Online banks and credit unions tend to offer higher APYs than traditional brick-and-mortar banks.Look at it this way:
Avoiding monthly fees should be a priority, and securing a high rate should be too. Online banks and credit unions tend to offer higher APYs than traditional brick-and-mortar banks, which makes them ideal for multiple savings accounts.
The best online savings accounts give you a safe place to keep your money while you’re earning top rates.
Because online banks don’t have the expense of maintaining branches like traditional banks do, they can offer annual percentage yields of 1.50% or more — over 20 times higher than the national average of 0.07%. Though 1.50% may not sound like much, it adds up.
Max out your savings by looking for accounts with the highest yield, as well as great features. Our Nerds did extensive, independent research on dozens of banks to find the best high-yield savings accounts. We looked for top rates plus great digital tools, free access to plenty of ATMs and more.
Online and telephone presence: CIT Bank has an easy-to-navigate website that clearly shows rates, contact information and instructions on how to open an account. The customer service center is open and reachable by phone from 8 a.m. to 9 p.m. Eastern on weekdays, along with shorter Saturday and Sunday hours. You can also access online banking 24/7.
Poorly rated apps: CIT Bank has mobile banking apps for iOS and Android devices, but of the few reviews available in the app store, most give poor ratings. The biggest complaints seem to be about glitches and lack of basic banking functions, such as the ability to transfer money from other bank accounts.
No branches: As an online bank, there are no branches to visit, so there’s no way to do your banking in person. Consumers can fund and withdraw money from accounts by electronic transfer with another bank account, wire or mail.
Pretty lackluster review. You dont even comment on how much you can transfer in or out per month, the number of days it takes them to transfer money, etc. Did you try this bank or just read their marketing and other review sites?
Keeping $5,000 at a bank that offers a 0.01% APY would earn an annual yield of just 50 cents. An APY of 1.05%, on the other hand, would earn about $50 — not enough to quit your job, but a welcome addition to that emergency fund.
No matter how many accounts you have at a bank, make sure you won’t get hit with surprise fees for excessive withdrawals. Federal banking regulations limit holders of savings accounts to six such transactions a month per account, not including ATM or in-person withdrawals.
The Money Market account will have the Bill payment option in the future which will make it more flexible than the Savings Account. Usually Money Market accounts pay a lower rate than Savings Accounts due to the fact that they may offer more options (such as check writing, bill pay, debit card, etc.) than a Savings Account. CIT appears to have several versions of Savings Accounts with lower rates than the Money Market account. It appears that the newer products (Money Market account was offered on March 2018, later than the Savings Accounts) were offered with higher rates as interest rates moved upward. So the people who opened the earlier account products were given the rates that were tied to earlier times. CIT has OneWest Bank products that offer rates much lower than those on CIT website (you can view them on the OneWest Bank website).
“Last year CIT Bank introduced two new savings accounts. First, in May it debuted the Springs Savings Account. Then came the Premier High Yield Savings Account in July. Each new account offered a higher rate than the existing account. Customers who had the old savings accounts were free to open the new ones, but if they didn’t, they kept earning the lower rates on the old savings accounts.”
Note that the earlier Savings Accounts often included a mo