Updated December 28, 2019

CIT Bank Review: Is It Good?

Read more about CIT Bank
This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by reading our website and using our links. (read more)

Want a high interest rate at a good FDIC insured bank? CIT is tempting, but has some downsides. Read this CIT Bank review before you open an account.

CIT Bank Promo Code
Savings Builder High Yield Savings - 1.80% APY

Overall Score

4.5

Savings

4.5

Checking

4.5

Money Market

5.0

Customer Service

4.0

Mobile App

4.5
5-point scale (the higher, the better)

Pros and Cons

  • High APY
  • No monthly service fees
  • Low opening deposits
  • No physical locations
  • No check writing

Bottom Line

Solid online bank with excellent rates and no monthly fees

If you want to earn a more impactful return on your savings, look beyond traditional bank savings accounts that pay very little interest. You can find other savings options that offer higher returns.

In this review, we will look at how CIT Bank's High Yield Savings Accounts, CD Rates, and Money Market Accounts can help grow your savings fast.

About CIT Bank

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.

 

Are CIT and Citibank the same? No, they are entirely separate entities, even though their names are similar. CIT Bank is owned by holding company CIT Group. Citibank is owned by CitiGroup.

Read on for our full CIT Bank review.

Is CIT Bank trustworthy?

© CreditDonkey

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.

Pros & Cons of Banking With CIT

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 not as high as other online banks
  • No IRAs
  • May experience long wait times on the phone

What CIT Offers

© CreditDonkey

CIT Bank is popular for their savings products, offering rates comparable to other online banks. Now, it just introduced their new eChecking account. So you can now do your checking and savings in one place, if you wish.

eChecking Account

CIT Bank recently launched the new checking account with tiered interest. You need $100 to open. There are no monthly maintenance fees. Account features include:

  • Free MasterCard debit card with EMV chip technology

  • No ATM fees charged by CIT. Up to $15 in other banks' ATM fees reimbursed per month.

  • 24/7 mobile banking, including mobile check deposits and online bill pay

  • Overdraft protection when you link up a CIT Savings or Money Market account. There is no fee to have money transferred to cover the transaction.

  • Make purchases and transfer money via Samsung Pay, Apple Pay, and Zelle. There is no charge to use Zelle.

  • Set up travel alerts and stop/restrict debit card use

Note that this checking account does not allow paper check writing.

Daily account limits are:

  • $500 cash withdrawal limit
  • $1,500 point-of-sale (POS) limit for purchases

Savings Builder Account

© CreditDonkey

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.

Here's how it works:

You can earn 1.80% APY if you do ONE of the following:

  • Keep a balance of $25,000+, OR
  • Open an account with $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 1.80%.

As a welcome offer, CIT Bank will reward you with the 1.80% APY during an Introductory Period. There are no fees to open or have the bank account.

Read our review about how the Savings Builder account works.

As with any savings account, you'll be limited to 6 withdrawals per month. This is a standard, federally-imposed bank limitation.

You can withdraw money from your CIT savings account by electronic transfers, wire transfers, and mailed checks.

The Savings Builder account doesn't come with an ATM card, so you won't be able to withdraw money directly from your savings.

Compare Bank Savings Rates

    Discover

    Online Savings Account - Earn 1.70% APY

    • No fees
    • No minimum opening deposit
    • No minimum balance required
    Chase

    Chase Total Checking® + Chase Savings℠

    • Enjoy up to $350 when you open a new Chase Total Checking® account with Direct Deposit and/or open a new Chase Savings℠ account, deposit $10,000 or more in new money and maintain a $10,000 balance for 90 days
    • Enjoy a $200 bonus when you open a new Chase Total Checking® account and set up direct deposit
    • Enjoy a $150 bonus when you open a new Chase Savings℠ account, deposit a total of $10,000 or more in new money within 20 days, and maintain a $10,000 balance for 90 days
    • Access to 16,000 Chase ATMs and nearly 4,900 branches
    • Open your account online now.
    • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
    • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
    Betterment

    Betterment Everyday - Earn up to 1.83% APY

    • FDIC insurance covering up to $1,000,000 at program banks
    • Access cash in 1-2 business days
    • No minimum balance
    • No fees on balance
    • Unlimited withdrawals

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
  • (Online bill pay coming soon)

Note: The money market account product is meant for as a personal bank account and cannot be titled in a trust or opened under the name of a business.

