CIT Bank's Premier High Yield Savings Now Earns 1.35% APY Up To $250k

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 will earn a 1.35% APY,
and a balance of $255,000 will earn 1.30% APY.

This is opposite of how balance tiers normally function. Typically, once your balance exceeds a tier, the balance receives a higher yield. For the typical cases, a larger balance is rewarded with a higher rate. When reaching a tier results in a lower rate, a bank will often use blended APYs in which only the portion of the balance above the tier receives the lower rate. The portion of the balance below the tier continues to receive the higher rate.

For the case of CIT Bank, smaller balances are rewarded with a higher rate. Also, this is not a blended APY. If the balance exceeds $250k, the entire balance receives the lower rate (1.30% APY).

It would be more straightforward if the 1.35% APY applied to all balances, but with today’s change, at least the vast majority of CIT Bank customers with the Premier High Yield Savings account will see the benefit of the 1.35% APY which is still a very competitive rate.

Customers with Old Savings Accounts

Current CIT Bank customers who still have the old savings accounts (High Yield Savings and the Springs Savings) should apply for this Premier High Yield Savings so they can benefit from the higher rate. I called CIT Bank today and confirmed that the High Yield Savings account is still earning 1.05% APY and the Springs Savings account is still earning 1.15% APY. Existing customers are eligible to open the Premier High Yield Savings account. The CSR recommended that existing customers first log into online banking. Once logged in, there should be an orange button where you can apply for a new account. This will expedite the account opening process. Once you have the new savings account opened, you may want to close your old account. The CSR recommended calling them once the new account is opened to close the old account. That will ensure the entire balance including accrued interest is transferred.

Savings Account History

CIT Bank has a history of maintaining competitive savings account rates. From the time CIT Bank first launched the High Yield Savings Account in April 2012, the APY has ranged from 0.80% to 1.05%. The last rate increase was in January of this year when the APY increased from 0.95% to 1.05%. In May, the Spring Savings Account was introduced with a 1.15% APY. The Premier High Yield Savings debuted in July with a 1.30% APY for balances up to $100k.

Bank-to-Bank Transfers

In July, 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 fee-free. Once the account is opened, you can set up multiple links to external accounts, with up to 10 links allowed. CIT Bank allows outgoing ACH transfers of up to $2 million per day, with no limit for incoming ACH transfers. 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 No-Penalty CD

The best CD deal at CIT Bank is currently its 11-month No-Penalty CD which earns 1.45% APY on balances of at least $1k. You may withdraw the total balance and interest earned, without penalty, after six days from the time the CD was funded.

CIT Bank’s No-Penalty CD is very similar to Ally’s No Penalty CD. Currently, Ally’s 11-month No Penalty CD has a 1.50% APY, but this requires a $25k minimum deposit. Rates are lower for smaller deposits. 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.

Availability

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 June 30, 2017, the Bank now has combined assets of more than $41 billion and deposits just under $32 billion.

The new bank (CIT Bank, N.A.) took the financial history and FDIC Certificate number of OneWest Bank (FDIC Certificate # 58978). Based on June 30, 2017 data, CIT Bank, N.A. has an overall health grade at DepositAccounts.com of “A”, with a Texas Ratio of 8.92% (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 DepositAccounts.com that are available nationally with similar balance requirements and limitations, only four accounts have higher rates than CIT Bank’s Premier High Yield Savings rate. Two of these accounts are shown below as a comparison.

The above rates are accurate as of 10/6/2017.

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. To find the best accounts in your area, please refer to our new Rates Map page.