CIT Bank, a division of First Citizens Bank, is a prominent online-only bank offering a range of financial products, including high-yield savings accounts, money market accounts, and certificates of deposit (CDs). One of its key features is that it is a member of the Federal Deposit Insurance Corporation (FDIC), which provides significant protection for depositors. This article explores the details of CIT Bank’s offerings and explains how FDIC insurance ensures the safety of your deposits.
Overview of CIT Bank
CIT Bank operates exclusively online, providing customers with convenient access to competitive banking products. It is known for:
- High-Yield Savings Accounts: CIT offers several savings options with attractive annual percentage yields (APYs), such as the Platinum Savings Account with an APY of 4.10% for balances over $5,000 and the Savings Connect Account with a 4.00% APY.
- Certificates of Deposit (CDs): CIT provides various CD options, including term CDs, no-penalty CDs, and jumbo CDs. These accounts cater to both short-term and long-term savers.
- Money Market Accounts: Offering an APY of 1.55%, these accounts combine the benefits of savings and checking accounts.
- Fee-Free Banking: CIT Bank does not charge monthly maintenance fees on its accounts, making it an attractive option for cost-conscious customers.
What Is FDIC Insurance?
The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency established in 1933 to protect depositors’ funds in case a bank fails. FDIC insurance automatically covers deposits at participating banks like CIT Bank.
Coverage Details
- The standard insurance limit is $250,000 per depositor, per bank, per ownership category.
- Ownership categories include individual accounts, joint accounts, trust accounts, and certain retirement accounts like IRAs.
What FDIC Insurance Covers
FDIC insurance applies to:
- Checking accounts
- Savings accounts
- Money market deposit accounts
- Certificates of deposit (CDs)
- Cashier’s checks and money orders
It does not cover:
- Investments like stocks, bonds, or mutual funds
- Life insurance policies or annuities
- Safe deposit boxes or their contents.
How FDIC Insurance Works at CIT Bank
CIT Bank is fully insured by the FDIC under its parent company, First Citizens Bank. This means deposits are protected up to $250,000 per depositor for each ownership category. For joint accounts, the coverage doubles to $500,000 since each co-owner is insured up to $250,000.
Maximizing FDIC Coverage
To ensure all your deposits are fully protected:
- Distribute funds across different ownership categories (e.g., individual and joint accounts).
- Open accounts at multiple FDIC-insured banks if your deposits exceed $250,000 at one institution.
Why Choose CIT Bank?
Advantages
- High Interest Rates: CIT offers some of the most competitive APYs in the market for savings and CD products.
- No Monthly Fees: Customers save money by avoiding maintenance fees.
- FDIC Protection: Deposits are insured up to the federal limit.
- Convenience: As an online bank, CIT provides 24/7 account access through its website and mobile app.
Disadvantages
- No Physical Branches: Customers who prefer in-person banking may find this limiting.
- Tiered Interest Rates: Some accounts offer lower rates for smaller balances.
- High Minimum Deposits for Certain Products: For example, jumbo CDs require a minimum deposit of $100,000.
How to Open an Account with CIT Bank
Opening an account with CIT Bank is straightforward:
- Visit their website or download their mobile app.
- Choose your preferred account type.
- Complete the online application by providing personal information and funding your account (minimum deposits vary by account type).
Conclusion
CIT Bank combines competitive interest rates with fee-free banking services while ensuring deposit safety through FDIC insurance. Whether you’re looking for high-yield savings options or secure CD investments, CIT Bank offers a range of products tailored to diverse financial needs. With the added peace of mind provided by FDIC insurance, customers can confidently save and grow their money in a secure environment.
For those who prioritize digital banking convenience and strong deposit protection, CIT Bank remains a top choice in the online banking landscape.