There is a limit of six bank transactions (such as transfers or withdrawals) per monthly statement cycle. This is a federally imposed financial regulation.

Certificate of Deposit (CD)

© CreditDonkey

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

There are a few key factors to consider when deciding on a CD:
  • Term length
  • Minimum deposit
  • Annual percentage yield (APY)
  • How interest compounds.

  • Term CDs: 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.

    CIT offers the highest rate on their 18-month Term CD. The 1-year and 13-month CDs are pretty good as well. For any other duration, you're better off with the CIT money market account or savings products.

  • No Penalty CDs: This CD product 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). This is good if you suddenly need your money. The minimum to open is $1,000.

  • Jumbo CDs: Jumbo CDs award slightly higher APYs for keeping a higher balance. Duration available from 2-year to 5-year. You need at least $100,000 to open a Jumbo CD account. However, if you have that much to save, then the Savings Builder account offers a higher APY.

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.

What is the penalty for early withdrawals from CDs?
It depends on the term of your CD. Here's how it breaks down:
  • Up to 1 year: 3 months' interest on the amount withdrawn
  • From 1-3 years: 6 months' interest on the amount withdrawn
  • Over 3 years: 12 months' interest on the amount withdrawn

Note that CDs are not available as IRAs or trust accounts. However, they are available as custodial accounts.

Here are the latest CIT Bank CD promotions:

CD laddering is a smart savings strategy. This is when you split your investments into different CDs with staggered maturity dates. Using this method, your money isn't all tied up into one account.

As each CD matures, you can re-invest the money into a new CD with the new current rate. This ensures that you're always getting the current rate, as well as regular access to your money. See how it works with CIT's CD ladder calculator.

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.

There are also some tax advantages. A portion of the interest earnings are tax-free.

CIT Bank Fees and Charges

CIT Bank waives many common banking fees. All CIT's accounts have:

  • No account opening fees
  • No monthly service fees
  • No account closing fees
  • No fees for incoming wire transfer
  • No mailed check fees
  • No online transfer fees

Some fees you may encounter are:

  • $10 outgoing wire transfer ($0 for accounts $25,000+)
  • $10 excessive transaction (for Money Market Account)
  • $30 bill pay stop payment
  • $30 overdraft fee
  • $10 debit card replacement (1 free card per year)
  • 1% of transaction amount for international ATM withdrawals

CIT Bank Location

CIT is an online-only bank with no physical branches. There is only one physical location at their headquarters in Pasadena:

75 North Fair Oaks Ave
Pasadena, CA 91103

However, this is only their bank headquarters' office. It's not a place where you can walk in, open accounts, or do CIT banking in person.

CIT Bank Customer Service

CIT Bank's phone number is 855-462-2652. Here are the hours they are available by phone:

  • Monday - Friday: 8:00 am - 9:00 pm (ET)
  • Saturday: 9:00 am - 5:00 pm (ET)
  • Sunday: 11:00 am - 4:00 pm (ET)
  • Home Loans Division: Monday - Friday, 9:00 am - 8:00 pm (ET)

You can access your bank account online and by Automated Telephone Banking 24 hours a day, 7 days a week.

Is Online Banking Right for You?

Online banks offer a lot of advantages, including:

  • Higher than average interest rates. Better than traditional banks
  • Often no monthly fees or balance requirements
  • Convenience - manage your account 24/7 online
  • Easy to open an account online

However, in exchange for a high-yield bank product, people will have to be comfortable with doing banking purely online. Some downsides of online banks include:

  • No physical branches
  • No personal relationships with your banker
  • Limited services available
  • More hassle to transfer funds
  • More limited withdrawals (for example, you can't withdraw crisp $100 notes)

CIT Bank Common Complaints

Here are some common complaints from customer CIT Bank reviews.

  • Customer Service: One downside of online banking is that there are no physical location to visit. You have to contact CIT by phone or email. Customers report having to wait on hold when they try to phone in with questions.

