CIT Bank Review

CIT Bank offers a high interest rate. But how reliable is this online bank? Read this review to find out if what you heard is true.

	CIT Bank Money Market Account - 0.45% APY Get Deal
	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)

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Pros and Cons

• High yield
• No monthly service fees
• Low opening deposits

• No physical locations
• No check writing

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Bottom Line

Solid online bank with excellent rates and no monthly fees

Traditional banks often come with pesky maintenance fees and some of the lowest interest rates.

If you're looking for a different way to bank, online options like CIT Bank could be a good fit. CIT is popular for its high-yield savings products. It offers several different savings accounts and CDs with some of the highest interest rates on the market and no monthly fees.

As an online bank, it has fewer overhead costs. In return, it passes along the savings to customers in the form of higher APYs.

But it can be confusing. Using an online bank has some trade-offs. We'll explain.

In this review, you'll learn how CIT Bank's Savings Accounts, CD Rates, and Money Market Accounts can help grow your savings faster.

• About CIT Bank
  
• What CIT Bank Offers
  
  • Savings Builder
    
  • Money Market
    
  • Certificate of Deposits
    
  • eChecking Account
    
  • Custodial Accounts
• Pros & Cons
  
• Are There Any Fees?
  
• Is CIT Bank Trustworthy?
  
• Common Complaints
  
• How to Open an Account
  
• How It Compares

Shortcut: Most people have a regular savings account with very low interest. That's a big mistake. You could earn more for your money with CIT Bank.

About CIT Bank

CIT Bank (short for Commercial Investment Trust) provides financial services and banking products to businesses and consumers. And, they have plenty of experience to back it up.

CIT Bank belongs to CIT Group, a financial holding company with founded in 1908. It's a Fortune 1000 company and a SBA Preferred Lender with $50 billion in assets.

CIT Bank is also fully FDIC insured^[1], so your money stays safe.

What CIT Offers

CIT Bank offers a variety of accounts to cover your basic banking needs. It's popular for its high yield savings products with better rates than many other online banks. It also offers an eChecking account, so you can even have your checking and savings in one place.

Take a look at their account types to find the right one for you.

Member FDIC

CIT Bank Money Market Account - 0.45% APY

Click Here to Get Deal

• 0.45% APY
• $100 minimum opening deposit
• No monthly maintenance fee
• FDIC insured

Savings Builder

CIT Savings Builder account offers competitive savings interest rates without any maintenance fees. It's best for active savers or high-balance savers. It's a good place to build your emergency fund.

You can earn 0.40% APY in a few ways:

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

If you don't meet the requirements, you'll still earn their base tier APY that month. Once you meet the requirements again, your rate will go back up to 0.40%.^[2]

As with any savings account, you're limited to 6 withdrawals per month per federal restrictions.

Compare Savings Accounts

	SPECIAL OFFER CIT Savings Builder - Earn 0.40% APY - Learn More	SPECIAL OFFER Online Savings Account - Earn 0.40% APY - Learn More	SPECIAL OFFER Betterment Cash Reserve - Earn up to 0.30% APY - Learn More
APY	0.40%	0.40%	0.30%
Minimum Deposit Required	$100	$0	$10
Monthly Fee	$0	$0	$0

Money Market

The CIT Bank Money Market account offers the same interest rate for every balance. You'll get their higher interest rate no matter how much you have in your account. You will need a minimum of $100 to open the account, though.

Once the account is open, there are no monthly service fees. Like the Savings Builder, you're limited to 6 withdrawals per month. If you can't commit to saving a certain amount each month, this could be a great option.

