CIT Bank Review: Is It Good?

If you want to earn a more impactful return on your savings, look beyond traditional 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
  
• Is CIT Bank Trustworthy?
  
• Pros & Cons
  
• What CIT Bank Offers
  
  • Online Banking Features
    
  • Savings Builder High Yield Savings
    
  • Money Market
    
  • Certificate of Deposits
    
  • Custodial Accounts
• CIT Bank Fees
  
• CIT Bank Locations
  
• Customer Service
  
• Common Complaints
  
• How to Open an Account
  
• How It Compares
  
• Other Services

About CIT Bank

CIT Bank offers savings products at higher interest rates and no service fees. But it has no checking or 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.

Is CIT Bank Trustworthy?

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Even though CIT is an online-only bank, it 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 service fees on any of CIT's accounts
  
• Low opening deposits ($100 for savings accounts and $1,000 for CDs)
  
• Minimal banking fees
  
• Remote check deposits

CONS:

• No checking accounts
  
• No physical locations
  
• No ATM card or ATM network
  
• CD rates not as high as other online banks
  
• No IRAs
  
• May experience long wait times on the phone

What CIT Offers

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Now we'll go over the different accounts you can open with CIT.

CIT Bank Savings Builder - Up to $300 Bonus
Click Here to Get Deal
Expires 12/31/2019
Conditions Apply

CIT Online Banking Features

All accounts have free 24/7 online banking. You can:

• Withdraw funds up to the federal limit of 6 times per statement cycle (you get unlimited transfers or withdrawals by mail or phone via check).

• Make deposits via the mobile app.

• Make transfers to other bank accounts or between CIT accounts.

• Get direct deposits into the Money Market account.

Savings Builder Account

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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 1.85% APY if you do ONE of the following:

• Maintain a balance of $25,000, OR
  
• Open an account with $100 minimum deposit, and deposit at least $100 per month

If you fail to meet the balance or deposit requirements, your APY will drop to 1.17% that month. If you do meet the requirements next month, it will go back up to 1.85%.

As a welcome offer, CIT will reward you with the 1.85% APY during an Introductory Period. There are no fees to open or maintain the account.

Read more in detail about how the Savings Builder account works.

Open a CIT Bank 1.85% APY Savings Builder High Yield Savings Account
Click Here to See Terms

Compare Savings Rates

Online Savings Account - Earn 1.80% APY
Get Deal
• No fees
• No minimum opening deposit
• No minimum balance required

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 5,000 branches
• Apply online in minutes. 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.
Get Deal

Betterment Everyday - Earn up to 1.85% 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
Start Saving

Money Market Account

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

The opening minimum deposit is $100.

Money Market Account - 1.85% APY

Click Here to Get Deal

• 1.85% APY
• $100 Minimum Opening Deposit
• No monthly maintenance fee
• FDIC Insured

Certificate of Deposit (CD)

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

• 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 terms, you're better off with the CIT money market or savings products.

• No Penalty CDs: This CD 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. Terms are available from 2-year to 5-year terms. You need at least $100,000 deposit 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 deposit your savings for a set period of time. Typically, withdrawing funds from a CD before the term ends will incur a penalty.

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

Here are the current CIT Bank CD promotions:

Open a CD with CIT

Open a CD

Term CDs

• $1,000 Minimum Opening Deposit
• Up to 1.85% APY
• No monthly maintenance fee
• FDIC insured
• Daily Compounding Interest

Get Deal

No-Penalty CD

• 1.80% APY
• Option to Withdraw Full Balance and Interest After 7 Days of CD Funding Date
• $1,000 Minimum Opening Deposit
• 11 Months
• No monthly maintenance fee
• FDIC insured
• Daily Compounding Interest

Get Deal

Jumbo CDs

• $100,000 Minimum Opening Deposit
• Up to 1.75% APY
• Up to 5 years
• No monthly maintenance fee
• FDIC insured
• Daily Compounding Interest

Get a High Interest Rate

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

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

The only fees you may encounter are:

• $10 outgoing wire transfer ($0 for accounts $25,000+)
  
• $25 overdraft fee (for Money Market Account)
  
• $10 excessive transaction (for Money Market Account)
  
• $30 bill pay stop payment (for Money Market Account)

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 headquarters' office. It's not a place where you can walk in, open accounts, or do banking business.

