CIT Bank Review 20-19: High-Yield Online Savings Accounts With No Fees

CIT Bank Review

With conventional banking accounts interest rates at record highs, we’re abandoned at a marginally conundrum. Can you commit your hard earned money in to the stock exchange to get a high speed of yield, albeit by simply taking on better quantities of hazard, or if you as an alternative attempt to discover a deposit accounts to continue to keep things more safe?

If you’re considering the latter, then then it may be well worth having a peek at exactly what CIT Bank offers. The organization offers some positive interest levels for people joyful to lock their cash-up to get a certain time period. Even though rates online are from mind boggling, you’ll receive many greater than you want if you abandon it sitting down on your bank checking accounts.

Nevertheless, in the event you’re considering utilizing CIT Bank to benefit from its own secure rates of interest then don’t forget to browse our in depth manual. We’ll cover everything in the kinds of premiums on deal, that its account are appropriate for, and just how simple it’s to get into your cash , and also if your hard earned money is very secure.

CIT Bank

Before we proceed further, let’s’s look at that CIT Bank happens to be.

Who is CIT Bank and What Do They Do?

CIT Bank had been launched in 2000, making them reasonably brand new within the financial solutions distance. They’re possessed by parent corporation CIT Group Inc, that can be publicly listed in the NYSE with a industry capitalization of just in excess of $4 billion.

The U.S. primarily based company provides a wide selection of banking solutions, a lot of that centres around savings account. This carries a powerful concentrate on its own Certificates of Deposit (CD) and Money Market balances. For individuals attempting to continue to keep matters basic, CIT Bank now offers savings account.

As we’ll research farther down, CIT Bank can be currently a part of this Federal Deposit Insurance Corporation (FDIC) strategy. Like a consequence, in the event the financial institution ran into economic complications and therefore, was powerless to get back your hard earned money, your capital could be shielded around $250,000 a depositor.

CIT Bank

In this way, setting your cost savings in to a CIT Bank accounts is equally as secure since it receives. Out its most important economies, CD and Money Market balances, CIT Bank can also be included with different fields of services. This consists of issuing U.S. debtors with home loans, in addition to traditional loans.

Unlike conventional monies, CIT Bank doesn’t need some bodily branches. Like a consequence, you need to deposit and withdraw your capital by way of an internet bank transport.

So today you have better comprehension of that CIT Bank is exactly what we perform, at the second area of the review we’re likely to learn more about the elementary Savings Builder accounts.

Savings Builderup to 2.10percent APY

If you’re following a traditional economies accounts, CIT Bank now provides around 2.10percent APY through its Savings Builder accounts. This produces that the Savings Builder accounts among of their top paying economies account at the U.S. Furthermore, CIT Bank chemicals concentrate to daily basis, meaning your income will rise quicker.

Read: APY Compared to APR: What Do They Mean & What’s The Difference?

In order to become started doing all the Savings Builder accounts, you have to deposit at a minimum of 100. As far as it can be, it’s imperative that you know the nice print.

In order to maintain making the 2.10percent attention offer, you may need to make sure you are in possession of the absolute minimum balance of $25,000, or rather you deposit $100 to your accounts monthly. Struggling to get this done and also your 2.40percent interest will drop right down into 1%.

Savings Builder

You won’t be charged any annual maintenance fees with the Savings Builder, nor will you be charged to open an account. In terms of accessing your cash, the Savings Builder account permits a maximum of six transactions. This includes withdrawals, automatic transfers, electronic bank transfers, and even pre-authorized requests.

So how much will you make by keeping your money in the CIT Bank Savings Builder account? Well, if you were to deposit a lump sum of $25,000, and you didn’t get the amount of money above a 5 calendar year span, in that case your hard earned money could be really worth $28,187.31 whenever you finally manufactured a withdrawal.

So today which individuals’ve insured the Savings Builder accounts, let’s’s research the CD account being supplied by CIT Bank.

CIT Bank: CD Accounts

On Best of supplying a fundamental savings accounts, CIT Bank additionally concentrates in CD accounts. These operate at a somewhat various approach to traditional economies account, we’ve clarified they do the job in detail under.

CD Accounts

In its most fundamental type, a Certificates of Deposit, or only CD accounts, functions at a exact comparable nature into some conventional checking accounts. But not like a fundamental checking accounts, CD balances commonly define the absolute minimum total which you want to deposit.

Not just that, but many CD accounts possess minimum interval which you want to continue to keep the amount of money secured off for until you may earn a scam.

Moreover, in the event the financial institution under consideration will let you get into your capital first, then you’re inclined to become penalized economically. This’s a typical instance of the way in which a CD report worksout.

