This morning, CIT Bank raised the rate of its Money Market Account by 10 bps to 1.85% APY on all balances. CIT Bank introduced the Money Market Account about two months ago on March 13th. Minimum opening deposit is $100, and there is no monthly maintenance fee. There was no rate change on the Premier High Yield Savings Account. Its rate has remained at 1.55% APY since early January.
|1.85%||$100||-||CIT Bank||Money Market Account|
|1.55*%||-||-||CIT Bank||Premier High Yield Savings|
CIT Bank has produced a very useful document, the Top Money Market FAQs. The seventh Q&A asks about checks and debit cards. The answer reads as follows:
There are no debit cards or checks with the Money Market account. Transactions are available via People Pay, a person-to-person payment feature; electronic funds transfer and requests via mail. Bill Pay is coming soon.
The second Q&A has a chart to explain the differences between the Money Market Account and the Premier High Yield Savings Account. Besides the rates, the primary difference is that the Money Market Account offers People Pay and sometime in the future, Bill Pay (the chart says Bill Pay is coming soon).
The chart also shows that the Money Market Account has an Excessive Transaction Fee of $10 per transaction (assessed from the first violation with $50 monthly cap). For the savings account, “not applicable” is shown for this fee. However, both have the standard monthly withdrawal limit of six. As stated in the personal account agreement document:
Your ability to transfer funds from savings and money market accounts is limited by federal regulations to six preauthorized electronic fund transfers, telephone transfers and automatic transfers to another account per monthly statement cycle.
If you exceed the transaction limits noted under “Transaction Limitations” for savings and money market accounts, we may at our option close your account
As shown in this chart, both the Money Market Account and the Premier High Yield Savings share several nice features:
- $100 minimum to open account
- No monthly service fee
- Interest is earned on the entire balance. Compounded daily; paid monthly
- Initial Funding ACH Limit of $300,000
- External Transfer Limit for ACH: $2 million per transaction/ $2 million daily
- No incoming wire transfer fee; No outgoing wire transfer fee for an account with at least a $25k balance, otherwise, a $10 fee.
Last year CIT Bank introduced two new savings accounts. First, in May it debuted the Springs Savings Account. Then came the Premier High Yield Savings Account in July. Each new account offered a higher rate than the existing account. Customers who had the old savings accounts were free to open the new ones, but if they didn’t, they kept earning the lower rates on the old savings accounts.
Existing CIT Bank savings account customers are free to open the Money Market Account. The CSR recommended that existing customers first log into online banking before applying. By logging in first, the customer can open the new account quicker and have it funded using the money from the existing savings account.
Last year I received information on CIT Bank’s ACH electronic funds transfer system, which allows money to be moved to and from accounts at external institutions without a fee. Once the account is opened, you can set up multiple links to external accounts, with up to 10 links allowed. CIT Bank allows ACH transfers of up to $2 million per day. The number of ACH withdrawals are limited to six per statement cycle, as required by federal regulation.
Wire transfers are another option to transfer funds. CIT Bank offers free outgoing wire transfers for accounts with balances of at least $25k. There is a $10 fee per outgoing wire transfer fee for accounts with balances under $25k. Incoming wire transfers are fee free.
Thanks to DA reader, WheelinDealin, for mentioning the rate hike in the DA forum.
Headquartered in Pasadena, California, CIT Bank is a "pure" internet bank, having no brick-and-mortar branches. Accounts can be opened by U.S. citizens or resident aliens, 18 years or older.
Opening an account must be done using CIT Bank’s online application. Funding can be done through an electronic funds transfer from an outside bank account, wire transfer, or mailing a check. As is typical with setting up an ACH transfer, you need to provide CIT Bank with the routing and account number of your outside account. There’s an initial funding ACH limit of $300,000.
In 2015, CIT Bank merged with OneWest Bank. The resulting institution is a national bank (National Association) and was re-named CIT Bank, N.A. The OneWest Bank brand remains intact, but now operates as a division of CIT Bank, N.A. Deposits at CIT Bank and OneWest will be counted together for purposes of determining FDIC insurance coverage limits. As of December 31, 2017, the Bank now has combined assets of $40.75 billion and $30.09 billion in deposits.
The new bank (CIT Bank, N.A.) took the financial history and FDIC Certificate number of OneWest Bank (FDIC Certificate # 58978). Based on December 31, 2017 data, CIT Bank, N.A. has an overall health grade at DepositAccounts.com of “B+”, with a Texas Ratio of 8.55% (excellent) and is currently financially strong. Please refer to our financial overview of CIT Bank for more details.
Don’t confuse CIT Bank with Citigroup Inc., which is the bank holding company of Citibank. CIT Bank is one of the businesses that makes up CIT Group Inc., a bank holding company best known for providing commercial financing and other services to small and middle market businesses.
OneWest Bank used to be IndyMac Bank. Following the FDIC brokered sale of IndyMac in March 2009, the Bank was re-branded as OneWest Bank. A portion of OneWest Bank’s growth came from the acquisitions of failed banks: in December 2009, First Federal Bank of California was acquired, followed by the acquisition of La Jolla Bank in February 2010.
How the Money Market Account Compares
When compared to the nationally-available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, CIT Bank’s Money Market Account ranks fourth regardless of minimum balance. Compared only to accounts that have small minimum balance requirements, it ranks second, and it ranks first when compared to accounts with small minimum balance requirements and that don’t require new money.
|Interest Rate||Account Name||Credit Union/Bank|
|2.05% APY||Ultimate Savings ($25k min/$1m max)||Northpointe Bank|
|2.01% APY||eMoney Market - New Money promo ($100 min to open/no max)||Virtual Bank|
|1.86% APY||Radius High-Yield Savings ($25k min/no max)||Radius Bank|
|1.85% APY||Money Market Account ($100 min to open/no max)||CIT Bank|
|1.85% APY||eOne Savings - New Money Only (no min/$1m max)||Salem Five Direct|
|1.85% APY||Popular Direct Plus Savings - New Accounts ($5k min to open/no max)||Popular Direct|
The above rates are accurate as of 5/24/2018.