CIT Bank Ups Money Market Account Rate To Very Competitive Level


Deal Summary: Money Market Account, 1.85% APY on all balances, $100 minimum opening deposit.

Availability: Nationwide (internet bank)

This morning, CIT Bank raised the rate of its Money Market Account by 10 bps to 1.85% APY on all balances. CIT Bank introduced the Money Market Account about two months ago on March 13th. Minimum opening deposit is $100, and there is no monthly maintenance fee. There was no rate change on the Premier High Yield Savings Account. Its rate has remained at 1.55% APY since early January.

1.85%$100-CIT BankMoney Market Account
1.55*%--CIT BankPremier High Yield Savings
Rates as of May 25, 2018.

CIT Bank has produced a very useful document, the Top Money Market FAQs. The seventh Q&A asks about checks and debit cards. The answer reads as follows:

There are no debit cards or checks with the Money Market account. Transactions are available via People Pay, a person-to-person payment feature; electronic funds transfer and requests via mail. Bill Pay is coming soon.

The second Q&A has a chart to explain the differences between the Money Market Account and the Premier High Yield Savings Account. Besides the rates, the primary difference is that the Money Market Account offers People Pay and sometime in the future, Bill Pay (the chart says Bill Pay is coming soon).

The chart also shows that the Money Market Account has an Excessive Transaction Fee of $10 per transaction (assessed from the first violation with $50 monthly cap). For the savings account, “not applicable” is shown for this fee. However, both have the standard monthly withdrawal limit of six. As stated in the personal account agreement document:

Your ability to transfer funds from savings and money market accounts is limited by federal regulations to six preauthorized electronic fund transfers, telephone transfers and automatic transfers to another account per monthly statement cycle.


If you exceed the transaction limits noted under “Transaction Limitations” for savings and money market accounts, we may at our option close your account

As shown in this chart, both the Money Market Account and the Premier High Yield Savings share several nice features:

  • $100 minimum to open account
  • No monthly service fee
  • Interest is earned on the entire balance. Compounded daily; paid monthly
  • Initial Funding ACH Limit of $300,000
  • External Transfer Limit for ACH: $2 million per transaction/ $2 million daily
  • No incoming wire transfer fee; No outgoing wire transfer fee for an account with at least a $25k balance, otherwise, a $10 fee.

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.

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.

Thanks to DA reader, WheelinDealin, for mentioning the rate hike in the DA forum.


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. There’s an initial funding ACH limit of $300,000.

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 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 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

When compared to the nationally-available Money Market Accounts and Savings Accounts tracked by, CIT Bank’s Money Market Account ranks fourth regardless of minimum balance. Compared only to accounts that have small minimum balance requirements, it ranks second, and it ranks first when compared to accounts with small minimum balance requirements and that don’t require new money.

Interest RateAccount NameCredit Union/Bank
2.05% APYUltimate Savings ($25k min/$1m max)Northpointe Bank
2.01% APYeMoney Market - New Money promo ($100 min to open/no max)Virtual Bank
1.86% APYRadius High-Yield Savings ($25k min/no max)Radius Bank
1.85% APYMoney Market Account ($100 min to open/no max)CIT Bank
1.85% APYeOne Savings - New Money Only (no min/$1m max)Salem Five Direct
1.85% APYPopular Direct Plus Savings - New Accounts ($5k min to open/no max)Popular Direct

The above rates are accurate as of 5/24/2018.

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: money market accounts, nationwide deals, Internet banks

UCLA   |     |   Comment #1
Anonymous   |     |   Comment #10
Stop yellow in ALL CAPS. It's very annoying.
Anonymous   |     |   Comment #11
err.. yellow = yelling
RJM   |     |   Comment #2
If I had to guess, we will have at least a half dozen savings/money market accounts paying $2%+ and1 year CDs paying 2.50-2.60% within 2-3 months.

My All American bank Money Market at 1.75% is already obsolete.
Hairy Fred
Hairy Fred   |     |   Comment #3
Wow! Thanks!
deplorable 1
deplorable 1   |     |   Comment #4
@RJM: I wouldn't be surprised if All America bumps their rate to 2% in June and the rewards checking to 2.5%. They actually have a history of raising their rates.
DCGuy   |     |   Comment #5
Wow. I must be on a roll. The top four rate leader accounts of mine all went up.
anonymous   |     |   Comment #6
Considering this new MM rate of 1.85%, I wonder why CIT Bank is still offering a no-penalty 11-month CD @ 1.85% during this rising rate environment?
111   |     |   Comment #7
Good question. Looks like the whole concept of "penalty-free CDs" is basically on life support. As noted, CIT's offering in this area is now the same rate as their money market. Ally's (which I bought at 1.50%, then cashed out and re-bought at 1.75%, has now dropped to a measly 1.50% - I used some to buy Sharonview CDs but still have a few of the 1.75% ones to get rid of when it makes sense). And, my AgFed no-penalty CDs bought last year at 1.85% have just sat there - nothing new from AgFed of interest. The Ally's and the Agfed's are "on the bubble", possibky to be gone after the June Fed meeting.

Apparently the banks' new trend is to market "savings accounts with a 1-year rate guarantee" (for example, of 2.05%), as opposed to the no-penalty CDs (top rate 1.85%). No-penalty CDs are so 2017, I guess.
RJM   |     |   Comment #8
A one year guarantee in the current environment is a smart marketing move. Costs them nothing and it will bring in some who might be worried about a rate drop.

Popular did not really do a rate drop, my rate is still 2% but new accounts are down to 1.85%.

Any bank considering a bait & lower rate during a time of rising rates would quickly earn "badwill" in a hurry.
ra88   |     |   Comment #9
At identical rates, the no penalty CD is still the better choice.
highrate   |     |   Comment #12
it's very disappointing that Ally doesn't raise it's savings or no penalty cd
Rickny   |     |   Comment #13
Had a small amount in my CIT Premier savings account. Took less than 5 minutes to convert to a Money Market account on line. Hoping Dollar will up their rate soon or I'll be moving my funds. I'm really waiting for a 2% savings account with fast ACH and no or few limitations on transfer amounts.
mix   |     |   Comment #14
3% is the new 2%.
Rickny   |     |   Comment #15
#14 3% is the new 2% on a savings account?

I have most of my liquid savings in Dollar Direct. at 1.8%. If I see a savings account that is paying 2% that has good ACH and transfer limits I will move my funds to that institution. It's so easy to move funds from one savings account to another.
CIT Bank Debuts New Money Market Account
Deal Summary: Money Market Account, 1.75% APY on all balances, $100 minimum opening deposit.

Availability: Nationwide (internet bank)

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...

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Large Rate Hike On CIT Bank’s 11-Month No-Penalty CD
Deal Summary: No-Penalty 11-month CD (1.85% APY, $1k minimum)

Availability: Nationwide (internet bank)

CIT Bank increased the rate of its 11-month No-Penalty CD by 30 bps to 1.85% APY on Friday. This is the largest rate increase of this product since CIT Bank introduced it in July 2017, and it moves CIT Bank’s No-Penalty CD rate way past what Ally Bank is currently offering.

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 to withdraw the...

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CIT Bank Raises Premier High Yield Savings Rate
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.

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...

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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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