Thanks to their convenience and competitive interest rates, many people are making the switch to online-only bank accounts. If you’re thinking of joining them, you might be overwhelmed by the many options to choose from. In this CIT Bank review, we’ll explore one of the most popular choices.
If you’re shopping around for an online bank, you should consider these criteria:
- Brand recognition and trust
- Technology and features
- Interest rates
CIT Bank is a leader when it comes to several of these aspects.
If you’re looking for a new online savings account, take a look at CIT Bank. It offers decent interest rates and easy online account access. You’ll also find low minimums and virtually no fees.
CIT Bank Review
Product Name: CIT Bank
Product Description: CIT Bank is an online-only bank that offers a variety of account options, including savings, CDs, mortgages, business accounts, and more. You can link multiple accounts and deposit checks online through the bank's web app. There are no monthly fees.
- Products & Services
- Interest Rates
- Fees & Charges
- Website / App
- Customer Service
When it comes to Products & Services, we were impressed with CIT Bank’s selection of high interest-paying account options. However, the lack of a checking account or an IRA might be a deal-breaker for some. CIT Bank’s Interest Rates on traditional savings accounts are among some of the highest in the industry. However, you can find better CD APYs elsewhere. We also ranked this bank high for Fees & Charges because there are no fees to open or maintain an account. In terms of Website/App accessibility, CIT Bank is fine, but we’ve heard some complaints of the mobile app crashing. Customer Service isn’t 24/7, but it is available by phone Monday through Sunday during typical business hours. There’s no live chat.
CIT Bank Review: Top Features
CIT Bank has a lot of great features that make it a competitive option for your banking needs. Like all good banks, its funds are FDIC insured, so you can rest easy knowing your money is backed by the U.S. government.
In addition to a variety of account options and excellent interest rates, CIT Bank features strong security and excellent customer service.
Here are some of the main CIT Bank Features:
|Banking Account Types||Savings Accounts, Money Market Accounts, CDs|
|Other Account Types||Mortgages, Small Business Accounts, Custodial Accounts|
|Minimum Required Deposit to Open Account||$100|
|Number of Branches||Internet Only|
|ATM Network Size||No ATM Network|
|App Availability||iOS, Android, and Mobile Optimized Website|
|Customer Service Types||Phone, Email, and Mail|
|Customer Service Hours||Mon – Fri: 8am – 9pm (ET)|
Sat: 9am – 5pm (ET)
Sun: 11am – 4pm (ET)
|Member FDIC||FDIC Certificate #58978|
|Routing Number / ABA Number||#124084834|
|Current Promotions||Click to See Current Interest Rates;|
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CIT Bank’s Online Banking offers real-time access to your account so you can manage all of your banking activity online.
This includes making transfers to and from other banks and other accounts that you have with CIT Bank. You can also view and download current and previous statements as needed.
Interest is compounded daily and credited monthly on all banking products.
CIT Bank Phone Apps & Mobile Banking. The mobile app allows you to do all of the functions that you can do with Online Banking.
That includes checking your account balances and transaction history, transferring money, and depositing checks.
The mobile app is available for Apple and Android mobile devices and can be downloaded at Google Play and the App Store.
There’s also a mobile version of the website that’s easy to use on smartphones and tablets.
You can access your account online or via the CIT Bank mobile app 24 hours a day, 7 days a week.
CIT Bank Calculators. The bank’s website offers several different calculators to help you manage your finances.
Calculators are available to help you with CD laddering, building emergency savings, college savings, retirement planning, traditional and Roth IRAs, the payoff of your mortgage payoff, and various other financial functions.
CIT Bank Interest Rates – Among the Best in the Nation
CIT Bank is one of the leaders among national banks when it comes to savings account interest rates. The base interest rate on its Premier High Yield Savings account is higher than what you’ll find at most other online banks.
CIT Bank also offers a variety of accounts, including savings, money market, CDs, mortgages, and small business accounts. Keep in mind this bank currently doesn’t currently offer checking accounts.
Due to frequent interest rate changes, I recommend visiting the CIT Bank website to check current interest rates.
You can also compare CIT Bank to other banks on our list of best online banks.
