In a digital-first world, many people are shifting to online-only banks that promise better interest rates, fewer fees, and the convenience of mobile banking. But with so many fintech companies and digital finance apps launching in recent years, it’s fair to question whether a particular bank is “real” or just another tech startup.
One such name that often pops up is CIT Bank. You might ask: Is CIT Bank a real bank? Is it safe to trust with your money? Is it FDIC-insured? This article dives deep into these questions, exploring the legitimacy, history, services, and reputation of CIT Bank so you can make an informed decision.
What Is CIT Bank?
CIT Bank is an online-only banking division of First Citizens Bank, one of the oldest and largest family-controlled banks in the United States. CIT Bank specializes in high-yield savings accounts, CDs, money market accounts, and home loans, primarily through its digital platform.
Because CIT Bank does not operate physical branches like traditional banks, many people mistake it for a financial app or a fintech startup. However, CIT Bank is a federally regulated, FDIC-insured bank — and very much a “real” bank in every sense.
Is CIT Bank a Real Bank? The Straight Answer
Yes, CIT Bank is a real, fully regulated U.S. bank. It operates under federal banking laws and is insured by the Federal Deposit Insurance Corporation (FDIC). This means your deposits at CIT Bank are protected up to $250,000 per depositor, per ownership category, just like at any traditional bank such as Wells Fargo or Bank of America.
It’s important to note that CIT Bank is not a fly-by-night online service. It is backed by over a century of banking history and is now part of one of the most trusted banking institutions in the United States — First Citizens Bank.
A Brief History of CIT Bank
To fully understand its legitimacy, it helps to know how long CIT Bank has been around and how it evolved.
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Founded in 1908 in St. Louis, Missouri, as Commercial Investment Trust, CIT initially offered financing for businesses and equipment.
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Over time, it expanded into a diversified financial services company, offering banking, leasing, and lending solutions.
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In 2011, CIT Group acquired a Utah-based bank and launched CIT Bank as its online banking division.
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In 2015, CIT acquired OneWest Bank, expanding its consumer banking services.
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In January 2022, CIT Bank merged with First Citizens Bank, becoming a division of the much larger institution.
So, if you’re wondering how long CIT Bank has been in business, the answer is well over 115 years — a clear indication of its credibility and experience in the financial industry.
Is CIT Bank FDIC-Insured?
Yes. CIT Bank is an FDIC member. This means your money is protected in the event that the bank fails. The FDIC (Federal Deposit Insurance Corporation) insures deposits up to $250,000 per depositor.
Here’s how FDIC insurance works at CIT Bank:
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If you deposit money into a CIT Bank savings account, CD, or checking account, you are automatically covered by FDIC insurance.
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If the bank were to become insolvent (extremely unlikely), the U.S. government would reimburse your insured deposits up to the covered limit.
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Since CIT Bank is now a division of First Citizens Bank, FDIC insurance is provided under First Citizens Bank’s charter.
This level of protection is one of the most important criteria when deciding whether a financial institution is legitimate — and CIT Bank fully meets that standard.
CIT Bank’s Merger with First Citizens Bank
In early 2022, CIT Bank completed a merger with First Citizens Bank, creating one of the largest family-controlled banks in the U.S. The move brought even more legitimacy to CIT, pairing its tech-savvy online platform with the well-established infrastructure of First Citizens.
What the merger means for you:
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Stronger financial backing: First Citizens holds over $100 billion in assets, making it one of the top 20 banks in the U.S.
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Expanded services: CIT Bank customers gain access to more financial products.
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Continued digital banking: CIT maintains its online-only model under the First Citizens umbrella.
Far from diminishing its role, the merger solidified CIT Bank’s legitimacy and stability.
CIT Bank Services: What Does It Offer?
As a modern online bank, CIT Bank offers a suite of financial products that rivals — and in some ways surpasses — those of traditional banks.
1. High-Yield Savings Accounts
CIT Bank is well known for its Savings Connect account, which consistently ranks among the top high-yield savings accounts in the U.S. Customers enjoy:
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No monthly maintenance fees
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Competitive interest rates (often 10x higher than traditional banks)
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Easy online transfers and mobile access
2. Money Market Accounts
For those who want a bit more flexibility with their savings, CIT’s money market accounts provide:
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Competitive yields
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ATM card access (in some cases)
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Low minimum opening balance requirements
3. Certificates of Deposit (CDs)
CIT Bank offers several CD options:
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Term CDs (6 months to 5 years)
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Jumbo CDs
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No-Penalty CDs (allows early withdrawal)
These are ideal for savers looking to lock in a guaranteed return.
4. eChecking Accounts
While CIT Bank doesn’t offer full-scale checking features like branch access or massive ATM networks, its eChecking product includes:
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Mobile deposits
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Online bill pay
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ATM fee reimbursements up to $30/month
5. Home Loans
CIT Bank also offers mortgage loans and refinancing, allowing customers to apply online for home purchase or refinance options.
What Do Customers Say About CIT Bank?
When exploring whether CIT Bank is trustworthy, customer feedback offers helpful insights. Like all banks, CIT receives mixed reviews depending on the platform:
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On the Apple App Store, its mobile app scores 4.6 out of 5 stars, with most users praising the simple interface and functionality.
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On Trustpilot, reviews are more mixed, averaging around 2.7 stars, with some customers citing long wait times for customer service.
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On the Better Business Bureau (BBB), CIT Bank holds an A- rating, which is respectable and suggests that most complaints are resolved satisfactorily.
Common praise includes:
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High interest rates
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No hidden fees
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Smooth digital experience
Common complaints include:
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Occasional mobile app bugs
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Limited customer service availability during peak hours
It’s worth noting that online-only banks tend to attract criticism when it comes to support because they don’t offer physical locations. However, for the most part, CIT Bank is well-regarded for its reliability and value.
Is CIT Bank Safe?
Yes, CIT Bank is safe for consumers. In addition to being FDIC-insured and backed by a major U.S. bank, CIT Bank uses industry-standard encryption and security measures to protect your online transactions.
Their platform features:
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Secure Socket Layer (SSL) encryption
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Two-factor authentication (2FA)
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Fraud detection and monitoring
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Customer support via phone and secure messaging
While no bank — physical or online — is 100% immune to risk, CIT Bank meets or exceeds the security standards of most traditional financial institutions.
The Verdict: Is CIT Bank a Real Bank?
Let’s settle it clearly:
✅ Yes, CIT Bank is a real, legitimate, FDIC-insured bank.
✅ It has been in business for over 115 years.
✅ It is backed by First Citizens Bank, a major U.S. financial institution.
✅ It offers competitive, safe, and modern banking services.
If you’re comfortable with managing your finances online and are looking for a way to maximize your savings with high interest rates and minimal fees, CIT Bank is one of the best digital banking options available today.
Final Thoughts
In an age where banking is rapidly moving online, it’s normal to question whether digital banks are “real.” But not all online banks are created equal. CIT Bank is not just real — it’s reputable, regulated, and backed by more than a century of experience.
For anyone asking, “Is CIT Bank a real bank?”, the answer is not only “yes,” but also that it’s a smart and safe choice for those looking to take advantage of modern, high-yield banking without the legacy costs of traditional banks.