A high-yield savings account can pay much higher interest rates than traditional banks offer, but sometimes there’s a catch.
The CIT Bank Platinum Savings account offers competitive interest rates only to customers with at least a $5,000 balance; otherwise, its standard APY (annual percentage yield) is much lower.
Here’s how it compares.
Overview of CIT Bank Platinum Savings
The CIT Bank Platinum Savings account is an online savings account that pays tiered interest rates.
It’s important to know how these types of savings accounts work so you aren’t surprised if you earn lower interest rates than you anticipated.
Fortunately, CIT Bank makes it easy to understand how their tiered interest rate savings program works. They have only two tiers to manage, so you can easily determine what interest rate you’ll earn.
How CIT Platinum Savings Works
CIT Bank is on the higher end of APYs for customers with at least a $5,000 balance, currently paying up to 5.05% APY. However, if you have a balance below $5,000, you’ll earn 0.25% APY, which is quite a difference.
Remember that CIT Bank uses your daily balance to determine the APY you earn that day. They compound interest daily but pay it monthly.
You’ll see your interest payment for the interest earned during the previous cycle around the same date each month.
Platinum Savings vs. Regular Savings
The CIT Bank Platinum Savings account is an online bank account you can access via your computer or mobile app.
It pays higher APYs and has fewer fees because they have less overhead than a traditional bank, such as those in your neighborhood where you can visit a teller.
Like many online banks, you can only access your funds electronically. This may require a few extra steps, such as transferring funds via the mobile app or website and then accessing the funds from your local bank.
CIT Platinum Savings
CIT Bank Platinum Savings Features
A CIT Bank Platinum Savings review wouldn’t be complete without discussing the features you can expect when choosing them as your bank.
Minimum Deposit Requirements
To open a CIT Bank Platinum Savings account, you need only $100. But, as I said earlier, choosing this bank account doesn’t make sense if you have less than $5,000 to put in it. You can typically find higher APYs on lower balances at other banks.
CIT Bank has two APYs, one for balances over $5,000 and one for lower balances. They track the balances daily, so your interest rate could change based on the balance each day.
CIT Bank doesn’t charge a monthly maintenance fee like most online banks. This is a nice feature because you don’t deal with the hassle of keeping a minimum balance.
Again, if you choose CIT Bank because of the higher interest rate, you’ll want to be around that $5,000 balance or higher.
However, CIT Bank does charge outgoing wire fees and a return deposit fee.
The accessibility of your funds is a crucial factor when using an online bank. However, since it is a savings account, you shouldn’t access the funds too often, or it defeats the purpose of having a savings account.
Unfortunately, this account doesn’t include a debit card. To access your funds, you must transfer them to an account with a debit card, including a CIT Bank checking account.
It takes a few steps, but if you electronically transfer funds from your savings account to a checking account with debit card access, you can access the cash.
Of course, you can transfer the funds to an external account and use the funds however you need, whether you write a check, withdraw cash, or pay electronically.
The CIT Bank Platinum Savings account is easy to open. It takes only a few minutes online, and you’re set up. You only need $100 to start, but it’s best to add more funds to the account quickly to increase the APY you earn.
CIT Bank is a branch of the First Citizens Bank & Trust Company, which is FDIC-insured. This means your account balances are protected up to $250,000 per depositor or $500,000 for joint accounts.
CIT Bank has an A- rating on the Better Business Bureau and, over the last three years, has only had 69 complaints.
That might sound like a lot, but many companies have complaints in the hundreds. From the responses of most customers, CIT Bank addresses complaints quickly.
You have 24/7 access to your account online, but if you need to talk to a customer service representative, you can do so during the following hours:
- Monday thru Friday: 9 AM to 9 PM (ET)
- Saturday: 10 AM to 6 PM (ET)
Pros and Cons
Before opening a high-yield savings account at CIT Bank, consider the pros and cons to determine if it’s right for you.
- No monthly maintenance fees or other general bank fees
- FDIC insured
- 24/7 access to your account online or via the mobile app
- High APY for some customers
- A balance of $5,000 is required for the highest-tier APY
- No ATM debit card
- No branch access
How To Open a CIT Bank Platinum Savings Account
Opening a CIT Bank Platinum Savings account in a few steps is easy. According to CIT Bank, it takes five minutes.
But suppose you already have a different CIT account. In that case, you can use your existing ID and password to log into your account and apply for a Platinum Savings account.
If this is your first CIT Bank account, you must provide the following:
- Phone number
- Email address
- Social security number
You’ll also need at least $100 to meet the opening balance requirement. Once open, you can transfer funds to the account to reach the minimum $5,000 balance or withdraw funds as needed.
CIT Platinum Savings
Who Is CIT Bank Platinum Savings Ideally Suited For?
The CIT Bank Platinum Savings account is best for you if you consistently keep a balance of at least $5,000 daily.
The APY on balances below $5,000 isn’t worth it. You can find higher APYs at other online banks with no minimum balance required.
So, if you have $5,000 saved for an emergency fund or another significant goal, you can set it aside safely in your CIT Bank Platinum Savings account to earn 12x the national rate in interest and let your savings grow.
The CIT Bank Platinum Savings account may be right for you if you have a lot of money to put in savings and leave there.
The interest compounds daily, so they calculate your balance daily rather than an average monthly balance. But, if you have enough money to meet the threshold, you can earn significant interest on your balance.