  1. The CD accounts provides a predetermined rate of interest of 2 percent each 12 months
  2. This can be centered on the three year lockup, meaning you may’t access the funds until the 3 year period has passed
  3. The minimum investment is $10,000, which is the amount that you deposit
  4. This means that at the end of the three years, your $10,000 will be worth $10,612 (based on the interest compounding one per year)

Although the above interest rate of 2% is still relatively low, the main attraction of CD accounts is that in most cases, the institution offering them will be part of the FDIC protection scheme, subsequently alleviating all risks for the borrower(upto $250,000).

So now that you know how CD accounts work, let’s take a look at what CIT Bank are currently offering.

Term CD Account: up to 2.40% APY

If you’re looking to deposit your money into an account with a fixed-rate of interest, then you might want to consider the Term CD account being offered by CIT Bank. Unlike the interest rate offered via the Savings Builder account — which is subject to change at any time without notice, the Term CD account allows you to lock in the rate.

This is great if you want to know exactly how much you are going to make, and you don’t even are interested in being influenced by means of a shift in interest prices.

As you may notice from your picture below, the speeds offer will change based on the length of time you would like to lock the speed to get. As a way to reach the maximum speed of 2.40%, then you have to lock your cash for 18 weeks.

Term CDs

You’ll almost certainly see the speed program is clearly rather sporadic. By way of instance, if CIT Bank can cover you 1.40percent to clearing away the funds for a couple of decades, then you’re in fact compensated if you lock at the speed for just three decades. About the flip side, in case you opt for your 4 year duration, then a speed rises upto 1.50 percent.

Nevertheless, as a way to qualify for this Term CD accounts presenting — no matter which duration you opt for you have to deposit at a minimum of 1,000.

It is very important to notice which will you try to draw your capital just before the close of the duration you consented, then you definitely are going to undoubtedly be penalized. CIT Bank will bill a fee between about three and 12 weeks values of attention rates. It can get rid of all one’s profits, therefore be certain you simply won’t need to access your funds before the term matures.

No-Penalty CD — 2.05% APY

If you like the sound of a CD account, but you don’t are interested in being punished to an early withdrawal, then and then you’re ideal to your CIT Bank’s No-Penalty CD. The duration of this CD is 11 months, meaning its perfect fitted to people seeking to spare shortterm.

Although the No-Penalty CD provides a decrease interest rate in contrast with this Term CD and Savings Builder, the most important selling thing is really you may draw your hard-earned money out in any moment without having to be tricked. The truth is that provided that you wait patiently a week by the day that the amount of money is flashed, you may create a drawback without even sacrificing any note, but keep most the attention you’ve got earned up to there.

The minimal quantity which you may invest in the No-Penalty CD is 1,000. You can find not any account maintenance service fees, and it is really a more reward. So to offer
you a sense about how far you could get, a $10,000 expenditure to the whole 1-1 months could be value 10,187.92 in the finish of the expression. This will stand for $187.92 in profits.

Jumbo CD — Up to 1.75percent APY

For people oblivious, a Jumbo CD is personalized specially to bigger minimal deposit sums. But in yield, a Jumbo CD normally pays a greater interest rate. But, CIT Bank in fact pays a decrease speed using its Jumbo CD supplying.

For the absolute minimum expenditure of $100,000, you are certain to secure 1.75percent for a 5 year duration. Instead, you may even receive twothree, or even 4 year duration, that pays 1.45 percent, 1.40percent and 1.60 percent, respectively. Much like every one the additional CD services and products offered by CIT Bank, there aren’t any installation or upkeep penalties, and also your attention will be compounded each day.

As these, in the event that you spent $100,000 within the 5 semester, your 1.75percent interest will add up into profits of $8,750, leading to a maturity price of $108,750.

This doesn’t really amount to much value if you’re currently in possession of a large amount of savings, not least because you can earn higher rates with the other CD products we have discussed. Moreover, you don’t have the option of withdrawing your capital without needing punished.

So today we’ve insured the CD account offer, at the second area of the review we’re likely to pay the Money Market accounts. Just before we perform, let’s’s fast be certain we know just what a Money Market account happens to be.

What Exactly Is a Money Market Account?

A Money Market accounts is incredibly like some CD account. The cause of this really is substantially like while in the instance of the CD accounts, many Money Market account need a minimum deposit sum, so they confine refunds for some period of time, and also the inherent association is commonly insured from the FDIC scheme.

Neverthelessthe most important distinction is the fact that, since its name implies, Money Market account utilize your own hard earned money to put money into the economic markets. Like a consequence, they often provide a greater interest rate in contrast with some CD account.

It is very important to be aware that thanks to this decreased interest rates being offered, Money Market balances won’t use your money to invest in high-risk financial instruments. On the contrary, it will likely to placed into low-risk assets such as bonds and government securities.

We should also note that Money Market accounts do sometimes allow a limited number of withdrawals per month. If this is offered, then you usually won’t be punished.

Money Market Account: 1.85percent APY

If you’re considering putting your capital to a Money Market accounts then CIT Bank Will Provide You an APY of 1.85 percent. Even though at first this can be less than everything you may earn from the CD and Savings Builder accounts, you will find a number of extra advantages which need to be considered.

