If you’re searching for ways to boost your savings with higher interest rates, you might have come across CIT Bank, a well-established financial institution that offers some of the most competitive rates on the market.
CIT Bank is known for its high-yield savings accounts and certificate of deposit (CD) offerings, making it a popular choice among savers looking for solid returns. In this detailed CIT Bank review, we’ll explore its offerings, including high-yield savings accounts, CDs, customer service, and more, so you can determine whether it’s the right choice for you.
What is CIT Bank?
CIT Bank is an online-only bank that focuses on providing a wide range of financial products to individuals and businesses. Founded in 2000, CIT Bank is a subsidiary of CIT Group, a larger financial services company.
CIT Bank has carved out a niche for itself by offering high-yield savings and CD accounts that consistently rank among the best in terms of interest rates. With no physical branches, CIT Bank operates primarily online, which allows it to keep costs lower and pass on the savings to its customers.
CIT Bank High-Yield Savings Account
The CIT Bank Savings Account is one of the bank’s flagship products, designed to help savers earn more on their deposits with a competitive interest rate.
Key Features of the CIT Bank High-Yield Savings Account:
Interest Rates: CIT Bank offers an impressive high-yield savings rate that stands out compared to traditional savings accounts at brick-and-mortar banks. As of this writing, the annual percentage yield (APY) on CIT’s savings account is significantly higher than the national average for savings accounts. This makes it an attractive option for those looking to grow their savings faster.
No Monthly Fees: CIT Bank does not charge monthly maintenance fees, so your balance will continue to grow without any deductions for service charges.
No Minimum Balance Requirements: Many high-yield savings accounts come with hefty minimum deposit requirements. However, CIT Bank’s savings account is accessible with a relatively low minimum balance, making it an excellent option for individuals just starting to save.
Easy Online Access: With CIT Bank’s online platform, you can manage your account, transfer funds, and track your balance 24/7 from any device with internet access. The bank’s mobile app is highly rated for its ease of use and functionality.
FDIC Insured: Your deposits are insured up to $250,000 per depositor, per ownership category, which provides peace of mind knowing that your savings are safe.
Pros of CIT Bank High-Yield Savings:
- Attractive APY that beats many traditional banks.
- No monthly fees or maintenance charges.
- No minimum balance required.
- Easy online banking through mobile and desktop apps.
- FDIC insurance for added security.
Cons of CIT Bank High-Yield Savings:
- Limited in-person access due to its online-only nature.
- It requires an initial deposit to earn the high APY, typically around $100 or more.
- Online-only platform may not appeal to customers who prefer in-person banking.
CIT Bank Certificates of Deposit (CDs)
For savers who want to lock in their savings for a fixed term in exchange for a higher interest rate, CIT Bank offers a variety of certificate of deposit (CD) options. CIT Bank’s CDs are known for their competitive rates, especially for longer-term deposits.
Key Features of CIT Bank CDs:
High-Interest Rates: CIT Bank consistently offers some of the highest CD rates available. Whether you’re looking for a short-term or long-term CD, the rates are typically much higher than what you would find at traditional banks.
Multiple Term Options: CIT Bank offers a range of CD term lengths, from as short as six months to as long as five years. This flexibility allows you to choose a term that aligns with your financial goals.
No Monthly Fees: Just like the high-yield savings account, CIT Bank’s CDs don’t come with monthly maintenance fees. This ensures that all of your interest earned stays in your account.
FDIC Insurance: As with the savings account, all CIT Bank CDs are FDIC insured, providing protection for your deposits up to $250,000 per depositor, per ownership category.
CIT Bank CD Types:
No-Penalty CD: If you’re looking for liquidity but still want to lock in a higher interest rate, CIT Bank offers a No-Penalty CD. This allows you to withdraw your funds early without incurring a penalty, offering a middle ground between traditional CDs and savings accounts.
RampUp CD: CIT Bank’s RampUp CD is a unique option that allows you to increase your rate once during the term. If interest rates go up during your CD’s term, you have the opportunity to take advantage of the increase without having to open a new account.
Standard CDs: CIT Bank also offers traditional CDs with a fixed interest rate and term length, providing you with a guaranteed return on your investment.
Pros of CIT Bank CDs:
- Competitive interest rates, especially for long-term deposits.
- No monthly fees or service charges.
- Variety of term lengths, giving you more flexibility.
- FDIC insured up to $250,000 per depositor.
Cons of CIT Bank CDs:
- Early withdrawal penalties on traditional CDs if you need to access your funds before the maturity date.
- Online-only platforms may be inconvenient for those who prefer in-person service.
How Does CIT Bank Compare to Other Banks?
When comparing CIT Bank to other banks offering high-yield savings and CDs, it stands out in several key areas.
Interest Rates:
CIT Bank’s high-yield savings account and CDs typically offer some of the most competitive interest rates in the industry. While some traditional banks may offer higher APYs for promotional periods, CIT Bank consistently delivers strong rates even after the introductory period ends.
Customer Service:
One downside of CIT Bank is that, as an online-only bank, it doesn’t offer in-person support. However, it does provide robust customer service through its website, phone support, and mobile app. Customers generally report positive experiences with CIT Bank’s customer service, noting that response times are fast and helpful.
Convenience:
Because CIT Bank operates exclusively online, customers must be comfortable managing their accounts digitally. The website and mobile app are user-friendly and offer a range of tools to help customers manage their savings and CDs. For those who prefer face-to-face banking, CIT Bank may not be the best fit.
Account Options:
CIT Bank offers a range of account options, from high-yield savings to various CD types, making it a solid choice for savers looking to maximize returns across different account types. However, if you need checking or credit card services, CIT Bank may not have the breadth of products that larger, brick-and-mortar banks offer.
Is CIT Bank Right for You?
Whether CIT Bank is the right choice for you depends on your individual savings goals and preferences. If you’re looking for competitive interest rates with no monthly fees, CIT Bank’s high-yield savings account and CD offerings can help you grow your savings faster. However, it’s important to weigh the online-only nature of the bank and the limited account options compared to traditional banks.
Best for:
- Savers who are comfortable managing their accounts online.
- Those looking for high interest rates on savings and CDs.
- Individuals who want no fees and no minimum balance requirements.
Not Ideal for:
- Those who prefer in-person banking services.
- Savers who need a wider variety of banking products like checking accounts or credit cards.
Final Thoughts
In this CIT Bank review, we’ve explored the advantages of its high-yield savings accounts and certificates of deposit (CDs). With attractive interest rates, no fees, and FDIC insurance, CIT Bank provides a solid option for savers looking to earn more on their deposits. However, like all financial institutions, it’s important to consider whether the online-only platform and limited account options align with your banking needs.
If you’re ready to start earning higher interest on your savings, CIT Bank could be a great choice. But before making any decisions, make sure to shop around and compare the latest rates, terms, and offerings from other banks to find the best deal for your financial goals.