CIT Bank High Yield Savings Account Review

You might have read my previous post about using 401K contributions as reserves. If you do not agree and prefer to save 6 months of reserves in cash where would you save? As a matter of fact where would you park all your additional money or "idle cash"? We definitely don't like our funds sitting idle. The least we could do is hold them in a savings account earning some interest without losing the flexibility of withdrawing at our will.

CIT Bank offers high yield savings account with a minimum opening balance of $100, no monthly fees, free online transfers, no withdrawal penalty, and currently pays 1.05% APY (as of Oct 2015). Best of all it is FDIC insured, which means your deposit accounts are insured up to $250,000 should your bank go under. Unlike traditional banks, CIT bank is an online only bank with no  physical branches, tellers etc. This typically means they have less operating expenses when compared to traditional banks. This is one of the main reason why they've been offering high interest rates to their customers. I have been using their savings account from past couple of years and its the best savings account I have. My CIT Bank savings account sometimes have high balance and sometimes only the minimum balance. I use this account to generate a standard 1.05% APY on my idle cash until I find a better investment. If you are more flexible with your money I encourage you to look at their CDs as well which offer high interest rates when compared to national averages.

Disclosure: I do not receive any commission when you open an account with CIT Bank. My sole objective is to share my banking experience with them.