	SPECIAL OFFER CIT Bank Money Market Account - 0.45% APY - Learn More	SPECIAL OFFER Money Market Account - Learn More	SPECIAL OFFER High Yield Money Market - 0.60% APY - Learn More
APY	0.45%	0.30% (for balances under $100,000)	0.60%
Minimum Deposit Required	$100	$2,500	$1,000
Monthly Fee	$0	$0	$0

Certificates of Deposit (CDs)

CIT CD rates are competitive with other online banks. It offers four options to fit different needs. All CD products have no account fees. Here's what to expect with each CD:

Term CDs
Terms are available from six months to five years. Your rate is locked in for the entire term. CDs auto-renew for the same term once they mature, except for 13-month and 18-month CDs. 13-month CDs renew as 1-year CDs and 18-month CDs become 2-year CDs.

The minimum deposit for all term CDs is $1,000.

No-Penalty CDs
This no-penalty CD product has one fixed term of 11 months. You can withdraw your full balance from this CD with no penalty. This is good if you suddenly need your money. The minimum deposit is $1,000.

Jumbo CDs
Jumbo CDs could be a good choice if you have $100,000 to save. It awards slightly higher APYs for keeping a higher balance. Duration is available from two to five years.

RampUp CDs
These CDs aren't available for new accounts. It allows customers to raise their rates once if CIT's rates go up.

CDs require you to lock your savings for a set period of time. Typically, withdrawing money from a CD before maturity will incur a withdrawal penalty.

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

Compare CD Rates

Member FDIC

Certificate of Deposit

Get Deal

• 0.50% APY for 12-month term
• 0.55% APY for 36-month term
• 0.60% APY for 5-year term

High Yield CD - Earn up to 0.70%

Get Deal

• 0.70% APY for 45-month term
• 0.45% APY for 6-month term

eChecking

With their recently launched eChecking account, you can now have both your checking and savings at CIT Bank. You need $100 minimum to open the account and, like their savings accounts, there are no maintenance fees.

If you need to withdraw money, you can use any other bank's ATM. CIT doesn't have a network of free ATMs. But they will reimburse up to $30 per month in ATM fees.

It offers convenient, 24/7 access to your account online and through the app. But this online account unfortunately doesn't come with any paper checks. CIT lets you make payments through Zelle, Apple Pay, and Samsung Pay. You can also use their Bill Pay feature for electronic payments.

Member FDIC

CIT Bank eChecking

Click Here to Learn More

• Earn 0.25% APY with $25,000 minimum balance
• Earn 0.10% APY on balances under $25,000
• Deposit of $100 minimum to open an account
• Debit card
• Monthly ATM fee reimbursement (up to $30 per statement cycle)
• FDIC insured

Compare Checking Accounts

Member FDIC

HSBC Premier Checking - $450 Welcome Deposit

Get $450 Welcome Deposit

Expires 6/30/2021

• Get a $450 Welcome Deposit for eligible new customers who open a new HSBC Premier checking account and complete the following qualifying activities.
• Open your new HSBC Premier checking account online by June 30, 2021; and
• Make recurring monthly Qualifying Direct Deposits totaling at least $5,000 from a third party to your HSBC Premier checking account(s) for 3 consecutive calendar months from the second full calendar month after account opening.
• You will automatically receive the $450 Welcome Deposit in your new HSBC Premier checking account approximately eight weeks after completing all qualifying activities. It's that simple.
• Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.

Member FDIC

Introducing Chase Business Complete Banking℠ - $300 Bonus

Get $300 Coupon

Expires 7/23/2021

• Earn $300 when you open a new Chase Business Complete Checking account. For new Chase business checking customers with qualifying activities.
• More ways to waive fees. Multiple options to waive the Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink® Business credit card
• Convenient access to payment processing. Accept card payments anytime, anywhere in the U.S., and get transparent pricing with Chase QuickAccept℠.
• Same-day deposits with QuickAccept℠. Free up the cash you need to keep your business moving forward with same-day deposits at no additional cost.
• Alerts to help you stay on top of your account activity.
• Easy account management through Chase Business online and the Chase Mobile® app.
• Unlimited electronic deposits, ACH and Chase Quick Deposit℠.
• Convenient access to 16,000 ATMs and more than 4,700 branches.

