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.
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.
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.
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.
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 DepositAccounts.com 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 DepositAccounts.com, CIT Bank’s Premier High Yield Savings Account ranks third regardless of minimum balance.
|Interest Rate||Account Name||Credit Union/Bank|
|1.65% APY||Premier Savings ($50k min)||Colorado Federal Savings Bank|
|1.60% APY||Dollar Savings Account (no min)||DollarSavingsDirect|
|1.55% APY||Premier High Yield Savings Account ($100 min)||CIT Bank|
The above rates are accurate as of 1/3/2018.