  • Hold times on incoming funds: CIT Bank does state in their account agreement that an ACH transaction may be held for up to 5 business days. Checks deposited to your account may be held for 7 business days.

  • Electronic transfers out may take a few days: Make sure you give yourself plenty of time if you need to transfer funds. It's best that the bank accounts are used as truly savings accounts. Online banks are not meant for day-to-day funds and frequent withdrawals.

How to Open a CIT Bank Account

© CreditDonkey

All CIT accounts must be opened online. It takes just a few minutes.

  1. Start here to open a new bank account. You must be a U.S. citizen or a permanent resident and provide the following information:

    • Social Security Number
    • Driver's license or other valid state ID
    • Primary home address
    • Valid email address
    • Valid phone number

  2. Fund your new bank account in one of a few ways:

    • Transferring funds electronically from a bank checking or savings account. CIT Bank's Routing/Transit number is 124084834.

    • Mailing a check to CIT Bank, N.A. Attn: Deposit Services, P.O. Box 7056, Pasadena, CA 91109

    • Wiring funds to your new bank account

  3. CIT Bank will first make two "test" micro deposits to your funding account. Within 3 working days, you'll get an email asking you to verify the micro deposits. As soon as you have verified, CIT Bank will process the transaction to fund your new account.

    Savings Builder High Yield Savings - 1.80% APY

    Earn up to 1.80% APY. Here's how it works: Maintain a minimum balance of $25k OR make at least a $100 minimum deposit every month.

    CIT Savings Builder - $200 Cash Bonus

    Open a Savings Builder account with a minimum of $100 and enter the promo code, Bonus20. Fund your new account within 15 calendar days of the open date and meet one of the minimum balance requirements. Deposit $25,000 to $49,999 for $100 bonus or $50,000+ for $200 bonus. Maintain the minimum balance for 90 calendar days.

    Expires 4/16/2020

    CIT Savings Builder - $100 Cash Bonus

    Open a Savings Builder account with a minimum of $100 and enter the promo code, Bonus20. Fund your new account within 15 calendar days of the open date and meet one of the minimum balance requirements. Deposit $25,000 to $49,999 for $100 bonus or $50,000+ for $200 bonus. Maintain the minimum balance for 90 calendar days.

    Expires 4/16/2020

    $200 Cash Bonus for Existing CIT Customers

    Existing CIT Bank customers can earn a $100 or $200 bonus.

    Here's how it works: Enroll in the Savings Builder Bonus promotion. Add funds within 15 calendar days with new money. Deposit $25,000 to $49,999 for $100 bonus or $50,000+ for $200 bonus. Maintain the minimum balance requirement for the desired bonus for 30 calendar days. An existing customer must have a valid CIT Bank User ID that was created prior to January 16, 2020. Existing customers enrolled in a Savings Builder bonus promotion prior to January 1, 2020 are not eligible for this promotion.

    Expires 4/16/2020

    $100 Cash Bonus for Existing CIT Customers

    Existing CIT Bank customers can earn a $100 or $200 bonus.

    Here's how it works: Enroll in the Savings Builder Bonus promotion. Add funds within 15 calendar days with new money. Deposit $25,000 to $49,999 for $100 bonus or $50,000+ for $200 bonus. Maintain the minimum balance requirement for the desired bonus for 30 calendar days. An existing customer must have a valid CIT Bank User ID that was created prior to January 16, 2020. Existing customers enrolled in a Savings Builder bonus promotion prior to January 1, 2020 are not eligible for this promotion.

    Expires 4/16/2020

How CIT Bank Compares

© CreditDonkey

CIT Bank vs Ally Bank

Ally Bank is also an online-only bank. Ally is a full-service financial institution with checking, savings, IRAs, and investment services. It has a wide ATM network across the country. Ally Bank is well known for the excellent 24/7 personal support with real human reps and competitive rates.

