CIT Bank Money Market Account Review
It’s tough to go wrong with a bank that pays you 1.7\85% on all cash balances. This CIT Bank Money Market Account Review is primarily based off of their highly competitive APY, but there are also some quick facts to know about what you’ll be getting with CIT.
For starters, CIT is not an entirely online bank. There are several branches in the Southern California region with the name of OneWest Bank; these are subsidiaries of CIT.
With that said, because CIT is mostly online, they are able to offer annual percentage yields (APYs) on client balances that are among the top 1% of the country as well as no account maintenance or minimum balance fees.
Cit Bank Money Market Account APY
You will be very hard-pressed to find a bank that pays more than 1.7\85% APY in a money market, checking, or savings account. CIT currently ranks among the top 1% of all banks in the US in terms of the APY they pay on client account balances.
There are lots of multi-year CDs (certificates of deposit) that don’t even pay 1.85% APY. It’s a good deal and there are no hidden fees or strings attached.
Information of Fees
CIT is not an online bank that exists to solely to charge millions of clients $25 fees whenever possible, like JP Morgan Chase.
In fact, CIT’s fees are incredibly reasonable. All inbound wire transfer fees are free. For reference, Chase charges $10. Plus, outbound wire transfer fees only cost $10. The standard outbound wire transfer fee for most banks is $25. For accounts that hold over $25,000, all outbound wire transfers are free, which is a pretty good deal. We like that CIT doesn’t charge clients to deposit money – something that should always be free.
What is a Money Market Account?
A money market account is essentially the same thing as a savings account, except it usually earns higher interest. The CIT Bank Premiere High Yield Savings Account currently pays 1.55% APY.
Money market accounts and savings accounts are both subject to the Federal Reserve’s Regulation D, which stipulates that no more than six withdrawals may occur from any savings or MM account. To make sure you aren’t charged the $10 fee for making more than six withdrawals in one month, it’s best to plan ahead and schedule your transfers in advance. Or you can simply save your money and watch it grow.
Final Thoughts
At the end of the day, you really cannot go wrong with earning nearly 2% interest just by keeping your money in the bank. All deposits are insured up to $250,000, so even if the world economy crashes and banks cease to exist, the Federal Reserve will reimburse you.
This is one of the first money market accounts that we have seen where there is virtually no barrier to entry, the APY is actually good, and there are no maintenance fees. Because of the flexibility of being able to take your money out of the account at anytime, unlike a CD, for example, earning 1.85% interest in a money market account is as close to “free money” as it gets.
