CIT Bank is a true online banking platform.
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 checking accounts, credit cards, auto loans, or even IRA accounts, but it does offer the full range of mortgage products, as well as small business financing programs.
CIT stands for Commercial Investment Trust.
About CIT Bank
Founded in 1908 and based in Pasadena, California, CIT Bank has more than $40 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.
CIT Bank (FDIC #58978) offers FDIC insurance of up to $250,000 per depositor.
CIT Bank 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 April 26, 2018.)
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.
Premier High Yield Savings. Pays a rate of 1.55% APY on all balances, and requires $100 to open.
Savings Builder High Yield Savings Account. This is a new product as of Fall 2018. It's a savings account with a tier boost. The base savings builder interest rate is 1.17% APY with a $100 minimum to open. If your daily balance is under $25,000, you earn 1.17%.
If your daily balance is under $25,000 and you have a monthly deposit of $100 or more, you earn 2.45%.
If you have a daily balance above $25,000, you also earn 2.45%. These rates are as of January 7th, 2019.
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 November 8th, 2018):
- 6-month CD: 0.72% APY
- 1-year CD: 2.20% APY
- 13-month CD: 2.25% APY
- 18-month CD: 2.50% 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 2.05% 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. This is where CIT Bank CDs start to get really interesting. RampUP CDs give you the option to adjust your rate once during the term of the CD, if rates go up. If not, you continue to get the original interest rate. This CD is available in two terms:
- 3-year: 1.26% APY, with a minimum deposit of $25,000
- 4-year: 1.27% APY, with a minimum deposit of $25,000
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. The one year currently pays 1.26% APY, while the two year pays 1.27% APY.
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 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 basic banking products, like checking accounts, 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 offer checking or ATM cards, withdrawals must be made electronically. There are no local branches available, but that's hardly unusual 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 checking accounts, credit cards and auto loans (and no indication that ATM cards are available), 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, or if you'd like to sign up to open a savings account or CD, visit the CIT Bank website.