CIT Bank Review: Earn Up to 4.35% APY

Backed by First Citizens Bank, CIT Bank offers all the modern conveniences (and impressive savings rates) of an online bank while boasting the history of a traditional bank.

That said, before you apply to open an account, be aware of the pros and cons of online-only banking, what types of products they offer, and how much you can potentially earn on deposits. 

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Overview of CIT Bank

CIT is a division of First Citizens Bank — a top 20 U.S. financial institution with more than $200 billion in assets.

While First Citizens Bank has more than 550 branches across 23 different states, CIT Bank is an online-only bank.

Their online banking tools are substantial enough for you to manage your account entirely online, but if you prefer in-person banking, you’ll need to go with a more traditional choice like First Citizens Bank. 

Product Offerings From CIT Bank

CIT Bank has a variety of checking and savings products.

Platinum Savings

The CIT Bank Platinum Savings account has an impressive 4.35% APY on balances of $5,000 or more. If you have less than $5,000 in the account, you'll receive 0.25% APY.

There are no monthly fees, but there is a $100 minimum opening deposit.

Savings Connect

The Savings Connect account pays 4.00% APY on all balances. So if you don't have the full $5,000 to take advantage of the higher APY of the Platinum Savings, this is a great option.

Again, there are no monthly fees, and a $100 minimum deposit is required to open the account.

Savings Builder

The Savings Builder pays 1.00% APY, which is quite a bit less than their other savings accounts. You also have to either have a regular $100 monthly deposit into the account or maintain a balance of $25,000. If you don't meet either of these requirements you'll earn a 0.40% APY instead.

There is a $100 minimum opening deposit and no monthly fees.

Account	APY	Minimum opening deposit	Fees
Platinum Savings	4.35% with a minimum balance of $5,000 or 0.25% under $5,000	$100	No maintenance or opening fees
Savings Connect	4.00%	$100	No maintenance or opening fees
Savings Builder	1.00% with minimum balance of $25,000 OR a monthly deposit of $100+ (otherwise 0.40%)	$100	No maintenance or opening fees

Money Market

Typically, money market accounts earn higher interest than traditional savings accounts, but this isn’t necessarily the case with CIT Bank.

While their money market product does offer a decent 1.55% APY, their Savings Connect and Platinum Savings products offer much higher rates. 

There's a minimum opening deposit of $100, but there are no maintenance or opening fees.

READ MORE: Money Market vs. Savings: Which Account Is Best for You?

eChecking

If you’re looking for a daily spending account with all the modern features of an online bank account and the storied experience of a traditional bank, then the CIT Bank eChecking account may be perfect for you.

It offers a bit of interest, which is rare among checking accounts. Rates are 0.25% with a minimum balance of $25,000, or 0.10% on balances below $25,000.

Plus there are no opening fees, maintenance fees, ATM fees, overdraft fees, check fees, or transfer fees. The minimum opening deposit is $100.

Term CDs

A certificate of deposit (CD) can be a great way to earn a guaranteed amount of interest on your savings, without having to take on any risk like you would with investments.

The tricky part is you have to keep your money in the CD for a set amount of time, otherwise you'll owe a fee. (However, CIT does offer some no-penalty CDs.)

With CIT Bank, you can choose from a variety of CD terms, ranging from six months to five years. There is a $1,000 minimum deposit to open an account.

READ MORE: Are CDs Worth It?

Home loans

The only lending product offered by CIT Bank is home loans. They offer loans for both purchasing or refinancing a home. That home can be your primary residence or a vacation home.

CIT Bank offers a variety of fixed-rate home loan terms, ranging from 10 to 30-year terms. They recommend picking a shorter loan term to save the most on interest and to pay off your loan faster. You’ll need to contact a loan consultant to get started.

Alternatives to CIT Bank

SoFi

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While SoFi is best known for its student loan consolidation, the bank has expanded to offer financial services, loans, and checking and savings products. With SoFi, you get up to $2 million in FDIC insurance since they work with partner banks. 

With the SoFi Checking and Savings Account, there are no monthly fees or overdraft fees. And if you set up direct deposit, you can receive your paycheck up to two days early. A 4.00% APY makes growing your savings easy,

You can use their free tool SoFi Insights, to set financial goals, create a budget, track spending, and monitor your credit score. 

LEARN MORE: SoFi Checking and Savings Account

Ally

Another online-only bank worth considering is Ally. It offers a much more robust selection of financial products than CIT Bank, including credit cards, investment products, and a few different types of loans (auto, mortgage, and personal). 

There are no monthly maintenance fees or minimum deposit requirements with Ally, and you will have access to 24/7 support and FDIC insurance.

First Citizens Bank

If CIT Bank appeals to you, but you value in-person banking services, you may prefer to go with the traditional bank that backs CIT Bank.

First Citizens Bank has more physical branch locations in the Eastern U.S. (so confirm if they have a location near you) and has a handy, fee-free ATM network. The tradeoff for these conveniences is lower earning rates on deposits.

First Citizens Bank does offer a much more impressive array of financial products. From credit cards to loans to insurance to retirement and investing accounts, you can basically manage any financial product you are likely to need in one place.

CIT Bank, on the other hand, only offers home loans and checking and savings products. 

FAQs

Is CIT Bank FDIC-insured?

Yes. CIT Bank is a member of the Federal Deposit Insurance Corporation (FDIC). Deposit accounts have up to $250,000 worth of insurance per depositor and for each account ownership category.

Is CIT Bank owned by Citibank?

Although the names are similar, CIT Bank is not affiliated with Citibank. CIT Bank is owned by First Citizens Bank, which is the largest family-controlled bank in the United States. 

Bottom Line: Is CIT Bank Worth It?

If you like online-only banking, CIT Bank is a good option for checking and savings products, as it comes with no monthly fees or overdraft fees.

The CIT Bank Platinum Savings is particularly noteworthy, with one of the highest APYs out there. The catch is you need to maintain a $5,000 balance to earn the maximum APY.

If you prefer in-person banking or need more products, like an auto loan or investment services, you may want to consider an alternate bank altogether — or add one alongside your CIT Bank checking and savings accounts.

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