If you’re searching for a high-yield savings account to help you achieve your financial goals, look no further than CIT Bank’s Platinum Savings account.
This account offers a competitive 5.05% APY on balances of $5,000 or more, which is twelve times the national average. In this article, we’ll take a closer look at the features of CIT Bank’s Platinum Savings account and how it can help you save more effectively.
How to Open a Platinum Savings account with CIT Bank
The process of opening an account with CIT Bank is simple. You need to have a minimum opening deposit of $100 and a minimum balance of $5,000 to earn the 5.05% APY.
There are no additional requirements or documents needed to open an account, making it easy to get started.
Why CIT Bank's Platinum Savings Account is Worth Considering?
CIT Bank’s Platinum Savings account is an excellent option for those who want to earn more interest on their savings. The 5.05% APY is a great rate compared to other savings accounts and the national average.
The account also offers daily compounding interest, meaning you earn interest every day, which results in faster earnings growth. Additionally, there are no account opening or maintenance fees, making it a cost-effective option.
Tips for Maximizing Earnings with CIT Bank's Platinum Savings Account
To maximize your earnings with CIT Bank’s Platinum Savings account, you should consider setting up automatic transfers to your account. This strategy ensures that you’re consistently contributing to your savings account and, as a result, earning more interest. It’s also important to avoid any fees, such as overdraft or early withdrawal penalties, that can eat into your savings.
What is the interest rate for CIT Bank's Platinum Savings account?
The interest rate for CIT Bank’s Platinum Savings account is currently 5.05% APY on balances of $5,000 or more.
What if I don't have $5,000 for the account?
If you don’t have $5,000 for the CIT Bank Platinum Savings account, I recommend opening a Savings Connect account which will still give you 4.65% APY (at the time of this article).
How does the interest on the Platinum Savings account accrue?
The interest on the Platinum Savings account accrues daily and is compounded daily to maximize your earnings potential.
How does compound interest work with savings accounts?
Compound interest is a powerful tool that can help your savings grow over time. Essentially, it means that you earn interest not only on your original deposit but also on the interest that your account earns over time. For example, if you deposit $5,000 in a savings account with a 4% annual interest rate, you would earn $200 in interest after the first year.
But with compound interest, you would earn interest on the full $5,200 balance in the second year, which would result in slightly more interest earnings than the previous year. Over time, this compounding effect can lead to significant growth in your savings.
Do I have to pay taxes on my high yield savings account?
You only pay taxes on the extra money your account makes in earned interest, not the initial amount you put in. The interest you earn from a high-interest savings account is taxed like regular income. All the interest you make is taxable, and your bank will send you a Form 1099-INT if you earn more than $10 in interest. This is the same for traditional bank accounts, not just high-yield savings accounts.
Are there any fees associated with the Platinum Savings account?
There are no account opening or maintenance fees associated with the Platinum Savings account. However, there may be fees for certain transactions such as overdrafts or early withdrawals.
What is the difference between platinum savings and savings connect?
The main difference between CIT Bank’s Platinum Savings and Savings Connect accounts is the interest rate and minimum deposit requirement. The Platinum Savings account offers a higher interest rate of 5.05% APY on balances of $5,000 or more, while the Savings Connect account offers 4.65% APY with no minimum balance requirement, but requires a monthly deposit of $100 or more.
Ultimately, the account you choose will depend on your savings goals and how much money you have available to deposit.
How many transfers can I make from my savings account?
CIT Bank savings accounts are subject to federal regulations, which limit certain types of transfers and withdrawals to six per statement cycle. This includes preauthorized or automatic transfers, telephone transfers, and online or mobile banking transfers. However, there is no limit to the number of transfers or withdrawals you can make in person at a CIT Bank branch or ATM.
How can I use the CIT Bank mobile app to deposit checks and make transfers?
The CIT Bank mobile app allows you to easily deposit checks from your mobile device by taking a photo of the check and submitting it through the app. You can also use the app to make transfers between your CIT Bank accounts or to external accounts. The app is available for download on both iOS and Android devices and provides a convenient way to manage your accounts on the go.
What is the minimum opening deposit for a Platinum Savings account?
The minimum opening deposit for a Platinum Savings account is $100.
Is my money safe with CIT Bank?
Yes, CIT Bank is a member of the Federal Deposit Insurance Corporation (FDIC), which means that deposits up to $250,000 per depositor are insured by the FDIC.
What does FDIC Insured mean?
FDIC stands for the Federal Deposit Insurance Corporation, a government agency that provides deposit insurance to protect depositors if their bank fails. When a bank is FDIC-insured, it means that deposits up to $250,000 per depositor are insured by the FDIC. This ensures that your money is protected in the event of a bank failure, up to the insured limits.
Can I withdraw my money from the Platinum Savings account at any time?
Yes, you can withdraw your money from the Platinum Savings account at any time. However, if you withdraw your money before the end of the term, you may be subject to an early withdrawal penalty.
What are the restrictions on CIT savings connect?
CIT Savings Connect is subject to federal regulations, which limit certain types of transfers and withdrawals to six per statement cycle. This includes preauthorized or automatic transfers, telephone transfers, and online or mobile banking transfers. Additionally, to earn the highest interest rate, you must maintain a minimum balance of $25,000 between your Savings Connect account and a linked eChecking account.
What if I don't have $5,000 to open an account?
If you don’t have $5,000 to open a CIT Bank Platinum Savings account, you might want to consider opening a CIT Bank Savings Connect account instead.
With a Savings Connect account, you can earn 4.65% APY on balances of $25,000 or less by either maintaining a balance of at least $25,000 or making at least one qualifying deposit of $100 or more per month. This can be a great option if you’re looking to start building your savings but don’t have a large lump sum to deposit upfront.
Why do interest rates on savings accounts fluctuate?
Interest rates on savings accounts can go up or down over time, depending on various factors.
The Federal Reserve, inflation rates, and competition among banks all play a role in determining interest rates. When the Federal Reserve lowers interest rates to boost the economy, savings account interest rates tend to go down.
When they raise interest rates to control inflation, savings account interest rates may increase. Additionally, banks may offer higher rates to attract more customers and compete with other banks.
What is the difference between a high-yield savings account and a CD?
A high yield savings account is a type of savings account that typically offers a higher interest rate than a traditional savings account. You can deposit and withdraw money as you please, and your money is FDIC insured. On the other hand, a CD, or certificate of deposit, is a type of savings account that requires you to deposit money for a set period of time, usually ranging from a few months to several years.
In exchange for leaving your money untouched, CDs typically offer a higher interest rate than a savings account.
However, if you withdraw your money before the CD matures, you may face penalties.
CIT Bank’s Platinum Savings account is a great option for those looking to maximize their savings with a high APY and no fees. With daily compounding interest and FDIC insurance, your money is in good hands.
If you don’t have the $5,000 minimum deposit for the Platinum Savings account, consider CIT Bank’s Savings Builder account, which still offers a competitive APY with a lower minimum deposit.
If you’re ready to start earning more on your savings, click here to sign up for an account today.
If you’re interested in learning more about maximizing your savings with online high-yield savings accounts, be sure to check out our article, “Maximizing Your Savings: Benefits of Choosing an Online High Yield Savings Account Over A Traditional Bank“.
To learn about ALL of CIT Banks with a full breakdown of each, check out: CIT Bank Accounts & Rates: High Yield Savings Accounts & CDs
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