CIT Bank Review -- High Yield Rates with Low Fees

CIT Bank is an online bank that specializes in certificates of deposit. As a matter of fact, they once only offered CDs. But they’ve recently begun to offer savings accounts, as well.

CIT Bank is the newest addition to the well-known CIT, a bank lending company, that has been around for years--since 1908 to be exact. CIT is a Fortune 500 company that provides financing and leasing capital to small business and middle market clients.

Before we get to CIT’s interest rates, let’s touch on the safety and soundness of the institution. CIT is FDIC insured, so your money is protected up to the FDIC limits.

Headquartered in Raleigh, NC, the bank is well capitalized. It has an excellent Texas Ratio, which measures a bank’s capital in relation to its loan portfolio. Its equity to asset ratio is near 14%, which is considered excellent.

Now on to its savings products and rates.

CIT Savings Builder Account

The CIT Savings Builder is the newest product installment, offering up to a fantastic 1.00% APY. In order to receive this APY you must meet one of the two following conditions:

1. Deposit $100 into your account every month
2. Maintain a balance of $25,000 or more.

The idea behind the product is to encourage people to start saving money regularly. Tucking away $100 is all it takes to earn one of the highest interest rates available today. Should you not be able to meet either of the conditions above, the APY reverts to a base tier rate. Important to note that your interest rate is evaluated on a month to month basis. So if you make a deposit in month #1, your APY for all of month #2 will be the 1.00% APY. If you miss the deposit in month #2, your APY for month #2 will be the lower rate. CIT is making an effort to reward you for your good savings behavior, so take advantage! See details here.

CIT Money Market Account

This CIT Money Market Account has a strong 1.55% APY on ALL balances. The minimum deposit to open an account is just $100 and there are NO fees or account minimums to maintain. I opened an MMA with CIT earlier this year and the experience has been nothing but positive.

Interest rates have stabilized a bit here in 2020 so this one will likely hover around the current mark for a while. See details here.

CIT CD Options

CIT Bank offers three current CD options:

• CIT Bank Term CDs: These are your typical certificates of deposit. The bank offers terms of six months, one year, 13-months, 18-months, two years, three years, four years, and five years. As of now, the rates range from 0.30% APY on the one-year CD up to 4.65%. Each of these accounts has a minimum opening deposit of $1,000. See details here.
• CIT Bank No-Penalty CD: This 11-month CD offers a 4.90% APY. It also has a $1,000 minimum deposit. But you can withdraw the total balance and interest earned with no penalty after the account has been open for at least a week. This lets you earn a slightly higher rate than with the high-yield savings account, but gives you more flexibility than a traditional CD. See details here.
• CIT Bank Jumbo CDs: Do you want to put a lot of money into a CD? Check out these Jumbo CD options. They have terms ranging from two to five years, and rates ranging from 0.4% to 0.5% APY. The minimum deposit is $100,000.

Bonus: Custodial Accounts

This isn't another account type, but it lets you hold the CD for a minor. Most of CIT's CD options offer this option.

CIT Rates

Because rates can change daily, check out the current rates directly at CIT’s website. According to our best CD rates chart, CIT’s current CD rates on some accounts are near the top of the list, though shorter-term accounts have lower rates.

Where CIT really shines right now is with its savings account. It beats out Ally Bank, Capital One 360, and other well-known online banks as of this writing. You can check out the best high-yield savings account rates here.

What Are The Fees?

With CDs, there are two types of fees to consider. First, you need to be mindful of any fees to open or maintain your account. And second, you need to understand the penalties for taking out your money early. Only the first applies to high-yield online savings accounts.

With regard to the first, CIT does not charge any fees to open or maintain your CD or savings account. There are, however, penalty fees for early withdrawal of your funds from some CD products. These fees vary based on the term of your CD. CDs with a shorter term are subject to a smaller penalty than a CD with a longer term. Here are the penalty fees for taking your money out early:

• three months' interest for CD terms of one year and less
• six months' interest for CD terms of one to three years
• 12 months' interest for terms of more than three years

While you can find no penalty CD options, they tend to pay a little less in interest. So if you know you're going to keep your money in the CD, CIT is a great option. If you're not so sure, check out the no penalty CDs, including the one that CIT offers.

How To Open An Account

Opening an account is easy and can be done by completing an online application. All you have to do is choose the product you want (there are three choices), fill out the application, and make a transfer from an existing bank account. The process takes about 10 minutes, and you basically need three pieces of information on hand:

1. Your Social Security Number
2. Your Driver's License (or State ID, Passport, Military ID or Permanent Residence Card)
3. Check or Bank Account # to make transfers from

If you start your application but don’t have time to finish, you can save your application and pick right back up where you left off. Just click on Open An Account from the homepage and then go to Resume Application. For more information or to open an account, visit the CIT website.

CIT Bank. Member FDIC.

Pros and Cons

CIT Bank. Member FDIC.