CIT Bank

• FDIC Insured
• Variety of Accounts
• No Monthly Fees
• Competitive Rates
• Checking Account
• On-the-Go Account Access

FDIC Insured

CIT Bank provides deposit insurance through the Federal Deposit Insurance Corporation (FDIC), covering checking and savings accounts, money market accounts, and CDs. In general, almost all banks have FDIC insurance, protecting a consumer's money in the unlikely event of a bank failure.

Variety of Accounts

CIT Bank has multiple savings accounts and savings options available for consumers in addition to an eChecking account, allowing consumers to choose the best bank account for their needs. 

Consumers who are looking for a savings account can choose from the CIT Savings Builder account, similar to a high yield savings account, or CD accounts, or a money market account. Each savings option provides competitive interest rates.

No Monthly Fees

No matter which type of account you choose to open with CIT Bank, there are no monthly fees. This means that you will not be penalized for not meeting specific account requirements, such as maintaining an account balance over a certain threshold. This can provide consumers with peace of mind and flexibility that they will not be charged anything extra on their accounts.

Most online banks do not have monthly fees, but it is important to research any other fees that the bank may charge. Up front, it appears that CIT Bank has no additional fees.

Competitive Rates

CIT Bank has some of the most competitive rates in the industry, with higher than average APY rate on savings accounts — much higher APYs than you will likely find with a traditional savings account at a brick-and-mortar bank.

For example, the CIT Bank Savings Builder account has an interest rate up to 0.55 percent APY, which is nearly 10 times the national average of 0.8 percent APY. From the first day that the account is opened, consumers can earn an interest rate of 0.548 percent APY through the first evaluation day. To continue earning up to the 0.55 percent interest rate, consumers must maintain a balance of $25,000 or more, or make at least one monthly deposit of $100 or more.

The CIT Bank Money Market account also offers a much higher APY than the national average at 0.60 percent APY. Interest rates on CDs are also high, allowing the consumer to save more money over time.

Online banks are generally more likely to offer higher, more competitive APY rates than traditional banks, but CIT Bank has been recognized as one the 10 best online banks two years running (2018 and 2019) by GOBankingRates. Therefore, if you are looking for the best rates possible on your savings accounts, CIT Bank could be a good choice for you.

Checking Account 

In 2019, CIT Bank began offering an eChecking account. The account has an interest rate of 0.10 percent APY for balances under $25,000. If you want a higher APY of 0.25 percent, you must have a minimum balance of $25,000 in your account. 

The eChecking account provides consumer with a debit card, as well as the ability to deposit checks and make unlimited withdrawals and disbursements through the CIT Bank mobile app. Through the app, consumers can access their account at any time and can have the peace of mind that all their banking is available at their fingertips.

Although the checking account has no monthly fee, there is an overdraft fee on insufficient and unavailable funds, both of $30. A consumer will also be charged if they use their card at an ATM, but CIT Bank does provide a monthly ATM fee reimbursement up to $30.

On-the-Go Account Access

• Difficulty Moving Money
• No Physical Locations or ATMs
• High Minimum Deposit for Checking Account
• No Credit Cards

Difficulty Moving Money

When opening and maintaining a CIT Bank account, you cannot deposit cash into your account. All deposits must be made via funds transfer (ACH), a mobile deposit through the CIT app, a free wire transfer, or by mailing a check to the CIT office. Besides check, these are all electronic transfer methods. Funds cannot be added to the account via direct deposit. 

Transactions can be difficult if you plan on moving your money around. Additionally, this means that setting up an account with CIT may be difficult if you don't have an existing bank account (with a routing number) to transfer the funds from.

No Physical Locations or ATMs

As an online bank, CIT Bank has no physical branch locations or ATMs. This may be problematic for some consumers that prefer being able to visit a branch location as needed.

The fact that CIT Bank offers a checking account but has no ATMs is somewhat inconvenient for consumers, as they will have to pay fees if they ever need to withdraw cash from an ATM. It would be important to be mindful of your ATM usage, as those fees can pile up. CIT Bank does provide a monthly ATM fee reimbursement up to $30, but even then this may not be preferable for all consumers.

High Minimum Deposit for Checking Account 

The minimum opening deposit for the CIT Bank eChecking account is $100. This is quite high within the industry, as some other online banks allow consumers to open checking accounts with a $10 to $25 minimum deposit.

No Credit Cards

Many online banks, including CIT Bank, do not offer credit cards. For consumers looking for credit card options, online banks such as American Express or Discover may be a better option.