CIT Bank Debuts New Money Market Account (1.75% APY)


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.

1.75%$100-CIT BankMoney Market Account
Rates as of March 22, 2018.

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."

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.

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.

1.85%$1k-CIT Bank11-Month No-Penalty CD
Rates as of March 22, 2018.

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.

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 third regardless of minimum balance.

Interest RateAccount NameCredit Union/Bank
1.85% APYeOne Savings - New Money Only (no min/$1m max)Salem Five Direct
1.80% APYDollar Savings Account (no min/no max)DollarSavingsDirect
1.75% APYMoney Market Account ($100 min to open/no max)CIT Bank

The above rates are accurate as of 3/13/2018.

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: savings accounts, money market accounts, nationwide deals, Internet banks

thowellIII   |     |   Comment #1
Thanks, Ken. Now some commentary:

CIT=Creating Irritating Transactions? Instead of simply raising rates three times on an existing product, CIT keeps rolling out new products (or the same product with a new name).

Its online interface is not as smooth as competitors (e.g. Ally) and it doesn't offer the same degree of customer service (see its hours and the amount of time needed to get replies to secure messages compared to other banks). And, as noted above, this MMA doesn't come with check writing (again, compare to Ally or some of the other competitors).

The rate bump is nice (and I hope it causes some other banks to join in the increase), but I am not likely to go out and recommend CIT to anybody.
Att   |     |   Comment #3
Ally omy pays 1.45% on savings accounts which isn't competitive. Very few banks offer check writing with savings accounts. Ally offers 7x24 support but that comes at a cost to the budimess. If you feel these services are worth getting a lower rate that is up to the consumer.
Ted   |     |   Comment #4
1.45%....Ally is gonna have to start raising rates or else they'll have no depositors.
Att   |     |   Comment #8
Sorry my phone messed up some words.
DCGuy   |     |   Comment #11
Use an Ipad to enter your sentences. It is way better than that clunky touch screen o a tiny phone.
Att   |     |   Comment #14
I work for a competitor of Apple and have never owned or will own one.
aaa   |     |   Comment #24
Apple has no competitor. Its a monopoly.
JustSaying   |     |   Comment #29
Hmm...pretty sure Android based devices hold 75%+ of the world market. Monopoly?
thowellIII   |     |   Comment #13
Thanks for the response, Att. Since CIT has called this new account a money market, it is one that has more traditionally been associated with check writing. (Ally, Sallie Mae, Synchrony, and some other online banks have MMAs with check writing.)

One of the reasons check-writing is advantageous is to take advantage of short-term CD deals. I could fund a CD at Sharonview CU (using a shared branch) by transferring funds within Ally (whether from savings or a no penalty CD) to an account with check writing (whether money market or checking). I could instantly withdraw funds from my no penalty CD online into an account from which I could write a check and make a quick trip to a shared branch.

In addition, the online management system can make a difference: When I wanted to take advantage of CIT's increased rate on its no penalty CDs, it took longer than it would have on Ally's system. CIT instructed me to first apply for the new account and then to separately instruct customer service to fund the new account by closing the existing no penalty CD to open the new CD.

To be fair: In CIT's favor is the free outgoing wire transfer (if the average daily balance is above $25,000). I know there is a form that one uses for the service, but don't have any experience with it and how quickly one could arrange such a wire.

My point in my post wasn't to recommend avoiding CIT. That would be hypocritical: I have an account with CIT. Instead, it was to point out the hassles that come with getting CIT's best rate. Those hassles are also why I wouldn't use my personal reputation to encourage others to use CIT. I don't like encouraging friends, family, and co-workers to jump through hoops to get the best treatment from a company.

At the risk of repeating discussions from earlier, I think we can come up with the features of accounts distinguish one financial institution's savings/MMA from others. There's no single bank or credit union that comes out on top on all to me, but here's a quick take on CIT (not necessarily in order of importance):
1. Competitive interest rate: CIT is doing well now (although a few other savings/money market rates are higher)
2. Stability of interest rate: Ken's posts (and DA in general) are good at pointing out banks that are short-termers for having high rates. I want to avoid banks that drop their rates when other rates are increasing. To be clear: CIT tends to be pretty good at being competitive with its best accounts.
3. Speed of ACH transfers: CIT isn't at the top of the list from my experience, but it is around average.
4. Ability to transfer larger sums via ACH. CIT's daily limit of $75k is good, but others allow more.
5. Check writing: See above.
6. Ability to manage account with minimal hassles: See above discussion for my take.
Att   |     |   Comment #15
I have many savings accounts including CIT bank but the bulk of my liquid cash is in Dollar Direct. I also have a CD with CIT. When the CD matures I will sweep the funds to my CIT savings account and then ne able to ACH to open a CD or move the funds to another savings account. The CIT savings account has only $100 in it.

