Deal Summary: $100, $250, or $400 bonus on High Yield Savings (1.05% APY)
In early February, CIT Bank began offering a cash bonus of up to $200 when opening a new High Yield Savings account. CIT Bank has replaced that promotion with “new and improved” bonuses (up to $400) for new High Yield Savings accounts opened between March 31, 2017 and June 30, 2017. The minimum balance to qualify for the bonus is $15k of new money, which is defined as funds not already be on deposit at CIT Bank or its OneWest Bank division “at any time during the 90 days preceding account opening.” Existing customers can qualify, but a new savings account must be opened, and must also be funded with new money.
There are actually three bonus amounts ($100, $250, $400), which are determined by the “lowest average monthly balance from among the first three full monthly statement cycles” as shown below:
Lowest Average Monthly Balance
$15,000 - $99,999
$100,000 - $299,999
$300,000 or more
As stated on the High Yield Savings' promotion page, the calculation of the average monthly balance for each statement cycle is determined as follows:
At the end of each day, the High Yield Savings account balance is recorded. When the statement cycle ends these end-of-day balances are added together and then divided by the number of days in the statement cycle to determine the average monthly balance.
If you qualify for the bonus, it will be deposited to the account within 45 days of the end of the third monthly statement cycle.
Please refer to CIT Bank’s promotion page for the full details and to open the account.
High Yield Savings Account Overview
CIT Bank’s High Yield Savings account currently has a 1.05% APY (as of January 11, 2017) for all balances, with a minimum opening balance requirement of $100. From the time CIT Bank first launched this savings account in April 2012, the APY has ranged from 0.80% to 1.05%. Prior to the January rate increase, the last rate change occurred in May 2016 when the APY increased from 0.90% to 0.95%.
There are no maintenance fees associated with the High Yield Savings account, and it's available as an IRA or a Custodial account. CIT Bank’s ACH electronic funds transfer system 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. According to a CIT Bank CSR, there are no limits to the number of links, and there’s no limit on the dollar amount for ACH transfers. The number of ACH withdrawals are limited to six per statement cycle, as required by federal regulation.
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.
Applying for the High Yield Savings Account can be done using CIT Bank’s online application. Funding can be done with an electronic funds transfer from an outside bank account. As is typical with setting up an ACH transfer, you provide CIT Bank with the routing and account number of your outside account. Other options include mailing a check or performing a wire transfer.
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, 2016, the Bank now has combined assets of more than $42 billion and deposits of more than $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 December 31, 2016 data, CIT Bank, N.A. has an overall health grade at DepositAccounts.com of “A”, with a Texas Ratio of 9.94% (excellent) and is currently financially strong. Please refer to our financial overview of CIT Bank for more details.
It’s important not to 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 Bonuses Compare
Assuming CIT Bank’s High Yield Savings account is opened with the required minimum deposit, and is kept opened for four months to ensure the bonus being awarded, effective APYs can be calculated that combine the savings account APY (1.05%) with the bonus amounts:
- $15,000: $100 bonus adds 2.025% for an effective APY of approximately 3.075%
- $100,000: $250 bonus adds 0.757% for an effective APY of approximately 1.807%
- $300,000: $400 bonus adds 0.403% for an effective APY of approximately 1.453%
These effective APYs are only estimations based on the assumptions that the current APY of 1.05% holds for the qualification period. Additional time and larger balances will reduce the effective APYs.
Other Promotions and Bonuses
The above rates are accurate as of 4/5/2017.