CIT Bank is an online-only bank that offers checking, savings and money market accounts, plus home loans and CDs. None of its accounts have monthly service fees, though you’ll need a $100 opening deposit for most of them.
Its products are very competitive (low fees on checking accounts and high yields on savings), but you’ll need to be comfortable with digital banking in order to benefit.
Account details, annual percentage yields (APYs) and rates are accurate as of July 25, 2023.
CIT Bank basics
Consider what banking products you want now and what you might want in the future.
- Checking accounts: eChecking.
- Savings accounts: Platinum Savings, Savings Connect, Savings Builder.
- Money market accounts: Money Market.
- CDs: CIT Bank offers traditional CDs with terms between six months and five years and an 11-month no-penalty CD, all with a minimum deposit of $1,000. Jumbo CDs require at least $100,000 to open and have terms between two and five years, though its yields are inferior to the standard CDs.
- Other accounts: Home loans and custodial accounts.
- Bank branches or online only: Online only.
Pros
- Competitive interest rates: The Platinum Savings account offers an APY of 4.95% for balances over $5,000 and the Savings Connect offers an APY of S4.60%, no matter your balance. Both are among some of the highest saving yields on the market.
- Plenty of CD options: There are nine CD terms, from six to 60 months, so you can find the right one for your needs. Yields range from 0.30% to 5.00% APY.
- Few fees: CIT Bank’s eChecking, savings and money market accounts have no monthly service fees, online transfer fees, overdraft fees, insufficient fund fees nor incoming wire transfer fees.
Cons
- Online only: CIT Bank doesn’t offer in-person services. It doesn’t have branch locations nor its own ATM network (although you can use other ATMs and be reimbursed up to $30 each month). If you deal with cash often or you’d like a face-to-face experience, this isn’t the best option.
- $100 minimum opening deposit: Most of CIT Bank’s accounts have a minimum opening deposit of at least $100; while competitors with similar rates often have a $0 minimum opening deposit.
- Low jumbo CD yields: There are four jumbo CD terms, none of which yield more than 0.50%, which isn’t competitive.
About CIT Bank
If you can easily meet the $100 minimum balance requirement, which applies to most of its accounts, CIT Bank offers some competitive, low-fee options.
The fees that you may run into include: $10 outgoing wire transfer fees for accounts with less than $25,000; $10 per return deposit item; $30 bill pay stop; $10 debit card replacement.
Checking accounts
CIT Bank’s eChecking account requires a minimum opening deposit of $100, but you can earn a greater yield with a greater balance. Balances under $25,000 will earn 0.10% APY, while those with a balance over $25,000 will earn 0.25% APY.
While interest-bearing checking accounts are nice, the more pertinent feature to consider is fees. In that regard CIT’s checking account stands out. There are no maintenance fees, no overdraft fees and no fees to receive a wire transfer. (Outgoing wire transfers carry just a $10 fee if you have a balance less than $25,000; otherwise it, too, is fee-less.)
Moreover, CIT doesn’t charge ATM fees and reimburses you up to $30 each month for ATM fees charged by other parties.
Saving accounts
CIT Bank offers three saving account options, plus a money market account. All of them require a minimum opening deposit of $100.
- Platinum Savings: With a minimum daily balance of $5,000, you can earn a competitive 4.95% APY. (Smaller amounts earn 0.25% APY.)
- Savings Connect: If you’re not sure you can sustain $5,000 in a savings account, consider this option. You’ll earn 4.60% APY with a $100 opening deposit, and you can avoid jumping through hoops for the highest possible yield.
- Savings Builder: The Savings Builder account has two tiers, but it requires a much higher balance, $25,000, to earn the top yield, which is only 1.00% APY. Balances less than $25,000 earn only 0.40%.
- Money market accounts: You can earn 1.55% APY with this account, which is lower than other options at CIT Bank, and, unlike typical money market accounts, it doesn’t come with checks or a debit card.
Certificates of deposit (CDs)
CIT Bank offers term CDs, a no-penalty CD and jumbo CDs.
The term and no-penalty CDs require $1,000 to open and the yields on terms between six and 18 months are competitive among the best CDs. However, you can find higher interest rates on other terms elsewhere.
If you have $100,000 for a jumbo CD, you can choose term options of two, three, four and five years, with APYs ranging from 0.40% to 0.50%. However, those rates are so lackluster that you’re better off without them.
Except for the one, 11-month no-penalty CD, early withdrawal penalties can apply: three months’ of simple interest if you make an early withdrawal from a CD with a term of one year or less; six months’ simple interest for CD terms of 13 to 36 months and 12 months’ simple interest for CDs with terms longer than 36 months.
Other products
In addition to the traditional banking products, CIT Bank also offers home loans and custodial accounts.
You could finance or refinance your primary or secondary home here with either a fixed-rate mortgage (terms ranging between 10 and 30 years) and or an adjustable rate mortgage (with terms of 5/6, 7/6 and 10/6). Rate information is only available after you submit an inquiry form.
If you want to start saving for a child and take advantage of potential tax benefits while doing so, you can also look into a custodian account at CIT Bank.
How CIT Bank stacks up
CIT Bank vs. Ally
If online banking is your jam, Ally is a popular alternative. The company offers checking, savings and money market accounts, plus CDs, investing and wealth management, home loans and refinancing.
Ally customer support is available 24/7 and it has some nifty digital tools, including savings buckets, which help you to avoid doing the mental math when it comes time to plan a vacation or a large purchase.
CIT Bank vs. Axos
While Axos Bank has more account options, its yields are either low or hard to get.
The Axos “high-yield” savings account only offers an APY of up to 0.61%, which is painfully low. The minimum opening balance requirement is $250 and the APY decreases as your account balance increases.
To get the maximum 3.30% APY with the Axos Bank’s checking account you’ll have to work for it. Customers must have $1,500 in direct deposits each month, use the account debit card ten times a month or use the personal finance manager tool, maintain $2,500 in both a managed and a self-directed investment portfolio, plus use the account to make payments on an Axos loan. That’s quite a few hoops to jump through.
CIT Bank vs. Citi®
Despite the name similarity, CIT Bank and Citibank are not the same. Some of the most significant differences are that Citibank has physical branches and its own ATM network, plus wealth management and investing products, which CIT Bank does not.
However, you’ll need to meet a few requirements to avoid monthly service fees at Citibank and its saving account interest rates leave a lot to be desired.
Frequently asked questions (FAQs)
CIT Bank is insured by the Federal Deposit Insurance Corp. (FDIC), meaning up to $250,000 of your deposits are protected in case of a bank collapse.
CIT Bank is a division of First-Citizens Bank & Trust Company. The merger between the two was announced in January 2022.
No, CIT Bank is not the same as Citibank. The two are completely separate banks with similar names.
Yes, CIT Bank is FDIC insured. But because CIT Bank and First-Citizens Bank & Trust Company are merged, customers should be aware that if they have an account with each institution, they are not separately insured, meaning that if you have deposits worth $250,000 at each bank, you’re not protected for $500,000.
