CIT Bank Raises Premier High Yield Savings Rate to 1.55% APY


Deal Summary: Premier High Yield Savings, 1.55% APY on all balances

Availability: Nationwide (internet bank)

CIT Bank increased the rate of its Premier High Yield Savings Account by 20 bps to 1.55% APY. This top rate now applies to all balances. Previously, balances over $250K received a lower rate. Minimum opening deposit is $100.

1.55*%--CIT BankPremier High Yield Savings
Accounts mentioned in this post. Rates as of January 17, 2018.

It’s nice to see a rate hike that’s close to last month’s Fed rate hike. As I mentioned in my review of online savings account rates in 2017, online savings account rates haven’t moved up as fast as the federal funds rate. Hopefully, CIT Bank’s rate increase is a sign that we’ll see more of these larger savings account rate hikes as we see additional Fed rate hikes in 2018.

Thanks to DA reader Sperry8 for posting on this rate increase in the DA Forum.

Savings Account History

The Premier High Yield Savings debuted in July 2017 with a 1.30% APY for balances up to $100k. That increased to 1.35% APY in September, and in October the balance tier increased to $250k.

Last year CIT Bank introduced two new savings accounts. First, in May it debuted the Springs Savings Account with a 1.15% APY. Then came the Premier High Yield Savings Account in July. Before May, there was the High Yield Savings Account which was first launched in April 2012. 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. I’m glad to see CIT Bank decided to just raise the rate of the Premier High Yield Savings Account. Existing customers will automatically benefit without having to open a new account.

Bank-to-Bank Transfers

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.

CIT Bank 11-Month No-Penalty CD

The new Premier High Yield Savings Account rate now equals the current rate of CIT Bank’s 11-month No-Penalty CD. With the same 1.55% APY, the only benefit of the No-Penalty CD over the savings account is that the rate is guaranteed not to fall for the 11-month term. However, in a rising interest rate environment, that’s not a major concern.

1.55%$1k-CIT Bank11-Month No-Penalty CD
Accounts mentioned in this post. Rates as of January 17, 2018.

I wouldn’t be surprised if we see a rate increase on this No-Penalty CD some time in the near future. This has been the best CD deal at CIT Bank. The CD is very similar to Ally’s No Penalty CD. Currently, Ally’s 11-month No Penalty CD has a 1.60% APY, but this requires a $25k minimum deposit. Rates are lower for smaller deposits. CIT Bank’s No-Penalty CD only requires a $1k deposit to earn 1.55% APY. Just like Ally’s No Penalty CD, you may withdraw the total balance and interest earned, without penalty, after six days from the time the CD was funded. It’s nice to have two large internet banks offering this type of CD. The competition should encourage the banks to keep the rates competitive.


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 a Premier High Yield Savings 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.

Bank Overview

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 September 30, 2017, the Bank now has combined assets of more than $40.2 billion and deposits just under $30 billion.

The new bank (CIT Bank, N.A.) took the financial history and FDIC Certificate number of OneWest Bank (FDIC Certificate # 58978). Based on September 30, 2017 data, CIT Bank, N.A. has an overall health grade at of “B+”, with a Texas Ratio of 9.10% (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 Premier High Yield Savings Compares

When compared to the nationally-available Money Market Accounts and Savings Accounts tracked by, CIT Bank’s Premier High Yield Savings Account ranks third regardless of minimum balance.

Interest RateAccount NameCredit Union/Bank
1.65% APYPremier Savings ($50k min)Colorado Federal Savings Bank
1.60% APYDollar Savings Account (no min)DollarSavingsDirect
1.55% APYPremier High Yield Savings Account ($100 min)CIT Bank

The above rates are accurate as of 1/3/2018.

To review the top Savings and Money Market rates, both nationwide and state specific, please refer to our Savings Account rates table and Money Market Account rates table.

Related Pages: savings accounts, nationwide deals, Internet banks

payitforward   |     |   Comment #1
I was informed by a CIT CSR that the new rate of 1.55% for existing Premier High Yield Savings accounts will not be reflected online until tomorrow.
Premier Kruschev
Premier Kruschev   |     |   Comment #2
Well, it's not much of a bank anymore.
They only offer the one savings account, CD's and custodian accounts for minors.
No checking accounts or IRAs anymore and their CD rates are pathetic.
They used to have IRA's. But they stopped offering those last year.
Right now, about the only thing worthwhile is the "premier savings account".
At least they didn't pull the same stunt as they did TWICE last year.
Last year you had to open a brand new account to get the spring rate.
Then another one to get the premier rate.
Who dreamed that nonsense up?
S Bannon
S Bannon   |     |   Comment #3
Awesome! Thanks Ken. I have 530k in my CIT savings and I was looking to dump 280k elsewhere in order to get the CIT 1.35% rate again. Problem solved!!
Att   |     |   Comment #4
I think you can find better places to invest over 500K in cash. You should have looked at Ally and opened some 11 month no penalty CDs which are liquid after 7 days. You have other options too. Your choice.
Btt   |     |   Comment #5
With rates going up you are better off with a completely liquid account
Att   |     |   Comment #10
The big question is how long the 500k has been in the savings account? Were there opportunities to get a better rate? Is the 500k titled so the total amount is FDIC insured?
cycles   |     |   Comment #6
Very silly to have a savings account and the 11-month no-penalty CD with the exact same interest rate unless they are using the savings rate as bait only to drop the rate low as they have in the past. CIT is sneaky at dropping rates overnight. If you get this savings account keep a frequent eye on the interest rate or you will start to loose interest earnings. At least with the CD you are protected from rate drops for the 11 month period.
Att   |     |   Comment #7
Ally's 1.75% 11 month no penalty CD was a great place to park cash. After 7 days you can close the CD if rates go up a worthwhile percent. If rates go down you have the 1.75% guaranteed for 11 months.