 

CIT Bank Promo Code

Ally Bank Promotions

 

Benefits and Features

SavingsSavings Builder up to 1.80% APY with $25,000+ balance or $100 monthly deposit.
1.60% APY
CDTerm CDs up to 1.85% APY. $1,000 minimum opening deposit.0.75% to 2.15% APY. Terms of 3 months to 5 years. 12-month CD APY of 2.00%
CheckingeChecking: 0.25% APY with $25,000+ balance and 0.10% APY on balances under $25,0000.10% APY under $15,000; 0.50% APY $15,000 or more
Money Market
1.85% APY
0.75% APY
Customer ServiceMonday - Friday: 8:00 am - 9:00 pm (ET)
Saturday: 9:00 am - 5:00 pm (ET)
Sunday: 11:00 am - 4:00 pm (ET)
24/7

CIT: Pricing information from published website as of 10/1/2019

Ally Bank: Pricing information from published website as of 01/29/2020.

CIT Bank vs Citibank

Citibank has over 700 locations (mostly in California and New York). It also has a wide ATM network, both domestically and internationally. Citibank is a diverse financial institution that also offers popular credit cards.

CIT Bank vs Capital One 360

 

CIT Bank Promo Code

Capital One 360 Promo Code

 

Benefits and Features

SavingsSavings Builder up to 1.80% APY with $25,000+ balance or $100 monthly deposit.
1.70% APY
CDTerm CDs up to 1.85% APY. $1,000 minimum opening deposit.0.60% to 2.00% APY. Terms of 6 months to 5 years. 12-month CD APY of 2.00%
CheckingeChecking: 0.25% APY with $25,000+ balance and 0.10% APY on balances under $25,000
0.20% APY
Customer ServiceMonday - Friday: 8:00 am - 9:00 pm (ET)
Saturday: 9:00 am - 5:00 pm (ET)
Sunday: 11:00 am - 4:00 pm (ET)
Mon-Sun: 8am - 11pm (ET)

CIT: Pricing information from published website as of 10/1/2019

Capital One: Pricing information from published website as of 01/28/2020.

CIT Bank vs. Discover

Besides credit cards, Discover is a popular online bank. Discover offers a full range of services, including cashback checking, high yield online savings, student loans, and credit cards.

Plus Discover bank often offers bonuses for opening a new savings account (see availability here).

 

CIT Bank Promo Code

Discover Bank Bonus

 

Benefits and Features

SavingsSavings Builder up to 1.80% APY with $25,000+ balance or $100 monthly deposit.
1.70% APY
CDTerm CDs up to 1.85% APY. $1,000 minimum opening deposit.0.35% to 2.20% APY. Terms of 3 months to 10 years. 12-month CD APY of 2.00%. Minimum deposit of $2,500 to open.
CheckingeChecking: 0.25% APY with $25,000+ balance and 0.10% APY on balances under $25,000Earn 1% cashback on up to $3,000 in debit card purchases each month
Money Market
1.85% APY
1.55% APY under $100,000; 1.60% APY $100,000 or more. $2,500 minimum deposit.
Customer ServiceMonday - Friday: 8:00 am - 9:00 pm (ET)
Saturday: 9:00 am - 5:00 pm (ET)
Sunday: 11:00 am - 4:00 pm (ET)
24/7

CIT: Pricing information from published website as of 10/1/2019

Discover: Pricing information from published website as of 10/31/2019

Common Questions

Is CIT Bank safe?

Yes, CIT Bank uses layers of security to make sure your personal information is safe. It has anti-virus protection, firewalls, and 128-bit Secure Socket Layer encryption.

Though it doesn't have physical locations like traditional banks, CIT Bank follows the same rules and legal regulations. All CIT accounts are FDIC insured up to $250,000 per depositor for each account category. However, CIT, N.A. and OneWest Bank, a division of CIT Bank, N.A. are technically the same financial institution.

Therefore, money held between both banks would count jointly toward the $250,000 federal insurance limit. They would not be insured separately in the unlikely event of the banks closing.

Should I open a CD or savings account?

Everyone has different investment goals. The decision comes down to:

  • How much money you're looking to set aside

  • How much risk you are willing to assume

  • How much you'll need to access your savings.

If you can avoid touching your savings for at least 1 year, you may be able to earn a higher interest rate with a CD versus a savings account.

But if you need liquidity, a savings account allows you to more flexibility to withdraw your savings when needed.

How can I deposit funds with CIT Bank? You can place money into CIT Bank by electronic transfer, mobile check deposit, mailing a check, or incoming wire.

