CIT Bank Creates New 1.75% Money Market Account – Avoids Rate Rise On Existing Accounts

CIT Bank offers a number of high interest savings products. We’ve discussed the following previously:

• CIT Bank 1.85% APY 11 Month No Penalty CD
• CIT Bank 1.55% APY Premier High Yield Savings Account

Today they launched a new product ‘CIT Bank Money Market Account‘. This account has a 1.75% APY rate. The only real difference between a money market and savings account is that the money market account is limited to “preauthorized or automatic transfers or withdrawals, electronic banking transfers between other accounts or similar order per statement cycle period”, otherwise a fee is charged. I really just see this as a way for CIT Bank to offer a competitive APY on new accounts without passing that interest rate bump onto consumers. Given that the highest APY on a basic savings account is now 1.85% and trending upwards I don’t see any reason to do business with CIT Bank.

In fact I don’t think chasing these basic savings rate increases makes much sense for most people. You’re better off sticking with a financial institution that will consistently raise their rates over time or just focus on rewards checking accounts that offer up to 5% APY. Ally & Alliant used to be my go to suggestions, but they have been slow to increase rates recently. Another option would be All America Bank (currently offering 1.75%).