CIT Bank also does not have an ATM network. So you will not be able to withdraw money at ATMs.

Customer Service

CIT Bank's customer service number is 855-462-2652. They are available by phone from:

• 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 account online and by Automated Telephone Banking 24/7.

CIT Bank Common Complaints

Here are some common complaints about CIT Bank.

• Customer Service. One downside of online banking is that there are no physical location to visit. You have to contact them 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 too. Make sure you give yourself plenty of time if you need to use the money. It's best that the accounts are used as truly savings accounts. They're not meant for day-to-day funds and frequent withdrawals.

How to Open a CIT Account

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

1. Start here to open a new 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 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 account

3. CIT Bank will first make two "test" micro deposits to your funding account. Within 3 business 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.

CIT Bank Savings Builder - Up to $300 Bonus

Get Deal

Expires 12/31/2019

Conditions Apply

Open a CIT Bank 1.85% APY Savings Builder High Yield Savings Account

See Terms

CIT Bank Savings Builder - $150 Bonus

Get Deal

Expires 12/31/2019

Deposit $25,000 - $49,999 within 15 calendar days. Conditions Apply.

CIT Bank Savings Builder - $300 Bonus

Get Deal

Expires 12/31/2019

Deposit $50,000 or more within 15 calendar days. Conditions Apply.

How it Compares

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CIT Bank vs Marcus:

CIT Bank vs Citibank:

CIT Bank vs. Ally Bank:
Ally Bank is also an online-only bank. Ally is a full-service bank with checking, savings, IRAs, and investment services. It has a wide ATM network across the country. Ally is well known for the excellent 24/7 customer service with real human reps.

CIT Bank vs. Discover:
Another popular online bank, Discover offers a full range of services, including cashback checking, savings, student loans, and credit cards.

Discover's Online Savings offers a very competitive APY with no opening minimum or service fees. And plus, it often offers cash bonuses for opening a new savings account (see availability here).

Money Market Account - 1.85% APY
Click Here to Get Deal
• 1.85% APY
• $100 Minimum Opening Deposit
• No monthly maintenance fee
• FDIC Insured

Online Savings Account - Earn 1.80% APY
Get Deal
• No fees
• No minimum opening deposit
• No minimum balance required

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 5,000 branches
• Apply online in minutes. 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.
Get Deal

Discover Online Savings - $150 Cash Bonus
To get your $150 or $200 Bonus offer: What to do: Apply for your first Discover Online Savings Account by 12/2/19, 11:59 PM ET, online or by phone. Enter Offer Code CY1119 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted by 12/16/19, 11:59 PM ET. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded or affinity accounts provided by Discover. Account must be open when bonus is credited. Bonus will be credited to the account by 12/30/19. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice. See advertiser website for full details.
Get Deal
Expires 12/2/2019

Common Questions

If you're still interested, you probably have some questions. We'll clear up some of the basics here:

• Is CIT Bank Safe? Yes, CIT Bank uses layers of security to make sure your 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 deposit for each account category. However, CIT, N.A. and OneWest Bank, a division of CIT Bank, N.A. are technically the same 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.

  Contact your financial professional for guidance.

  If you can avoid touching your savings for at least 1 year and can meet the minimum deposit, 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?
  For both savings accounts and CDs, there are three ways to deposit funds: transfer funds electronically, mail a check, or wire funds to your new account.

CIT Bank Other Services

Besides deposit 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. Pick terms 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. Pick terms from 12-72 months.

Bottom Line

If you're ready to start building your savings, then CIT's deposit accounts may be right for you. CIT offers higher rates than many other competitor online banks.

The Savings Builder account offers one of the best rates in the nation for relatively low requirements. And even if you only have $100, you can earn decent 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 an even greater return with an 18-month CD.