Banking

Item: Ally Bank Review
Rating: 4.8
Author: Rob Berger

The Best CD Rates May 2020

May 15, 2020 by Rob Berger Leave a Comment

Certificates of Deposits offer a safe way to save money. Whether for an emergency fund, to buy a home or liquidity during retirement, term CDs can also offer higher yields than savings accounts (although not always). Here we cover the best CD rates available nationwide.

CD Rates

May 2020 CD Rate Update

The big news, of course, is COVID-19. It has affected every area of our lives, and that even includes certificates of deposit. The Fed lowered rates to near zero and confirmed that rates would stay this low for the foreseeable future. This policy affects CD rates in two ways:

It keeps rates low. The highest yielding 12-month CD available today is below 2% APY.
It keeps rates of longer-term CDs lower than short-term CDs. While this is a reverse of what we normally expect, the uncertainty of future inflation and rates keeps banks from committing to long-term high rates.

Generally, CD rates remained unchanged last month. There was some movement, although minor. For example, The Federal Savings Bank increased the rate on its 5-year CD by 5 bps to 2.05% APY. By and large, however, rates were flat.

Best 1 Year CD Rates

The 1-year CD terms is one of the most popular for savers. Here are some of the best rates available for 12-month terms.

Bank	APY	Minimum Deposit	Early Withdrawl Penalty
Comenity Direct	1.70	$1,500	180 days interest
CFG Bank	1.60	$500	Yes
Marcus	1.60	$500	270 days interest
Live Oak Bank	1.50	$2,500	120 days interest
Synchrony Bank	1.35	$2,000	90 days interest
CIT Bank	1.30	$1,000	Yes

Best CD Rates Overall

CFG Bank

Many have never heard of CFG Bank. Headquartered outside of Baltimore, MD, the bank was founded in 1997 as AmericasBank (FDIC # 34294). CFG is a community bank, meaning it’s locally owned and operated.

Account Name	APY	MIN	MAX
12-Month CD	1.60%	$500	$250,000
13-Month No-Penalty CD	1.55%	$500	$250,000
18-Month CD	1.60%	$500	$250,000
33-Month CD	1.60%	$500	$250,000

CIT Bank

CIT Bank is one of our favorites. It tends to offer some of the best rates on deposit accounts, including CDs. In addition to the high-yield CDs below, it also offers Ramp Up CDs, Jumbo CDs, and a no-penalty CD.

Account Name	APY	MIN	MAX
1-Year CD	1.30%	$1,000	–
13-Month CD	1.30%	$1,000	–
18-Month CD	1.30%	$1,000	–
2-Year CD	1.30%	$1,000	–
3-Year CD	1.30%	$1,000	–
4-Year CD	1.35%	$1,000	–
5-Year CD	1.30%	$1,000	–

Open CD at CIT

BMO Harris Bank

BMO offers competitive yields on CDs. That said, its rates have come down sharply along with other banks over the last month. We’ve also seen a flattening of rates, with terms ranging from 6 to 18 months offering the same rates, and two to four years also offering the same rates.

Account Name	APY	MIN	MAX
6-Month	1.15%	$1,000	–
9-Month	1.15%	$1,000	–
12-Month	1.15%	$1,000	–
18-Month	1.15%	$1,000	–
24-Month	1.25%	$1,000	–
30-Month	1.25%	$1,000	–
36-Month	1.25%	$1,000	–
48-Month	1.25%	$1,000	–
60-Month	1.40%	$1,000	–

Ally Bank

Ally offers several types of certificates of deposit: high-yield CDs, Raise Your Rate CDs, and a no-penalty CD. There are no monthly maintenance fees and no minimum deposit requirement. However, the amount of your deposit can affect the interest rate you’ll receive (see rates below)

High-Yield CD Rates

Account Name	APY	MIN	MAX
3-Month	0.50%	–	–
6-Month	0.75%	–	–
9-Month	1.00%	–	–
12-Month	1.50%	–	–
18-Month	1.50%	–	–
3-Year	1.55%	–	–
5-Year	1.60%	–	–

Raise Your Rate CD Rates

Account Name	APY	MIN	MAX
2-Year Raise Your Rate CD	1.50%	–	–
4-Year Raise Your Rate CD	1.50%	–	–

You can increase your rate once over the 2-year term or twice over the 4-year term if the rate on these products goes up during that time.

No Penalty CD Rates

Account Name	APY	MIN	MAX
11-Month No Penalty CD	1.40%	$0	$5,000
11-Month No Penalty CD	1.45%	$5,000	$24,999
11-Month No Penalty CD	1.50%	$25,000	–

Marcus by Goldman Sachs

Marcus by Goldman Sachs offers some of the highest yields on CDs available today. In addition to high-yield certificates of deposit, the bank offers a no-penalty CD.

