CIT Bank, an online bank with a long history dating back to 1908, is a financial institution that offers a wide array of products and services, primarily for individuals, small businesses, and entrepreneurs. Over the years, CIT Bank has built a reputation for its high-yield savings accounts, CDs (Certificates of Deposit), and competitive loan offerings.
While its online-only model allows for more streamlined banking services and higher interest rates on deposits, there are some limitations when compared to traditional brick-and-mortar banks.
In this article, we will take a deeper look at the pros and cons of CIT Bank to give you a full understanding of what it has to offer. From high-interest rates to customer service, we’ll explore both the positives and the areas that could be improved.
Whether you are considering opening an account, applying for a loan, or looking for a business banking solution, it is important to assess the complete picture. By the end of this article, you will have a clearer understanding of whether CIT Bank aligns with your financial goals.
What Is CIT Bank?
CIT Bank is an online bank that offers an impressive selection of financial products such as savings accounts, money market accounts, CDs, business loans, and mortgage options. The bank is known for its competitive interest rates and user-friendly online banking experience, which allows customers to manage their accounts and perform transactions from anywhere. Although the bank doesn’t have a vast number of physical branches, it compensates by providing a highly convenient and efficient digital banking experience.
CIT Bank primarily focuses on offering high-yield savings products and tailored business banking solutions. With a solid reputation and a customer-first approach, CIT Bank continues to grow and attract customers who value competitive rates and innovative digital banking services.
Who is CIT Bank Best For?
CIT Bank is ideal for individuals looking for high-yield savings accounts, as the interest rates on these accounts are some of the best available in the market. It’s also a great choice for those who prefer digital banking and are comfortable managing their finances online.
Small business owners looking for banking solutions tailored to their needs may also find CIT Bank an attractive option, as the bank offers business savings accounts and financing products designed for entrepreneurs. Lastly, people looking to avoid high monthly fees and minimum deposit requirements will benefit from the bank’s low barriers to entry, especially with its savings products.
Pros of CIT Bank
1. High-Interest Rates on Savings Accounts and CDs
CIT Bank is known for its highly competitive interest rates on savings accounts and CDs. Its high-yield savings accounts regularly feature APYs (Annual Percentage Yields) that outshine traditional banks, making it an attractive option for those looking to maximize the returns on their deposits.
For example, CIT Bank’s savings accounts typically offer rates that far exceed the national average, providing an excellent opportunity for individuals to grow their savings more quickly. Moreover, CIT Bank’s CDs offer similarly competitive interest rates with flexible terms, allowing customers to choose the best investment period for their needs. This makes CIT Bank an ideal choice for people who are focused on long-term savings and want to take advantage of the higher rates that an online-only bank can offer.
2. No Monthly Maintenance Fees
One of the significant advantages of CIT Bank is that it offers a wide variety of accounts without the burden of monthly maintenance fees. Traditional banks often charge customers monthly fees that can range from $5 to $15 or more, just for maintaining an account. These fees can add up over time, especially if you’re maintaining a low balance. With CIT Bank, many of its accounts, including high-yield savings and money market accounts, are free of these monthly maintenance fees. This feature makes CIT Bank an appealing option for those who want to avoid extra costs and keep more of their money working for them.
3. Minimal Account Balance Requirements
CIT Bank also stands out for its relatively low minimum balance requirements. Many traditional banks require customers to maintain a significant balance to avoid fees or earn the best interest rates. In contrast, CIT Bank offers accounts with very minimal balance requirements, often as low as $100 or $200. For those just getting started with saving or those who do not want to tie up large amounts of money, this can be a major advantage. Whether you’re opening a savings account or a money market account, CIT Bank provides more flexibility when it comes to how much you need to deposit initially or maintain on an ongoing basis.
4. Wide Range of Financial Products
CIT Bank’s portfolio includes a variety of financial products that cater to different customer needs. From high-yield savings accounts and money market accounts to CDs and mortgage loans, CIT Bank has something for almost every type of customer. Additionally, the bank offers business solutions, such as business savings accounts and business loans, allowing small business owners and entrepreneurs to manage both personal and business finances under one roof. The range of available products means that customers can find solutions that match their specific financial goals, whether that’s earning high interest, saving for a future purchase, or securing financing for a business venture.
5. Easy-to-Use Mobile App
CIT Bank provides a highly functional and easy-to-use mobile app, which is an essential feature for digital-first customers. The app allows users to manage their accounts, check balances, transfer funds, pay bills, and even deposit checks directly from their mobile devices. The user interface is straightforward and intuitive, making it easy for both tech-savvy individuals and those less familiar with mobile banking to navigate and complete transactions. The mobile app also features robust security features to protect your data, giving you peace of mind as you manage your finances on the go.
6. FDIC Insurance
Another key benefit of CIT Bank is that all eligible deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor. This FDIC insurance protects your deposits in the unlikely event that the bank fails. While it’s not something most customers need to worry about, it’s reassuring to know that your money is safe and protected by the U.S. government, which offers one of the most secure forms of financial protection available. This makes CIT Bank a reliable and trustworthy option for people who want to safeguard their savings.
