Are you tired of low-interest rates, monthly maintenance fees, and high overdraft fees from traditional banks? You might want to consider online-only banks for your day-to-day banking needs.
There are many benefits to using an online bank, such as lower minimum deposit requirements, high-yield savings accounts, and lower fees.
While some people may prefer the in-person aspect of physical branches, there are a lot of great services offered by online-only banks that you might find appealing.
This review will look at CIT Bank vs Ally to determine which online banking service offers the best overall experience.
Both banks offer checking accounts, savings accounts, money market accounts, and CDs, but there are some differences that you should know before deciding which platform to use.
What is CIT Bank?
CIT is a bank focused on helping you grow your savings and manage your finances efficiently. With over a century of experience, they offer various personal, business, and commercial banking services.
While they don’t have a checking account option, their savings-centric approach might be what you’re looking for.
Their signature savings account, the Savings Builder, is a tiered account with an attractive APY. It’s designed to cater to both regular monthly savers and those with larger savings.
Benefits of CIT Bank
Let’s look at some benefits you get from banking with CIT Bank.
- Impressive Reputation
- Ranked among the top 50 U.S. banks
- Numerous awards, like Magnify Money’s Best 1-Year CD Rate
- A financial institution since 1908
- Named the best bank in California by Money Magazine
- Comprehensive Banking Services
- Various personal, business, and commercial banking products
- Competitive products with high-interest rates
- No account opening or monthly service fees
- Daily compound interest offerings
- Flexible and Secure Banking
- Cutting-edge digital technology for fast and easy transactions
- Top-notch account security
- Fully digital and online banking experience
- FDIC insured
You can conveniently open an account online and easily access your finances through online, mobile, and telephone banking options.
Drawbacks of CIT Bank
Now let’s discuss a few downsides of CIT Bank:
- Minimum monthly balance requirements: Their competitive rate of up to 3.6% comes with a minimum monthly balance of $25,000 or a $100 monthly deposit.
- Minimum opening balance requirements: The Savings Builder account requires a $100 minimum deposit, while competitors offer lower or no minimum deposits.
- Limited loan products: CIT Bank lacks personal loan options and other loan types like auto loans and leases.
- Limited investment products: Their range of investment products is rather narrow.
- No credit card or retirement products: CIT Bank does not offer credit cards or IRA options.
What is Ally Bank?
Ally Bank is about helping you gain financial confidence through its wide range of products. They’ve been named the “Best Online Bank of 2018” by Money Magazine, and their website features real customer reviews to back it up.
They offer various financial products, such as:
- Home loans
- Checking and savings accounts (with no minimum opening deposit)
- High-yield money market account options
- High-yield CDs
- Self-directed trading
- Credit cards
- Auto loans and leases
Opening an account with Ally Bank is a breeze, and you’ll enjoy competitive rates, 24/7 customer care, top-notch security, and a user-friendly online banking experience.
As a member, you can access convenient features like transferring money using any device and interacting with Ally Skill for Amazon Alexa.
The Benefits of Ally Bank
So, here are some of the benefits you’ll get from banking with Ally Bank:
- Ally Bank’s Dedication
- Committed to customer satisfaction
- Over 8,000 team members ready to assist
- Always seeking ways to improve and deliver financial opportunities
- Competitive Rates
- Savings from not operating physical branches passed on to customers
- Daily compounded interest
- Easy transfers and savings options
- Good Customer Service
- 24/7 customer care through phone, live chat, or email
- Convenient call wait times displayed online
- Personalized care from highly trained staff
- Robust Security
- FDIC insured
- Online and mobile security guarantee
- A safe and secure information handling
- Complimentary security software
Drawbacks of Ally Bank
Of course, this bank also has its drawbacks, like most online banks.
- Limited Business Products
Unlike CIT Bank, Ally Bank offers only a few business products. This could be a major drawback for those planning to start a business and search for a bank to handle their financial needs.
CIT Bank vs Ally: Which is Worth it?
Well, there are a lot of differences to consider between the two, so it’s important to evaluate your individual banking needs before making a decision.
If you’re looking for a wide variety of financial services, even if it means lower interest rates, Ally could be a great option for you. They offer checking accounts, savings accounts, money market accounts, high-yield CDs, credit cards, auto loans, and home loans.
Conversely, you might consider CIT Bank if you’re focused on growing your wealth through competitive APYs. They specialize in savings accounts and have a tiered Savings Builder account that rewards monthly savers with competitive APY.
Ultimately, the decision between CIT Bank vs Ally comes down to what you want in an online banking service. Take some time to evaluate your banking needs and preferences, then make an informed decision.
And if you decide that CIT Bank is excellent for your banking needs, click here to create an account and start taking control of your finances today.