This is one of the highest rates currently available, however, there may be better options depending on your financial situation. Also, you will have to consider what it is worth setting up accounts at a new bank, which may or may not have good customer service. There are several high yield savings accounts in the low to mid 4% range with no lock up. However, if the rates go down (pretty unlikely for the next months) you would earn the going rate. They also increase if rates increase.
Another thing to consider is that you are taxed both federally and at the state level for interest. If you live in a high tax state and are in the middle class income brackets, you are probably better off buying treasuries or T-bills, which are not subject to income tax at the state level. So in California, assuming a > $66,296 income, you pay 9.3% in state tax and 22% in federal tax. If you buy a T-bill, you would earn 4.5% or so depending on the going rate and term, which is only taxed at the federal level. This is essentially equivalent to the 5% being taxed at the state and federal level. While not FDIC insured, if US treasuries fail, you probably can't rely on FDIC insurance. You can sell a treasury at any time, just at the market rate, which may go up or down.
There are number of things to consider other than rate, so do your homework. This is a very low risk way to earn 5% APY for the next 6 months, but there may be better options depending on the accounts you already have and your financial situation.
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OP's description is wrong.
This is what's on the website for this product.
No idea why this is getting down votes, but the 11 month @4.8% is a no-penalty CD, meaning you can withdraw at any time and keep the interest you accrued. Here, you have to hold for the full 6 months, otherwise you lose some of the interest you accrued. In an environment where the interest rates are changing rapidly, that no-penalty + longer duration is very valuable.
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Sorry if someone posted already but I did check and didnt see a response. Is CIT bank a good bank? Their app sucks and they are FDIC insured but is it worth putting your money there? are there other banks that are better with CS and app that provide 5% interest?
I've been with CIT for 6 months now including opening up multiple custodial savings accounts for my children. I came from Marcus with Goldman Sachs. They had their issues with the app too. The CIT app is not perfect, but does what it needs to. I log in, see the balances, and can move money back and forth between this account and my checking. I've had no REAL issues with them and get my interest monthly which is nice. I recently took out a small withdrawal from my account at 10am on a Tuesday and the money was in my checking account Wednesday when I woke up. It's so easy. One weird thing is you will get a system error after everything is setup and you try to log in for the first time so you have to contact them to unlock the account. Has happened to each of the 5% platinum savings account I've opened with them for myself and family members. After that I've had only one hiccup which was the system being down for a few hours so the app would not log you in.
My background is in investment banking. With that said this bank could go under at any time for any reason and nothing would surprise me as I've now seen it all from my career. However with that said, my thoughts are this in regard to their stability. If they didn't go under during the banking crisis of 2022-23 then they have a decent chance at surviving. Also during this period of bank failure a lot of consolidation took place in the industry so there is definitely more money in their coffers now vs then. Lastly they are FDIC insured so if they did go under you will get back up to 250k guaranteed. Would take 1-3 months, but you will be made whole. If FDIC fails well then we have much bigger problems and the system would be on the verge of implosion. Never keep more than 250k in any one single bank account. Spread it out. I've had CD's as well but this is just so much easier getting one single tax form at the end of the year and having access to my cash at any time.
Sorry if someone posted already but I did check and didnt see a response. Is CIT bank a good bank? Their app sucks and they are FDIC insured but is it worth putting your money there? are there other banks that are better with CS and app that provide 5% interest?
Their app is a lot better now. I use their platinum savings only so I don't need to check or do things on my account constantly and it's fine. Every now and then I transfer money from my chase account to here and it will show up in a couple of days.
People are actually putting money into this knockoff Citibank app? Typically banks don't have to resort to phishing to attract customers, but I'm not surprised coming from the thinktank behind Silicon Valley Bank.
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Another thing to consider is that you are taxed both federally and at the state level for interest. If you live in a high tax state and are in the middle class income brackets, you are probably better off buying treasuries or T-bills, which are not subject to income tax at the state level. So in California, assuming a > $66,296 income, you pay 9.3% in state tax and 22% in federal tax. If you buy a T-bill, you would earn 4.5% or so depending on the going rate and term, which is only taxed at the federal level. This is essentially equivalent to the 5% being taxed at the state and federal level. While not FDIC insured, if US treasuries fail, you probably can't rely on FDIC insurance. You can sell a treasury at any time, just at the market rate, which may go up or down.
There are number of things to consider other than rate, so do your homework. This is a very low risk way to earn 5% APY for the next 6 months, but there may be better options depending on the accounts you already have and your financial situation.
This is what's on the website for this product.
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I use stock brokers.
Following are from Fidelity.
Understanding This Table
3mo 6mo 9mo 1yr 2yr 3yr 5 yr
CDs (New Issues) 5.35% 5.30% 5.30% 5.35% 5.20% 5.15% 5.15%
--
BONDS
U.S. Treasury 5.37% 5.33% 5.22% 5.14% 4.75% 4.53% 4.35%
U.S. Treas Zeros 5.06% 5.12% 4.36% 5.03% 4.69% 4.52% 4.37%
Agency/GSE 5.38% 5.37% 5.39% 5.40% 5.48% 5.64% 5.71%
Or your can loose
My background is in investment banking. With that said this bank could go under at any time for any reason and nothing would surprise me as I've now seen it all from my career. However with that said, my thoughts are this in regard to their stability. If they didn't go under during the banking crisis of 2022-23 then they have a decent chance at surviving. Also during this period of bank failure a lot of consolidation took place in the industry so there is definitely more money in their coffers now vs then. Lastly they are FDIC insured so if they did go under you will get back up to 250k guaranteed. Would take 1-3 months, but you will be made whole. If FDIC fails well then we have much bigger problems and the system would be on the verge of implosion. Never keep more than 250k in any one single bank account. Spread it out. I've had CD's as well but this is just so much easier getting one single tax form at the end of the year and having access to my cash at any time.
Their app is a lot better now. I use their platinum savings only so I don't need to check or do things on my account constantly and it's fine. Every now and then I transfer money from my chase account to here and it will show up in a couple of days.
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