CIT Bank Savings Builder vs Money Market
CIT Bank offers both money market and savings accounts. But which is better to keep your money safe? Find out how to choose between the two.
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Traditional banks are kind of a bummer. Many of them charge monthly maintenance fees and offer rock-bottom APYs to boot.
About 28% of American adults have no savings set aside. So if you're in the market for a bank account to stash your money, congratulations!
You could keep your money in a traditional bank, an online bank, or under your mattress. (Actually, let's avoid that last one.) But CIT Bank is one of the best options for a secure account with high rates.
Between the Savings Builder and Money Market accounts, which one will give you the best bang for your buck? Find out the pros and cons of both accounts below.
CIT Savings Builder vs. Money Market account
CIT Bank's Savings Builder and Money Market accounts are both great choices for stashing your savings. Honestly, the accounts are very similar. They'll both keep your money safe and are backed by the FDIC.
Both accounts have similar APYs. What differs between the two is how you can earn that rate. Check out the requirements to get the highest rate for each account:
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CIT Savings Builder - Earn 0.40% APY | CIT Bank Money Market Account - 0.45% APY | |
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CIT Savings Builder - Earn 0.40% APY - | CIT Bank Money Market Account - 0.45% APY - | |
APY | ||
How to Get Highest APY | Monthly deposit of at least $100 OR balance of at least $25,000 | |
Minimum Deposit Required | ||
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The Savings Builder has a tiered interest system. If you don't make the monthly deposit or balance, you'll get a lower rate. The Money Market offers the same rate for every account without extra requirements.
While the requirement might seem like a drawback to the Savings Builder, it can be a great motivator to regularly contribute to your savings. With the Money Market account, you can get away with neglecting your savings.
Savings Builder pros and cons
Pros
- No monthly fees
- Low minimum to open
- Incentivizes you to contribute to savings to get highest APY
Cons
- Low APY if you don't meet requirements
- Lower APY than some competitors
- High balance requirement if you don't deposit $100 a month
Money Market pros and cons
Pros
- No monthly fees
- Higher APY than Savings Builder
- No requirements to get highest APY
Cons
- Some competitors offer higher rates
- Limited to electronic transfers only
- No debit/ATM card or check-writing ability
Which is best for me?
As with most things, the best account for you really depends on what you need. For most people, the Money Market account is a better choice. It has higher rates—and you don't need to worry about meeting any requirements to get the rate.
The Savings Builder has its merits too. Because you need to deposit at least $100 per month to get the high APY, it motivates you to keep growing your savings. The account really lives up to its name!
The accounts are really similar, so you can't go wrong with either one. If you want the highest APY possible, go for the Money Market account. If you want a bit of help to increase your savings, go for the Savings Builder.
Bottom line
CIT Bank offers safe, secure accounts to store your money. The Savings Builder and Money Market accounts are great for emergency funds or to save for a home.
All CIT Bank accounts have zero monthly fees and higher interest rates than traditional banks.
Figure out what's most important to you: getting the highest APY or an extra push to contribute to your savings. No matter which you choose, remember to keep saving whenever you can. Future you will definitely thank you.
Donna Tang is the head of purpose and audience at CreditDonkey, a bank comparison and reviews website. Write to Donna Tang at donna.tang@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website 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. You do not have to use our links, but you help support CreditDonkey if you do.
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