The Premier High-Yield Savings Account [CIT Bank Review]

CIT Bank Savings Account ReviewWhen you're trying to find the best savings accounts to reach your financial goals, it's ideal to get an understanding of what's available and which savings account can give you the most for your money.

CIT Bank is the subsidiary of the financial holding company CIT. CIT has been around since the beginning of the 20th century, and its bank has an asset value of $40 billion and a deposit value of $30 billion, as of June 2017. It's primarily an internet bank, and it offers both commercial and consumer bank products.

The following is a review of CIT Bank's Premier high-yield savings account. While CIT doesn't offer checking accounts, it offers other consumer and small business banking products you can leverage, including certificates of deposits (CDs), custodian accounts, home loans, small business loans, and equipment financing. Also, there's a wide selection of CDs to choose from, including flexible CDs with no penalty or low minimum deposits.

CIT Bank High Yield Savings Account Features

The features of the Premier high-yield savings account offered by CIT Bank are typical of what you can expect from most savings accounts, but with a few perks:

  • FDIC-insured account
  • A low deposit for opening an account ($100)
  • US-based customer support
  • Tiered high-yield interest rate
  • Interest is compounded daily
  • No maintenance or initial fees
  • Round-the-clock online banking security

But some of these features come with advantages and disadvantages you should understand:

Pros of the CIT Bank High Yield Savings Account

CIT Bank High Interest Savings AccountThere are quite a few advantages for opening a high-yield savings account with CIT Bank surrounding its customer service, insurance, and security.

First, a huge advantage of opening this account is that it's FDIC insured. That means you can put as much as $250,000 in the bank and not worry about getting your money back if the bank goes bankrupt or goes out of business.

You can also expect to receive customer service from representatives in the United States.

Another plus for opening a CIT Bank Premier high-yield savings account is that you currently only need $100 to start banking.

Currently, the bank offers an annual percentage yield above 2 percent that's compounded daily, which is higher than the national average interest rate of traditional banks. To get this rate you only need to deposit $100 a month into the account or keep an average balance of $25,000.

These rates do change, but internet banks usually carry that advantage thanks to the low overhead costs.

Having consistent security any time of the day is a definite advantage that's also becoming a standard in online banking. CIT offers encrypted, secure service every day of the year at any given moment.

The fees are also a definite plus with this high-yield savings account. Whether you need to mail a check, close your account, receive an incoming wire transfer, or transfer money online, you pay the same thing: nothing. That's because CIT Bank currently does not charge its Premier high-yield savings account holders for these types of transactions. You can even send outgoing wire transfers at no cost as long as you maintain an average daily balance of $25,000 or more.

Start saving with CIT today.

Cons of the CIT Bank High Yield Savings Account

The main disadvantage with this account is that you have to maintain a high balance to truly benefit from the high-interest rate and avoid the fees. Moreover, the highest interest rate is only applied to the first $100,000. After that, you earn slightly lower percent.

Also, the interest rate that is actually paid out is based on what your balance is at the end of the day. So if you have a $100,000 balance but an additional deposit takes you over $100,000 by the end of the day, your applicable APY will be slightly lower.

To keep that much money in the bank means that you will have to be patient before you see some significant returns. Additionally, you won't be able to discuss banking matters or make a deposit in person at the bank does not have any physical locations.

While CIT Bank does not have a substantial number of complaints, one Better Business Bureau (BBB) complaint highlighted technical issues with account access and long hold times for customer service. Also, one Sitejabber complaint noted an issue with customer service and a delay in funds transferring between CD accounts.

CIT Bank High Yield Savings Account Fees

While there are no fees to open or maintain a CIT Bank Premier high-yield savings account, the bank still maintains fees for transferring funds outside of the bank. As of 2017, it costs $10 per outgoing wire transfer if your account balance is below $25,000 on average daily.

Final Thoughts on the CIT Bank High Yield Savings Account

Whether you're just starting to save or have some serious cash, you can leverage the high-interest rates with CIT Bank's Premier high-yield savings account. Always consider your personal financial goals first and see if a high-yield savings account will meet your needs.

Start saving with CIT today.

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