Bank Review: CIT Bank

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If yours is a small business or middle-market company, one source you may turn to for financing or leasing capital is CIT Group, a 105-year-old New York City-based firm. CIT Bank, a division of CIT Group, Inc., is an FDIC-insured institution that assists consumers in much the same way that its parent company has helped finance business activity. Its tagline, “Experience Experience” draws attention to their century-plus banking legacy.

Established in 2000, CIT Bank trumpets ingenuity, commitment and focus as the key strengths of its consumer-focused business. The bank reports it is well-capitalized and FDIC-insured, and it boasts more $11.8 billion in deposits and $14.7 billion in assets. Among the selling points highlighted on its website: no management fees, a simple application and account-opening process, and personalized service by phone or email.

Through CIT Bank, consumers can access saving options that can help them finance a college education, buy a house or put together an emergency fund. Among the instruments that can help consumers achieve these goals are savings accounts, certificates of deposit, custodial accounts and IRAs. Here is a quick overview of each product.

Savings accounts

Consumers can open a savings account at CIT Bank with as little as $100, and benefit from daily compounding of savings account interest to maximize their savings. Their money will be FDIC-insured up to $250,000, the maximum allowed by law. If they keep a daily balance of $25,000 or more, they are eligible for premium rates. The savings account can even be linked to savings and checking accounts at other banks to help simplify and expedite deposits and withdrawals.

Certificates of deposit

CIT Bank offers several certificates of deposit, each designed to fit differing consumer savings levels and objectives. Its Term CD, calling for a $1,000 minimum, is designed to help savers reach short-term goals. The Achiever CD, which has a $25, 000 minimum, is geared to more ambitious savings levels, and offers higher rates of interest. The Jumbo CD requires a minimum $100, 000 deposit, and is based on the premise that the largest deposits merit the highest CD rates the bank can offer.

Custodial Accounts

These instruments allow consumers to deposit money in the name of a child to help provide him or her with an education or any other benefit. The account lets the adult depositor control the assets until the minor individual reaches age 21, the age of majority in CIT Bank’s home state of Utah. The custodial accounts have no deposit limits, are FDIC-insured up to the maximum amount allowed by law, feature simple account setup and allow the adult depositor to manage the account and view statements online. Part of the earnings may be free of federal taxes.

Individual Retirement Accounts

Traditional and Roth Individual Retirement Accounts (IRAs) from CIT Bank let consumers grow their savings tax-deferred or tax-free, depending on the type of IRA chosen and the time of distribution. Most CIT Bank products can be implemented as IRAs, allowing consumers to gain guaranteed earnings and competitive rates. CIT Bank does not charge opening or monthly maintenance fees, These IRA products also feature FDIC insurance up to $250,000.

Reasons to Bank at CIT Bank

A major focus of CIT Bank’s marketing message to consumers is security. The company maintains what it terms “rigorous online security measures” that includes a multi-factor-login-authentication process, firewalls designed to protect against unauthorized access to its customer’s information, anti-virus protection and advanced encryption techniques.

Another major focus of its marketing effort is service and convenience. For instance, the bank offers automatic renewals at maturity, and seven-days-a-week service. The bank’s toll-free numbers for service are open until 9 p.m. Eastern, 8 p.m. Central for the convenience of its customers as well.