What Else Does CIT Bank Offer?

Besides bank accounts, CIT Bank offers some other services, including:

  • Home loans. CIT Bank offers both purchase loans and refinance loans at both fixed rates and adjustable rates. There is also a Low Down Payment Program that allows borrowers to qualify for a loan with as little as a 3% down payment.

  • Business loans. You can get a business loan up to $150,000 from 6-18 months.

  • Business equipment financing. Need equipment to get your business started? You can get equipment financing up to $250,000 without financials, or up to $1 million with financials from 12-72 months.

Bottom Line: Is CIT Good?

CIT is a solid online bank offering a good eChecking account and savings options. CIT offers higher interest rates than many other competitor online banks.

CIT Savings Builder account offers one of the best high yield bank rates in the nation for relatively low requirements. And even if you only have $100, you can earn competitive interest in their money market or high yield savings account .

Or if you have at least $1,000 set aside and aren't concerned about liquidity, you can earn a better than average return with an 18-month CD.

Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.

More from CreditDonkey:


Best Online Savings Account


Best CD Rates


How to Invest Money

Compare:



Leave a comment about CIT Bank Review: Is It Good?

Name
Email (won't be published)


CIT Bank Savings Builder Review

If you can save just $100 per month, you can earn a high APY with CIT Bank Savings Builder. Find out if this bank is good for you.

    The Best Way to Invest $100

    $100 may not seem like much, but you can make it grow into more. Here are 10 clever ways to turn that $100 into a better future.

    Top 10 Best Online Savings Account

    The best online savings accounts pay a good interest rate, are fully secured, and allow for flexibility. Find the best high interest savings accounts to consider.

    Best Ways to Invest $10,000

    Have $10,000 to invest? Here are 14 smart investments ideas that will turn that $10k into even bigger money.

    Passive Income: Practical Ideas to Build Wealth

    The best passive income ideas help you build real wealth and achieve financial freedom. Here are 25+ opportunities and examples for beginners.

    Top 5 Best CD Rates

    CD accounts are fully secured and risk-free. Plus, they offer higher interest rates than traditional savings accounts. Read on for our list of the best high interest CDs to help you start saving.

    Best Online Bank

    Online banks are convenient, pay higher interest rates, and have less fees. Read this list of the best online banks for your money.

    Best High Yield Savings Accounts

    Make your money work harder for you in a high-yield savings account. Here are the top savings accounts to grow your money.

    Best Short Term Investment Options

    The best short term investment options provide good returns with low risk. Here are the top 10 strategies for your short term goals.

    Best Money Market Rates

    Good money market accounts offer high interest rates with more flexibility. Here are the top money market accounts to earn the most interest.

    How to Buy an Engagement Ring

    You hear a diamond is forever when shopping for an engagement ring. But that doesn't mean you need to pay for one that long.

    How to Deposit Cash to Online Bank

    Online-only banks can be a great way to boost your savings. But depositing cash can be a challenge. We cover several ways to deposit your money in our guide.

    Residual Income

    Make money and get paid even after the upfront work is done. Learn how residual (or passive) income works. Here are 10 good investment ideas to build it.

    Study: Average Honeymoon Cost

    The cost of honeymoons keeps rising. This doesn't keep couples home, though. Some couples postpone the honeymoon until a few months after their wedding. This may make it more affordable.

    Study: Average Grocery Bill for 2

    Food spending has increased dramatically recently. In just 2 years, the average household spends $400 more per year on food. Is it due to the recovering economy or are prices getting out of hand?

    Find Your Routing Number on a Check

    Your routing number is the 9 digit code on the bottom of your check. Don't use the wrong number. Find the correct routing number for your bank.

    Average Savings Account Interest

    The average savings account interest rate is 0.6%. Many big banks offer even lower rates. Read this for the surprising truth about savings accounts.

    How to Choose a Bank

    The right bank for you depends on your needs. Do you want easy access, low fees, or good interest rates? Here's how to choose the best bank for you.

    What is a Money Market Account?

    Money market accounts have advantages over savings accounts. But how do they work? And can you lose money in one? Here are the pros and cons you should know.









About CreditDonkey®
CreditDonkey is a bank comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the card offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.