The rising rates race continues, with the latest increase coming from CIT Bank, which just added 5 bps to each of the Premier High Yield Savings account’s rate tiers. Tier 1 now earns 1.35% APY on balances up to $100k and Tier 2 earns 1.30% APY on balances over $100k. According to the fine print on the Premier High Yield Savings promotion page,
For example: A balance of $95,000 will earn a 1.35% APY,
and a balance of $105,000 will earn 1.30% APY.
The Premier High Yield Savings can be opened with a minimum $100 deposit; once the account is opened, there is no minimum balance requirement. There is no account opening fee or monthly maintenance fee.
|1.35*%||-||$100k||CIT Bank||Premier High Yield Savings|
|OTHER TIERS: 1.30% → $100k+|
CIT Bank has a history of maintaining competitive rates on its savings accounts. Since its launch date in April 2012, the High Yield Savings’ APY ranged from 0.80% to 1.05%. Its last rate increase was in January of this year when the APY increased from 0.95% to 1.05%.
The Premier High Yield Savings is the second new savings account launched this year by CIT Bank; the first was the Spring Savings Account, which made its debut in May earning 1.15% APY. Current CIT Bank savings account customers need to apply for the Premier High Yield Savings to receive the higher interest rate. Opening then new account can be expedited by first logging into CIT Bank’s online banking first.
In July, I received information on CIT Bank’s ACH electronic funds transfer system, which allows money to be moved to and from accounts at external institutions fee-free. Once the account is opened, you can set up multiple links to external accounts, with up to 10 links allowed. CIT Bank allows outgoing ACH transfers of up to $2 million per day, with no limit for incoming ACH transfers. The number of ACH withdrawals are limited to six per statement cycle, as required by federal regulation.
Wire transfers are another option to transfer funds. CIT Bank offers free outgoing wire transfers for accounts with balances of at least $25k. There is a $10 fee per outgoing wire transfer fee for accounts with balances under $25k. Incoming wire transfers are fee free.
Headquartered in Pasadena, California, CIT Bank is a "pure" internet bank, having no brick-and-mortar branches. Accounts can be opened by U.S. citizens or resident aliens, 18 years or older.
Opening a Premier High Yield Savings Account must be done using CIT Bank’s online application. Funding can be done through an electronic funds transfer from an outside bank account, wire transfer, or mailing a check. As is typical with setting up an ACH transfer, you need to provide CIT Bank with the routing and account number of your outside account.
In 2015, CIT Bank merged with OneWest Bank. The resulting institution is a national bank (National Association) and was re-named CIT Bank, N.A. The OneWest Bank brand remains intact, but now operates as a division of CIT Bank, N.A. Deposits at CIT Bank and OneWest will be counted together for purposes of determining FDIC insurance coverage limits. As of March 31, 2017, the Bank now has combined assets of more than $42 billion and deposits of more than $32 billion.
The new bank (CIT Bank, N.A.) took the financial history and FDIC Certificate number of OneWest Bank (FDIC Certificate # 58978). Based on March 31, 2017 data, CIT Bank, N.A. has an overall health grade at EpBooks.us of “A”, with a Texas Ratio of 9.39% (excellent) and is currently financially strong. Please refer to our financial overview of CIT Bank for more details.
Don’t confuse CIT Bank with Citigroup Inc., which is the bank holding company of Citibank. CIT Bank is one of the businesses that makes up CIT Group Inc., a bank holding company best known for providing commercial financing and other services to small and middle market businesses.
OneWest Bank used to be IndyMac Bank. Following the FDIC brokered sale of IndyMac in March 2009, the Bank was re-branded as OneWest Bank. A portion of OneWest Bank’s growth came from the acquisitions of failed banks: in December 2009, First Federal Bank of California was acquired, followed by the acquisition of La Jolla Bank in February 2010.
How the Premier High Yield Savings Compares
When compared to the nationally available Money Market accounts and Savings accounts tracked by EpBooks.us that are available nationally with similar balance requirements, CIT Bank’s Premier High Yield Savings APY current shares third place with Salem Five Direct’s New Money eOne Savings.
|Interest Rate||Account Name||Credit Union/Bank|
|1.41% APY||Money Market Savings ($5k min/$250k max)||UFB Direct|
|1.40% APY||Savings Account (no min/$5m max)||Live Oak Bank|
|1.35% APY||Premier High Yield Savings Account ($100 min/$100k max)||CIT Bank|
The above rates are accurate as of 9/8/2017.