Account Name	APY	MIN	MAX
6-Month CD	0.60%	$500	$1,000,000
12-Month CD	1.60%	$500	$1,000,000
18-Month CD	1.60%	$500	$1,000,000
2-Year CD	1.60%	$500	$1,000,000
3-Year CD	1.60%	$500	$1,000,000
4-Year CD	1.60%	$500	$1,000,000
5-Year CD	1.65%	$500	$1,000,000
6-Year CD	1.65%	$500	$1,000,000
7-Month No-Penalty CD	1.55%	$500	$1,000,000

Comenity Direct

Comenity Direct is one bank many have never heard of. A brand of Comenity Capital Bank headquartered in Draper, UT, it was established in 2003 as World Financial Capital Bank. It’s FDIC-insured (Certificate # 57570) and offers some of the best CD yields available in the country.

Account Name	APY	MIN	MAX
1-Year CD	1.70%	$1,500	$10,000,000
2-Year CD	1.75%	$1,500	$10,000,000
3-Year CD	1.75%	$1,500	$10,000,000
4-Year CD	1.75%	$1,500	$10,000,000
5-Year CD	1.80%	$1,500	$10,000,000

CD Interest Calculator

Ally Bank Review

May 14, 2020 by Rob Berger Leave a Comment

Ally Bank, formerly GMAC Bank, is an FDIC-insured online financial institution. It offers a wide array of deposit accounts, home and auto loans, and investing services. In this Ally Bank Review, we’ll evaluate each banking service.

Table of Contents

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About Ally Bank

Ally Bank dates back to 1919 when it opened its doors as GMAC, a division of General Motors. Its purpose then was to help dealers finance their inventory. Beginning in the 1920s GMAC began helping consumers finance their automobile purchases.

Fast forward to 2000, and GMAC Bank was established. In 2009, it changed its name to Ally Bank and became the online bank as we know it today. It’s headquartered in Sandy, UT.

Ally is an online-only bank. It has no branches. As of December 31, 2019, it had approximately $167 billion in assets, with total deposits of nearly $123 billion.

Pros & Cons

Here’s what we like about Ally Bank, and what could be better.

What we like

Wide range of deposit accounts and lending options
Website very user-friendly
Savings Buckets help you save for specific goals
24/7 Customer support via phone, chat or email

What could be better

While interest rates are competitive, they are not always the best

Bank Accounts

Savings & Money Market Accounts

Ally offers a traditional savings account as well as a money market account. There are two key differences between these accounts.

First, the savings account pays a higher yield (see below). Second, the money market account offers an ATM card with free, unlimited withdrawals from any Allpoint ATM in the U.S.

Ally Savings Account

APY: 1.25%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.ally.com/bank/online-savings-account/

Ally Money Market Account

APY: 0.50%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.ally.com/bank/money-market-account/

Tip

Check out our list of the best online savings accounts.

Ally Checking Account

Unlike some online banks, Ally offers a checking account that pays interest. Combined with no minimum deposit or monthly fee, it enables Ally to serve as your full service bank.

APY: 0.10% (less than $15,000 minimum daily balance) or 0.50% ($15,000 minimum daily balance)
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Billpay: Set up one-time or recurring bill payments for free.
Remote Check Deposit: Yes. Deposit checks remotely with Ally eCheck Deposit, or transfer money from an account you have at another bank.
Zelle: Yes
ATM Access: Use any Allpoint ATM in the U.S. for free. Ally also reimburses up to $10 per statement cycle for frees charged at other ATMs nationwide.

CDs

Ally Bank offers three types of certificates of deposit:

High-Yield CDs
Raise Your Rate CDs
No Penalty CD

Except for the No-Penalty CD, all CDs have an early withdrawal penalty. Here are the penalties on early withdrawal for all CDs purchased or renewed after 12/7/2013:

CD Term	Early Withdrawal Penalty
24 month or less	60 days of interest
25 month – 36 month	90 days of interest
37 month – 48 month	120 days of interest
49 month or longer	150 days of interest

High-Yield CD Rates

Ally’s High-Yield CDs offer the highest yields available among all of Ally’s certificates of deposit.

Account Name	APY	MIN	MAX
3-month CD	0.50%	$0	–
6-month CD	0.75%	$0	–
9-month CD	1.00%	$0	–
12-month CD	1.35%	$0	–
18-month CD	1.40%	$0	–
3-year CD	1.45%	$0	–
5-year CD	1.50%	$0	–

Raise Your Rate CD Rates

Ally’s Raise Your Rate CDs protect you from rising rates during the term of the CD. If rates go up, you can elect to up the rate of your 2-year CD once during the term, and twice on the 4-year CD. Keep in mind, however, that you pay for this option in a slightly lower starting yield as compared to its high-yield CDs.