Member FDIC

High Yield Savings and Essential Checking - $100 Bonus

Get Deal

Earn 0.61% APY* with interest compounded daily and no monthly fees. For a limited time, get a $100 bonus1 when you open a High Yield Savings account and Essential Checking account when you use promo code GET100.

Savings Connect

The Savings Connect account gives you a chance to earn higher interest when you link it with a CIT Bank eChecking account.

To earn the upper tier APY on your savings, you must make a qualifying deposit of at least $200 into the linked eChecking account each month. This could be a paycheck direct deposit, mobile check deposit, ACH transfers from other banks, or even Zelle payments.

If you don't meet the $200 deposit requirement one month, your APY will go down to the base tier.

The Savings Connect account has no monthly service fee. The minimum to open is $100.

Member FDIC

CIT Bank Savings Connect - 0.50% APY

Click Here to Learn More

• Earn a competitive high yield savings rate with access and convenience features of an eChecking account.
• Earn up to 0.50% APY on Savings Connect and 0.25% APY on eChecking.
• Savings Connect is a tiered interest rate account dependent on the account holder opening a linked qualifying eChecking concurrently and makes periodic qualifying deposits.
  • Base Tier: (0.42% APY, 0.399% Interest Rate) A minimum qualifying deposit of $200 is not deposited each month into the linked eChecking or the eChecking account is closed.
  • Upper Tier: (0.50% APY, 0.499% Interest Rate) A qualifying deposit of $200 or more is deposited into the linked eChecking account each month.
  • APY assumes a qualifying deposit of $200 or more is made to the linked eChecking account each month.
• Minimum of $100 for both the Savings Connect and eChecking to open ($200 total).

Custodial Accounts (UTMA)

Any CIT account can be set up as a custodial account for a minor. This means the account is in your child's name, but you control it until your child reaches age 18 (or up to age 25 if you choose).

Keep in mind 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 Services

In addition to banking products, CIT provides some other services, including:

Home Loans
CIT offers both mortgages and refinance loans at fixed and adjustable rates. It also has a Low Down Payment Program that allows borrowers to qualify for a house loan with as little as a 3% down payment.

If you have a CIT bank account, you can get a lower mortgage rate with relationship pricing.

Business Loans
While CIT is best known for their personal banking solutions, you can also find solutions for your business. It offers business loans up to $150,000 from 6-18 months.

Equipment Financing
Businesses can get equipment financing up to $250,000 without financials, or up to $1 million with financials from 12-72 months.

Pros & Cons of CIT

PROS:

• Higher interest rates than traditional banks
  
• No monthly fees on any accounts
  
• Low opening deposits ($100 for checking & savings accounts and $1,000 for CDs)
  
• Minimal one-time fees
  
• Up to $30 monthly in ATM fee reimbursements
  
• Remote check deposits
  
• 24/7 mobile banking on iOS and Android

CONS:

• No physical locations
  
• No check writing from the checking account
  
• CD rates not as high as other online banks
  
• No IRA accounts
  
• May experience long wait times on phone calls
  
• Can't build credit since no credit cards are offered
  
• No free ATM network

Counterpoint: If you need access to physical branches, we recommend a Chase checking account. Chase has more than 4,700 branches and 16,000 ATMs nationwide.

Fees and Charges

There are no monthly fees with a CIT savings account. CIT waives many common banking fees you might run into at a traditional bank. All deposit accounts have:

• No fee to open account
  
• No maintenance fees
  
• No account closing fee
  
• No fees for incoming wire transfer
  
• No mailed check fees
  
• No online transfer fees

That said, it's not entirely fee-free. Here are some fees you might encounter:^[3]

• $10 outgoing wire transfer fee ($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

Is CIT Bank trustworthy?

Security and trustworthiness is a top priority for any bank worth its salt. Even though it's an online-only bank, CIT Bank follows the same rules and legal regulations as traditional banks.

