CIT Bank's savings accounts offer competitive interest rates, but whether one is right for you depends on your banking habits and what features matter most

CIT Bank is an online-only bank owned by First Citizens BancShares. It does not have physical branches. The bank offers several savings products: a standard high-yield savings account, money market accounts, and certificates of deposit (CDs). The main draw is interest rates — CIT's rates are typically higher than what you'll find at large national banks, though they fluctuate with the federal funds rate and change frequently.

Whether a CIT account makes sense for you depends on three things: whether you're comfortable banking entirely online, how often you need to move money in and out, and whether the current interest rate beats what other online banks are offering at the moment you're ready to open.

Key Takeaways

  • CIT Bank is online-only with no branches, so you cannot deposit cash or speak to someone in person about account problems.
  • Interest rates are higher than traditional banks but vary month to month, so you should compare CIT's current rate against other online banks before opening.
  • The account has no monthly fees and no minimum balance requirement, but you are limited to six withdrawals per month before fees kick in.
  • Money transfers in and out take one to three business days, which matters if you need quick access to your cash for emergencies.

How CIT's interest rates compare to other banks

CIT's savings account rates change regularly and are tied to Federal Reserve decisions. When the Fed raises rates, CIT typically raises its rates within days or weeks. When the Fed cuts rates, CIT cuts too. The bank's rates are usually competitive with other online banks like Marcus, Ally, and American Express Personal Savings, but not always the highest.

The best way to know if CIT is worth it right now is to check the current rate on CIT's website, then compare it to rates at three or four other online banks. A difference of 0.25% or 0.50% per year matters more the larger your balance is. On $10,000, a 0.50% difference means $50 per year. On $100,000, it means $500 per year.

CIT also offers money market accounts and CDs. Money market accounts work like savings accounts but may have slightly higher rates in exchange for higher minimum balances. CDs lock your money away for a set term (three months to five years) in exchange for a may provide rate. If you withdraw early, you pay a penalty.

What happens when you try to withdraw money

CIT limits you to six withdrawals or transfers per month before charging a fee. This rule comes from federal banking law, though many banks have stopped enforcing it. CIT still does. The seventh withdrawal in a calendar month costs $10. This matters if you use your savings account like a checking account and move money frequently.

Transfers between CIT and your other banks take one to three business days. You cannot walk into a branch and withdraw cash the same day. If you need money fast for an emergency, you have to wait. Some people keep a small emergency fund in a checking account at a bank with branches for this reason, and use CIT for money they do not need immediate access to.

Deposits work the same way — if you transfer money into CIT from another bank, it takes one to three business days to show up and start earning interest.

Fees and account requirements

CIT charges no monthly maintenance fee and has no minimum balance to open or keep the account. You can open with $1. There is no penalty for closing the account. The only fee you're likely to encounter is the $10 charge for withdrawals beyond six per month.

If you link CIT to another bank account, you can set up automatic transfers. Some people use this to move money into CIT on payday and then forget about it, which removes the temptation to spend it.

The tradeoff: higher rates versus no branches

CIT's main advantage is interest rate. Its main disadvantage is that it is online-only. You cannot deposit a check by walking into a branch. You cannot withdraw cash without transferring to another bank first. You cannot sit down with someone to discuss account problems, though CIT does offer phone and email support.

For people who have a checking account at a traditional bank and want a place to park savings, CIT works well. For people who need to move money frequently, or who want the option to deposit cash or speak to someone in person, a bank with branches may be better even if the interest rate is lower.

How to decide if CIT is right for you

Ask yourself these questions: Do I have another bank account I can transfer money from and to? Am I comfortable doing all my banking online? Do I move money in and out of savings more than six times a month? How much money am I planning to keep in savings?

If you have another bank, you're comfortable online, you do not withdraw often, and you have at least a few thousand dollars to save, CIT is worth considering. Check the current rate, compare it to Marcus, Ally, and American Express, and open whichever has the highest rate at that moment.

If you need to withdraw frequently, want to deposit cash, or prefer to have a branch to visit, look at online banks that offer more flexibility, or accept a lower rate in exchange for a traditional bank with branches.

What to do before you open

Visit CIT's website and write down the current savings account rate. Then visit the websites of Marcus, Ally, American Express Personal Savings, and one or two others. Write down their rates too. Open the account with whichever bank has the highest rate, as long as the difference is at least 0.10% or 0.25% — smaller differences are not worth switching banks for.

Make sure you have another bank account set up before you open CIT, because you'll need it to transfer money in. Read CIT's terms about the six-withdrawal limit so you understand when the $10 fee applies. Set up automatic transfers if that helps you save consistently.

Frequently Asked Questions

Can I deposit cash into a CIT account?

No. CIT is online-only and has no branches. You can only deposit money by transferring it from another bank account. If you need to deposit cash, you'll have to deposit it at your other bank first, then transfer it to CIT.

What happens if I withdraw more than six times in a month?

CIT charges $10 for each withdrawal or transfer beyond six per calendar month. If you withdraw seven times, you pay $10. If you withdraw ten times, you pay $40. This limit applies to transfers out, not transfers in.

How long does it take to get my money out of CIT?

Transfers out take one to three business days. Weekends and holidays do not count as business days. If you need money faster, you cannot get it from CIT — you'll need to keep emergency cash in a checking account at a bank with branches or ATMs.

Does CIT's rate ever go down?

Yes. CIT's rate moves with Federal Reserve decisions. When the Fed raises rates, CIT raises its rate. When the Fed cuts rates, CIT cuts too. Your rate can change several times per year depending on Fed policy.

Is my money safe in CIT?

CIT is FDIC-insured up to $250,000 per account holder, per bank. This means if CIT fails, the federal government guarantees your money up to that limit. Your deposits are as safe as they would be at any other FDIC-insured bank.