Account Name	APY	MIN	MAX
2-year Raise Your Rate CD	1.35%	$0	–
4-year Raise Your Rate CD	1.35%	$0	–

No-Penalty CD Rate

As the name suggests, this CD doesn’t charge a penalty for early withdrawal. Keep in mind, however, that it’s not like a savings account. If you decide to take the money out early, you must take all of it and the account is closed.

Account Name	APY	MIN	MAX
11-month No-Penalty CD	1.30%	$0	–

IRAs

Similar to the above accounts, Ally offers several deposit accounts to be held in your IRA:

IRA High Yield CD
IRA Raise Your Rate CD
IRA Online Savings

The rates are similar to the rates above for comparable products. In addition, you can open a Roth IRA, Traditional IRA or a SEP IRA.

Account Features

Savings Buckets

Ally makes it easy to save for specific goals, such as emergencies or a vacation. You can select up to 10 Savings Buckets, and then allocation your savings to each.

Savings Boosters

Ally offers three ways to move money between Savings Buckets. First, you can simply transfer money from your Core Savings to one of more buckets. Second, you can set up recurring transfers from a linked checking account. You determine the frequency of the transfers, the amount, and the one or more Savings Buckets to receive the money.

The third and final way to fund Savings Buckets is quite innovative. It’s called Surprise Savings. Ally analyzes checking accounts you link to Ally, and transfers money from those accounts to savings when it determines your money could work harder for you in savings.

Personally, I’m not comfortable turning over control of my money to an algorithm. That said, Ally does have controls in place to prevent things like an overdraft. And you can edit it any time you want.

Zelle

You can transfer money to and from your Ally bank accounts with Zelle.

My Experience with Ally Bank

I opened my first account at Ally on December 25, 2012. Why I opened it on Christmas I have no idea. I’ve held accounts and a number of online banks over the years. In my experience, here’s how Ally stacks up:

Its website is excellent. It’s extremely easy to use.
Its customer service is friendly and helpful.
Its interest rates a good, but never the best among online banks.

One stand-out feature is its interest-bearing checking account. It doesn’t charge a monthly fee and had no minimum balance requirement. While I’ve never used the checking account, it would allow you to use Ally as a full-service bank.

Ally Bank Review

Rob Berger

Interest Rates

Customer Service

Website Usability

Account Types

Account Features

Summary

I’ve banked at Ally for years and have always had a positive experience. Customer support is excellent and the website is very easy to use.

4.8

Ally Bank Savings Calculator

Best Bank Bonuses on Checking and Savings Accounts (May 2020)

May 11, 2020 by Rob Berger Leave a Comment

Banks continue to offer bonuses to attract new customers. On both checking and savings accounts, these promotions amount to hundreds of dollars. Here you’ll find a regularly updated list of the best bank bonuses available today.

Bank Bonuses by Account Type

Savings Account Bonuses

CIT Savings Builder–Up to $300

CIT Bank is offering a bonus of $150 to $300 on its CIT Savings Builder account. And unlike most bank bonuses, existing customers can take advantage of this promotion.

For new accounts, use promo code Spring20 when opening the account and deposit a minimum of $100. Then fund the account within 15 days with the following amounts to qualify for the bonus:

$25,000 – $49,000: $150 bonus
$50,000 or more: $300 bonus

Existing account holders can enroll in the promotion and fund the account with the above amounts to also qualify for the bonus.

New customers must maintain the funding levels for 90 days; existing customers for 30 days.

You’ll also earn a great interest rate on your money, currently 1.25% for its Savings Builder savings account.

Discover Bank–Up to $200

Editor’s Note: The Discover bonus is not currently available. We will update this page if and when Discover brings back the bonus.

Discover Bank is offering either a $150 or $200 bonus when you open a new savings account. To get the $150 bonus, you’ll need to deposit at least $15,000. The $200 bonus requires a deposit of at least $25,000.

Capital One Bank–Up to $500

Capital One is offering bonuses of up to $500 on its 360 Performance Savings Account. Here’s what you need to do to earn a bonus:

Open a new 360 Performance Savings account.
Use promo code NEW500
Deposit $10,000 to $50,000 or more within 10 days of opening the account.
Maintain the required daily balance within a bonus tier (see below) for 90 days.

