- According to the FDIC, savings accounts at traditional banks are earning about 0.09% interest on average — pennies, for many people.
- Online banks, though, are able to offer higher rates on high-yield savings accounts, and I’ve loved my experience so far with CIT Bank. It offers 1.85% APY when you make a monthly deposit of at least $100.
- Not only is my money making money, CIT has great customer service and there are no fees to open up an account.
You want to make a workhorse out of your money. You’ve set up visual goals of your financial plan, and now you want to figure out the best possible way to make your money work for you — not the other way around.
If you know me at all, you know I talk incessantly about high-yield savings accounts. Your typical savings account earns you just 0.09% at your local bank — literal pennies. A high-yield savings account, on the other hand, can earn you 20 times more. The longer you wait to open up a high-yield savings account, the more money you lose.
If your money is going to sit there — especially in an emergency fund — we might as well have it work harder for us.
I opened up a high-yield savings account with CIT Bank last year, and after testing it out, I’m proud to be a member. CIT Bank currently offers a top rate of 1.85% APY on its Savings Builder Account. That’s about 20 times above the average rate you’d get at a brick-and-mortar bank.
In order to receive that rate, you need to have either a $25,000 balance or make an initial qualifying deposit of $100 and monthly deposits of at least $100 (the more doable option.)
To make it more real, let’s say you had $10,000 in your account. Even if you didn’t contribute more to it over the course of a year, you would have earned almost $200 having your money sit there compared to $10 at a traditional bank.
Even if you can’t put away $100 a month, CIT has another high-yield savings account option that offers 1.55% APY and has no monthly deposit requirements, well above that 0.09% your brick-and-mortar bank is offering you.
Pros of banking with CIT Bank
It’s easy to get started. All you need to do is sign up on CIT’s website, provide personal information, and link an account where the funds will get transferred from.
Even though the Fed’s interest rates are fluctuating, online banks like CIT are almost always going to have the top rates in the industry. Because they don’t have brick-and-mortar locations, they are able to pass along those savings to customers.
This next pro could also be considered a con, depending on your banking needs. CIT offers very simple banking, which means no fees to open or close an account, and no monthly fee.
It strictly offers savings accounts and CDs, which make it an entirely savings-focused bank. I love it because it means my money is set aside and out of sight, which means I’m less likely to spend it. Plus, the longer you let your nest egg sit, the more interest it earns.
CIT’s customer service is always friendly and concerned about your personal security. Each time I’ve called in to CIT, the representative has been outgoing and asked me for at least three forms of identification over the phone. This shows that the company takes my security seriously.
In addition, CIT is FDIC-insured, which means I know that my money is guaranteed up to $250,000. And you can transfer money to your regular checking account fairly easily with a bank transfer (six transfers a month are free).
The cons of CIT Bank
There are a few things about CIT Bank that someone should consider to make sure it’s right for them.
First of all, its website and backend technology have some kinks: It can be a little slow and clunky, but once you have the initial account set up, it becomes smoother to use.
The website design is non-intuitive and takes some getting used to. I’ve had to reset my password a couple of times because the website was tripping me up. You’ll need patience when you first get set up.
It’s also worth noting that other online banks, such as and Ally, do not require minimum balances or minimum monthly transactions and offer similar interest rates — Wealthfront offers 1.83% and Ally offers 1.80%.
Even with the Federal Reserve cutting interest rates, there are still some online banks offering more than 2% interest, such as Credit Karma. Interest rates will change as the Fed raises and lowers them over time.
Overall, I highly recommend CIT Bank. Who says no to free money?