Last week, I discussed the low rate environment savers are facing now and introduced the American Express Personal Savings Account that pays a decent 0.90% APY. What’s exciting about the AMEX Personal Savings Account, besides the 0.90% yield, is that the account has no minimum initial deposit (of course, you have to have at least $1 in the account to earn interest) and no monthly fee, so you know exactly what you are getting from it.
Now what if you have more, a lot more, to put aside and want to earn a better return? From the previous discussion, we know that the Personal Savings Account from American Express is good for people with a small amount of money because it doesn’t how much little, or more, money you have in the account, you earn the the same 0.90% solid rate. But that may not be ideal if, say, you have $25,000 saved already and look for better deal. If you are in such a situation, then congratulations on a good amount of money you have saved and there’s a better option for you.
CIT Bank Savings Account, unlike the AMEX Personal Savings Account, offers a two-tier rate structure for savers based on the money they want to put in the account. For people who can put a small amount of $100, then the rate you will get is the same as the rate of the AMEX account, 0.90% APY. But if you have more than $25,000, then a higher rate of 1.05% becomes available for you. That’s more than 16% higher return than what you could get from AMEX for the same amount of money. And the same as the Personal Savings Account, the CIT Savings Account, not matter how much you put in the account, also has no monthly account maintenance fee. The only difference between the two is you do have to maintain a minimum account balance with CIT Bank, $100 or $25,000, in order to earn either the standard rate 0.90% or the Preferred rate 1.05%. Other features of the CIT Bank Savings Account include:
- Free online banking and money transfer using ACH
- Free mail check
- Free incoming wire transfer
- Free outgoing wire transfer for balance more than $25,000
- Free account closure
Actually, there’s nothing exciting about these features since you can pretty much get the same set from many, if not all, popular online banks.
When selecting an online bank account, what I am always looking at are basically two things: rate and fee, all others don’t really matter that much. With CIT Bank Savings Account, I clearly get what I want. How about you? Do you see this CIT Bank Savings Account fits your needs and goal of saving more money and getting a good return?