Your bonus will depend on the amount you deposited and maintained in your account for the 90-day period:

Balance	Cash Bonus
$10,000	$100
$20,000	$200
$30,000	$300
$40,000	$400
$50,000	$500

Checking Account Bonuses

Citibank–Up to $700

If you are looking to open a checking and savings account, Citi is offering bonuses of either $400 or $700. To earn the $400 bonus:

Open new eligible checking and savings accounts in the Citibank^® Account Package during the offer period 4/01/2020 to 6/30/2020.
Within 30 days of opening your account, deposit $15,000 in New-to-Citibank funds between the new checking and savings accounts.
Maintain a minimum balance of $15,000 between the checking and savings accounts for 60 consecutive calendar days.

To earn the $700 bonus, you’ll need to open a Citi Priority Account Package and deposit $50,000.

Citibank–$200

As noted above, Citibank is offering up to a $700 bonus when you open a combined checking and savings account. If you’re just looking for a checking account, Citi is offering a $200 bonus. To qualify for the bonus, here’s what you need to do:

Open a new eligible checking account in the Basic Banking Package during the offer period 4/01/2020 to 6/30/2020.
Within 30 days of opening your account, deposit $5,000 in New-to-Citibank funds into the new checking account.
Maintain a minimum balance of $5,000 for 60 consecutive calendar days.

Once these requirements are met, you’ll receive your cash bonus within 90 days.

Chase Total Checking–$200 Bonus

Chase is offering a $200 bonus when you open a new Chase Total Checking Account.

Amount: $200
Account type: Chase Total Checking
How to qualify: Open a new Chase Total Checking account, which is subject to approval. Have your direct deposit made to this account within 90 days of account opening.
Limitations: Checking offer is not available to existing Chase checking customers, or those whose accounts have been closed within 90 days or closed with a negative balance. If the checking account is closed by the customer or Chase within six months after opening, we will deduct the bonus amount at closing.
When you’ll get the bonus: Within 10 business days
Deadline: 7/20/2020
Where to apply: Chase Online

Chase Premier Plus Checking–$300 Bonus

Chase is offering a $300 bonus with its Premier Plus Checking account. Note that this account charges more fees than the Total Checking account noted above, although the monthly fee of $25 is waived with qualifying activities.

Amount: $300
Account type: Chase Premier Plus Checking
How to qualify: Open a new Chase Premier Plus Checking account, which is subject to approval. Have your direct deposit made to this account within 90 days of account opening.
Limitations: Checking offer is not available to existing Chase checking customers, or those whose accounts have been closed within 90 days or closed with a negative balance. If the checking account is closed by the customer or Chase within six months after opening, we will deduct the bonus amount at closing.
When you’ll get the bonus: Within 10 business days
Deadline: 7/20/2020
Where to apply: Chase Online

Cambridge Savings Bank–$400

You can earn a $400 bonus when you open a new Performance or Performance Plus Checking Account at Cambridge Savings Bank. A $10 minimum opening deposit is required. In addition, you must satisfy the following requirements within each of the first full three calendar months following the date the new account is funded:

Receive cumulative direct deposits totaling $1,000 or more. Qualifying direct deposits are electronic deposits of your paycheck, pension or government benefits from your employer or the government. Person- to-person and bank transfers between your Cambridge Savings Bank accounts or accounts you have at other financial institutions do not qualify.
Complete 5 posted and cleared debit transactions, including checks paid, debit card transactions, wire transfers, or ACH debits. For example, a qualifying account type opened and funded during the month of January must complete the requirements in the months of February, March and April in order to qualify for the bonus.

Note that the Cambridge Savings Bank website states that the account must be opened by 3/31/2020, yet it continues to promote the offer. As such, you should call to confirm that the bonus is still available.

HSBC Premier Checking–$700 Bonus

HSBC is offering up to $700 with a new Premier checking account. Here’s what you need to do to qualify:

Open a new HSBC Premier checking account online by June 29, 2020;
Set up Qualifying Direct Deposits into your new HSBC Premier checking account; and
Receive 3% Cash Bonus, up to $700, on Qualifying Direct Deposits, up to $120 per month, during the first 6 calendar months after account opening.

HSBC Advance Checking–$475 Bonus

If earning a 3% bonus each month isn’t your cup of tea, HSBC is offering $475 with the same Premier checking account. Here’s how to qualify:

Open your new HSBC Premier checking account online by June 29, 2020; and
Make recurring monthly Direct Deposits totaling at least $5,000 from a third party to your HSBC Premier checking account(s) for 3 consecutive calendar months from the second full calendar month after account opening

If you know of great bank bonuses we’ve not included, please leave a comment below to let us know.

Best Online Savings Account Rates May 2020

May 10, 2020 by Rob Berger Leave a Comment

The best rates for saving an emergency fund or other short term goals are through online banks. They pay the highest interest with the lowest fees. Here is a regularly updated list of the best online savings account rates offered today.

