CIT Bank vs Ally 2023
In an effort to avoid low interest rates, monthly maintenance fees, and obscene overdraft fees, many consumers find themselves turning to online financial institutions for their day-to-day banking needs.
Using an online-only bank can have many benefits, such as a lower minimum deposit requirement, high-yield savings accounts, and lower fees.
While some individuals do prefer the in-person aspect associated with bank accounts at physical branches, there’s something to be said for the services offered by online-only banks.
Today, we’ll be comparing CIT Bank vs Ally to find out which online service offers better banking overall. Both offer checking accounts, savings accounts, money market accounts, and CDs, but there are a few differences that you should know about before committing to either platform.
|CIT Bank is Better for:||Ally is Better for:|
|Simple online banking||Access to a suite of banking products|
|ATM reimbursements||No minimum deposits|
|Customer service||No overdraft fees|
Although each of these financial institutions is an FDIC-insured bank, neither one has its own ATM network. Instead, they each rely on third-party ATM networks to provide ATM services for customers
While both offer ATM reimbursements up to a certain point each month, since neither one has its ATM own network, neither supports cash deposits.
|Services Offered||Checking, savings, CDs, IRA, loans||Checkings, savings, CDs, IRAs, loans, credit cards, investing|
|Monthly Maintenance Fee||None||None|
|APY||0.10-0.25% (Checking) 0.25-4.05% (Savings) 0.25-4.65% (CD)||0.10-0.25% (Checking) 3.30% (Money Market) 2.00-4.35% (CD/IRA)|
|Overdraft Fee||$30 (maximum of four times per day)||None|
|Modest Money Overall Rating|
Factor 1: Checking Account
We’ll first take a look at the checking account options offered by each bank. There are a number of factors to consider, including deposit options (such as direct deposits or transfers), the applicable monthly maintenance fee (if any), and whether or not the company offers competitive rates.
Ally is Easier to Access
- Ally doesn’t require a minimum deposit
- CIT Bank requires a minimum deposit
- Each company provides their own debit card
CIT Bank’s checking account option is one of the few online options that have minimum balance requirements. Customers will need to deposit at least $100 to open an account. However, the account doesn’t have a daily balance requirement.
Bankers can fund their accounts by using weekly/biweekly/monthly deposits (ACH) from their employers, wire transfer, by mailing in paper checks, or using the mobile app to deposit checks.
For members with less than $25,000 in their accounts, CIT Bank offers an APY of 0.10%. For members with balances exceeding $25,000, CIT Bank offers an APY of 0.25%.
Ally doesn’t have any deposit or minimum balance requirements for its checking options. It also doesn’t charge any overdraft fees.
Like CIT Bank, Ally bank customers can deposit funds into their digital bank account using a number of different methods, including wire transfer, ACH transfers, Ally eCheck Deposit (using their mobile banking app), direct deposit, and mailing in a check. Ally does not accept cash deposits.
Ally offers similar APY rates on its personal banking services to those of CIT Bank. Accounts with sub-$25,000 balances have an APY of 0.10%; accounts exceeding $15,000 qualify for an APY of 0.25%.
It’s important to note that these APY rates are based on your daily minimum balance.
Factor 2: Savings Account
One area where online banking typically has an advantage over traditional banks is high-yield savings accounts. As these financial institutions have lower overhead costs, they are able to pass on these savings to customers through their various banking products (in the form of higher interest rates).
CIT Bank Offers Competitive rates
- CIT Bank has higher annual percentage yields
- Ally offers a flat-rate APY
- CIT Bank requires minimum deposits
This bank’s online savings accounts easily outperform most accounts from credit unions & other online banks. They can be funded using the same methods as the checking account (like direct deposits) and don’t charge a monthly service fee.
However, the APY you qualify for will depend on which savings account you select. CIT Bank’s best account—Savings Connect—offers an APY of x%, which is sure to help you move towards your x.
On the other hand, their lowest-performing accounts—of which there are five—only offer a mere 0.25% APY.
Like many other online banks, Ally doesn’t require minimum deposits on its online savings accounts. This is a perk often not found with savings accounts offered through physical branches.
Ally offers relatively competitive rates, with a standard APY of 3.30 on its savings accounts. This is better than your average brick-and-mortar bank, but other online banks offer more competitive interest rates.
Factor 3: Additional Services
Now that we’ve gone over the basics, let’s take a look at the various additional services—beyond checking and savings accounts—offered by each online bank.
Ally Bank Has a Wider Range of Products
- Ally offers various types of loans
- CIT Bank only offers home loans
- Ally has four credit cards
As with many online banks, CIT Bank’s offerings are fairly limited. In addition to its various checking and savings accounts, it also offers money market accounts, CDs (certificates of deposit), and home loans.
Ally offers a much wider selection of services. As with CIT Bank, Ally offers checking, savings, and money market accounts, in addition to CDs. However, Ally also has four unique credit card offerings, IRAs, investing opportunities, personal loans, auto loans, and home loans.
CIT Bank vs Ally: A Summary
When comparing CIT Bank vs Ally, there are a lot of differences to consider. We recommend selecting a service based on your individual banking needs.
If you’re fine with trading lower interest rates in exchange for a wider variety of financial services, Ally might be a good option for you.
Alternatively, if you’re mainly planning on using your online accounts to accumulate wealth via competitive APYs, we recommend opting for CIT Bank instead.
Click here to create an account with CIT Bank!