CIT Bank is FDIC insured (FDIC# 58978). Your money is protected up to the FDIC limit of $250,000 per depositor, per ownership category in the event of CIT Bank's failure.

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

Is Online Banking Right for You?

Do you already do everything online? Or do you prefer to deal with your money in person? If you're part of the first group, online banking has some great perks:

• Higher interest rates than traditional banks
  
• No or low monthly fees and balance requirements
  
• Convenient 24/7 online account management
  
• Easy to open an account online

However, you have to be comfortable with doing everything purely online. Some downsides 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

You can't please everyone, especially if you're a bank. Here are some common complaints from CIT Bank customers.

Customer Service
You can only reach customer support by phone call or email. Customers report long wait times when they phone in with issues.

Hold Times on Incoming Funds
An ACH transfer may be held for up to 5 business days. Checks deposited to your account may be held for 7 business days.^[4]

Electronic Transfers May Take a Few Days
If you need to transfer funds to an external account, it won't be available immediately. Make sure you give yourself plenty of time to initiate the transfer.

How to Open a CIT Bank Account

All CIT accounts must be opened online. Here's how to use its online system.

1. Start here to open a new account. You must be a U.S. citizen or a permanent resident and provide the following info:
   • 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 with one of these methods:
   • Transfer funds electronically from an external checking or savings account. CIT's Routing/Transit number is 124084834.

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

   • Wire funds to your new account

3. Verify your micro-deposits. CIT will make two "test" micro-deposits to your funding account. Within 3 business days, you'll get an email asking you to verify the amounts. As soon as you have verified, your transaction will be processed.

CIT Bank Mobile App

CIT offers a mobile app for both iOS and Android, so you can bank on-the-go from anywhere.

On the mobile app, you can:

• Log-in via fingerprint or password
  
• Transfer funds between CIT accounts and other banks
  
• Deposit checks by taking a photo
  
• Set up one-time or recurring bill payments
  
• Check balances and transaction history
  
• Send and receive money through Zelle
  
• Make secure payments with Apple Pay and Samsung Pay
  
• Manage debit card preferences

In addition to the mobile app, you can also enroll in text banking. This allows you to check your account balance and recent transactions by texting a simple command.

How CIT Bank Compares

CIT vs Ally

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

Ally Bank charges no account fees for any of its accounts.

CIT Bank vs Citibank

Though their names are similar, CIT Bank and Citibank are two different financial institutions.

Citibank is one of the largest banks in the world. It has over 700 locations in the US (mostly in California and New York) and 1,800 branches overseas. You may consider it if you travel abroad often and still want access to branches and ATMs.

Citibank offers checking and savings packages. Like most traditional banks, the accounts have a monthly service fee that can be waived with certain direct deposit or balance requirements.

In comparison, CIT Bank is online only. All of CIT's deposit accounts are free with no monthly fees. It's a good choice if you want higher savings rates and don't need in-person service.

CIT vs Synchrony

CIT vs Discover

In addition to credit cards, Discover also offers a full range of online banking services, including cashback checking, high yield online savings, and student loans.

CIT vs Capital One 360

What the Experts Say

It's not easy finding the right bank. As part of our series on banking and saving, CreditDonkey asked a panel of industry experts to answer some of our readers' most pressing questions:

Bottom Line: Is CIT Good?

CIT is a safe online bank with good deposit products, including eChecking account and savings options. It offers interest rates higher than many other competitor online banks and credit unions.

The Savings Builder is a premier high yield savings account with relatively low deposit requirements.

Even if you only have $100, you can still earn competitive interest in their money market account.

Or if you have at least $1,000 set aside and aren't concerned about liquidity, you can take advantage of higher yields with an 18-month CD.

References

1. ^ FDIC Certificate ID 58978 since 03/19/2009
2. ^ CIT Bank Savings Builder
3. ^ CIT Bank Schedule of Fees, Retrieved 12/14/2020
4. ^ CIT Bank Agreement for Personal Accounts (p. 12), Retrieved 12/14/2020