May 2020 Update: The big, unfortunate news in the land of savings accounts was the drop in interest rates. Marcus, for example, dropped its rate from 1.70% APY to 1.30%. While other banks didn’t plunge like Marcus, rates were still down across the board. The best savings account rates come in around 1.60% APY.

My first online savings account was at ING Direct. The Orange Account, as many called it back in the day, paid interest rates that clobbered my brick-n-mortar bank. While ING Direct no longer exists (Capital One bought it and rebranded it as Capital One 360), online banks have proliferated. And that’s good news for savers.

What follows is an extensive list of the online savings accounts that pay the best rates. I’ve included information on monthly fees and any signup bonuses these banks offer.

Best Online Savings Account Rates

Best Online Savings Accounts

Vio Bank

APY: 1.60%
Minimum Deposit: $100
Compounded: Daily
Monthly Fee: $0
Credit Check: Soft pull
Website: https://www.viobank.com/online-savings-account
FDIC #: 4063
About: Vio Bank is the online division of MidFirst Bank, established on February 28, 1911.

HSBC Direct

APY: 1.60%
Minimum Deposit: $1
Compounded: Daily
Monthly Fee: $0
Website: https://www.hsbcdirect.com/savings/
FDIC #: 57890
About: HSBC Direct was established in 2004.

Marcus by Goldman Sachs

APY: 1.30%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.marcus.com/us/en/savings/high-yield-savings
FDIC #: 33124
About: Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA, which was established in 1990.

CIT Bank

APY: 1.25% (Savings Builder Account)
Requirements: To earn this rate, you must maintain a minimum balance of $25,000 OR make monthly deposits of $100.
Note: CIT Bank also offers a high-yield savings account currently paying 1.00% APY.
Minimum Deposit: $100
Compounded: Daily
Monthly Fee: $0
Website: https://cit.com/cit-bank/bank/savings/savings-builder-account/
FDIC #: 58978
About: CIT Bank was established in 2009.

American Express National Bank

APY: 1.5 0%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.americanexpress.com/personalsavings/home.html
FDIC #: 27471
About: American Express National Bank was established in 1989.

Barclays Bank

APY: 1.30%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.banking.barclaysus.com/online-savings.html
FDIC #: 57203
About: While Barclays traces its roots back to 1690, the U.S. bank was established in 2001.

Discover Bank

APY: 1.40%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.discover.com/online-banking/savings-account/
FDIC #: 5649
About: Discover Bank traces its roots to 1911, then the Greenwood Trust Company. Discover acquired Greenwood in 1985 and changed the name to Discover Bank in 2000.

Ally Bank

APY: 1.25%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Support: 24/7 support via call, chat or email.
Website: https://www.ally.com/bank/online-savings-account/

Capital One Bank

APY: 1.50%
Minimum Deposit: $0
Compounded: Daily
Monthly Fee: $0
Website: https://www.capitalone.com/bank/savings-accounts/online-performance-savings-account/
FDIC #: 33954
About: Capital One Bank was established in 1994.

Online Savings Account Rate Comparison

Bank	APY	Monthly Fee	Min. Deposit
Vio Bank	1.60%	$0	$100
HSBC Direct	1.60%	$0	$1
Marcus by Goldman Sachs	1.30%	$0	$0
CIT Bank	1.45%	$0	$100
American Express	1.50%	$0	$0
Barclays Bank	1.30%	$0	$0
Discover Bank	1.40%	$0	$0
Ally Bank	1.50%	$0	$0
Capital One	1.50%	$0	$0

Resource: If you are looking for a savings account with a signup bonus, check out our list here.

Online Savings Account FAQs

How many withdraws can I make each month?

Savings accounts are limited by federal regulation to 6 withdraws per month. If you exceed this amount, your bank could charge you a fee or close your account. Note that making a withdrawal through a teller does not count toward this limit.

Are online savings accounts FDIC insured?

Yes. The banks in our list are all FDIC insured.

Are online savings accounts safe?

Yes. As noted above, online savings accounts are FDIC insured. In addition, online banks use the same internet security protocols as brick and mortar banks use for their online access.

Best Online Banks May 2020

May 9, 2020 by Rob Berger Leave a Comment

Internet-only banks have grown in popularity. By offering the best interest rates and no fees, savers have poured billions of dollars into financial institutions with no branches. To help you navigate this new world, we’ve assembled this list of the best online banks for your money.

Best Online Bank Listing

May 2020 Update

The big news is that rates went down, across multiple online banks. As the Fed lowered rates to combat the economic fallout from COVID-19, banks were forced to lower rates on deposit accounts.

Best Full-Service Online Banks

These full-service online banks could serve as your only financial institution. In addition to savings and CD accounts, they offer checking accounts and other services that can accommodate most banking needs.