First and foremost, the Money Market accounts is excellent in the event that you may’t meet the minimum requirements set out in the other accounts we have discussed. Most notably, this concerns the minimum balance amount, minimum investment amount, or minimum monthly deposit.

In the case of the CIT Bank Money Market account, you can get started with a minimum deposit of just $100, and after that, there is no requirement to deposit anything further. This is ideal if you want to deposit a small amount of funds, and don’t even are interested in being punished in case you may’t add more funds at a later date.

Money Market Account

Secondly, the Money Market account also allows you to perform up to six individual account transactions. On top of making transfers, you can also withdraw funds. In doing so, you won’t be punished provided that you overlook’t exceed the limit.

So now that you have a firm idea of the many different savings products available at CIT Bank, in the next section of our guide we are going to explore how safe your funds are.

Are my Funds Safe With CIT Bank?

When it comes to the safety of your funds, you’ll be pleased to know that all of the aforementioned CIT Bank products we have mentioned are covered by the FDIC scheme. For those unaware, this means that your funds are protected by up to $250,000.

The FDIC program is backed fully by the U.S. government, and it was installed as a way to boost consumer confidence in the U.S. monetary system. One of the best things about the FDIC scheme is that your interest is also under full protection. For example, if you originally deposited $100,000 with CIT Bank, and you had earned an additional $5,000 in interest, if CIT Bank failed you would still get the entire $105,000.

If you are looking to invest more than $250,000, then you should treat with caution. The FDIC scheme protects the $250,000 figure per depositor, per bank. As such, if you held more than $250,000 with CIT Bank, and they failed, you would only get $250,000 from the FDIC. On the other hand, if you split your investment across multiple banks, you would be covered up to $250,000, per bank.

In terms of regulation, CIT Group — the parent company of CIT Bank, are regulated by the Federal Reserve Bank of New York, as well as the Board of Governors of the Federal Reserve System. This further highlights the safety of your funds.

How Do I Deposit Funds into a CIT Bank Account?

As noted earlier, CIT Bank does not have any physical branches. As such, you will need to do everything online. In order to get started, you need to head over to the CIT website and open an account. As CIT Bank is a financial institution, you will be required to provide the platform with some personal information, and you also need to confirm your identity. The good news is that this is really straightforward with CIT Bank, and there is no requirement to post any documents.

Instead, you’ll need to enter your social security number, and then upload a copy of your government issued ID (driver’s licence or passport). You will also need to provide details about the bank account that you are planning to use to transfer the funds from.

In order to remain compliant with U.S. regulations, CIT Bank can only accept deposits from the account you specify in your account application. If you attempt to send funds from another account, the transfer will be returned.

Once your account application is accepted, you will receive an email from CIT Bank giving you full instructions on where to deposit the funds. You’ll also need to make sure you insert your unique account number when you make the transfer, so that CIT Bank can identify the deposit.

CIT Bank Mobile App

CIT Bank now offers a native mobile app for those using an Android or iOS smartphone device. The app can be downloaded for free from either the Google Play or iTunes store, and you can perform most of the account functions as you would do via the main CIT Bank website.

However, there are a number of complaints in the public domain regarding an inability to transfer funds via the app. Multiple customers that are using the app on their Android device have noted that some account features require you to click a link, which then takes you to the main mobile web browser version of the site. Upon doing so, many of the web pages are not optimized for mobile viewing.

CIT Bank Review: The Verdict?

In summary, CIT Bank offers some attractive savings products. While on the one hand, rates of 2.40% are not world-beating, it is important to recognize that you are effectively investing in a risk-free product. The reason for this is that the FDIC scheme protects your funds up to $250,000 in the event that CIT Bank failed.

The most important thing to consider are the terms of each savings product. For example, in order to get the 2.40% rate v
ia the CD account, you will need to lock your money up for at least 18 months. If you need to access your funds urgently, you’ll potentially lose all of the interest gains you previously made.

If you instead opt for the Savings Builder account, you need to make sure that you maintain a minimum balance of $25,000, or deposit at least $100 per month. If you are unable to do this, or you simply forget, then your 2.40% yield will go down to just 1%.

As such, if you’re unsure as to whether or not you can meet the minimum requirements, or you have a feeling that you might need to access your funds early, it might be best to go with the Money Making account. Although you’ll only earn 1.85% APY, you are allowed to perform upto six account transactions, which includes withdrawing your funds.

CIT Bank

CIT Bank

CIT Bank Review
8.4

Ease of Use

9.0/10

Fees

8.0/10

Reputation

8.0/10

Customer Support

8.0/10

Design

9.0/10

Pros

  • Risk-Free Savings
  • No monthly fees
  • Low minimum deposits
  • High Interest Rates

Cons

  • Online-only bank
  • No IRA Options