Some people prefer some institutions over others for various reasons. Some people like Ally because they have great customer service. Some people like Penfed because of the it's IRA flexibities. Some people are looking for the highest rate. Some prefer less hassle and won't go after the highest rate but a looking for a place with good customer service.
aaa   |     |   Comment #21
Which one you like as "HUB" account with fast ACH transfers to/from.
Att   |     |   Comment #22
Dollar is next day in and out and no limits. I recently took some funds out of CIT and received the funds the next day. Dollar makes it a little difficult to add more than 1 linked account but they are paying some of the highest rates (1.80%)..
unmesh   |     |   Comment #26

Regarding outgoing wires, you scan/email or fax in the form in the morning, they call you to confirm in the afternoon and it gets sent out the same day.
Curious   |     |   Comment #2
Any reason why so many of these online banks including CIT do not offer IRA accounts? Is the administrative burden of IRA's really that great to dissuade them from offering these accounts? Why are they passing on the opportunity to attract more deposits?
DCGuy   |     |   Comment #12
To be able to offer IRA accounts, you need to apply to be accepted as an IRA custodian (Form 5306). You have to follow the reporting requirements and file the appropriate paperwork every year (such as 1099R and 5498) to the IRS. This is extra work that some online banks do not want to be bothered with. This extra burden costs money because you have to hire workers who will deal with IRA issues. Remember MetLife Bank which is now Synchrony Bank and GE Capital Bank which is now Goldman Sachs Bank? Those companies no longer wanted to deal with the banking regulations and sold those banks to other companies. They were willing to part with those banking customers and their money. Sometimes less is better for management.
Friend   |     |   Comment #17
I currently have one Roth IRA and one traditional IRA at CIT.
Curious   |     |   Comment #18
"Friend", CIT used to offer IRA's but they stopped offering them. You cannot open a new IRA account. IRA's do not appear on their banking products page. The reason they gave for this was "upgrading the IRA online application system" but it has been a long time and no upgrade should have taken this long.
Curious   |     |   Comment #19
Thank you, DCGuy. I take your point. In my opinion, with modern banking systems, the cost of generating these reports should be minimal and certainly justifiable if the bank can attract large IRA balances by offering competitive interest rates. Even some larger online banks like Goldman Sachs do not offer IRA's which I find puzzling. Capital One 360 did not offer IRA's last year but has just started offering them on their site. I think with rising interest rates we will see more IRA offerings this year.
rzelman   |     |   Comment #5
For most sticking with one or several of their 11 month No Penalty CDs at 1.85% may still be the better way to go.
Att   |     |   Comment #7
Since 11months is such a short period of time you can also consider the 11 month CD at NASA that pays 2.25% 20k min.
robert88   |     |   Comment #9
Wondering is NASA was soft pull or hard pull -- any recent account openings appreciated
buckeye61   |     |   Comment #6
I've come close a couple times to opening an account with CiT, but their practice of creating "New" accounts with higher rates instead of simply raising rates on existing accounts is troubling to me. Also, they don't have great rates on their standard CD's.....just the no penalty CD. Nevertheless, if their new account encourages other online Banks to also raise their rates its a positive thing.
Sperry8   |     |   Comment #16
It is VERY easy to open a new account at CIT Bank once you have an existing account. It took me all of 2 minutes and did it online. This differs from Salem Five Bank who won't allow such things and makes you fight to get the rate match. While not as optimal as just giving current accounts the raise, 2 minutes is as easy as it gets otherwise.
Vic   |     |   Comment #23
When I called today, the CSR offered to switch my savings account's profile to the new MM profile, thereby retaining all existing structure except for the old HYS characterization. CSR also said that the switch will be complete in 24 hours.
dlweiss0622   |     |   Comment #10
With the updated CIT user interface the external account links I had established to do ACH transfers have disappeared. I intend to close both of my CIT accounts (Spring and Premier High Yield) rather than open the new Money Market account and set the links up AGAIN! They have driven me away as a customer
Bruce-S   |     |   Comment #20
My external transfer accounts remain as they were.
warren   |     |   Comment #25
Similar experience as external transfer account links remained as they were.
Zeemer   |     |   Comment #27
Well, CIT is behaving better, relative to its own track record, on this new account, at least if one is already a customer at CIT. (I can't speak to what the experience of opening this new 1.75% rate account is if you're not already a CIT customer.) In the past, as thowellll has noted, CIT would roll out a new product, not notify its existing customers that a higher rate was available, and force those who wanted the higher rate to open completely new accounts, creating more work to do taxes, and invalidating all the ACH links set up with other institutions. And it might've needed a re-listing of beneficiaries and making sure that POD or ITF was added to the account title. I expected I might run into that nightmare this time around, but the news was relatively good - as Ken suggested, I opened a new 1.75% account online, and then called in to a CSR. Surprisingly, it was much easier than I expected - my old account rolled over into the new one, but the title, beneficiaries, and ACH links would remain the same, according to the CSR. That saved a ton of time and effort. The only point on which CIT hasn't been quite above-board is that, to my knowledge, they haven't notified existing customers of the availability of the higher rate - unlike almost all other banks, that just raise the rate on existing accounts, with no 'drama' about the corollary actions that need doing. It's 'not nice' to do that - c'mon CIT - you've come so far from the trouble you used to cause when you raised rates, you've almost taken that last step of alerting your customers to new rates.
SANTAFE   |     |   Comment #28




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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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Availability: Nationwide (internet bank)

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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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Availability: Nationwide (internet bank)

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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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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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Deal Summary: Premier High Yield Savings, 1.35% APY up to $100k, 1.30% APY for $100k+.

Availability: Nationwide (internet bank)

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For example: A balance of $95,000...

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