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2020 CIT money market account review: annual and monthly maintenance fees, ATM fee, interest rates, required minimum daily balance, pros and cons. Compare CIT vs Capital One, Discover, TIAA, TD Bank money market accounts.

Overview of CIT Money Market Account

CIT Bank offers a money market account as part of its portfolio of savings account products. A money market account has different characteristics and features than other types of savings accounts, so first let’s get a strong understanding of what a Money Market account is - and what it isn’t.

A money market account is not a money market fund. While the name may be similar, these account types are very different. A money market fund is a type of investment that does not have FDIC insurance and has a fluctuating rate of return that varies with financial markets. CIT Bank does not offer a money market fund.

Money market accounts, like the one offered by CIT Bank, is a type of bank savings account with a declared interest rate and FDIC insurance.

CIT Money Market Account

A money market account could be described as a hybrid between a checking and savings account. It typically earns a higher rate of interest than a regular savings account. Compared to a savings account, a money market account offers additional flexibility in how the funds are accessed. Savings accounts can typically only be funded or withdrawn via bank checks, ACH and wire transfers. Different providers offer additional ways to move money to and from money market accounts. The CIT money market account supports the following ways to access the funds in the account:

  • Electronic funds transfer
  • Requests for checks via mail
  • People Pay: a person-to-person payment feature
  • A “Bill Pay” feature has been announced and will be available soon.

Unlike some other banks and financial institutions, the CIT money market account does not offer personal checks. There is also no ATM or Debit card to withdraw cash from an Automated Teller Machine (ATM).

A money market account is not a checking account. While a money market account has more flexibility for accessing funds than a savings account, both a savings account and a money market account have restrictions that a checking account does not have. Federal regulations restrict the number of money market transactions to six per month. While a money market account can exceed that limitation, financial institutions can enforce a penalty against account holders for excessive transactions.

As a money market account does have these restrictions, they are able to provide a higher yield than a checking account. If a consumer can manage to operate within these restrictions, he or she might be able to do without a checking account and capture the higher yields a money market account offers.

CIT Bank maximizes account earnings by compounding interest daily and crediting the account monthly.

CIT Money Market Minimum To Open

New CIT money market account requires a minimum $100 deposit. If funding is done via ACH from an external account, it can take about three business days to validate the account and complete the first transaction.

How to Open and Fund a New Account

The process for opening accounts for new CIT customers is done online and takes under 10 minutes. The following information must be provided to complete the online application:

  • Primary home address
  • Valid email address
  • Valid phone number
  • Social Security number
  • Driver’s license or other valid state identification details
  • If applicable, similar information for any joint account owners
  • Bank routing and account numbers if the account will be funded from an external account transfer.

Open CIT Money Market Account

Existing CIT account owners can create a new Money Market account and fund it from another CIT account or an existing external transfer account with just a few mouse clicks.

Open Account

Open a CIT Bank Money Market account and get a 1.30% APY.

CIT Money Market Withdrawals

First, a quick note on a Federal Reserve regulation known as Reserve Requirements for Depository Institutions Regulation D. The purpose of the regulation is to ensure that the banks and financial institutions keep a reasonable amount of cash in reserve to ensure they could meet any immediate requests for withdrawals. For consumers, the most visible effect of this regulation is a transaction limit of six transactions per statement cycle. Not all kinds of transactions are counted against the limit, though. Withdrawal and transfer requests submitted by mail do not count toward the limit, nor do withdrawals requested by telephone if the funds are mailed in the form of a check.

Here is a breakdown of what types of transactions count against the six-transaction limit:

  • Requests for transfers between CIT money market accounts and other accounts submitted online or on the phone
  • Withdrawing or transferring funds from a CIT account to an external account
  • Outgoing people pay transactions
  • Bill pay when it becomes available.

