Updated November 17, 2015
CIT (Commercial Investment Trust) Bank is exclusively an online bank. CIT Bank is insured by the FDIC and boasts comprehensive security measures as well as competitive interest rates. The institution offers three main depository products categories: Certificates of Deposits (CDs), IRA CDs, and savings accounts. Two savings accounts are offered. These are called ‘high yield’ savings accounts.
CIT Bank offers a High Yield Savings Account (Tier 1) and High Yield Savings Account (Tier 2) option. The minimum initial deposit to open either account is $100. Neither account has a monthly fee. Both accounts are FDIC insured. Interest compounds daily. The minimum daily balance for a Tier 1 Savings Account is $0. The minimum daily balance on a Tier 2 savings account is $25,000.
Despite the different names, they are basically the same account. Once the account balance of the Tier 1 account exceeds $25,000, the entire account balance begins earning the higher interest rate. So, anyone can apply for the Tier 1 and quickly move up to the Tier 2 once able to contribute $25,000+.
At the time of writing, the interest rate for both accounts is 1.05% APY. Yes, at this moment, there is no difference in interest rates between the Tier 1 and Tier 2 accounts. Typically, the Tier 2 account yields 0.05 basis points over the Tier 1 account. In the future, Tier 1 may be 1.05% APY while Tier 2 is 1.10% APY.
- Money can be funded and withdrawn in three ways: external transfer (free), wire (free), or mail check (free)
- A 1.05% APY interest rate is competitive
- Telephone support hours: Monday – Friday 6 AM – 8 PM CST, Saturday 8 AM – 4 PM. Sunday 10 AM – 3 PM. Press ‘0’ for live agent. Support is based out of Springfield, Illinois.
- If the Tier 2 savings account is currently offering a higher interest rate, that rate can be obtained once the account gets over $25,000 – for the entire amount in the account. It’s not as though the first $25,000 receives the lower interest rate and anything above gets the higher rate.
- Zero fees on savings accounts: no maintenance fees, no wire fees and no account fees
- Interest in compounded daily
- Making paper check deposits is possible: Make the check payable to the account holder. List account number in memo, endorse check and write ‘for deposit only’ below signature. Mail the check to the check processing center: PO Box 1310 Springfield, MO 65808
- No minimum monthly account balance. After 2 years with no balance, the account becomes dormant
- Once the account balance exceeds $25,000, the higher interest rate is applied automatically
- CIT Bank does not offer checking accounts. Typically, a person wants to have a savings and checking account at the same institution so the savings account can provide overdraft protection. Plus, internal bank transfers are typically faster than external transfers. That keeps the account holder’s money from being in limbo for a long period of time.
- Although interest is compounded daily, interest is credited monthly
- No signup bonus
- This bank is not well-known. This may be a problem for someone who feels comfortable only when depositing money into a major institution. CIT Bank was established in 2000, although it is owned by a Fortune 500 company and insured by the FDIC.
- The CIT Bank website offers little information about its products and services. It makes for a clean looking website but it’s difficult to uncover important information.
CIT Bank has no fees except for an early withdrawal fee on CDs. There are zero fees on savings accounts.
Like with all savings accounts, you’re limited to six withdrawals per month and you can’t go over, not even for a fee. You are also obligated to paper-free banking. There is currently, there is no difference between a Tier 1 and Tier 2 savings account, however, this could easily change in the future.
Who It’s Best For
This account is best for someone who is okay with no physical branch locations. These accounts are also good for someone who already has a good checking account and they would just like a competitive savings account with no fees.
How to Open an Account
Fill out the application form and deposit at least $100 to open. Deposits can be as an electronic transfer (free), wire transfer (free), or via paper check (free).
Other Savings Accounts to Consider
High-Yield Savings By Radius Bank
- 1.10% APY
- The balance must be at least $2,500
- 0.00% APY applies to balances of $0.01 – $9.99, 0.05% APY applies to the entire balance on balances of $10.00 – $2,499.99, 1.10% APY thereafter.
- No monthly service fees
Savings Account By The Palladian Private Bank
- Promotional interest rate of 1.30% APY
- Normal interest rate of 1.10% APY
- Minimum initial deposit of $1,000 (which must be funded within 10 calendar days of account application date)
- Maximum initial deposit of $100,000
- Interest credited monthly
Despite the minimal information on the CIT Bank website, a savings account by this institution makes good sense for a lot of people. It stays competitive with many other high-interest savings accounts and even does better in some areas such as mail-in deposit acceptance and no fees whatsoever.