Savings accounts allow your money to grow risk-free and compound over time. They are critical resources that can help you build wealth. These accounts may have lower returns than stocks and real estate, but you don’t have to worry about losing money from a bad investment.
CIT Bank Platinum Savings Account
The Highest Yield You May Ever Find
Banks use high interest rates to encourage people to save their money, but few banks can compete with CIT Bank’s Platinum Savings Account. The online bank is among the best in the nation when it comes to high-yielding savings accounts.
While most high-yield savings accounts hover between 1% to 3% APY, CIT Bank offers an impressive 4.70% APY that is difficult to find for CDs. The bank doesn’t have any account opening or maintenance fees and is FDIC-insured. The interest rate is the main draw, but what else does CIT Bank offer? This CIT Bank review will highlight what this bank has to offer.
About CIT Bank
CIT Bank is a division of First Citizens Bank & Trust Company. The bank was founded in 2009, but its parent company, First Citizens Bank, was founded in 1898. CIT Bank does not have any physical branches but has many resources. You can open up savings and checking accounts. You can even get a home loan if you are looking to buy a property. The bank also has many educational resources, such as articles and videos, to improve your money management.
CIT Bank does not have an ATM network either, but consumers receive refunds of up to $30 per month for ATM fees. Using ATMs less frequently can help you stay within the $30 threshold.
The bank offers various financial products that can improve your financial strength. Consumers also get to enjoy excellent customer service from the bank. The online bank also offers CDs, home loans, and other resources.
What is a CIT Bank Platinum Savings Account?
A CIT Bank Platinum Savings Account helps you get more mileage out of your money than most of the other high-yield savings accounts on the market. This account is insured by the FDIC and allows your money to grow at 4.70% APY.
While a 4.70% APY sounds like a perk that makes this high-yielding CIT bank account an instant winner, you need a high enough balance to qualify. You must have at least $5,000 in your CIT Bank Platinum Savings Account to qualify for the 4.70% interest rate. If you have less than $5,000 in your account, you will receive a far less impressive 0.25% APY. You need a lot of extra money sitting around to make this account work, but if you have the money, this account can outperform most of the other high-yield accounts you can find.
CIT Bank Platinum Savings Account Details
Are you considering a CIT Bank Platinum Savings Account? These are some of the key details about the account.
Interest Earned
The interest rate is currently 4.70% APY and compounds daily. If you put $50,000 into a CIT Bank Platinum Savings Account, it will grow to $52,525 in one year. At the end of the following year, the account will grow to $55,177.51. Growth happens quickly with these accounts, and you can earn more interest with this account in one year than you can earn with most savings accounts in 2-3 years.
If you have less than $5,000 in your savings account, you are only eligible for a 0.25% APY. It’s a much lower rate if you don’t have a sufficient balance. Using the previous example of a $50,000 balance, it’s possible to see the dramatic difference of a 0.25% APY. At the end of the first year, you end up with a $50,125 balance. At the end of the second year, you will have a $50,250.31 balance. It will take a few more years to reach the $52,525 balance you achieve after the first year of putting $50,000 into an account, yielding 4.70% APY.
It is imperative to end up with a higher interest rate because the alternative isn’t an attractive choice. Luckily, CIT Bank has several alternative accounts that still offer high interest rates if you cannot exceed $5,000. Those accounts will soon be explored in more detail.
Minimum Deposit
The minimum deposit to open a CIT Bank Platinum Savings Account is $100. If you only put $100 into your account, you will only get a 0.25% APY on the money you keep in your account. Not every high-yield savings account has a barrier to entry, and the low-interest rate for the minimum makes CIT Bank not worth it. From an interest rate perspective, a CIT Bank Platinum Savings Account is only worth it if you can put at least $5,000 into your account.
Account Opening and Maintenance Fees
CIT Bank does not have any fees for opening an account. You also won’t have to worry about any maintenance fees if your account falls below a certain level. It’s possible to argue that $5,000 is the maintenance level since the interest rate drops from 4.70% APY to 0.25% APY if you dip below that number. You won’t get charged extra fees, but you will miss out on a much higher interest rate.
Mobile Banking Features
CIT Bank has a mobile app that makes it easy to transfer funds between accounts. You can also make mobile check deposits by taking a picture of your check with the CIT Bank mobile app. The website also has a useful calculator that lets you see how interest can compound in your account over time. You can see how your savings account balance can change over any amount of time based on the initial amount, monthly contributions, and APY.
