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You likely know it’s important to have a savings account, but not all accounts are alike. If you’re dedicated to financial security, a high yield savings account is ideal. This account type offers a higher annual percentage yield (APY) than others.
This means that you earn more interest on the money you deposit into the account.
For savings accounts, the average annual percentage yield is 0.09%. But don’t settle for such a low amount. CIT Bank Savings Builder High Yield Savings offers a whopping 2.45% APY, so we researched this option in-depth.
It may be a great pick for you, and it’s important to know why. Read our CIT Bank Savings Builder High Yield Savings review to get all of the essential information.
About CIT Bank
If you haven’t heard of CIT Bank, you likely want to know what sets this bank apart. Their entirely digital design offers convenience to all members. CIT Bank is considered a top 10 online bank, too. They use many security features to make sure personal data is always safe.
CIT Bank is a savings-focused bank, and they have options for any goal. Some members are saving for retirement, and others are building emergency funds. Every product and account type is designed to help meet savings goals.
Lastly, CIT Bank has an excellent reputation in the financial industry. They’ve won several awards such as:
- GOBankingRates’ Best Bank for High Yield Savings 2018
- GOBankingRates’ 10 Best Savings Accounts of 2018
- GOBankingRates’ Top 10 Best Online Banks of 2018
It’s easy to see why CIT Bank is a solid pick for anyone who wants to save. But the CIT Bank Savings Builder High Yield Savings option is one that truly stands out to us.
CIT Bank Savings Builder High Yield Savings Features
There are a handful of banks that offer high yield savings accounts. So you may wonder what sets the CIT Bank Savings Builder option apart. There are many great features that you can benefit from. Here are some of the main highlights:
- There are no monthly maintenance fees.
- CIT Bank Savings Builder High Yield Savings offers a very competitive APY.
- The minimum deposit amount is fairly low.
- The online-only design is ideal for quick and easy banking.
- The CIT Bank mobile app allows remote check deposits and easy money transfers.
- Daily compounding interest lets you maximize your earning potential.
- CIT Bank Savings Builder High Yield Savings is FDIC Insured.
- This account is featured on Magnify Money’s Best Money Market Account Rates List.
- It’s also featured on Magnify Money’s Best 1-Year CD Rate.
- NerdWallet named CIT Bank Savings Builder High Yield Savings the Best Savings Account of 2018.
- New customers enjoy a bonus by automatically earning the 2.45% APY for the first month.
As you can see, CIT Bank and the Savings Builder account are impressive. No fees, digital banking, a very high APY, and so much more. This banking option allows you to become savings savvy in many ways.
Who Should Open A CIT Bank Savings Builder High Yield Savings Account?
Almost anyone can enjoy what CIT Bank’s Savings Builder account has to offer. However, it may suit some people better than others. We’ve looked into each feature, so you can easily determine if it’s a good fit. A CIT Bank Savings Builder High Yield Savings account is a great match if you:
- Have long-term savings goals such as retirement or college tuition.
- Prefer to bank digitally 100% of the time.
- Plan to deposit at least $100 per month into savings.
- Plan to make fewer than six account transactions per month.
As you can see, this savings account is a solid pick for almost anyone who’s savings-oriented. But there are just a few things that CIT Bank does not offer. Keep these facts in mind:
- There are no physical bank locations. This isn’t ideal for some people, but it’s not an issue for many.
- You must deposit at least $100 per month to qualify for the 2.45% APY.
- CIT Bank does not offer any checking account options for its members.
- You cannot make more than six transactions per month.
- CIT Bank does not offer credit cards or debit cards. They are a savings-oriented bank, so members primarily make deposits.
Some people may rule out CIT Bank’s Savings Builder account because of these factors. However, these details are fairly minor and won’t deter you if you’re solely looking to invest and build your savings up.
CIT Bank Savings Builder High Yield Savings Account Criteria
Meeting the criteria for the CIT Bank Savings Builder High Yield option is pretty easy. If you meet it, you’ll get the 2.45% APY rate every month. You just need:
- A deposit a minimum of $100 to open your account
- To maintain an account balance of $25,000 or deposit at least $100 per month into your CIT Bank account.
If you meet these requirements, then you’re good to go. You can set up direct deposits to automatically add $100 per month from another bank account. This makes it very simple to get an impressive 2.45% APY.
So what happens if you don’t meet the criteria? For example, you may forget to deposit $100 one month. You don’t permanently lose the high APY rate, but it will be lower for that month. CIT Bank uses tiered interest rates, which we’ll cover later in this article.
