CIT Bank Premier High Yield Savings Account

Looks like the CD interest rate war between banks is increasing. CIT Bank announced Spring savings account couple of months back with 1.15% APY. Now they announced Premier high yield savings account with 1.30% APY which is 20 times higher than national average savings rate.

Most financial experts recommend saving at least 3-6 months of your income as an emergency fund. That's a lot of money sitting idle but I can't disagree with them. We definitely don't like our funds sitting idle. What is the best place to park these reserves in cash? As a matter of fact where would you park all your additional money or "idle cash"? 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 is offering this account with a minimum opening balance of $100, no monthly fees, free online transfers, no withdrawal penalty, and currently pays 1.30% APY (as of July 2017). 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 it's 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 1.30% APY on my idle cash until I find a better investment.

CIT Bank is offering cash bonus of up to $100 if the Premier High Yield Savings account is opened between July 7, 2017 and September 8, 2017. Promotion code PREMIER must be entered at account opening to receive $100 bonus. Funds used to open the account should be new funds coming from your other bank accounts. For more details click here. If you are more flexible with your money and are willing to lock up in term CDs, I encourage you to look at their various CDs which offer high interest rate 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.