CIT Savings Accounts, Money Market, and CDs
CIT Bank offers its customers several options for online savings accounts, money market accounts, and certificates of deposit, including a no-penalty CD.
CIT Premier High Yield Savings Accounts
The CIT Bank Premier High Yield Savings Account is a tiered savings account. The tiers are broken out as follows:
- Balances of $1 to $250,000
- Balances of over $250,000
CIT Bank Money Market Accounts
The CIT Bank Money Market account is similar to the High Yield Savings account but offers slightly higher interest rates.
You can use this account for deposits, withdrawals, and transfers, including Bill Pay (coming soon to CIT Bank).
Federal banking regulations limit transfers and withdrawals from money market accounts to six withdrawals per statement cycle. So this account is best used for parking cash for your emergency fund or long-term savings.
The minimum to open an account is $100.
CIT Bank Certificates of Deposit
Although CIT Bank offers stellar rates on high-yield savings and money market account, its CD rates aren’t the highest. However, they’re still better than rates you can find at traditional brick-and-mortar banks. If you’re CD shopping, you might want to check out some of the competition.
CIT Bank offers a variety of CDs, including RampUP CDs, which allow you to increase your interest rate once during the term, and no-penalty CDs, which allow you to withdraw the balance before the term.
RampUP CDs: This is a flexible long-term CD designed to protect against market fluctuations.
With the RampUP CD rate advantage feature, you have the option to adjust your rate once during the term of the CD, if rates increase. If they fall, you can stay with the original APY. Current rates & terms:
- 3-year CD – Minimum opening deposit – $25,000
- 4-year CD – Minimum opening deposit – $50,000
RampUp Plus CDs: This account has a minimum deposit of $25,000. It gives you the opportunity to increase your rate of return one time during the term of your CD if rates rise.
This CD is compounded daily, giving you a slight increase to your total returns. You will also have the option to add funds one time during the term of this CD.
- 1-year CD
- 2-year CD
Interest rate adjustments on both the RampUP and RampUP Plus CDs are limited, as follows:
Term CD: These are standard certificates of deposit, with terms ranging from six months to five years. The minimum deposit for opening a Term CD is $1,000.
Common CD terms include:
- 6-month CD
- 1-year CD
- 13-month CD
- 2-year CD
- 3-year CD
- 4-year CD
- 5-year CD
Jumbo CD: These CDs have a minimum deposit requirement of $100,000. You can choose either two-, three-, or five-year terms. Rates vary by term.
Each of the CD options offers daily compounding. They also feature automatic renewal at the conclusion of the term unless you opt to withdraw the funds.
No-Penalty CDs: This CD comes with CIT Bank’s early withdrawal advantage feature. It allows you to access your funds early.
You can withdraw the total balance, including interest earned, without penalty, beginning seven days after the funds have been received. This CD is a minimum opening deposit of $1,000 with a term of 11 months.
CIT Bank Early Withdrawal Penalties on CDs
CIT Bank’s early withdrawal penalties for CDs are as follows:
- Terms up to 1 year – 3 months interest on the amount withdrawn
- Terms more than 1 year up to 3 years – 6 months interest on the amount withdrawn
- Terms more than 3 years – 12 months interest on the amount withdrawn
CIT Bank Custodial Accounts
CIT Bank offers custodial accounts for customers who want to start saving for a young family member or friend. The accounts are held in the minor’s name with you acting as custodian.
The account will revert solely into the minor’s name once the minor reaches legal age, which is 18 in most jurisdictions but can be as late as 25 in others.
Though the Premier High Yield Savings product is not available for custodial accounts, any of the bank’s CDs can be held within these accounts.
CIT Bank Mortgages
CIT Bank offers home mortgages for its customers. The loan programs available include both fixed- and adjustable-rate mortgages, Jumbo mortgages, interest-only loans, and both rate and term with a cash-out refinancing loan. Loan programs are available for first-time home buyers down payments as low as 3%.
CIT Bank Small Business Loans and Equipment Financing
CIT Bank offers financing programs for small businesses, in addition to savings products and mortgage loans. It currently offers both business loans and equipment financing.
