I don't think CIT has anything to do with Citibank.
All fdic insured bank has a 250k protection from the federal government.
You can do this with treasurydirect.gov or a brokerage site like schwab, fidelity, or vanguard etc. They are federally taxed but not state. The latest 4 week t-bill was almost 6%
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There are a few advantages to buying 4-week T-bills at auction over buying a CD for 9 or more months:
Liquidity: T-bills are very liquid investments, which means that they can be easily bought and sold on the open market. This is because they are backed by the US government, which is considered to be one of the safest borrowers in the world. In contrast, CDs typically have a fixed term, and if you need to access your money before the CD matures, you may have to pay a penalty.
Flexibility: T-bills are typically issued in small denominations, which means that you can invest as much or as little as you want. In contrast, CDs often have minimum investment amounts, which may be higher than what you want to invest.
Yield: T-bills typically offer a higher yield than CDs.
Taxation: T-bills are exempt from state and local income taxes, which can make them more attractive to investors in high-tax states. CDs, on the other hand, are subject to state and local income taxes.
So is the main risk that if the feds lower interest rates, you could potentially end up with lower yield once the t-bill matures and the CD still maintains the same rate for the entire period that you're locked in?
That's my main concern right now. I like the idea of T-bills, but if the rates go down, then I might end up worse off. I've heard about laddering, but I still need to read up on that when I get the time.
So is the main risk that if the feds lower interest rates, you could potentially end up with lower yield once the t-bill matures and the CD still maintains the same rate for the entire period that you're locked in?
That's my main concern right now. I like the idea of T-bills, but if the rates go down, then I might end up worse off. I've heard about laddering, but I still need to read up on that when I get the time.
Main risk would be if rates rise. Rate is locked in on purchase. If you want to sell your T-bill on open market your bond will lose value if rates rise.
Id be careful with ANY bank below $100 Billion in deposits. Anything below that doesnt require stress Tests mandated by the Fed. Do with that info what you wish
CIT is a subsidiary of First Citizens Bank. They just bought part of SVB. So around 250B now. Yes they are stressed tested.
Daily and monthly withdrawal limits can be a real problem as well as slow ACH times. The whole point of a savings account is to have it be liquid... otherwise just do CDs. If it takes a year or more to withdraw all your money and they take a week or more for each individual withdrawal to actually process and show up on the other end, that's just time that the bank is sitting on your money making free interest and you not being able to use your money.
There is a massive degree of variability with this one area. I've found Marcus to be amongst the best as far as response times and instantly giving you interest on deposits, but their rates aren't anywhere near as high as some of these other ones.
I've heard good things about ALLY, although i haven't personally tried it. I'm on the fence about CFG, and I won't use UFB.
Not with CIT. ACH speeds (outgoing) are overnight. CIT is top notch (same experience as chase). Others like capital one 360 & synchrony do not compare.
The Savings Builder account has a limit of six (6) pre-authorized or automatic transfers or withdrawals, electronic banking transfers to other accounts or similar per statement cycle.
No. CIT does not follow 6x limit (same with some other savings accounts eg barclays).
The bad reviews are mostly complaints about different savings accounts having different rates. Apparantly there has been an issue with them creating 'new' savings accounts with higher rates in the past. Right now they only have 2 savings accounts. One for balances < $5k and one for over $5k. System works great currently. I don't see them sleezing and dropping rates and then creating a different type of savings account with a higher rate, thus screwing existing customers, (but apparantly they did this before). But banking quality is best in class. And, from the reviews, I didn't feel that they were freezing accounts or funds, except in a few isolated cases (which may be justified).
CIT banking quality is unmatched. I opened all 3 accounts - checking, savings connect, savings platinum. Very easy - no selfie, no drivers license upload. This bank is top tier. Fast ACH out. Zelle. Fast bill pay. CIT IS BETTER than: citibank, bofa, us bank. (Chase is the best for sure but they pay 0% interest).
BUT the CIT android app fusses a bit at login screen so I just use their website via my mobile browser (That's the only drawback).
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No Penalty CDs 5.06%
Savings 5.05%
https://www.savebetter.
Liquidity: T-bills are very liquid investments, which means that they can be easily bought and sold on the open market. This is because they are backed by the US government, which is considered to be one of the safest borrowers in the world. In contrast, CDs typically have a fixed term, and if you need to access your money before the CD matures, you may have to pay a penalty.
Flexibility: T-bills are typically issued in small denominations, which means that you can invest as much or as little as you want. In contrast, CDs often have minimum investment amounts, which may be higher than what you want to invest.
Yield: T-bills typically offer a higher yield than CDs.
Taxation: T-bills are exempt from state and local income taxes, which can make them more attractive to investors in high-tax states. CDs, on the other hand, are subject to state and local income taxes.
That's my main concern right now. I like the idea of T-bills, but if the rates go down, then I might end up worse off. I've heard about laddering, but I still need to read up on that when I get the time.
That's my main concern right now. I like the idea of T-bills, but if the rates go down, then I might end up worse off. I've heard about laddering, but I still need to read up on that when I get the time.
CIT is a subsidiary of First Citizens Bank. They just bought part of SVB. So around 250B now. Yes they are stressed tested.
There is a massive degree of variability with this one area. I've found Marcus to be amongst the best as far as response times and instantly giving you interest on deposits, but their rates aren't anywhere near as high as some of these other ones.
I've heard good things about ALLY, although i haven't personally tried it. I'm on the fence about CFG, and I won't use UFB.
Not with CIT. ACH speeds (outgoing) are overnight. CIT is top notch (same experience as chase). Others like capital one 360 & synchrony do not compare.
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No. CIT does not follow 6x limit (same with some other savings accounts eg barclays).
Yes. Instant transfers!
The bad reviews are mostly complaints about different savings accounts having different rates. Apparantly there has been an issue with them creating 'new' savings accounts with higher rates in the past. Right now they only have 2 savings accounts. One for balances < $5k and one for over $5k. System works great currently. I don't see them sleezing and dropping rates and then creating a different type of savings account with a higher rate, thus screwing existing customers, (but apparantly they did this before). But banking quality is best in class. And, from the reviews, I didn't feel that they were freezing accounts or funds, except in a few isolated cases (which may be justified).
BUT the CIT android app fusses a bit at login screen so I just use their website via my mobile browser (That's the only drawback).
CD Term Rates2 - 5-Year 0.50%
So CD rates are not that good in the long term compared to Ally
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