Many people are tired of traditional banking options and all their associated fees. Thanks to the internet and mobile banking options, there are now more choices in how you manage your finances. Although some are hesitant to go completely digital, many reputable banks offer high-earning potential with competitive rates, low fees, and reasonable opening deposit amounts. One of the most popular and highly rated is CIT Bank. So, if you are considering online banking options, here are the CIT bank account costs and benefits.
What Is CIT Bank?
Although they offer some commercial options, CIT Bank is an online bank that focuses on personal banking. It was founded and began serving online customers in 2009, but it is a subsidiary of CIT Group, Inc. which has been in business since 1908. CIT is a convenient option for those who prefer to handle their finances from their phone or computer rather than at a physical location.
However, it’s their competitive interest rates that consistently earn them high ratings from customers and industry experts. In addition to their 24/7 account access and knowledgeable customer support line, they are also FDIC insured. Therefore, even if the bank would fail, your money is protected. That should provide peace of mind for even the most cautious skeptics.
What Are the Costs and Benefits of Opening a CIT Bank Account?
Costs of Opening an Account
When you open an account, CIT Bank requires a minimum deposit of $100 for money market, savings, or checking accounts. After you make the initial deposit, you must meet a few standards to qualify for the highest APY rates as well. If you choose a particular type of savings account known as Savings Connect, you will need to make a $200 monthly deposit to receive the highest interest rates possible. If you go with a Savings Builder account instead, they will also require that you maintain an account balance of $25,000 or a minimum monthly deposit of $100 to qualify for the best interest rates.
For those who want to open a CD account, you will need a much higher minimum deposit of $1,000. However, you can choose terms that will help you avoid early withdrawal fees if you need to access your funds.
Another fee you should be aware of is when you overdraft your account. If you attempt to make a purchase from an account with insufficient funds, there is a $30 overdraft fee which can be charged up to four times in 24 hours. So, if you’re not careful, you could find yourself with $120 in penalty fees.
Benefits of a CIT Bank Account
No Monthly Fees and Low Minimum Deposits
One of the most attractive benefits of a CIT bank account is that there aren’t any monthly fees when you open a checking or savings account. They also don’t have any opening or maintenance fees with their CD accounts. And, they don’t require minimum balances with a money market account. Even though they do have minimum deposits to open an account, they set reasonable amounts which makes it accessible to the average person.
They also offer a few features that make it more convenient to bank with CIT. You can quickly transfer funds between your accounts, free of charge, to prevent you from accruing overdraft fees. And, they also accept mobile check deposits directly into your accounts.
Competitive Interest Rates
However, it’s their competitive rates that set them apart from other online and traditional banks. You receive excellent interest rates from money market accounts and other high-yield savings accounts.
When you meet the minimum account requirements, you get 0.45% APY on money market accounts and between 0.3% and 0.5% on CD accounts, depending on which terms you choose.
And, you’ll receive 0.5% APY with a Savings Connect account. But, if you go with the Savings Builder account instead, you only get 0.4% APY for accounts over $25,000 and 0.28% for lower balances.
CIT Bank has an unexpected bonus with its checking accounts as well. You will also earn 0.1% APY for accounts under $10,000 and 0.25% APY for accounts with a balance over $25,000.
Limitations of CIT Accounts
While they provide many benefits to their customers, there are also some limitations with a CIT account. For example, they don’t have their own ATMs or physical branches you can visit. Although they reimburse you for other banks’ fees, they cap the monthly amount at $30. So, if you exceed this limit, it comes out of your pocket.
And, certain services and accounts that are not available. CIT does not offer paper checks with their checking accounts. Furthermore, you can’t obtain credit cards, auto loans, or IRA accounts from them.
Lastly, their CD accounts are not as competitive as their checking, savings, and money market accounts. When you compare them to other banks, you can find higher APY and lower minimum deposits if you shop around.
CIT Account Security
CIT Bank makes security a top priority and goes to great lengths to protect its clients’ information. They implement antivirus, SSL encryption, firewalls, account monitoring, and other practices to ensure the safety of their accounts. They also have support services for identity theft and fraud. If you find yourself a victim, their dedicated department can handle any issues that arise.
How Can I Open a CIT Bank Account?
If CIT Bank sounds like a good option for you, signing up through their website is simple. Once you choose either personal or business banking options, it only takes about 5 minutes. But, they will require some personal information including your name, address, phone number, email, and Social Security number.
Although they don’t have physical locations, they still offer customer service support. You can reach one of their agents by calling their customer service line from 9:00 AM to 9:00 PM during the week. But, they have reduced hours on Saturdays.
With CIT Bank account low costs and benefits, it is an excellent alternative to your traditional banking options. They can provide flexibility and customized solutions that meet most people’s banking needs. If you need to have access to a local branch or prefer face-to-face interactions, then this isn’t the choice for you. However, eliminating brick-and-mortar locations reduces overhead costs. Then, those savings are passed on to their customers by providing competitive interest rates. So, if you are looking for lower fees and mobile convenience, CIT may be the right fit for you.