CIT Bank Current 1-YR CD Rate 2.5%

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dia
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CIT Bank Current 1-YR CD Rate 2.5%

Post by dia » Sat Jul 07, 2018 8:08 am

Hello, I am researching Conservative Investing options for my Mother who is in her 80s. I have her at a conservative allocation: 20/80. I came across CIT Bank with a 1-year CD at 2.5%. Their Money Mkt acct is at 1.85%. It's always a quandary of where to put cash, with nothing horribly impressive and I want to keep this portion out of the market.

I periodically notice that bogleheads will mention CIT internet bank but I'm looking for any recent experience with them. At times, customer service seems to be questionable by the reviews I am reading. Someone mentioned weeks to answer an email question.

I have my Mom capped out at Ally Bank, so I will not be putting any additional $$ there.

Also, what is the difference between a Money Market and Savings? I thought MMs were not FDIC insured, but CIT shows on their site that the Money Market Account rate is 1.85% and the High Yield Savings Rate is 1.55%, BOTH are FDIC insured... the money market would be a no-brainer and I can't see any differences. Or, am I overlooking something? I realize it is not a money market FUND, but why would it be titled money market at all?

Thanks very much for any insight one can provide on this internet bank.
What, Me Worry? --Alfred E. Neuman

MikeG62
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Location: New Jersey

Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by MikeG62 » Sun Jul 08, 2018 7:33 am

dia wrote:
Sat Jul 07, 2018 8:08 am
Hello, I am researching Conservative Investing options for my Mother who is in her 80s. I have her at a conservative allocation: 20/80. I came across CIT Bank with a 1-year CD at 2.5%. Their Money Mkt acct is at 1.85%. It's always a quandary of where to put cash, with nothing horribly impressive and I want to keep this portion out of the market.

I periodically notice that bogleheads will mention CIT internet bank but I'm looking for any recent experience with them. At times, customer service seems to be questionable by the reviews I am reading. Someone mentioned weeks to answer an email question.

I have my Mom capped out at Ally Bank, so I will not be putting any additional $$ there.

Also, what is the difference between a Money Market and Savings? I thought MMs were not FDIC insured, but CIT shows on their site that the Money Market Account rate is 1.85% and the High Yield Savings Rate is 1.55%, BOTH are FDIC insured... the money market would be a no-brainer and I can't see any differences. Or, am I overlooking something? I realize it is not a money market FUND, but why would it be titled money market at all?

Thanks very much for any insight one can provide on this internet bank.
This may help explain the difference between bank MM Accounts and Bank Savings Accounts (at least this is how Ally distinguishes them):

https://www.ally.com/do-it-right/bankin ... s-account/

With regard to your second question, Money Market Accounts (at banks) are FDIC insured, while Money Market Funds (which are offered through fund companies) are not. See here:

https://www.investopedia.com/investing/ ... funds-pay/
Real Knowledge Comes Only From Experience

HAWK23
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Joined: Sun Feb 25, 2018 3:59 pm

Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by HAWK23 » Sun Jul 08, 2018 8:07 am

Hi dia

I signed up for CIT bank for their MM account about 3-4 months ago. I've never had an issue with their customer service, though I've only had to call once. I've never emailed but getting through on the phone took less than 5 minutes.

When I first signed up the rate was 1.75% and now it's 1.85% as you mentioned (they automatically changed me to the 1.85% without me having to do anything which was nice). I've never had any problems so if you're just looking to park money and reap the 1.85% this has definitely done the job for me.

I think the biggest cons, as far as what I have read and what I have experienced are the following:

*Some MM accounts allow you to have a checkbook and basically function like a savings account. CIT bank is very bare bones in this sense (which I'm fine with).

*I personally think the CIT phone app could be upgraded big time. It shows your balance and all but it won't allow you to transfer money from your bank to your CIT MM. You need to be on a laptop or computer (or probably your phone Web browser) to do that.

Other than that, no complaints at all. And hard to beat the 1.85%. I also like the fact that the minimum you need in the account is $100. Some MM accounts require 1,000-10,000 minimums.

SBK
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Joined: Tue Mar 20, 2018 4:13 pm

Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by SBK » Sun Jul 08, 2018 8:40 am

We have been using the money market account at CIT for about 5 months. The experience has been good, so far.