7. Excellent Customer Service
CIT Bank is known for its excellent customer service, which is a vital factor when choosing a bank. The bank provides 24/7 customer support through various channels, including phone, email, and online chat. This ensures that customers can easily reach a representative whenever they need help or have questions about their accounts. Many customers have praised CIT Bank’s support team for being friendly, professional, and efficient, providing timely assistance for both simple and complex banking issues. The availability of customer service around the clock is a significant benefit for those who may need help during off-hours or while managing accounts from different time zones.
8. Business Banking Solutions
For entrepreneurs and small business owners, CIT Bank offers a range of products designed to meet the unique needs of businesses. Business savings accounts, money market accounts, and business loans are all available, with competitive rates and flexible terms. CIT Bank’s business banking services are ideal for customers looking for a bank that can help them manage both personal and professional financial needs under one roof. Additionally, business customers can take advantage of the bank’s online tools to streamline their operations and make banking easier and more efficient.
9. Competitive Loan Offerings
CIT Bank also offers competitive loan offerings, including personal loans, home loans, and business loans. The bank’s personal loan options are useful for individuals seeking debt consolidation, home improvements, or major purchases, with competitive interest rates and terms. For homeowners, CIT Bank provides mortgage loans that are designed to meet a variety of needs, from first-time buyers to those refinancing their homes. Additionally, small business owners can benefit from CIT Bank’s business loan offerings, which are tailored to help businesses grow and succeed.
Cons of CIT Bank
1. Limited Physical Branches
One of the biggest drawbacks of CIT Bank is its limited number of physical branches. While it offers a wide range of online banking services, there are not many physical locations where customers can visit for in-person support. This could be a disadvantage for those who prefer face-to-face interactions with bank representatives or need in-person assistance for more complex banking matters. Furthermore, if you need to deposit cash or handle other banking transactions that require a physical presence, you may have to rely on third-party services, which can be inconvenient.
2. No Cash Deposits
CIT Bank does not offer the ability to deposit cash directly into your account. This is a significant limitation for people who frequently handle cash transactions. If you need to deposit cash, you would have to rely on third-party methods, such as depositing cash via a money order or through a partner ATM network. These third-party services often come with fees, which can add up over time. For individuals who prefer a more straightforward banking experience, this lack of cash deposit options can be a dealbreaker.
3. Limited ATM Access
Although CIT Bank offers ATM fee reimbursement for certain accounts, its ATM network is limited compared to traditional banks. This means that if you need to withdraw cash from an ATM, you may encounter fees if you’re not using one of CIT Bank’s partner ATMs. While the bank reimburses fees on certain accounts, the process is still a hassle for those who need to withdraw money frequently or are located in areas with limited access to partner ATMs. This can make CIT Bank less convenient for customers who rely heavily on ATM access.
4. No Physical Locations for Personal Assistance
While CIT Bank’s customer service is highly rated, the absence of physical locations for personal assistance can be an issue for some customers. If you prefer meeting a bank representative in person to discuss your financial needs, CIT Bank’s online-only model may not be suitable. Additionally, resolving complex issues or signing certain documents may be more challenging without the option to visit a branch and handle things in person. If in-person banking is essential for you, CIT Bank may not meet your expectations.
5. High CD Minimum Deposit Requirements
While CIT Bank’s CDs offer some of the most competitive interest rates in the industry, they also come with relatively high minimum deposit requirements. For instance, CIT Bank’s long-term CDs may require a minimum deposit of $1,000 or more. While this is standard for many banks, it may be an issue for individuals who are not yet in a position to deposit such an amount. Those who are new to saving or looking for low-barrier entry may find these high minimum requirements a bit restrictive.
6. Online-Only Bank May Not Appeal to All Users
CIT Bank is an online-only bank, which means that it may not be the best fit for individuals who prefer traditional, in-person banking experiences. While many people find online banking convenient, others may feel uncomfortable managing all their transactions digitally or may miss the personal touch of visiting a branch. Additionally, some people may prefer to have access to in-person banking services, such as safe deposit boxes or the ability to speak to a teller face-to-face. For customers who need these services, CIT Bank’s online-only model may not meet their expectations.
7. Limited Options for Investment Accounts
CIT Bank does not offer as broad a range of investment accounts as other financial institutions. While the bank does provide competitive savings products and CDs, it lacks investment offerings such as brokerage accounts, mutual funds, and retirement accounts (IRAs). For customers seeking a more diversified financial portfolio, CIT Bank may not offer all the investment options they need. Those looking to invest in the stock market, bonds, or other investment vehicles might have to consider additional financial institutions.
8. High Penalties on Early CD Withdrawals
CIT Bank’s CDs come with substantial penalties for early withdrawal, which can be a significant disadvantage for those who may need to access their funds before the CD matures. These penalties can reduce the interest earned, and in some cases, even eat into the principal. While this is common for many CD offerings, the high penalties can be frustrating for those who need more flexibility. It’s important for customers to carefully consider whether they will need access to their funds before the CD term ends.
Conclusion
CIT Bank offers many attractive features, including high-interest rates, no monthly maintenance fees, and a wide range of financial products. However, its online-only model and limited physical branches might not be ideal for everyone. By carefully evaluating the pros and cons outlined above, you can decide whether CIT Bank is the right fit for your banking needs. For those looking for an efficient and digital-first banking experience, CIT Bank could be an excellent choice.