How To Open Your CIT Bank Savings Builder High Yield Savings Account
Opening your Savings Builder account is fairly easy. It’s all done right from home too, so it’s also very convenient. These are the main steps you need to take:
- Visit the CIT Bank Savings Builder page to get started.
- Start the application process. Once started, you have 30 days to complete your application.
- You’ll need to provide your home address, phone number, email address, and social security number.
- Read the confirmation e-mail and follow the instructions given to you.
- Make a minimum of $100 to open your account. You can transfer funds with electronic transfer, mail-in check, or wire.
- Verify micro-deposits. Micro-deposits are small amounts – usually a few cents each – that show up in your account.
The steps above are essentially all you need to become a new CIT Bank member. You may be asked for additional personal details or to complete a few more actions. This is just to ensure your identity is verified and your account is secure.
What Are Tiered Interest Rates?
CIT Bank offers tiered interest rates and APY on the Savings Builder High Yield savings account. This means that the more you deposit, the more interest you earn. There are only two rates, so it’s pretty easy to understand.
- Less than $25,000 account balance – 1.17% APY and 0.995% interest.
- Less than $25,000 account balance but with a monthly deposit of $100 or more – 2.45% APY and 2.421% interest.
- Account balance of $25,000 or more – 2.45% APY and 2.421% interest.
CIT Bank determines APY and interest on a monthly basis. Let’s say you deposit $100 per month for eight consecutive months. You’ll get 2.45% APY and 2.421% interest for those eight months.
But you forget to deposit $100 for the ninth month. For that month, you’ll get 1.17% APY and 0.995% interest. If you deposit $100 or more the 10th month, you’ll get the higher APY and interest again.
As mentioned above, it’s a good idea to set up automatic monthly deposits of $100 or more. The deposits can come from any of your other bank accounts. If you set this up, you’ll never have to worry about getting the lower APY and interest. Fortunately, even the bottom tier rates are above average for a savings account.
Other CIT Bank Savings Accounts And Services
The CIT Bank Savings Builder High Yield savings account definitely stands out from other savings accounts. But you can also benefit from additional CIT Bank account types. Below are four savings options you can consider along with your Savings Builder account.
- Premier High Yield Savings – Premier High Yield Savings is CIT Bank’s other popular savings account option. It offers a lower APY of 1.55%, but it still offers many benefits. Premier High Yield Savings made Nerdwallet’s Best High-Yield Online Savings Accounts 2017 list. CIT Bank provides a free tool to help you calculate how much interest you can earn with this account type.
- Money Market – Money market accounts are ideal for big savings goals. For example, you may want to buy a home in the future. CIT Bank’s Money Market account is on Magnify Money’s Best Money Market Account Rates List and Bankrate’s Safe & Sound® Rankings. This account offers a competitive 1.85% APY.
Both of these bank accounts only require a $100 minimum deposit, too. You’ll also enjoy many of the perks CIT Bank offers – completely digital bank, no monthly maintenance fees or other fees, and more.
5 More Financial Tools And Resources We Love
The CIT Bank Savings Builder High Yield savings account is a great choice for your saving and investing needs. At Frugal For Less, we’re always on the lookout for financial tools and resources. We aim to find ones that are easy for anyone to use and enjoy. These five options are great examples.
- Acorns – Acorns is a very popular micro-investing app. It’s an excellent tool if you’re new to investing. Acorns allows you to make investments using only your spare change. They also walk you through the process. Your change is invested by rounding up purchases you make with your credit or debit cards. Make sure to check out our Acorns review, too.
- Stash Invest – Stash is another top micro-investing app, but it does have a few unique features. With Stash, you can add individual stocks to your portfolio. If you’ve never done that before, there’s no need to worry. Robo-advisors make the process simple for you. Learn more by reading the Frugal For Less Stash Invest review.
- Twine – We recommend Twine if you and your significant other want to save and invest together. This app helps you work toward your financial goals, which can definitely be hard to do without the right tools. Even if you want to save and invest alone, Twine can really help you. Our recent Twine App review provides additional details.
- Wealthsimple – Wealthsimple is a robo-advisor tool that’s great for new and seasoned investors alike. They’re known for excellent customer service and user-friendly benefits. For example, you don’t ever need to have a minimum account balance. Automatic deposits are another great perk for users. Learn more about this investment option by checking out our Wealthsimple review.
- Groundfloor – Groundfloor is pretty unique compared to the other apps and tools above. This platform lets you make money by investing it in hard money loans. Becoming a lender may sound intimidating if you’re not familiar with it. But it’s a popular and effective investment strategy, and Groundfloor can help you get started. We cover more details in the Frugal For Less Groundfloor review.