If you’re looking for a high-yield money market account, then you should definitely consider opening an account with CIT Bank. They offer some of the highest interest rates in the industry, and their customer service is top-notch.
However, is this account all it’s cracked up to be, or are there a few things you should know before making your decision? In this article, I’ll dive in and give you an honest review of CIT Bank Money Market Accounts. We’ll cover the pros and cons and all the details you need to know before deciding if this is the right option for you!
What is a Money Market Account?
A money market account is a type of savings account offered by banks and other financial institutions. These accounts typically offer a higher interest rate than traditional savings accounts, and they are considered to be a low-risk investment option. They are FDIC insured and are considered liquid, meaning the money can be easily accessed. They can be used to save for different goals, but they may have higher minimum deposit and balance requirements and limitations on the number of withdrawals that can be made per month. It’s important to compare interest rates before opening an account.
What is the CIT Bank Money Market Account?
The Money Market account is marketed as a high-yield savings account. This means you can earn, transfer and save money in this account as you would with any other bank account, but you get to make money on your money in the process.
This works by CIT Bank paying you interest to put your money into an account with them. The more money CIT gets to invest into the market via the money you put into your money market account, the more money they can make with it. They pass along some of the profits to you as the consumer for allowing them to invest in the market, both for their benefit and for yours.
It sounds nice and straightforward, and it quite is. Sure, you’re not going to get mega returns on your investment like you might with cryptocurrencies or shares, but it is generally regarded as much safer.
What is the CIT Bank Money Market Account Rate?
CIT markets (no pun intended) this as one of the highest interest rate savings accounts they offer, coming in at 1.55%.
Admittedly, this is very high, although it may not seem like a lot. It allows you to earn eight times higher than the national average, and it’s possible to open an account with just $100.
Breaking Down the CIT Money Market Bank Account
Okay, let’s put this into perspective.
Let’s say you put $10,000 into a Money Market account at the current (October 2022) interest rate of 1.55%. We add $200 monthly to the account and leave it for ten years.
You’ll earn around $3,618 over that time, and without taking any money out, your account will end up at $37,618. That’s pretty good, seeing as though you didn’t have to do too much.
You can find the CIT calculator here to work out how much you can make.
Taking a look at the fine print, there are no monthly service fees to pay on this account. You can access your funds quickly and easily via a branch, web browser, or mobile app, as well as deposit checks remotely and make bank transfers.
This is all pretty good, and while many banks and investment providers offer these services, none offer a service with such a high interest rate.
Functionally, CIT accounts are FDIC-insured, so you don’t have to worry about losing your money in an economic crash.
This is a fantastic way to grow your finances. Whether you’re building an emergency fund, saving to buy a home, a second home, a car, putting yourself or your kids through college and university, and so much more, this is a really proactive way to grow your bank balance.
And it’s safe.
There’s no risk to investing in such a bank account because you’re not getting involved with volatile markets. Again, it won’t give you massive returns, but there’s no doubt it’s stable and secure.
My Experience of CIT Bank Accounts
I’ve been with CIT for several years now, and I’ve always found them pretty good. It’s definitely off-putting to see them for the first time because these new types of banks are, well, relatively new and operate quite differently from traditional banks.
That being said, this bank is owned and operated by First Citizens Bank, the largest family-controlled bank in the US, and is fully regulated and insured by the proper financial authorities. Cutting a long story short, the heads of CIT know how to run a bank.
Customer service has always been spot-on, whether that’s on the phone, via email, or, more recently, the online live chat services and the mobile apps are fantastic. They’re very user-friendly and offer a great way to keep on top of your finances when you’re away from home.
I’ve had no problems with CIT, and I would definitely recommend them to anyone looking for an excellent online bank. They don’t have physical branches, but they make up for it in other ways.
The CIT Money Market account has been an excellent way for me to grow my savings, and I know it’s something I can rely on when I need it. It’s not my only savings account, but it is one of the more sizeable ones.
The Downsides of Using CIT Banking Services
As you can probably imagine, no service in the world is perfect, and neither is CIT. While they do have a lot going for them, it’s important to understand this kind of account won’t be suitable for everyone. Here’s why.
- No Physical Branches – This is the big one. If you’re used to having a physical bank branch nearby, then CIT isn’t going to work for you. They don’t have any branches whatsoever, so all your banking will need to be done online or via the mobile apps.
This won’t be an issue for some people because they’re already used to doing their banking online. But for others, this could be a real pain, and it’s something you need to take into account before signing up.
- Minimum Balance Requirement – To open a CIT Money Market account, you’ll need a minimum deposit of $100. For some people, this won’t be an issue, but it might be tough to come up with that kind of money if you’re just starting out.
And if you do open an account but then dip below the $100 mark, you’ll be charged a $12 fee each month. So it’s important to make sure you always keep at least $100 in your account, otherwise, you risk it closing!
- No Free ATMs – CIT doesn’t have any ATMs of its own, so you’ll need to find a First Citizens Bank ATM if you want to withdraw cash for free. If you don’t have one nearby, you’ll be charged $0.50 per withdrawal plus any fees the ATM owner imposes.
- No IRA Accounts – CIT also doesn’t offer any IRA accounts, so if you’re looking to save for retirement, you’ll need to look elsewhere. This is a shame because an IRA account could have been a great way to grow your money with CIT.
Final Thoughts on CIT Bank Money Market Accounts
So that’s my honest review of CIT Bank and its Money Market account. Overall, I think they’re a great choice for anyone looking for an excellent online bank. They offer great customer service, low fees, and a great way to save money.
The downsides of the bank won’t affect many people, and it’s undoubtedly a clear showcase of what the future of banking will look like. If you’re in the market for a new bank, I would definitely recommend giving CIT a try.
Do you have a CIT Bank account already? What do you think of it? Let us know, we’d love to hear from you!