Ally Bank

Ally Bank is arguably the best all-around online bank. It offers every bank account type, auto and home loans, and investing services. It could serve as a place to park your cash for higher rates, which is how we use it, or as your primary bank. Its website and mobile app are very easy to use.

Account Types: Savings, Checking, Money Market, High-Yield CD, Raise Your Rate CD, No Penalty CD, IRA Savings, IRA CDs
Savings APY: 1.25%
CD Terms: 3 to 60 months
Bank Branches: No
Free ATMs: Yes–Allpoint Network and Ally reimburses up to $10 a month in fees charged by other ATMs.
Other Financial Services: Home loans, auto loans, investing
FDIC Certificate No.: 57803
Free Credit Score: Free FICO score access with auto loan
Credit Inquiry: Soft pull
Year Established: 2004
Other Features: Zelle, bill pay, mobile deposit

CIT Bank

Having opened a savings account at CIT Bank several years ago, I can tell you two things about this financial institution. First, it tends to pay some of the highest rates available on deposit accounts. Second, its website could be better. It was easy to use but not as polished as I would have liked. Still, I go to banks for their rates, not a fancy website.

Account Types: Savings, Checking, Money Market, Savings Builder, CDs, No Penalty CDs, Jumbo CDS, Rampup CDs
Savings APY: 1.25%
CD Terms: 12 to 60 months
Bank Branches: Limited
Free ATMs: Yes–CIT Bank doesn’t charge ATM fees and reimburses up to $15/month in other bank’s ATM fees.
Other Financial Services: Home loans
FDIC Certificate No.: 58978
Free Credit Score: No
Credit Inquiry: Soft pull
Year Established: 2009 as OneWest Bank, FSB, and changed its name to CIT Bank on August 3, 2015.
Other Features: Zelle, bill pay, mobile deposit

Discover Bank

Best known for its credit cards, Discover Bank also offers a full range of deposit accounts. Its rates are competitive and its fees are low. I’ve also found its website to be easy to navigate.

Account Types: Checking, Savings, MMA, CDs, IRA CDs
Savings APY: 1.40%
CD Terms: 3 to 120 months
Bank Branches: No
Free ATMs: Yes
Other Financial Services: Student loans, personal loans, home loans, credit cards
FDIC Certificate No.: 5649
Free Credit Score: Yes
Credit Inquiry: Soft pull
Year Established: Founded in 1911 as the Greenwood Trust Company, it changed its name to Discover Bank in 2000.
Other Features: Checking debit pays 1% cashback on up to $3,000 in debit card purchases each month, online bill pay

Capital One Bank

Capital One Bank can easily serve as your full-service bank. It offers all of the accounts most would need, and it even has bank branches in about ten states. Its rates are competitive and its fees are low.

Account Types: Checking, Savings, Kids Savings, MONEY (Teen checking), CDs, IRA Savings, IRA CDs
Savings APY: 1.50%
CD Terms: 6 to 60 months
Bank Branches: Yes
Free ATMs: Yes
Other Financial Services: Auto loans, credit cards
FDIC Certificate No.: 33954
Free Credit Score: Yes
Credit Inquiry: Soft pull
Year Established: 1994
Other Features: Accounts for children, mobile deposit, online bill pay, overdraft options
More info: Capital One Bank review

HSBC Direct

While not the most popular bank on the list, it offers one of the highest savings account rates available today.

Account Types: Checking, Savings, CDs
Savings APY: 1.60%
CD Terms: 6 to 24 months
Bank Branches: Yes
Free ATMs: Yes
Other Financial Services: N/A
FDIC Certificate No.: 57890
Free Credit Score: No
Credit Inquiry: Soft pull
Year Established: 2004
Other Features: Bill pay, mobile check deposit

Best Limited-Service Online Banks

Marcus by Goldman Sachs

When it comes to deposit accounts, Marcus does one thing and does it well–savings accounts. It pays one of the highest APYs available, with no monthly fees.

Account Types: Savings
Savings APY: 1.30%
CD Terms: N/A
Bank Branches: No
Free ATMs: N/A
Other Financial Services: Personal loans
FDIC Certificate No.: 33124
Free Credit Score: No
Credit Inquiry: N/A
Year Established: 1990
Other Features: Mobile app

American Express Bank

American Express Bank offers limited deposit accounts–Savings and term CDs. As such, it’s not intended to replace your existing bank. It does, however, pay competitive rates.

