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CIT Bank Launches an Internet Savings Account


CIT Bank has recently launched an internet savings account called CIT Savings. CIT Bank first launched its internet bank offering CDs last October. The savings account interest rate isn't that great compared to other new internet banks, but the rate is competitive. It's 0.85% APY for a daily balance of at least $25,000 and 0.80% for lower balances (as of 4/03/2012). My guess is that CIT Bank decided against the strategy of using teaser rates to attract deposits.

The most noteworthy feature of the CIT Savings account is free outgoing wire transfers for customers who maintain a daily balance of at least $25,000 ($10 fee for smaller balances). Incoming wire transfers are free regardless of balance.

The other CIT Savings features are typical for online savings accounts. These include:

  • No monthly maintenance fee
  • $100 minimum balance required to open an account
  • Free online transfers
  • No account closure fee
  • You may add a beneficiary as the Payable on Death (POD) designee.

I had a few concerns when I read CIT Bank's FAQs. However, I called CIT Bank's customer service (855-462-2652), and the CSR answered my concerns.

First, one FAQ described how one would make electronic (ACH) deposits and withdrawals from your account after it's opened. It said that customers can do this by phone with no mention of an online capability. According to the CSR, they are working on an online transfer service that will allow customers to initiate electronic transfers while logged into their account. They hope to have this operational in about two weeks. They will have more details about this transfer service when it becomes operational. I was told they do not block electronic transfers that originate from your accounts of other banks. So you should be able to push/pull using your other banks.

Update: CIT Bank has implemented a bank-to-bank transfer service. Please refer to this post for more details.

I was also concerned about the funds availability FAQ. It said that "Funds are normally available between 5 and 10 business days from day of deposit". According to the CSR, this is just a worst case scenario primarily dealing with check deposits. Most ACH deposits will likely be available much sooner. No delays will be applied to incoming wire transfers since the money is verified by the other bank.

CIT Bank Certificates of Deposit

I still think the most noteworthy product of CIT Bank is its Achiever CDs which gives you options to add an additional deposit to your CD and increase your rate during the term. The add-on feature is very useful if rates stay low or continue to fall. The bump-up feature can be useful if interest rates rise and new Achiever CD rates also rise.

I described CIT Bank's 1-year and 2-year Achiever CDs in my January CIT Bank CD review. The 2-year CD rate has fallen a little since that time, but it's still competitive. As of 4/03/2012, the 1-year Achiever CD has a 1.08% APY and the 2-year Achiever CD has a 1.20% APY. Minimum deposit is $25,000.

Application Process

You can apply for CIT Savings with an online application. It's available for people in any state. Funding is 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. You also have the option to mail in a check.

CIT Bank Overview

Don't confuse CIT Bank with Citigroup Inc. which is the bank holding company of Citibank. CIT Bank is one of the businesses that make up CIT Group Inc., a bank holding company best known for providing commercial financing and other services to small and middle market businesses. CIT Group had some difficulties in 2009. However, the FDIC-insured CIT Bank is financially strong. That's the most important factor for depositors. The bank's overall health score at DepositAccounts.com is 5 stars (out of 5) with a Texas Ratio of 0.03% (excellent) based on December 2011 data. Bankrate also shows a strong bank with a 4-star rating based on December 2011 data. Please refer to our financial overview of CIT Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35575).

Edit 4/17/2013: Updated with new minimum balance requirement.

Related Pages: CIT Bank, CD rates, savings account

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Bob A.
  |     |   Comment #1

Why don't I see Melrose Credit Union on your CD pages?

Bob A.
  |     |   Comment #2
Bob:  It could be because of Melrose's harsh early withdrawal penalties.  Ken did a post about this on 3/8/12 and Melrose was listed.  I could not find it listed in his CD group either no matter what criteria I searched under. 
  |     |   Comment #3
Rates are occasionally temporarily delisted when there is some uncertainty in their correctness.

Remember to check the Bank Rates page (Banks -> "Bank Rates" in the top menu) to see if the rates are in review for an institution.

I just reviewed the Melrose rates, and that allowed them to be listed again.
  |     |   Comment #6
De Nada:  I used to live in New York.  Why do you always have to taunt me with my favorite foods?  Chicken and Grits and "Cherry" Pie!!  Those were the days!  I was going to try Melrose for CDs but I just don't feel good about them.  I guess I will have to get in the car and head out of my city again!  The best banks are in the little towns.
  |     |   Comment #9
Ken-When will we see you bi-annual I-Bond analysis? It's great and gives us early notice what we should see with I-Bonds. Thanks!!
  |     |   Comment #10
March CPI will be released on April 13. That will allow us to calculate the next I Bond inflation component that will be announced in May. I plan to do an I Bond post soon after April 13.
  |     |   Comment #11
The next semi-annual i-bonds reset is currently at .341. That means it will reset to 0.682%.

However, as Ken has pointed out, there is one more month of CPI data to put into the equation. 
  |     |   Comment #12
Bob, that's to low.  It's 2*(227.663/226.421-1)=1.10% subject to the final adjustment from the April release.
  |     |   Comment #13
Anon #12. You are using the wrong starting value. 226.421 is the value for October. You must use the September value of 226.889


(227.663 - 226.889  / 226.889 ) = .341


.341 * 2 = .682
  |     |   Comment #14
Anon #13 you can't use Oct since Sept is reported in Oct.  It's a confusing mess, but look at the bls, Mar will be reported in April.  OK mar - 6 mos is sept.  Yes we are over 1%.
  |     |   Comment #15
February CPI-U is posted = 227.663 (increase of 0.44% from January)
Base line for next change (September) = 226.889
Total inflation for Oct Nov Dec Jan Feb = 0.34%
  |     |   Comment #16
I recently opened a savings account with CIT since Alliant has dropped their interest rates. It turns out that ACH transfers originated at CIT (whether in or out) are limited to 3 per day and a maximum of $5K per day. There was no such limit for the ACH transfer that funded the account in the first place.


I'm trying to find out if ACH transfers originating at another institution and targeting my CIT acount have a similar limit.
  |     |   Comment #17
Transfer limit increased to 75K for online ACH transfers originated at CIT. And there is no limit for transfers to/from CIT originated at another institution.
  |     |   Comment #18
CIT Bank increased my savings account rate by 0.05% because I also have a 2 year achiever CD with them.  The rate has also been guaranteed at 1.10% for six months.  It might help to open the savings acct before the CD acct, but regardless both accts probably need to be included on the same monthly statement for the offer to be made.
  |     |   Comment #19
Nightmare with Wire Transfer out from CIT Bank.  I initiated a wire transfer following their exact instructions to payoff my loan.  Little did I know, they initiated a verification of all my funds in account and started contacting all my bank from where I had done ACH transfer using CIT portal after going through Trial deposit.  My wire transfer was not processed on the same day.  Of course, all of this was done under the pretext of my own safety, security and fraud prevention.  Just FYI : to stay away from this Bank. Needless to stay I am less inclined to do future business with this bank.
  |     |   Comment #20
Absolutely correct. Avoid doing business with this bank. There is no limit in transferring money into CIT bank but getting your money out is extremely difficult. There is a daily 5k limit if you schedule an ACH transfer out online. I recently requested my account with them be closed and my funds be transferred back to my linked checking account. It had to go through different approvals at their bank and was a very lengthy process. Stay away from this bank!
  |     |   Comment #21
The 5k daily limit is the INITIAL limit.  Once you have an established account, you can ask CIT to raise it.  I've had my account open for 4 months now and my Inbound AND Outbound limit is now 75k.

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