This is a detailed CIT Bank review. The banks with the highest savings rates are online banks because they don’t have high overhead costs. Instead of spending money on rent, online banks can pass on part of their savings to you.
Aggressive saving is a fundamental pillar to good personal finance. The more you can save and invest, the sooner you can reach financial freedom.
CIT Bank is one of the premier online focused banks today. Here is a comprehensive review for 2020 and beyond. The world is full of uncertainty due to the coronavirus pandemic, hence, it’s a great idea to focus on building your savings account.
CIT Bank Review
Founded in 1908 and based in Pasadena, California, CIT Bank has more than $45 billion in assets, and over $30 billion in deposits. It’s parent company, New York City-based CIT Group Inc. has more than $65 billion in assets. CIT Bank offers both online and mobile banking, and also provides mortgage loans, and business financing for small businesses.
The bank (FDIC #58978) offers FDIC insurance of up to $250,000 per depositor.
CIT Bank Review: Deposit Products
CIT Bank offers a high yield money market and savings account, and several high-yield CD products. Each of these products are available for custodial accounts, but not for IRA accounts. Interest on all deposit products is paid daily, and credited monthly. (All rates posted are as of January 8, 2019)
CIT Bank Money Market. This account is currently paying a rate of 1.15% APY on all balances. Although the rates will change over time. The account comes with PeoplePay, a free service that allows you to send money to just about anyone with an email address or a mobile phone number.
CIT Bank Review: CDs
Requires a minimum initial deposit of $1,000, with terms running from six months to five years.
Rates are tiered, based on the term of the certificate:
The major feature of this CD is that you can withdraw funds penalty free, any time after the first six days after the start of the certificate. That includes both partial and total withdrawals.
RampUP CDs give you the option to adjust your rate once during the term of the CD, if rates go up.
This CD is available in two terms:
3-year: with a minimum deposit of $25,000
4-year: with a minimum deposit of $50,000
RampUP Plus CDs.
This version offers the same features as the RampUP CDs, but adds the ability to increase your deposit during the term of the CD at the original interest rate. That applies even if prevailing rates drop. The minimum initial deposit is $25,000. There are two terms, one year and two years.
These CDs require a minimum investment of $100,000, an offer tiered rates, based on four terms:
As you can see by the rates, they aren’t much higher than non-jumbo CDs. Therefore, if you don’t have at least $100,000 to invest, don’t sweat it.
CIT Bank Is One Of The Best Online Banks
Here’s a chart that shows how much you need to save to retire. Ideally, you want to save at least 20% of your income. If you can save 50% or more of your gross income, you will get to retirement in just 17 years.
CIT Bank pays some of the highest interest rates available, even compared to most online banks. They pay those interest rates along with no fee banking. They also provide innovative, high yield CDs.
These include the No-Penalty CD, which allows penalty-free withdrawals after just six days, and the RampUP CD that allows you to make a one-time upward rate adjustment, if rates increase after you open the certificate.
If you’re looking for a bank that offers basic checking, credit cards, and auto loans, CIT Bank is not for you. But that’s fine, because you should use online banks like CIT Bank strictly for getting the maximum interest on your savings accounts and CDs. Find a traditional bricks and mortgages bank for your checking, ATM-withdrawing and other day-to-day needs.
Take advantage of higher savings rates as the economy picks up post pandemic. The Fed will be raising rates and the 10-year yield has already moved up from its pandemic lows in 2020.
The CIT Bank money market account is one of the highest rates on the market today. Click here to sign up and protect your wealth. Rates are subject to change. Take advantage of high rates, especially since an online savings account rate is much higher than the 10-year bond yield today.
About the Author:
Sam worked in investing banking for 13 years at GS and CS. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income boosted by his investments in real estate crowdfunding. Financial Samurai was started in 2009 and is one of the most trusted personal finance sites on the web with over 1.5 million pageviews a month.