Want to make 230x more interest on your savings with no extra effort? Then keep reading!
I know that is quite possibly the scammiest sounding opening to a blog post of all time. I feel a little dirty even writing it.
But it’s true.
Today I’m going to help you make one decision that will have a huge impact on your finances.
I’m sure you’ve heard how compound interest is the most magical force of all time–the 8th wonder of the world according to Einstein–the holy grail of all things personal finance.
Yeah, compound interest is amazing in theory, but the problem is that most banks don’t pay you more than pennies in interest. The national average for interest rates on savings account is a pitiful .06%.
That’s not 6%.
That is 1/100 of 6%.
That means for every $10,000 you have in your savings account, you’ll earn $6 in interest.
If you let that interest compound over 20 years, your final balance will be $10,120.
That’s $120 in interest over 20 years.
That is NOTHING.
You need to be earning more interest.
You deserve to be making more interest.
If you take my advice, you’ll be making 1.75% in interest on all of your savings!
That is about 50x the national average and it is 175 as much as my crappy Wells Fargo account that I’ve had for the last three years.
What is the CIT savings builder account?
CIT is the online banking subsidiary of CIT group who has been financing small businesses for over 100 years.
In 2008, CIT group recognized a growing trend in the banking industry and launched CIT bank, which offers personal and business banking services all across the United States. They’ve been in business for over 10 years and have over $50 billion in assets.
They’ve been steadily increasing their interest rates and just recently launched the CIT Savings Builder account–one of the hottest banking options to hit the industry. The CIT savings builder account was recognized by Nerdwallet and Bankrate as the best savings account in 2018.
You can sign up right here: CIT Bank Savings Builder Account
Here are 4 highlights of the CIT Savings Builder account:
- 1.75% interest rate
- No monthly fees
- No transfer fees
- Interest compounds daily
- Incredibly easy to transfer funds in and out of
If you want to check out some other options, here are some more online-only banks!
How does the CIT savings builder work?
The CIT Savings Builder is pretty simple.
Most banks are structured so that the more money you have, the more benefits you get. The rich get richer, right?
With the CIT savings builder account, the playing field is evened out.
CIT is on a mission to help people build their savings. You don’t need a crazy high account balance to qualify for their highest tier interest rate. All you have to do is get in the habit of depositing at least $100/month!
If you can meet that monthly minimum, they’ll reward you with a 2.30% interest rate!
In order to qualify for the 2.30% interest rate, you have two options.
- $100 opening deposit with $100 monthly deposit
- $25,000 account balance
The CIT savings builder account is a tiered interest program so there are actually three levels. If you don’t have at least $25k or contribute $100 a month, then you won’t qualify for the 1.75% interest rate.
Why we LOVE the CIT Savings Builder
My wife and I have been using the CIT savings Builder for six months now and have been incredibly impressed.
First off, CIT makes it incredibly easy to sign-up and get your account started. It took us about 15 minutes to get set up and then once approved, we were able to fund it with the initial $100 minimum.
The user interface isn’t robust or overly impressive, but it doesn’t need to be. We use it to store money and make more interest and it does that exceptionally well.
We’ve made more interest in six months than we have in three years of banking with Wells Fargo.
Making the switch to a higher interest rate won’t make us rich by itself. But as our savings grow, the impact of a high interest rate will only continue to grow.
We aren’t the only ones who love the CIT Savings Builder account. They’ve received multiple awards the past few years:
- Bankrate.com, which rated CIT Bank 5 out of 5 stars in its “Safe & Sound” rating that measures banks in terms of relative financial strength and stability.
- American Banker and the Reputation Institute that ranked CIT Bank in the Top 5 in Performance and in the Top 15 in Overall Reputation Rankings.
- GOBankingRates.com that selected CIT Bank as one of the Best Online Banks
How to use the CIT Savings Builder account
The CIT savings builder account is by far one of the best accounts out there if you have a sizable amount of cash you’re holding onto.
Any cash you have sitting in a regular bank account is earning next to nothing in interest. When you factor in inflation, the money you have saved actually loses value every year.
The CIT savings builder helps you fight that inflation by earning a whopping 2.3% in interest. If you have any savings goals, the extra interest will help you get there faster.
Here are a few different ways to use the CIT savings builder account:
- Emergency fund
- Downpayment savings
- College fund for kids
- Vacation fund
- Long-term savings goals
- Business account
- Tax set asides for self-employment
Signing up for the CIT savings builder account is super easy and only takes 3 steps.
CIT Bank Savings Builder Account FAQ
Is CIT trustworthy?
Yes. CIT is a FDIC insured bank. It’s normal to be a bit nervous about online banks, but they are just as safe as physical locations. If anything were to ever happen or if the bank shut down, you would be insured by the Federal Government up to $250,000.
Is CIT a real bank?
Absolutely. CIT bank is a relatively new subsidiary of CIT group who have in the banking industry for 100+ years.
Are online banks safe to use?
Yes. As long as you take precautions to keep your log-in information secure, an online bank is just as safe as a brick and mortar location.
Is CIT bank and Citi bank the same?
Nope! They’re different. CIT group and citibank are separate entities and compete with each other
Is a high yield savings account worth it?
Yes! Even if you don’t have a ton in savings, getting a better interest rate is just good stewardship. As your money grows, the impact of this change will get bigger.
Big Takeaway: Sign-up for the CIT Savings Builder Account
If you don’t already have a high yield savings account, you need to sign up with one today. I highly recommend and use the CIT savings builder account because of their 2.3% interest rate and easy to use platform. I have recommended CIT to dozens of friends and they’ve all loved it so far.