The financing programs are available through the Direct Capital division of CIT Bank, N.A.
Business loans can be used for purchasing inventory, equipment and tech upgrades, or providing extra capital for marketing, staffing or even as a cash flow supplement. You can borrow up to $150,000, with terms ranging between six and 18 months.
Equipment financing program is more specific, but also more flexible. You can use the program to acquire computer hardware and software, restaurant equipment, construction equipment, POS terminals, capital equipment, and even commercial vehicles.
You can borrow up to $250,000 without supplying financial statements. Alternatively, if you do supply financial statements, you can get financing for up to $1 million. Equipment financing terms are between 12 months and 72 months.
You’ll need to contact CIT Bank for more information regarding business loans or what is needed to open a business bank account.
Freedom – As In No Fees!
With many banks raising their fees, it’s refreshing to see a bank offer so many free services, including:
- Monthly Service Fee – Free
- Online Transfer Fee – Free
- Mail Check Fee – Free
- Incoming Wire Transfer Fee – Free
- Outgoing Wire Transfer Fee – Free (with a daily balance over $25,000, otherwise $10 each)
- Account Closure Fee – Free
Some banks are now offering free ATM withdrawals at non-network ATMs, usually in the form of a reimbursement of fees each month (up to a limit).
I haven’t seen anything like this with CIT Bank, but careful planning can minimize your ATM fees or help you avoid them altogether.
Opening an Account with CIT Bank
Opening an account is quick and easy and can be accomplished in about 10 minutes.
You’ll need the standard information, including your SSN, driver’s license or state ID number, the account information of the bank you wish to link to your CIT account, and similar information.
You’ll also need the same information for any joint account holders or designated beneficiaries.
When you open an account, you’ll need to make a deposit. The minimum for a savings account is $100. The minimum deposit for CDs is $1,000 and up, depending on which type you open.
Like many online banks and financial institutions, CIT bank will make two small test deposits to your account. You must then verify the deposit amounts before you can officially link your account. Once this has been accomplished, you can transfer money between accounts.
You can make your initial deposit via an electronic funds transfer, or you can mail a check to CIT Bank.
Here is the CIT Bank Routing/Transit #: 124084834
Here is the CIT Bank address to mail a deposit:
CIT Bank, N.A.
Attn: Deposit Services
P.O. Box 7056
Pasadena, CA 91109-9699
What I Would Like to See From CIT Bank
Technology and features are fast becoming an important trend in online banking.
Only a few years ago, all a bank needed to remain competitive was security (basically a commodity among the best online banks) and the ability to sync your accounts with Quicken, Mint.com, Personal Capital, and other money management tools.
CIT Bank can improve its product offering by providing a debit card, at least to access the Premier High Yield Savings Account. Debit card access is a common offering by online banks, and by not having it CIT Bank is slowing depositors’ access to their savings.
Additionally, CIT Bank doesn’t offer checking accounts for personal or business checking or investment services (outside of CDs).
So this account is better geared toward someone looking to stash some cash at a high interest rate.
Check out this list of free online checking accounts if you’re looking for a checking account.
CIT Bank also does not provide IRA accounts. This means that you will not be able to take advantage of the bank’s high interest rate savings products for retirement purposes.
You can maintain your savings at CIT Bank, but you’ll need to have your retirement accounts held at another financial institution.
Also, while CIT Bank does offer mortgages, it doesn’t provide consumer loans commonly associated with banks, including many online banks. For example, it doesn’t offer credit cards or auto loans.
CIT Bank Bank Advantages & Disadvantages
- Among Highest Interest Rates in Nation
- No Monthly Account Fees
- Several Account Types, Including Savings, Money Market, CDs, and Mortgages
- Online Only
- No Dedicated ATM Network
- No Checking Account
- No IRAs
Who This Account Is Best For
Overall, I would put CIT Bank among the industry leaders in online savings accounts.
I recommend this as a great place to stash your cash if you’re looking for a solid return on your savings and don’t need additional features at this time.
If you’re interested primarily in the interest rate on a high-yield savings account, the CIT Bank will do just fine.
To learn more or to open an account, visit the CIT Bank website.