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Switching banks can be a good move to avoid annoying account fees and earn a higher interest rate. If you don’t need local branch access, an online bank can be your best option. CIT Bank is one of the most popular online banks offering a plethora of fee-free and interest-bearing banking options.

There are many online banks to choose from, so why choose CIT Bank? Two reasons include the few fees and low initial account minimums. This CIT Bank review will help you decide if this bank’s checking, savings, and CD accounts can meet your banking needs.

cit bank review
Find out what options work for you in this CIT Bank review. Credit: CIT Bank

What CIT Bank Offers

Perhaps this is the first time hearing about CIT Bank. However, CIT’s roots go back to 1908. CIT Bank is an online-only bank with corporate headquarters in Pasadena, California. They offer personal checking and savings accounts, as well as home loans. If you’re a business owner, CIT Bank also has small business and commercial banking solutions.

This CIT Bank review focuses on your personal banking options. CIT Bank currently offers these bank products:

  • eChecking account
  • Savings accounts
  • Money market account
  • Certificates of deposit

These accounts are online-only but you can easily deposit cash with online transfers or mobile deposits. The checking and savings accounts only require a $100 initial deposit. Most new CIT Bank Certificate of Deposits (CD) require at least $1,000. Your first $250,000 in CIT Bank has FDIC Insurance.

eChecking

What is eChecking exactly? It’s CIT Bank’s free online checking account option.

An eChecking account has no monthly service fees and a $100 minimum initial deposit.

Some of the key account benefits include:

  • Entire account balance earns interest
  • No in-network ATM fees
  • Up to $30 in monthly non-network ATM fee reimbursements
  • Zelle® bank-to-bank instant money transfers

One difference from other online checking accounts is that eChecking is entirely paperless. CIT Bank doesn’t offer or permit you to order paper checks from another third-party. You will need to pay your bills using online bill pay or a third-party payment app or using your debit card.

You may appreciate access to Zelle®, a money transfer platform for most large banks. It’s possible to transfer money in minutes to other friends whose bank is a Zelle® partner. These Zelle® transfers can be quicker than using third-party apps like Venmo or the Cash App.

The CIT Bank app offers mobile check deposit when your employer and friends cut you a check. You can also make unlimited withdrawals each month but account overdrafts cost $30 per incident.

If you have a large stash of cash to deposit, check out the best checking account bonuses. You can earn bonuses as high as $500 while avoiding monthly service fees.

CIT Bank Savings Accounts

You have two different savings account options through CIT Bank. The option depends on whether or not you plan to make recurring monthly deposits. Neither account charges a monthly service fee.

Premier High Yield Savings Account

The information for Premier High Yield Savings Account has been collected independently by Johnny Jet. The card details on this page have not been reviewed or provided by the card issuer.

The Premier High Yield Savings Account doesn’t require recurring deposits or minimum average daily balance.  You only need to make a $100 minimum deposit and your balance earns a competitive interest rate. As this is a high-yield bank account, you can only make up to six monthly withdrawals.

CIT Bank Savings Builder High Yield Savings Account

One of the most exciting online savings accounts options is a CIT Bank Savings Builder High Yield Savings Account account. Your entire deposit earns interest. But you earn a higher rate each month with a minimum $100 monthly deposit or keep a minimum $25,000 daily account balance.

There are no account opening fees or monthly service fees. Like other online banks, you can make up to six monthly withdrawals.

Money Market Account

You might also consider opening a CIT Bank Money Market Account as it can earn a higher interest rate than the High Yield Savings or Savings Builder. An initial account deposit of at least $100 opens your account. There are no monthly service fees but account overdrafts cost $25 each.

Unlike other bank money market accounts, this one doesn’t give you a debit card. But you can link this account to payment apps like Zelle® and PayPal. You can make up to six monthly withdrawals so a checking account can be the better option for paying bills and debit purchases.

There are also some external transfer limits to know about:

  • PayPal: Up to $50 per transaction/$50 per day
  • Zelle®: $300 per transaction/ $600 per day
  • ACH electronic transfers: $2 million per transaction/ $2 million per day

As interest rates can fluctuate, you may consider opening a savings and money market account. Having dual accounts lets your transfer funds to the account with a better interest rate.

Certificate of Deposits (CDs)

CIT Bank currently offers three different certificates of deposits. The CIT Bank Certificate of Deposits (CD) include:

  • No Penalty 11-Month CDs
  • Term CDs
  • Jumbo CDs

The CIT Bank No Penalty 11-Month CD and the Term CDs are the most appealing options as the minimum initial deposit is only $1,000. Jumbo CDs require a $100,000 deposit with similar interest rates.

These CDs can be a good place to put the cash you won’t need for at least one year but don’t want to invest in stocks and bonds.

No Penalty CD

You might consider the CIT Bank No Penalty 11-Month CD to earn a higher interest rate than a high yield savings account without the early withdrawal penalties that standard Term CDs charge. CIT’s only no penalty term is for 11 months. You only need to deposit at least $1,000 to open a CD.

You can withdraw your cash before the 11-month maturity date without forfeiting interest or paying a fee. However, this CD yield is lower than a standard term CD.

Term CDs

A Term CD can earn a higher interest rate than CIT Bank’s other bank accounts. Here are your current term options:

  • 6 months
  • 13 months
  • 18 months
  • 1 year
  • 2 years
  • 3 years
  • 4 years
  • 5 years

The minimum deposit for each term is $1,000.

Once again, only deposit cash you do not plan on needing until the CD term ends. You will forfeit a portion of your earned interest or principal if you make an early withdrawal.

Wrapping It Up: Should You Use CIT Bank?

Here’s is a quick review of CIT Bank’s positives and negatives:

Pros

  • No monthly service fees or account opening fees
  • Initial $100 deposit ($1,000+ for term CDs)
  • Up to $30 in monthly ATM fee reimbursements (eChecking account)
  • Competitive interest rates for checking, savings, and money market accounts
  • Zelle® instant money transfers
  • FDIC Insurance up to $250,000

Cons

  • eChecking account doesn’t permit you to write paper checks
  • No local branch access
  • Overdraft fees up to $30 for eChecking account ($25 for Money Market Account)
  • No signup bonus

Summary

CIT Bank is an attractive banking option as it has low initial deposit minimums, no monthly service fees and competitive interest rates. Being able to have an online checking and savings account at the same bank is convenient. However, you may consider a brick-and-mortar bank if you need local branch access.

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