APY will drop to 1.16% that month. If you do meet the requirements next month, it will go back up to 1.75%.

As a welcome offer, CIT Bank will reward you with the 1.75% APY during an Introductory Period. There are no fees to open or have a bank account.

3. Money Market Account

CIT’s Money Market Account offers a high rate without the balance requirements. So this account is a good option if you can’t commit to saving a certain amount each month. You get this APY no matter what your balance is.

The opening minimum is $100. After account opening, there are no balance requirements. Some features of the money market account include remote check deposits and online bill pay coming soon.

4. Certificate Of Deposit (CD)

CIT Bank offers a few CD options to fit different needs. All CDs have no account opening or bank fees.

Here, Term CDs are available starting from 6 months all the way to 5 years. Your rate is locked in for the entire term. The minimum to open is $1,000.

The No Penalty CD is another product and has one fixed term of 11 months. It gives you the flexibility to withdraw your full balance with no penalty (starting from 7 days after account funding).

Another is Jumbo CDs award slightly higher APYs for keeping a higher balance. Duration is available from 2 years to 5 years. You need at least $100,000 to open a Jumbo CD account.

CDs require you to lock your savings for a set period of time. Typically, withdrawing funds from a CD before the term ends will incur a penalty charge.

5. Custodial Accounts (UTMA)

Any CIT account can be set up as a custodial account for a minor. This means the account is in the child’s name, but you control it until the child reaches 18. You can also designate up to age 25 if you wish.

You can contribute as much as you can to it. But note that there are gift tax rules. For 2019, the annual exclusion is up to $15,000 per year, without being taxed.

With CIT Bank Reviewed, there are also some tax advantages. A portion of the interest earned is tax-free.

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How Does CIT Bank Compare to Rivals?

CIT Bank Reviewed

Still on CIT Bank Reviewed, CIT Bank Savings delivers the highest interest on savings up to $5,000 among other banks.

The money market account yields much less than Discover Bank on all balances, and well below U.S. Bank on balances below $25,000.

With CDs, CIT is the star player among six-month terms, and it is competitive with other terms.

Among checking accounts, CIT comes behind only Nationwide. Overall, CIT is highly competitive on the rate front, though it is not the lead player in every category.

CIT Bank presents a reasonable product lineup, including checking, savings, money market, and select CDs.

Most of the accounts have practical value, at least when compared with typical brick-and-mortar bank offerings, although none of those products necessarily stand out.

CIT Bank vs. Citizens Bank

While CIT Bank is online-only, Citizens Bank may be a good fit for someone living in the Eastern U.S. who wants access to branches and a fee-free ATM network.

However, one of the advantages of banking with an online bank like CIT Bank is that you can get much higher yields.

CIT Bank presents a very competitive yield on its Savings Connect account and even offers a decent yield on its checking account; savers will not get the same boost as Citizens Bank.

Another factor to consider is costs. CIT Bank charges occasional fees. Meanwhile, Citizens Bank’s checking account comes with a high overdraft fee and out-of-network ATM fee, neither of which are charged at all by CIT Bank.

It’s also essential to know that CIT Bank is not a full-service bank. Its checking accounts don’t present paper checks, and the bank does not provide common banking services such as credit cards and loans.

The two stand-out products in the CIT Bank quiver are its No-Penalty CD, with its extremely high rate and no early withdrawal penalty, and its Savings Connect account, paying 4.65% APY on all account balances with no monthly fees.

It would be well worth your time to hold either account with CIT Bank.

Is CIT Bank Trustworthy?

Even though CIT is an online-only bank, you can trust it to keep your money safe. CIT follows the same rules and legal regulations as traditional banks.

CIT Bank savings accounts are FDIC-insured. This means that if CIT Bank defaults, the federal government will pay back what you had, up to $250,000.

To wrap up CIT Bank Reviewed, if you like high-interest rates on your savings and hate banking fees, then CIT Bank is a great choice.

It’s even better if you are a small depositor looking for high rates since you can earn as much as 2.30% APY through the Savings Builder account with the booster.

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