And here are the transactions that do not get applied to the six-transaction limit:

  • Automated loan payments from a money market account for a CIT loan or a loan with OneBank West
  • Transfers between CIT accounts if the request is made by mail
  • Withdrawals paid to the depositor by mail or telephone via check mailed to the depositor
  • Transfers into the account.

Account withdrawals can be done via electronic funds transfer (ACH), outgoing wire transfer (there is a $10 fee for accounts with balances under $25,000) or requests that a check be sent by mail.

Bill Pay is a free service that will allow scheduled payments to third parties from a CIT Bank money market account. CIT Bank announced the service as “coming soon,” but it is not available yet.

People Pay

People Pay is a free service that allows CIT money market customers to send money to almost anyone with an email address or mobile phone number. CIT customers can also receive money via this feature. People Pay provides account holders a pay feature similar to PayPal. In fact, People Pay can be used to send money to PayPal accounts. There is a $50 per transaction and per day limit. People Pay can be used from outside the United States, but payments may only be made in U.S. currency to payees within the United States. To enroll in the People Pay service, click the “People Pay” tab on the online banking portal.

CIT Money Market People Pay

Deposits to a CIT money market account are unlimited and can be done via funds transfer (ACH), mobile deposit via a mobile app, incoming wire (no fee), or by mailing a check.

CIT Money Market People Pay

CIT Money Market Account Fees

CIT Bank in general has very few fees. The following items have no fee:

  • Account Closure
  • Mail a Check
  • Monthly Service fee
  • Online Transfers
  • Incoming Wire Transfers
  • Bill pay (when available)

Outgoing domestic wire transfers have a $10 fee, but the fee is waived if the average daily balance for the account is at least $25,000.

The following fees can apply to the CIT money market account, but with proper planning, these fees are easily avoided:

  • Overdraft Fee: $25
  • Excessive Transaction Fee: $10 per excessive monthly transaction with a cap of $50 per month
  • Bill Pay Stop: $30 for each stop payment.

CIT vs Capital One, Discover, TIAA, TD Bank Money Market Accounts

Many online and brick and mortar banks offer money market accounts. Unless there is a need to be able to visit a branch, online providers make more sense as they pay better rates. Each account owners’ situation should be considered when choosing a bank for a money market provider. See the table below for a quick reference to see how other providers match up with CIT bank.

CIT TIAA (formerly EverBank) Capital One Discover TD Bank
Minimum to open / Minimum monthly balance $100 / $0 $5,000 / $0 $0 / $0 $2,500 / $2,500 or a $10 fee is assessed each statement cycle $0 / $2,000 or age 62+ to avoid a $12 monthly maintenance fee
Yield 1.85% 2.15% Promotional rate for first year (would be 1.10% for balance under $10K and up to 1.90% for balance of over $100K) 2.00% for balances of $10,000 or more. 0.85% for lower balance accounts 1.85% (1.90% for balances over $100K) 0.35% - 0.03% To qualify for highest rate, must have daily balance of $100K and deposit at least $50 per month into a linked checking account
ATM Available / fee No Yes / $0. Reimbursed up to $15 per month for account balances under $5,000. Fully reimbursed if higher balance Yes / $0 at 39,000+ ATMs in the US Yes / $0 at 60,000+ ATMs in the US Yes / $0 at TD ATMs. $3.00 for non-TD ATMs.
Checks / Fee No No No Yes / $0 Yes / $0
Bill pay Coming soon Yes / $0 Yes / $0 Yes / $0 Yes / $0
Outgoing domestic wire $10 Fee waived if balance at least $25,000 $25 $30 $30 $25 Outbound. $15 for Inbound wires
Stop Payment $30 $25 $0 as stop-payment not possible once initiated $15 $30
Excessive Transactions $10 per item capped at $50 per month $10 per month $0 as attempt will be blocked $15 per item $9 per item
Insufficient Funds $25 $30 max or two per day $0 as attempt will be blocked $30 one fee max per day $35 for each item max 5 per day

Open CIT Money Market Account

Open a CIT Bank Money Market account and get a 1.30% APY.

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