Mobile banking features have become standard expectations across financial institutions. Many banks provide the same basic features, such as a website and a mobile app. CIT Bank has a good interface that enables a straightforward user experience. Consumers should consider if the dashboard makes it easy for them to access key information before opening a bank account.
CIT Bank Platinum Savings Account
The Highest Yield You May Ever Find
FDIC Insurance
The Federal Deposit Insurance Corporation helped restore people’s trust in the banking system. If a bank defaults, the account holders get their money back, up to $250,000 per account ownership category. You should only work with a bank that is insured by the FDIC. Luckily, CIT Bank’s savings accounts have FDIC insurance.
What are the Benefits of a CIT Bank Platinum Savings Account?
The main benefit of a CIT Bank Platinum Savings Account is the interest rate. It will be very hard to find a high-yield savings account or even a certificate of deposit that stacks up against CIT Bank. The bank also has a mobile app and online banking features, such as mobile check deposits.
The bank has plenty of educational resources that can help you more effectively manage your money and map out your long-term goals. Consumers can also lock in high interest rates with CDs. While the CIT Bank Platinum Savings Account currently has a higher interest rate than the CDs, savings accounts tend to have variable rates. Any changes in market conditions may impact savings rates across the board.
If you plan on buying a home soon, you can get a home loan through CIT Bank. The online bank offers loan terms ranging from 10-30 years, depending on what you need. A shorter loan term helps you get out of debt sooner, while a lengthier loan results in lower monthly payments.
Are There Any Drawbacks?
The major drawback with a CIT Bank Platinum Savings Account is that you need to have at least $5,000 in your account to qualify for the elevated interest rate. If you do not have enough funds to maintain that balance, you get stuck with a 0.25% APY for your account. That’s a low-interest rate that isn’t worth the effort of a $100 minimum deposit. Many banks offer interest rates between 2%-3% APY even if you only have $1 in your account. If you can get your account above $5,000 and maintain that threshold, the drawbacks go away.
How Does a CIT Bank Platinum Savings Account Stack Up?
A CIT Bank Platinum Savings Account is one of the best choices for consumers who have over $5,000 in their savings accounts. However, you shouldn’t consider this account if you have less than $5,000. The interest rate gap is dramatic, going from 0.25% APY to 4.70% APY without any middle ground.
Other than the interest rate, the bank has standard mobile banking features, checking accounts, and CDs. The bank’s CDs are also higher than the average for people who don’t have $5,000 in their savings account. CIT Bank also has home loans, which is something you don’t see with many online banks.
Is a CIT Bank Platinum Savings Account Worth It?
A CIT Bank Platinum Savings Account is only worth it if you can put more than $5,000 into your account. Under that condition, few accounts can match up to CIT Bank. However, it is very easy to find high-yield savings accounts that exceed 0.25% APY and let you get started with as little as $1. CIT Bank isn’t the best choice if you have less than $5,000.
CIT Bank has other savings accounts that offer competitive interest rates, such as Savings Connect. That account’s interest rate is currently 4.35% APY and does not have the $5,000 minimum balance requirement. It may be a good idea to store your cash in this account until you reach the $5,000 threshold. Then, you can move your funds from a Savings Connect account to a Platinum Savings Account to end up with an elevated interest rate.
How to Open a CIT Bank Platinum Savings Account
You can open a CIT Bank Platinum Savings Account by visiting the website and entering your basic information. CIT Bank will ask for an eligible ID, your Social Security Number, your home address, your phone number, and other details during the application process. After you complete the setup process, you will have to make the $100 minimum deposit. It is a good idea to put in at least $5,000 if you have the cash to get the elevated interest rate. Then, your account will be ready to go.
Other CIT Bank Products
- eChecking: Address your short-term expenses with the CIT Bank eChecking account.
- Savings Connect: You only need a $100 minimum deposit and no balance requirements to get a 4.35% APY.
- Savings Builder: Earn 1.00% APY on your money with more generous requirements than the Platinum Savings Account.
- CDs: Lock in an interest rate over the long run, so you don’t have to worry about variable rates declining in the future.
- Money Market: Earn a 1.55% APY with a $100 minimum opening deposit and no additional requirements.
- Home Loans: Choose from a 10-30-year mortgage term and get the house of your dreams.
CIT Bank Platinum Savings Account
The Highest Yield You May Ever Find