When I opened the Ally the 11 month it was paying .25% more than my Dollar Direct savings account (Dollar is at 1.60% now). I wouldn't have opened CDs with Ally if the CD rate was equal to my savings account rate.

I also keep savings accounts with Synchrony, CIT and Marcus with small amounts. I also have CDs in each and use the savings accounts as a sweep account. I keep most of my savings in Dollar but if they drop their rate or one of the others offer a great rate I can just move the funds.
cycles   |     |   Comment #8
I have a savings account at Ally, but all my funds now moved to the Ally 11 month NP-CD. paying me 1.80% This was perfect timing on my part, three 5yr CD's came due and I just renewed them for the 11 month, and scored the .05% loyalty bonus in the process.

In this era of rising CD rates it is not a wise idea to tie up ones money in a CD long term. I'm using the NP CD's as my savings account for now. After 6 days the funds are liquid again in case of emergency, plus they pay the higher interest rate. Right now no need to chase CIT 1.55% savings when the NP CD is offering 1.60% at Ally.
Att   |     |   Comment #9
Dollar is at 1.60% on their savings account no minimum. Ally you need 25K to get the best rate on 11 month no penalty CD.
Bah Cycle
Bah Cycle   |     |   Comment #11
I've never seen them "drop rates" overnight on their savings accounts. They've done stupid things like only offering the better rates on a totally new savings account. So, you have to open a new one, transfer funds and then close the old one.
Att   |     |   Comment #12
They can drop rates if they want to and don't have to have another good rate at another division. Emigrant hasen't had a leading division until Dollar Direct last year. At least Dollar Direct states "America's highest rate" and hope it stays that way. If not I can move it anywhere. Most of my liquid assets are with Ally in 11 month no penalty CDs earning 1.75% and that money was moved out of Dollar Direct when they were paying 1.5% last year.
cycles   |     |   Comment #13
Confirmed Nov 2012 1.05%, Dec 2012 1.00%. I don't have any statements but I also remember them going from 1.00 to .95% then to .90%, then to .85%
Ctt   |     |   Comment #14
In rising rate I do not envisage them dropping rates
Another Rate Increase on CIT Bank’s 11-Month No-Penalty CD

Deal Summary: No-Penalty 11-month CD (1.55% APY, $1k minimum)

Availability: Nationwide (internet bank)

CIT Bank increased the rate of its 11-month No-Penalty CD by 10 bps to 1.55% APY. This is the second rate increase since CIT Bank introduced this product in early July. It’s the first time the rate exceeds the top rate of Ally’s 11-month No Penalty CD. It’s nice to see competition on this product.

CIT Bank’s 11-Month No-Penalty CD has a minimum deposit is $1,000, with no stated balance cap. The no-penalty feature allows the customer...

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CIT Bank's Premier High Yield Savings Rate Raised
Deal Summary: Premier High Yield Savings, 1.35% APY up to $250k, 1.30% APY for $250k+.

Availability: Nationwide (internet bank)

CIT Bank didn’t increase its rates today, but it did increase the balance tiers of its Premier High Yield Savings account. Tier 1 now earns 1.35% APY on balances up to $250k. This used to be $100k. Tier 2 earns 1.30% APY on balances over $250k. An example listed on CIT Bank’s Premier High Yield Savings page illustrates how this affects the APY you’ll receive:

For example: A balance of $245,000...

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CIT Bank Raises Premier High Yield Savings Rate
Deal Summary: Premier High Yield Savings, 1.35% APY up to $100k, 1.30% APY for $100k+.

Availability: Nationwide (internet bank)

The rising rates race continues, with the latest increase coming from CIT Bank, which just added 5 bps to each of the Premier High Yield Savings account’s rate tiers. Tier 1 now earns 1.35% APY on balances up to $100k and Tier 2 earns 1.30% APY on balances over $100k. According to the fine print on the Premier High Yield Savings promotion page,

For example: A balance of $95,000...

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CIT Bank Increases Rate on 11-Month No-Penalty CD

Deal Summary: No-Penalty 11-month CD (1.45% APY, $1k minimum)

Availability: Nationwide (internet bank)

CIT Bank increased the rate of its 11-month No-Penalty CD by 20 bps to 1.45% APY. Minimum deposit is $1,000. The No-Penalty CD allows the customer to withdraw the total balance and interest earned without penalty seven days or later after funds have been received. Partial withdrawals of principal are not permitted.

CIT Bank began offering the No-Penalty CD in early July at the same time the savings account rate was increased to 1.30% APY...

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CIT Bank Debuts New Savings Account with Bonus and New No-Penalty CD

UPDATE: The bonus is no longer available.

Deal Summary: Premier High Yield Savings Account (1.30% APY up to $100k, 1.25% APY for $100k+) Savings Account bonus of $100 with a $15k balance. No-Penalty 11-month CD (1.25% APY, $1k minimum)

Availability: Nationwide (internet bank)

Competition among internet banks is driving up rates. The latest example is CIT Bank, which just began offering the Premier High Yield Savings Account with rates up to 1.30% APY. This new account has two balance tiers: Tier 1 earns 1.30% APY for balances up to $100k and Tier...

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