Austintatious
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by Austintatious » Sun Jul 08, 2018 9:56 am

The high yield savings rate, certainly a good one relative to the rates of other entities, is not guaranteed and would likely be subject to change due to negative as well as positive economic factors. On the other hand, the 2.5% rate for the 1 yr. CD, also a very good rate relative to other offerings, is guaranteed for the term. If I were in your position and the money would not likely be needed for a year, I'd likely view the CD as the clear choice. You might consider dividing the money into two or more certificates so one could be broken, if necessary, with a smaller penalty. Good luck!

Streamer
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by Streamer » Sun Jul 08, 2018 12:04 pm

Citi is ok on MM accounts. Raise the rate CDs are bad. I'm still at the same rate as 9 months ago. They won't bump the rate. Bait and switch. Goodbye Bankoncit.com

Austintatious
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by Austintatious » Sun Jul 08, 2018 1:48 pm

Live Oak Bank also offering 2.5% for a 1 year CD. Their high yield savings is at 1.7%. I have no experience with Live Oak or with CIT.

dodgersummer
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by dodgersummer » Sun Jul 08, 2018 2:10 pm

Redneck Bank has a Mega Money Market account currently with a 2.0% APY up to $50k. I have had no problems with them.

nalor511
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by nalor511 » Sun Jul 08, 2018 3:31 pm


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Oak&Elm
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by Oak&Elm » Sun Jul 08, 2018 4:53 pm

I really like Live Oak Bank, 2.5% on a 1year cd with $2,500 min and a 90 day EWP. What’s not to like? I’m planning to buy another cd tomorrow, easy to set up

Austintatious
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by Austintatious » Sun Jul 08, 2018 5:02 pm

Oak&Elm wrote:
Sun Jul 08, 2018 4:53 pm
I really like Live Oak Bank, 2.5% on a 1year cd with $2,500 min and a 90 day EWP. What’s not to like? I’m planning to buy another cd tomorrow, easy to set up
They look good; however, I do wish they offered IRA certificates.

pobox2001
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Joined: Sun Apr 17, 2011 4:27 pm

Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by pobox2001 » Sun Jul 08, 2018 5:20 pm

I have used CIT for several years with no problems. Their rates have been moving up slowly, along with many others, I'm sure.

nalor511
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by nalor511 » Sun Jul 08, 2018 6:15 pm

pobox2001 wrote:
Sun Jul 08, 2018 5:20 pm
I have used CIT for several years with no problems. Their rates have been moving up slowly, along with many others, I'm sure.
They don't have the best rates. Don't do the transfers from the CIT end, because they hold funds for 7 days. They require a 2-factor code for every single interaction with them. There are better rates elsewhere, and other institutions are also easier to work with, IMO

If you like CIT, more power to ya.

pobox2001
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by pobox2001 » Sat Jul 14, 2018 6:07 pm

nalor511 wrote:
Sun Jul 08, 2018 6:15 pm
pobox2001 wrote:
Sun Jul 08, 2018 5:20 pm
I have used CIT for several years with no problems. Their rates have been moving up slowly, along with many others, I'm sure.
They require a 2-factor code for every single interaction with them.
I actually like the 2-factor security. It's required on transactions above a certain dollar amount. It's a pretty easy way to make it more secure, IMO.

They do hold funds for a few days, but it's never been a problem for us as we use the account.

nalor511
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Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by nalor511 » Sat Jul 14, 2018 6:35 pm

pobox2001 wrote:
Sat Jul 14, 2018 6:07 pm
I actually like the 2-factor security. It's required on transactions above a certain dollar amount. It's a pretty easy way to make it more secure, IMO.

They do hold funds for a few days, but it's never been a problem for us as we use the account.
They've held funds way longer than other banks, for me. The 2-factor is not just for high dollar transactions, they frequently give me a 2nd factor just to log in, or just to see my inbox, or just to see my transactions. Things no other bank asks a second factor for. YMMV

pobox2001
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Joined: Sun Apr 17, 2011 4:27 pm

Re: CIT Bank Current 1-YR CD Rate 2.5%

Post by pobox2001 » Wed Jul 18, 2018 1:41 pm

nalor511 wrote:
Sat Jul 14, 2018 6:35 pm
The 2-factor is not just for high dollar transactions, they frequently give me a 2nd factor just to log in, or just to see my inbox, or just to see my transactions.
That's odd (??). I've never had that experience in the 5+ years I've been with them. I've only had to do it on transactions over a certain dollar amount. I suppose that can be a bit of pain!

pobox2001

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