CIT Bank is an online bank that offers the full suite of deposit products – Savings, eChecking, Money Market, Certificates of Deposit (term, no-penalty, and jumbo), as well as their most well-known product – Savings Builder – and its cash bonus for new accounts.
It's a no-fee bank, that offers some of the highest interest rates available on savings products, as well as some of the most innovative certificates of deposit (CDs) from any bank.
It doesn't offer credit cards, auto loans, or even IRA accounts, but it does have a full range of mortgage products, as well as small business financing programs.
What it does offer is a bonus on their Savings Builder account of up to $200 – available to both new and existing customers!
Let's learn in this CIT Bank review whether this bank may be right for you:
About CIT Bank
CIT Bank was founded in 1908 and is headquartered in Pasadena, California and CIT stands for Commercial Investment Trust. CIT Bank has more than $40 billion in assets, and over $30 billion in deposits. Its 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.
CIT Bank (FDIC #58978), like every bank listed in the site, is covered by FDIC insurance of up to $250,000 per depositor.
CIT Bank Deposit Products
CIT Bank offers , eChecking product, a high yield money market and savings account, as well as 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.
This checking account has a $100 minimum and pays out 0.10% APY on balances under $25,000 and just 0.25% on balances with over $25,000. CIT Bank is one of the few online banks that doesn't work with an ATM network but you get reimbursed $15 in ATM fees charged by other banks each month. It's “mostly fee-free” with no monthly fees.
CIT Bank Money Market
This account is currently paying a rate of 1.75% APY on all balances and requires just $100 to open. 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.
This money market account is one of the best money market accounts you can get because you earn the interest rate regardless of your balance. Most money market accounts require you to meet a minimum balance before they will pay you the high rate. This account only requires you to open it with $100 and then you earn the best rate possible.
Premier High Yield Savings
This is their standard savings account product and it pays a rate of 1.55% APY on all balances. The minimum to open the account is $100 and there are no fees to maintain it. It's important to note that you need to stay under the 6 transactions per statement cycle rule.
Savings Builder High Yield Savings
This is their most “famous” account – it's a savings account with a tier boost. The base savings builder interest rate is 1.16% APY with a $100 minimum to open. If your daily balance is under $25,000, you earn 1.16%.
If your daily balance is under $25,000 and you have a monthly deposit of $100 or more, you earn 1.80%.
If you have a daily balance above $25,000, you also earn 1.75% APY. These rates are as of February 4, 2020.
CIT Bank Savings Builder Bonus — $150 or $300
CIT Bank is running a new promotion where you can get either $100 or $200 when you open a new Savings Builder account and use the promotion code Spring20.
This promotion is available for new and existing customers (which is very rare).
The amount of your bonus is based on your deposit, which you must make within 15 calendar days:
- Get $150 if you deposit $25,000 – $49,999;
- Get $300 if you deposit $50,000+
Then, maintain that minimum balance requirement for 90 calendar days after the end of the funding period. Best of all, the Savings Builder account pays interest when you have a balance that meets the bonus requirements.
CIT Bank CDs
Term 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 (as of January 17, 2020):
- 6-month CD: 0.72% APY
- 1-year CD: 1.80% APY
- 13-month CD: 1.82% APY
- 18-month CD: 1.85% APY
- 2-year CD: 1.40% APY
- 3-year CD: 1.30% APY
- 4-year CD: 1.50% APY
- 5-year CD: 1.70% APY
No-Penalty CD. This is an 11-month CD, currently paying up to 1.75% APY on all balances, with a minimum opening deposit of $1,000. 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. CIT Bank recently closed this product to new accounts.
Jumbo CDs. These CDs require a minimum investment of $100,000, an offer tiered rates, based on four terms:
- 2-year CD: 1.45% APY
- 3-year CD: 1.40% APY
- 4-year CD: 1.60% APY
- 5-year CD: 1.75% APY
CIT Bank Home Loans
CIT Bank offers home mortgages, including conventional, FHA and jumbo mortgage products. They offer a fixed-rate and adjustable-rate mortgages, for both purchases and refinances. That includes purchase money mortgages with as little as 3% down.
CIT Bank Small Business Services
CIT Bank offers two programs for small businesses:
Business Loans. Offered by Direct Capital, a division of CIT Bank, N.A., small business loans can be used to finance just about any type of business expense. This includes marketing, purchasing inventory, equipment, and tech upgrades, cash flow supplements, and staffing needs.
Business loans are available for up to $150,000, with terms ranging from six months to 18 months. They are currently advertising an APR starting at 9.9%.
Equipment Financing. Also provided by Direct Capital, equipment financing rates are currently advertised as low as 5.49% APR. Terms range from 12 months to 72 months. You can borrow up to $250,000 without providing financial statements, or up to $1 million if they are provided. Repayment is generally monthly, but they do have options for seasonal and deferred payment plans as well.
Plans can be used to finance the acquisition of computer hardware and software, POS terminals, restaurant equipment, construction equipment, commercial vehicles, and capital equipment.
CIT Bank Fees & Penalties
CIT Bank is a no fee bank platform. That includes savings and money market accounts, as well as CDs.
Fees that may apply under certain circumstances include:
- Outgoing wire transfers for accounts with an average daily balance of less than $25,000: $10 per transfer
- Money market account overdraft fee: $25
- Money market account excessive transactions fee (more than 6 withdrawals per statement cycle): $10 per transaction, subject to a monthly cap of $50
- Money market account Bill Pay (which is currently unavailable) stop payment: $30 per check
Early Withdrawal Penalties on 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
Customer service is available 24 hours a day, seven days per week for both Online Banking and Mobile Banking by email or by Automated Telephone Banking.
Live phone contact is available (855-462-2652) during the following days and times (all times Eastern):
- Monday through Friday: 8:00 AM to 9:00 PM
- Saturday: 9:00 AM to 5:00 PM
- Sunday: 11:00 AM to 4:00 PM
Pros and Cons
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 a small business owner, the Business Loans and Equipment Financing programs could help you to grow your business – while you take advantage of high savings rates with the same bank.
CIT Bank does not offer other products like credit cards or auto loans. And despite paying very high-interest rates, they're currently not offering IRA accounts. What's more, account access for withdrawals is very limited. Since they don't work with an ATM network, you're stuck paying fees beyond the $15 reimbursement per statement cycle. There are no local branches available, but that's typical for online banks.
CIT Bank is a pure, online, no-fee bank that provides some of the very highest yielding savings products available with any bank. And high-yield accounts are available with initial deposits as low as $100. Since it doesn't offer traditional banking services like credit cards and auto loans, it's best used for its primary purpose only – a high yield online savings bank.
But it may be of special interest to small business owners. Not only does it offer very high yield savings, but they also provide business loans and equipment financing. That can be a winning combination for any small business.
If you'd like more information, visit the CIT Bank website.