bank rates

CIT Increases Its Savings Rate, Too

It pays its best rate on deposits of at least $25,000.We can count the number of recent savings account rate increases on one finger (or, at the very least, one hand). And it’s just as rare when we can add a bank to our list of savings leaders.

But, much as it did with CD rates earlier this week, CIT Bank boosted its yield on its online savings account.

It now has the second-best nationally available savings rate in the country.

CIT Bank (www.bankoncit.com) pays 1.05% APY on balances of at least $25,000. The bank previously paid 0.90% APY. Balances below $25,000 now earn 0.90% APY, up from 0.85% APY.

That’s enough to land it in second place behind TIAA Direct (www.tiaadirect.com), which pays 1.25% APY on its High Yield Savings account.

There’s no minimum deposit requirement to open an account with CIT Bank or to earn interest. Its parent, CIT Group, based in New York, provides lending, leasing and advisory services to small and mid-size businesses.

At TIAA Direct, it only takes a $25 minimum deposit to open an account, and the rate applies to all balances. TIAA Direct is a division of TIAA-CREF Trust Co., the large financial firm largely known for its retirement services for teachers.

Three other banks pay 1.00% APY on their savings accounts:

Amboy Direct has guaranteed a 1.00% APY for the next 12 months for new customers of its eSavings account. Minimum deposit is $100, and the rate is good on balances up to $25,000.

To take advantage of the special rate, you must click on the promotional offer link on the bank’s website (www.amboydirect.com). The bank will email you a bonus reference code, which you must use when opening the account.

Barclays (www.banking.barclaysus.com) pays 1.00% APY on its online savings account. There are no minimum deposit requirements or minimum balance requirements to earn that rate.

Barclays is the online American operation of the big British bank.

Salem Five Direct (www.salemfivedirect.com) also pays 1.00% APY, and the rate is guaranteed through the August statement cycle.

You need to make a $100 minimum deposit to open an eOneSavings Account with Salem Five Direct. The rate is good on balances up to $500,000, and the account must be opened online.

Salem Five Direct is the online division of Salem Five Bank in Salem, Mass., which has nearly two dozen branches in the Boston area.

You can check to see how these rates compare to the best savings and money market account rates from our extensive database of banks.

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  1. Kathy at Bankaholic said:
    on June 27th at 06:48 am

    Salem Five has dropped its savings rate to 0.75% APY.