Account Types: Savings, CDs
Savings APY: 1.50%
CD Terms: 6 to 60 months
Bank Branches: No
Free ATMs: N/A
Other Financial Services: Personal loans, credit cards
FDIC Certificate No.: 35328
Free Credit Score: No, although available with Amex credit cards.
Credit Inquiry: N/A
Year Established: 2000
Other Features: None

Barclays Bank

Barclays Bank is another alternative for those looking to get a higher rate on savings or CDs. Its rate is competitive among online banks.

Account Types: Savings, CDs
Savings APY: 1.30%
CD Terms: 3 to 60 months
Bank Branches: No
Free ATMs: N/A
Other Financial Services: N/A
FDIC Certificate No.: 57203
Free Credit Score: No
Credit Inquiry: N/A
Year Established: Founded in 2001 as Juniper Bank. Change its name to Barclays Bank in 2006.
Other Features: Mobile check deposit

Best Fintech Banking Services

Fintech companies have elbowed their way into the banking world over the last few years. These companies partner with an FDIC-insured bank, layering online and mobile apps on top of traditional banking.

Note that most Fintech banks do not pay the highest rates, although generally better than brick and mortar banks. What they do offer are unique tools and user experiences to help consumers manage their money.

Aspiration

Aspiration aims to combine banking and investing with social responsibility. It gives 10% of its profits to charity and offers socially-responsible investing through its Redwood Fund.

Account Types: Spend & Save Cash Management account
Savings APY: Up to 1.00%
CD Terms: N/A
Bank Branches: No
Free ATMs: Yes, at all Allpoint ATMs
Other Financial Services: Investing, traditional IRA
FDIC Insurance: Cash balances in the Aspiration Spend & Save cash management account are eligible for FDIC insurance* by being swept to FDIC Member institutions.
Free Credit Score: No
Credit Inquiry: Soft pull
Year Established: Founded in 2013, opened for business in 2015.
Other Features: Mobile check deposit, cell phone protection insurance, up to 10% cash back on purchases, bonus rewards for spending at socially-conscious businesses, digital debit card

Chime

Think of Chime as a cash management account. It’s designed to help you budget your money and save for a rainy day. It charges virtually no fees but pays little in the way of interest. For that reason, Chime could serve as a checking account alternative, but not where you want to stash a lot of cash.

Account Types: Checking, Savings
Savings APY: 0.06%
CD Terms: N/A
Bank Branches: No
Free ATMs: Yes, at all MoneyPass ATMs
Other Financial Services: None
FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
Free Credit Score: No
Credit Inquiry: N/A
Year Established: 2013
Other Features: Chip-enabled Visa debit card, fee-free overdraft, mobile banking, get paid up to two days early with direct deposit

Simple

Of the Fintech banks, this is my favorite. It offers checking, savings, and CDs, and pays a competitive interest rate on its savings account. It also comes with excellent tools to budget your money and save for the future.

Account Types: Checking, Savings, CDs
Savings APY: Up to 1.40%
CD Terms: 12-month, no penalty for early termination
Bank Branches: No
Free ATMs: Yes, at all MoneyPass and Visa Plus Alliance ATMs
Other Financial Services: None
FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
Free Credit Score: No
Credit Inquiry: N/A
Year Established: 2009
Other Features: Mobile check deposit, Visa debit card,

Online Banks FAQs

Are online banks safe?

Yes. They offer the same or similar online security features as traditional brick and mortar banks. Their deposits are also insured by the FDIC.

What are the best online banks?

That depends on your specific financial needs. For the best savings rates, online banks are the clear winner over traditional banks. As a full-service bank, many online banks offer a full range of accounts, including savings, checking, CDs, and even investment accounts.

Do online banks charge fees?

Most online banks do not charge monthly fees. Some do charge certain fees, such as overdraft fees.

Do online banks offer free ATM withdraws?

Most online banks do have free ATM withdraws from their participating network of ATMS.

CIT Bank Review

April 24, 2020 by Rob Berger Leave a Comment

CIT Bank is an internet bank offering a range of financial products. Formerly OneWest Bank and Commerical Investment Trust, CIT offers competitive interest rates on deposit accounts with low fees. We cover the details in this CIT Bank review.

CIT Bank Review

CIT BANK

Founded in 2009 as OneWest Bank, CIT Bank is FDIC-insured (FDIC # 58978) with its headquarters in Pasadena, CA. Until recently, CIT Bank was an online bank with no physical branches. That all changed in January 2020 when it acquired Mutual of Omaha Bank. With this acquisition, CIT now has nearly 100 branches in nine states.

States	Number of Branches
Arizona	7
California	66
Colorado	1
Florida	3
Hawaii	1
Kansas	1
Nebraska	6
Nevada	4
Texas	3

As of December 31, 2019, CIT has $45 billion in total assets and nearly $36 billion in total deposits. Following its acquisition of Mutual of Omaha Bank, its total assets climbed to about $60 billion and deposits to approximately $42 billion.

