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 of traditional banks and credit unions, there’s something to be said for the services offered by online-only banks. Like much higher interest!
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.
What is CIT Bank?
CIT Bank is an online bank known for competitive rates on savings, checking, money market accounts, and CDs. It targets those looking to boost their savings. Many accounts have minimum deposit requirements but offer high APYs. The Platinum Savings account, for instance, offers a notable APY for balances above a set limit.
What is Ally?
Ally is an online bank offering a wide range of services. Beyond banking, it provides credit cards, loans, and investment options. Ally is known for competitive APYs and innovative savings tools. Features like Savings buckets and Surprise Savings help users save efficiently. Ally also presents self-directed trading, robo portfolios, and dedicated wealth management.
|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, loans||Checkings, savings, CDs, IRAs, loans, credit cards, investing|
|Monthly Maintenance Fee||None||None|
|APY||0.10-0.25% (Checking) 0.25-5.05% (Savings) 0.25-4.65% (CD)||0.10-0.25% (Checking) 3.75% (Savings)|
|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 of $100
- 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 (electronic 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 savings accounts is high-yield online 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 Higher Rates – Up to 4.85%
- CIT Bank has higher annual percentage yields
- Ally offers a flat-rate APY of 3.75%
- CIT Bank requires minimum deposits
In the modern era of banking, a multitude of options are available to consumers looking to maximize their savings. Among the top contenders for high-yield savings accounts is CIT Bank. This reputable institution offers several savings options that not only provide competitive interest rates but also convenient features and security.
One of CIT Bank’s stand-out savings options is the Platinum Savings account. With an impressive Annual Percentage Yield (APY) of up to 5.05%, this account stands to benefit savers who maintain a balance of $5,000 or more. Balances under $5,000 earn a respectable 0.25% APY. The account boasts daily compounding interest, no account opening or maintenance fees, and is FDIC insured for added peace of mind.
The Savings Connect account is another competitive choice, offering an APY of 4.65%. Just like the Platinum Savings account, the Savings Connect requires a minimum opening deposit of just $100 and also offers remote check deposits and transfers via the CIT Bank mobile app. This account continues to impress with no account opening or maintenance fees, daily compounding interest, and FDIC insurance.
CIT Bank’s Money Market account is another viable option for those seeking to make the most of their hard-earned money. This account offers a 1.55% APY, which is over twice the national average. Additionally, it provides quick and easy access to funds, no monthly service fees, and the convenience of Zelle® for sending and receiving money.
Finally, CIT Bank’s Savings Builder account is an innovative option for savers. It provides an APY of 1.00% under the condition that savers maintain a balance of $25,000 or more or make at least one monthly deposit of $100 or more. This account, like the others, includes daily compounding interest, remote check deposits and transfers via the CIT Bank mobile app, and FDIC insurance.
When it comes to maximizing your savings, Ally Bank offers a compelling alternative to the high-yield options provided by CIT Bank. With a focus on smart savings tools and customer-friendly features, Ally Bank’s Savings Account aims to make your money work smarter and grow faster.
Ally Bank offers a competitive Annual Percentage Yield (APY) of 3.75% on all balance tiers. This is more than five times the national average of 0.39% APY, giving it a competitive edge in the market. Unlike CIT Bank’s tiered APY, Ally’s rate applies to all balances, making it an attractive option regardless of your account balance.
The standout feature of Ally Bank’s savings account is its use of smart savings tools. These tools are designed to optimize and maximize your savings, even if the rate changes after you open the account. Savings buckets allow you to organize your money and visualize what you’re saving for, and boosters help you automatically save more.
These include Recurring Transfers, Round Ups from your Ally Interest Checking account transactions, and Surprise Savings, where Ally analyzes your linked checking accounts for safe-to-save money and automatically transfers it to your savings.
Comparatively, CIT Bank’s accounts also offer competitive APYs, no monthly maintenance fees, and FDIC insurance. However, Ally Bank’s Savings Account has a unique edge with its suite of tools and features aimed at making savings more effortless and efficient.
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 and offers investment products
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.
Self-Directed Trading: Ally offers a flexible platform for independent investors. Key features include:
- $0 commissions on stocks and ETFs.
- No account minimums.
- Accessible via desktop or mobile apps for iOS and Android.
Robo Portfolios: Ideal for investors looking for automated solutions. Highlights include:
- Four portfolio options: core, income, socially responsible, and tax-optimized.
- A minimum investment of just $100.
Wealth Management: A personalized service for high-net-worth individuals. Key benefits include:
- Fiduciary advice and a portfolio tailored to your preferences.
- Accessible to those with at least $100,000 in investable assets and an existing Ally account.
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!