At Multiply My Money, I try to provide insight into specific financial investments and instruments that I actually use myself. This includes investment brokers, banks, money management tools, and debt resources. I have to believe in a financial resource in order to be an advocate for it. One of the financial products that I love is the CIT Bank High Yield Savings Account Builder. Check out my CIT Bank Review to see if it is the right bank for you.
The first step to building wealth is by starting with a savings account. A savings account is used for the cash that you need to keep liquid. Savings accounts are useful for meeting emergency cash needs, accruing cash for home down payment, or setting aside money for a specific goal like traveling or buying a car. I love to use savings account as a cash cushion. Having money in a savings account keeps me from having to liquidate my investments every time I need some quick cash. Whenever I withdraw money from my savings account, I work to build it back up so that I am prepared for the next emergency expense.
A savings account is not a bank vault or a shoe box. A savings account should be generating interest for you while providing safety as well. My savings account is another financial tool that I use to multiply my money. Remember that every dollar has to be put to work and making you money.
Types Of Savings Accounts
There are two basic types of savings accounts; traditional savings accounts and money market accounts. Traditional savings accounts have low minimum opening deposit amounts. A regular savings account can typically be started with anywhere from $1 to $25. Most traditional savings accounts at commercial banks have low opening deposits but require higher account minimum balances that you have to meet to avoid maintenance fees. You may have to keep $300 in your savings or set up automatic monthly transfers to avoid being hit with a $5 or $6 monthly maintenance fee. One month of service fees can easily wipe out years of interest earnings. Savings accounts are a money loser if you are paying monthly maintenance fees.
Money market accounts are like high interest savings accounts. Money market accounts pay higher interest rates than traditional savings accounts but they typically require $1,000 or more to start. Money market accounts (MMA) also have checkwriting features but I do not recommend using that option. The purpose of a MMA is to save money not to process a bunch of withdrawal transactions. Money market accounts have the same six withdrawal monthly minimums as a saving accounts. You should definitely switch to a Money market account once you have saved $1,000.
CIT Bank Review
The best type of a savings account to have is an online Money Market Savings Account. Online money market accounts pay the highest interest rates that you will receive and have the added bonus of no fees.
The bank that I use for my primary savings is CIT Bank. I have read other CIT Bank Reviews online by people who do not bank at CIT. I wanted to write my own review as an active user who has been banking at CIT Bank for over three years and love the bank’s financial products.
CIT Bank is one of the largest banks in the United States with over $45 billion dollars in assets. CIT Bank owns OneWest Bank which has over 70 branches in Southern California. CIT Bank has been offering online savings accounts for the last 7 years and consistently pays some of the highest interest rates in the country. CIT Bank interest rates remain high unlike some banks who offer high introductory promo rates that quickly drop after a few months. CIT Bank is FDIC insured so your funds are protected in the event of bank failure. FDIC Insurance is a necessity for any bank investment as the Federal Deposit Insurance Corporation reimburses every depositor up to $250,000. This guarantees the safety of your savings.
CIT Bank has a number of savings account options. The Premier Savings Account has a $100 minimum, charges zero fees, and pays 1.55% interest. The Money Market Account has no account minimums, pays a 1.85% interest rate, and requires only a $100 opening deposit. Those are pretty good options but not my favorites.
My favorite savings account at CIT Bank is the Savings Builder Account. This is the bank account that I have at CIT Bank. The Savings Builder Account allows you to earn a high rate of interest while building your savings account at the same time. The Savings Builder Account is currently paying 2.30% APR, which is 23 times the interest rate being paid by the major commercial banks. That is a great rate in this low interest environment. That’s $23 in interest earned at CIT Bank for every $1 in interest that you would earn at a regular bank. I transferred my savings from Bank of America to CIT Bank because of the great interest rates. I am a Bank of American Platinum Honors customer and still do not earn anything close to the rate that CIT pays. CIT’s interest rate is better than what I have found at 99% of banks!
I have had two savings accounts at CIT Bank and continue to add to one of them on a monthly basis. I consistently place a minimum of $100 in my Savings Builder Account every month. I started with $5,000 and have grown my savings builder to over $11,000 in 3 year with monthly deposits and interest earnings. This account is now generating an extra $20 a month in interest for me. I would only be earning about .87 cents a month at a commercial bank.
- Pays 2.30% interest – better return on my money
- Interest compounded daily – money multiplies faster
- Open with a $100 minimum deposit and contribute $100 or more each month to qualify for the 2.30% interest rate – anyone can participate (You can avoid the $100 monthly contribution requirement by depositing $25,000 or more).
- No maintenance fees or service charges ever – free banking
Opening a CIT Savings Builder Account is simple.
- Fill out your personal information (name, address, social security number)
- Fund your account via electronic transfer or check. (It’s easiest to just transfer from your checking account.
- Check your email for confirmation email confirming the account is opened.
CIT Bank’s Saving Builder Account is a great choice for the financially savvy investor looking to maximize their savings income.
My Rating: ⭐️⭐️⭐️⭐️⭐️ out of ⭐️⭐️⭐️⭐️⭐️