CIT Bank Savings Account and CD Options Review

By Miranda Marquit, on June 28, 2012

Most people would be forgiven for thinking that CIT Bank is related to Citibank. However, this is not the case. CIT Bank has been around since 1908, when it was founded as Commercial Investment Trust. Originally, the company’s purpose was to provide capital to small business clients. Now, though, the company operates CIT Bank, which is subsidiary to CIT.

CIT Bank has been making a name for itself recently by offering high yield options in savings accounts and CDs. Even though CIT went through Chapter 11 bankruptcy, they emerged after only 38 days, and there is a new management team as of 2010. CIT Bank is FDIC insured, so know that your money is safe up to $250,000 per depositor. Additionally, CIT Bank is generally rated among the healthier banks, including the four-star rating from Bank Rate.

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What Account Options are Offered from CIT Bank?

CIT Bank offers consumers savings account and CD options. There are four main options:

1. CIT Savings: You can open an account for as little as $100 with CIT Bank and start earning a competitive yield. As of this writing, the yield is 0.90%. If you maintain a daily balance of at least $25,000, you can receive 1.05%. It’s worth noting that interest on the preferred rate is compounded daily. There are no fees for this savings account, including for wire transfers. The only exception is if you have a balance of less than $25,000 and you want to make an outgoing transfer; that fee is $10 per wire.
2. 1-Year Achiever CD: Start with a minimum deposit of $25,000, and earn 1.10% (as of this writing), compounded daily. You can also take advantage of the option to earn a higher rate if rates rise during your term. You can also add funds one time during the term of this CD. That can help you boost your savings partway through, without incurring any penalties.
3. Term CD: You can choose from a variety of options, from six months to three years. The rates range from 0.45% to 1.42%. You only need $1,000 to open a term CD of any length. Your interest earns interest each day, with daily compounding.
4. Jumbo CD: You can open a jumbo CD with $100,000, and choose a term of either two years or three years. Current rates are 1.25% and 1.44%, respectively. As with other CIT accounts, the interest is compounded daily, and you don’t pay account opening or maintenance fees.

All of the CDs come with automatic renewal, just in case you want to roll them over. You don’t have to miss a step at renewal time, and possibly miss out on earning interest when you take advantage of the CDs. As you can see, the options offered by CIT Bank are competitive in terms of rates, as long as you meet the minimum deposit requirements.

Open Your Account with CIT Bank

Thanks to technology, it’s easy to open a CIT Bank account from anywhere. The whole process takes about 10 minutes. Due to federal requirements, you will need some specific personal information to get you started. You will need your Social Security number, current address, birth date, and an email address. If you plan to fund your account electronically, through ACH transfer, you will also need the relevant bank account number, and the bank’s routing number. This information will allow you to open an account, and fund it properly.

If you gather everything you need, the whole process will go smoother. Once you have selected the desired product and filled out your application, you will need to agree to the terms and conditions of the account, as well as create security questions. Finally, you will be asked to link in the bank account you want to use to fund your new CIT Savings account. Remember that, even though CIT Bank won’t charge you for incoming wire transfers, you might have to pay a fee to your other bank to send the outgoing transfer to CIT Bank.

Bottom Line

For serious savers, CIT Bank offers a competitive choice for CDs and a high yield savings account. There aren’t a lot of product options, but those offered are solid choices that can help you increase your yield. The term CD options also make it possible to create a CD ladder to improve your results, or create a laddered emergency fund. If you have a large amount of capital that you want to put in a safe, FDIC insured institution, it doesn’t hurt to consider CIT Bank.