Posted by William Charles on March 13, 2018
Savings Accounts

Published on March 13th, 2018 | by William Charles

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CIT Bank Creates New 1.75% Money Market Account – Avoids Rate Rise On Existing Accounts

CIT Bank offers a number of high interest savings products. We’ve discussed the following previously:

Today they launched a new product ‘CIT Bank Money Market Account‘. This account has a 1.75% APY rate. The only real difference between a money market and savings account is that the money market account is limited to “preauthorized or automatic transfers or withdrawals, electronic banking transfers between other accounts or similar order per statement cycle period”, otherwise a fee is charged. I really just see this as a way for CIT Bank to offer a competitive APY on new accounts without passing that interest rate bump onto consumers. Given that the highest APY on a basic savings account is now 1.85% and trending upwards I don’t see any reason to do business with CIT Bank.

In fact I don’t think chasing these basic savings rate increases makes much sense for most people. You’re better off sticking with a financial institution that will consistently raise their rates over time or just focus on rewards checking accounts that offer up to 5% APY. Ally & Alliant used to be my go to suggestions, but they have been slow to increase rates recently. Another option would be All America Bank (currently offering 1.75%).



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Dima
Dima

That’s pretty much how Salem Five Direct lost me as a customer. They were always willing to match the current advertised rate, but only if you called and asked for it. Went with a bank that raised rates for the customers without requiring a phone call.

Keith
Keith

What bank did you switch to.
Thank?

Anon
Anon

I’ve been a Salem Five customer (personal and biz) for over 20 years and they wouldn’t even let me open a Salem Five Direct account. I tried and they called the next day to tell me they were closing it.

They haven’t had decent rates on in-branch accounts for over 10 years, but now if you go in-branch they are heavily promoting a money market acct with the same 1.5% rate as the eOne savings. I doubt they will increase it over time to remain competitive.

Needless to say I don’t keep much of my money there.

xpiredsodapop
xpiredsodapop

I’ll stick with Redneck Bank’s 1.75% Money Market Savings Account. The debit card is worth the price of admission. Gets so many looks.

vista9

I had to google it to see what you mean, and yes, it’s almost worth opening an account

Dan
Dan

Discover Bank will be paying 2.25 by end of the year… Don’t waste your time.

Andrew
Andrew

“This account has a 1.75% APY rate. The only real difference between a money market and savings account is that the money market account is limited to ‘preauthorized or automatic transfers or withdrawals, electronic banking transfers between other accounts or similar order per statement cycle period’, otherwise a fee is charged.”

Even if the CIT savings page doesn’t mention the limit, I believe all savings account – including this one – have the same limitation.

https://en.wikipedia.org/wiki/Regulation_D_(FRB)

calwatch
calwatch

CIT is garbage even though they are paying the highest. Alliant has availability at ATMs and Ally and Redneck offer checks (Ally’s is on its MMA but it’s easy enough to move over the necessary funds).

Shaun
Shaun

I’m not really chasing interest rates but since I already have a savings account at CIT I might as well move my funds to this. Probably still a new Chex inquiry though.

SMan
SMan

+1

Deke
Deke

I am in the same boat. I am tempted to just do this today and move funds over but will be kinda frustrated if they up the rate on the high yield savings in a few days.

Roy
Roy

I just had to respond. I chase rates since CapOne made me mad one day and only paying me .75%. I found LMCU paying 3% up to 15K and Redneck Bank Checking paying 2.25% up to 10K. I chase the rates. Yeah!

kai
kai

You can just close and open new accts. Xfer funds over. No prob at all

Keith
Keith

I feel all of your pain in trying to get the highest rate from a bank that automatically raises the rate for you.

Currently with Bank of America and they pay next to zero (0).

el guapo

The last time Cit Bank raised their rates, they automatically changed the rate on my account without me asking.

datapoint
datapoint

Your existing account IS NOT a MONEY MARKET. You have 3 options
1. Do nothing
2. Open new account
3. Convert existing account

datapoint
datapoint

A simple call to CIT BANK converted PREMIER HIGH YIELD SAVINGS into the new MONEY MARKET with new interest rate. No need to open new account and all existing data remains intact (ie. account number, routing, externally linked accounts, beneficiaries etc)

Mikey
Mikey

I’ve had accounts with CIT for over 2 years and rarely experience anything negative. But you do have to stay on your toes with rate changes. My general suggestion is to leave a small balance in saving/m mkt accounts like this one at various banks that don’t require a high minimum. Then, you’ll have everything in place when they offer something worthwhile (which, for me, is CITs 11 mo. no penalty 1.85% CD which I just funded).

datapoint
datapoint

The new MONEY MARKET account has a minimum required balance, not sure now what it is but IIRC it is 25k. Initial deposit is 100 to open but then monthly fees kick in. Do not assume the rules are the same for all types.

tuphat
tuphat

The CIT website says something about calling before moving money from CIT. Any experience, datapoints, etc. on retention bonuses, etc.?

Richard Berg
Richard Berg

I have called. No retention bonus, just an offer to convert older lower-yield accounts to the new hotness.

They will not convert an older no-penalty CD to a 1.85% no-penalty CD, however. The CSR tells you to apply for a new CD online, put “mail check” on the application, then call back to have someone move the funds manually.

Joanne
Joanne

I currently hold money with this bank and when I needed to withdraw a large sum it was a nightmare. On the other hand, please note they have a 11 month NO PENALTY paying 1.85%. I doubt I will add additional funds to this bank. I have some 5 year CDs which over a year ago were offering over 2% so I jumped on those.

Frank
Frank

Only way to close by calling in? Don’t see an option online

Doug
Doug

I like CIT bank because in addition to offering a pretty good rate, they also offer FREE outgoing domestic wires, which is pretty tough to find anywhere.

As I send numerous wires out this is a nice perk for me.

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