I’m considering opening a high-yield savings account (HYSA) with CIT Bank to use for an emergency fund. It seems pretty good with a 4.5% APY, no fees, and only a $100 minimum balance. Has anyone here used CIT Bank? Is there any downside or hidden catch? Should I stick with a bigger bank like Capital One, which has a 3.75% APY?
A 4.5% rate is common these days. CIT is a top 20 bank and FDIC-insured, so there’s not much risk in my opinion.
I’m a new customer with CIT, and while the rate is nice, I find it less user-friendly compared to Ally, Capital One, or Discover. It’s slower if you plan to transfer money frequently, but it works fine for parking funds you don’t need to touch often.
@Rafael
Totally agree. I use four banks, including Capital One, and CIT has the worst customer service and online interface by far. I recently moved a large sum into a 6-month CD, and the process has been frustrating—money disappeared from savings but isn’t showing in the CD yet. Customer service was unhelpful, and it feels sketchy. Once this CD matures, I’ll be moving my funds elsewhere. I don’t recommend them.
@Hallie
Did your money eventually show up in the CD?
@Hallie
That sounds awful! Which bank are you planning to switch to?
@Rafael
Use Ally for transfers—it’s faster and doesn’t have holds.
Every bank has some complaints, but you could test it out with a small balance to see how you like the interface and ACH speeds. They also have a 4.8% no-penalty CD that could be a good option for an emergency fund.
@FrancesEvans
Is there really much difference between a no-penalty CD and a HYSA? Seems like they’re pretty similar.
Palmer said:
@FrancesEvans
Is there really much difference between a no-penalty CD and a HYSA? Seems like they’re pretty similar.
One difference is that with a CD, you typically have to withdraw the entire amount if you cancel it. So if you have a $1000 CD but only need $200, you’ll end up with $800 left after withdrawal. Sometimes it’s better to split the funds into smaller CDs so you only pull out what you need.
Palmer said:
@FrancesEvans
Is there really much difference between a no-penalty CD and a HYSA? Seems like they’re pretty similar.
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Palmer said:
@FrancesEvans
Is there really much difference between a no-penalty CD and a HYSA? Seems like they’re pretty similar.
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With a no-penalty CD, you can withdraw without losing interest. That’s what makes it flexible.
@FrancesEvans
They’re probably asking about the interest rate difference.
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Oaklee said:
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Oh wow, I’m dealing with the same issue right now! How did it end up for you?
Oaklee said:
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What exactly is a money market account? I’ve heard Vanguard is trustworthy.
Oaklee said:
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What exactly is a money market account? I’ve heard Vanguard is trustworthy.
CIT is reliable enough. The interface works, and transactions take about 5–7 days to fully process. Keep an eye on their offerings in case they release new savings products with better terms.
Oaklee said:
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PayPal has a savings option through Synchrony with the same rate.
Oaklee said:
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PayPal has a savings option through Synchrony with the same rate.
I’m considering Synchrony once I can move my funds from CIT. Let us know if you try them!
@Hallie
Using it through PayPal is easy, but you need to move funds to your PayPal balance first.