CIT Bank review 2024
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Updated: April 04, 2024
4.3
4.3
Commissions and fees5
Customer service4.8
Ease of use4.8
Locations 0
Savings options5
Rates4
About CIT Bank
CIT stands for “Commercial Investment Trust,” and the company was founded in 1908 by Henry Ittleson. (And to be clear, CIT Bank is not Citibank; in fact, it’s not related to Citigroup at all.) In addition to online banking services and products from savings accounts to CDs, CIT Bank offers services for small businesses as well as a range of mortgage products.
CIT Bank is a division of First Citizens Bank as a result of a merger in January 2022 between parent company First-Citizens Bank & Trust Company and CIT Group Inc. CIT Bank’s parent company has more than $100 billion in assets, and it is one of the top 20 financial institutions in the United States.
CIT Bank savings and checking accounts
This online bank has a range of high-yield savings accounts, CDs, and an eChecking account. Here's everything you need to know about the various offerings:
Savings Builder
As mentioned, CIT Bank is known for its high-yield savings accounts and competitive interest rates. And their Savings Builder account is an excellent example.
This no-fee savings account requires $100 to open. You start at a 0.995% interest rate, which isn't too impressive, but you can earn up to 1.00% APY if you set up monthly deposits of $100 or more. You can also obtain this rate by maintaining a balance of over $25,000.
If you're looking for a simple, no-fee spot to park some idle cash or your emergency fund, the Savings Builder account could be for you. Just note that some online-only banks like Acorns and Varo currently pay up to 5% APY, so you can find higher rates.
Open a Savings Builder accountSavings Connect
The CIT Savings Connect account is a step up from the basic Savings Builder account. Savings Connect is a high-yield savings account and requires $100 to open and you'll also need an eChecking account with CIT bank (which I'll cover below).
On the upside, this account doesn't charge monthly or overdraft fees and it currently pays a whopping 4.20% APY. You can also deposit mobile checks and easily transfer funds into your checking account for spending.
Open a Savings Connect accounteChecking account
CIT Bank's eChecking account is a no-fee account just like the other account types. At it currently pays interest on two different balance tiers:
- Under $25,000: Earn 0.10% APY.
- Over $25,000: Earn 0.25% APY
Earning interest on a checking account is nice. However, you can find a higher APY at other banks, such as Axos who offers a rewards checking account that pays 3.30% APY and has potential sign-up bonuses. So, we recommend using your eChecking account to unlock the CIT Bank Savings Connect account, but it's not a leading standalone account.
Your eChecking account also provides $30 in monthly ATM fee reimbursements and supports mobile check deposits through CIT Bank's app.
CIT Bank Money Market
With a CIT Bank Money Market Account, you can earn a competitive interest rate and access your money easily. It's an ideal online account for building an emergency fund or saving for a large purchase.
You can get started with the CIT Bank Money Market Account and check out our list of the best money market accounts for more options.
CIT Bank CDs
One perk of banking with CIT Bank is that there's a range of certificate of deposits (CDs) you can use to generate fixed-income.
There's a $1,000 minimum to open a term CD. See details here. Rates and terms are as follows.
Online banks like Capital One 360 have much higher rates for term CDs. But CIT Bank also has a no-penalty 11-month CD currently paying 3.50% APY. It also has numerous jumbo CDs with a $100,000 minimum opening deposit. The term CDs aren't very competitive, but you can consider the no-penalty CD if you want a more flexible savings option.
Other CIT Bank features
The main reason to bank with CIT Bank is to use its CDs or high-yield savings accounts. But you also get other perks like:
- Custodial accounts: You can set up a custodial account, which will be held in the minor’s name, with you as the account custodian. You can remain on the account until the minor turns 18 (or as old as 25 in some jurisdictions), at which time the former minor takes control of the account.
- Bank calculators: Use several calculators to help you save money, prepare for retirement and even manage debt. Calculators are offered for CD laddering, mortgage payoff, emergency savings, college savings, retirement planning, traditional and Roth IRAs and several others.
- Home loans: CIT Bank also offers home loans in addition to various bank accounts.
FAQs
Pros and cons of CIT Bank
Pros
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Numerous fee-free bank accounts
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Earn a competitive interest rating with Savings Connect
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Low $100 opening requirement
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Competitive money market account interest rate
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Get $30 per month in ATM fee reimbursement
Cons
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Low CD term rates versus some competitors
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Low interest rate for its eChecking account
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No physical branches
Alternatives to CIT Bank
CIT is an excellent bank if you want to use its high-yield savings account or no-penalty CD. It also has one of the best money market accounts right now. But there are some alternatives that offer more full-service banking options and better rates.
| Highlights | Capital One 360 | Ally Bank | CIT Bank |
|---|---|---|---|
| Rating | 3.8/5 | 4/5 | 4.3/5 |
| Accounts | Savings, Checking, CDs | Savings, Checking, Money Market, CDs | Savings, Checking, Money Market, CDs |
| Online deposits | ✓ | ✓ | ✓ |
| Physical branches | ✓ | 𝒙 | 𝒙 |
| FDIC insurance | ✓ | ✓ | ✓ |
| ATM reimbursement | ✓ | ✓ | ✓ |
| More | Capital One 360 review | Ally Bank review | Visit CIT Bank |
CIT Bank. Member FDIC.
- Ally is an excellent alternative if you want more investing options as well as banking features. You can open an Ally Investing account and trade ETFs and stocks commission-free stock. It also has a managed investing option if you're looking for a robo-advisor. Plus, it has one of the best high-yield savings accounts with fewer requirements than CIT Bank has.
- As for Capital One 360, its Performance Savings account currently pays 1.20% APY and doesn't have a minimum deposit requirement or any fees. We also like Capital One 360 for its custodial accounts since its kid and teen accounts both pay interest and don't charge any fees. And it has higher CD rates than CIT Bank right now.
Looking for more banking options? Check out our roundup of the best mobile banking apps.
Summary
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 1.00% APY through the Savings Builder account with the booster.
But CIT Bank is not a full-service bank. It doesn’t offer checking accounts, credit or debit cards, auto loans or IRAs. For the average investor, CIT Bank will be strictly a high-yield savings bank. Most other banking functions will have to be handled through another banking platform such as Ally Bank or Capital One 360.
Kevin Mercadante is professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com.
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