CIT Bank Account Types

CIT Bank offers the following types of personal accounts:

Savings Accounts: A standard Premier High Yield Savings account and a higher paying Savings Builder account (see below)
eChecking: Tiered interest-bearing checkings account.
Money Market: CIT’s high-yield savings option
Term CDs: Terms range from one to five years, requiring a minimum deposit of $1,000.
Jumbo CDs: Terms ranging from two to five years, requiring a minimum deposit of $100,000.
No-Penalty CDs: An 11-month CD that doesn’t charge an early withdrawal penalty.
Ramp up CDs: Certificates of deposit ranging from two to four years that enable savers to benefit if rates rise during the CD’s term.

CIT Savings Builder

CIT designed its Savings Builder account to encourage customers to save more. The account comes with an interest rate (see below) higher than its Premier High Yield Savings account. To qualify, however, you must do one of two things:

Maintain a balance of $25,000 or more, or
Make at least one monthly deposit of $100 or more

While I applaud the account’s design to encourage savings, there is one flaw. The account often pays less than CIT’s Money Market Account. And the MMA doesn’t have either requirement.

What We Like About CIT Bank

Competitive interest rates
Low fees
Wide range of account types
No-penalty and RampUp CDs

What CIT Bank Could Improve

Having banked with CIT to take advantage of its rates on savings accounts, the one thing that could improve is the website. While the site did the basics, its design reminded me of websites from the 1990s.

CIT Bank Rating

CIT Bank

Rob Berger

Interest Rates

Fees

Account Types

Website

Mobile App

Summary

CIT Bank is an internet bank offering competitive rates on a variety of deposit accounts. Its low fees and high-yield accounts make it ideal for those looking for a savings account.

4.4

CIT Bank FAQs

Is CIT Bank FDIC insured?

Yes. It’s been active with the FDIC since March 19, 2009 (FDIC # 58978).

Is CIT Bank safe?

Yes. In addition to being FDIC-insured, it is considered well capitalized.

Is CIT Bank part of Citibank?

No. CIT Bank is owned by CIT Group, a bank holding company incorporated in Delaware and headquartered in New York City.

Does CIT Bank have physical branches?

Yes. Following its 2020 acquisition of Mutual of Omaha Bank, it now has nearly 100 branches in nine states.

How Does CIT Bank Compare

Rates

CIT’s rates for its standard savings account are mediocre among online banks. If that’s what you’re looking for, either look to CIT’s money market account below or check out our best savings accounts rate page. Its Savings Builder account, however, does offer competitive rates. The account either requires a high balance or a monthly deposit of at least $100. In this way, CIT is encouraging its customers to save on a regular basis.

Here are CIT Bank’s current rates on its savings accounts:

CIT Bank Savings Account Rates

Account Name	APY	MIN	MAX
Savings Builder	1.25%	$25,000	-
Savings Builder	1.25%	$100	-
Premier High Yield Savings	1.00%	$100	-

If you are looking for a simple account to save an emergency fund, its Money Market Account is the answer. It generally pays the highest yield available for demand deposits. Here are the current rates:

Unlike most banks, CIT pays interest on its checking account. The amount you’ll earn depends on the balance you maintain. In addition, there are no monthly fees and CIT reimburses up to $30 in ATM fees per statement cycle.

CIT Bank Checking Account Rates

Account Name	APY	MIN	MAX
eChecking	.010%	$100	$24,999
eChecking	0.25%	$25,000	-

CIT Bank offers a wide range of certificates of deposit. In addition to term CDs, it offers a no-penalty CD and RampUp CDs. RampUp CDs enable you to take advantage of rates should they rise during the term of the CD.

CIT Bank CD Rates

Account Name	APY	MIN	MAX
6-Month	0.72%	$1,000	-
1-Year	1.30%	$1,000	-
13-Month	1.30%	$1,000	-
18-Month	1.30%	$1,000	-
2-Year	1.30%	$1,000	-
3-Year	1.30%	$1,000	-
4-Year	1.35%	$1,000	-
5-Year	1.30%	$1,000	-
11-Month No-Penalty CD	1.30%	$1,000	-
2-Year Jumbo CD	1.45%	$100,000	-
3-Year Jumbo CD	1.40%	$100,000	-
4-Year Jumbo CD	1.35%	$100,000	-
5-Year Jumbo CD	1.40%	$100,000	-
1-Year RampUp Plus CD	1.26%	$25,000	-
2-Year RampUp Plus CD	1.27%	$25,000	-
3-Year RampUp CD	1.20%	$25,000	-
4-Year RampUp	1.38%	$50,000	-