CIT Bank introduced its Money Market Account that earns 1.75% APY on all balances. Minimum opening deposit is $100, and there is no monthly maintenance fee. This rate is currently 20 basis points higher than CIT Bank’s Premier High Yield Savings rate which has been 1.55% APY since early January.
Besides the rate, the only difference that I see between CIT Bank Money Market Account and its Premier High Yield Savings Account is that Money Market Account customers can use the People Pay service to access funds and to make payments. CIT Bank’s website doesn’t have many details on this service. It provides an overview of this service in its FAQs:
People Pay is a free service that allows you to send money from your Money Market account to almost anywhere with an email address or mobile phone number.
I called CIT Bank to learn more details about the Money Market Account. Like the savings account, the Money Market Account has no check writing and no ATM card. The People Pay service is essentially a person-to-person payment system that’s similar to Zelle.
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.
UPDATE 3/14/18: CIT Bank issued a press release announcing this new Money Market Account. The press release mentioned that "Bill Pay, a free service to make one-time or recurring bill payments, will be added later this spring."
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
On March 2nd, CIT Bank increased the rate of its 11-month No-Penalty CD to 1.85% APY, and that rate continues as of today. This CD has a minimum deposit is $1,000, with no stated balance cap. The no-penalty feature 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.
I have more details in my review of the 11-month No-Penalty CD.
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.
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
|Interest Rate||Account Name||Credit Union/Bank|
|1.85% APY||eOne Savings - New Money Only (no min/$1m max)||Salem Five Direct|
|1.80% APY||Dollar Savings Account (no min/no max)||DollarSavingsDirect|
|1.75% APY||Money Market Account ($100 min to open/no max)||CIT Bank|
The above rates are accurate as of 3/13/2018.