CIT Bank offers a number of high interest savings products. We’ve discussed the following previously:
Today they launched a new product ‘CIT Bank Money Market Account‘. This account has a 1.75% APY rate. The only real difference between a money market and savings account is that the money market account is limited to “preauthorized or automatic transfers or withdrawals, electronic banking transfers between other accounts or similar order per statement cycle period”, otherwise a fee is charged. I really just see this as a way for CIT Bank to offer a competitive APY on new accounts without passing that interest rate bump onto consumers. Given that the highest APY on a basic savings account is now 1.85% and trending upwards I don’t see any reason to do business with CIT Bank.
In fact I don’t think chasing these basic savings rate increases makes much sense for most people. You’re better off sticking with a financial institution that will consistently raise their rates over time or just focus on rewards checking accounts that offer up to 5% APY. Ally & Alliant used to be my go to suggestions, but they have been slow to increase rates recently. Another option would be All America Bank (currently offering 1.75%).
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I've been with CIT and my money market account has been raised twice. They now have a super savers account that is 2.25% which is more than the money market account I have. So, I opened that and moved the funds over.
Rates raised to 1.85% a week ago I believe. Bigger online bank with 1.85? I think this may be better than SalemFiveDirect and DollarSavingsDirect now, as well as some of the few with higher percentages (they either have high minimums or low minimums and catches). Unless they raise their rates soon too. Makes the 1.85% CD pointless now.
Don't think the size of the online bank really matters, especially when CIT is somewhat known for constantly rate changing.
I like CIT bank because in addition to offering a pretty good rate, they also offer FREE outgoing domestic wires, which is pretty tough to find anywhere.
As I send numerous wires out this is a nice perk for me.
Only way to close by calling in? Don't see an option online
I currently hold money with this bank and when I needed to withdraw a large sum it was a nightmare. On the other hand, please note they have a 11 month NO PENALTY paying 1.85%. I doubt I will add additional funds to this bank. I have some 5 year CDs which over a year ago were offering over 2% so I jumped on those.
The CIT website says something about calling before moving money from CIT. Any experience, datapoints, etc. on retention bonuses, etc.?
I have called. No retention bonus, just an offer to convert older lower-yield accounts to the new hotness.
They will not convert an older no-penalty CD to a 1.85% no-penalty CD, however. The CSR tells you to apply for a new CD online, put "mail check" on the application, then call back to have someone move the funds manually.
I’ve had accounts with CIT for over 2 years and rarely experience anything negative. But you do have to stay on your toes with rate changes. My general suggestion is to leave a small balance in saving/m mkt accounts like this one at various banks that don’t require a high minimum. Then, you’ll have everything in place when they offer something worthwhile (which, for me, is CITs 11 mo. no penalty 1.85% CD which I just funded).
The new MONEY MARKET account has a minimum required balance, not sure now what it is but IIRC it is 25k. Initial deposit is 100 to open but then monthly fees kick in. Do not assume the rules are the same for all types.
A simple call to CIT BANK converted PREMIER HIGH YIELD SAVINGS into the new MONEY MARKET with new interest rate. No need to open new account and all existing data remains intact (ie. account number, routing, externally linked accounts, beneficiaries etc)
The issue is still that you have to manually do this. Why not just give existing customers the best rate? It's a greedy practice and something I hate.
It's become standard practice in modern American business to treat loyal customers like crap. Cable companies, insurance companies, etc. are notorious for offering their most loyal customers the worst deals & rates.
Sure, that just means we should call these businesses out though and not do business with them.
The last time Cit Bank raised their rates, they automatically changed the rate on my account without me asking.
Your existing account IS NOT a MONEY MARKET. You have 3 options
1. Do nothing
2. Open new account
3. Convert existing account
I feel all of your pain in trying to get the highest rate from a bank that automatically raises the rate for you.
Currently with Bank of America and they pay next to zero (0).