CIT Bank has a Spring Savings Account promotion that stacks a flat bonus of $125 to $425 on top of their current interest rate of 1.15% APY. Here are the bonus amounts based on the minimum average balance that you maintain over 3 full monthly cycles. The $125 bonus is the best “value” in terms of percent of balance. In my opinion, the $425 number only best at getting your attention.
Here are the terms highlights:
- Account must be opened with Promotional Code BONUS17 by July 14, 2017.
- Account must be funded within 30 days of account opening. Minimum deposit $100.
- Funds used to qualify for bonus must be new funds, not already or recently on deposit with CIT Bank or One West.
- Must maintain a minimum $15,000 average monthly balance for the first 3 full monthly statement cycles.
- Any bonus for which the customer qualifies will be deposited to the account within 45 days of the end of the third full monthly statement cycle.
A full statement cycle is defined as beginning the first day of a month and ending the last day of that same month, e.g., 6/1/17 to 6/30/17. The average monthly balance for each full statement cycle is calculated as follows: at the end of each day, the Spring Savings Account balance is recorded. When the statement cycle ends, these end-of-day balances are added together and then divided by the number of days in the statement cycle to determine the average monthly balance.
Let’s run the numbers for $15,000. Let’s assume you open this account in June and fund with $15,000 right before June 30, 2017. That would mean you can maintain the minimum $15,000 average monthly balance for the first 3 full monthly statement cycles of July, August, and September 2017. The bonus would then be deposited within 45 days of 9/30/17, so let’s say 11/15/17.
As the account has no minimum balance requirement, technically you can take your money out at the end of September and as long as you keep it open you should get the $125 bonus. For the sake of simplicity, let’s just say you keep all your money in there for 4.5 months until you get the bonus on 11/15/17 and then take it all out at once.
So from 7/1 to 11/15, assume you’ve earned 1.15% APY (call it a 1.14% rate without the compounding) the entire time and then the $125 bonus on a $15,000 balance. That would leave an ending balance of $15,000 + $64 interest + $125 bonus = $15,189. That works out to $189 in interest and ~3.36% annualized return over 4.5 months.
If you wanted simplicity and kept your $15,000 in there for a full 12 months, you’d end up with $15,000 + $172.50 interest + $125 bonus = $15,297.50 That works out to $297.50 in interest and ~1.98% annualized return over 12 months. So you could look at like a 12-month CD paying nearly 2% APY if you had $15,000 to put aside.
Let say you put in $50,000. From 7/1 to 11/15, assume you’ve earned 1.15% APY the entire time and then the $125 bonus on a $50,000 balance. That would leave an ending balance of $50,000 + ~$213.75 interest + $125 bonus = $50,338.75. That works out to ~$338.75 in interest and ~1.81% annualized return over 4.5 months.
If kept your $50,000 in there for a full 12 months, you’d end up with $50,000 + $575 interest + $125 bonus = $50,700. That works out to $700 in interest and ~1.40% annualized return over 12 months. Not looking as good.
Let say you put in $100,000. From 7/1 to 11/15, assume you’ve earned 1.15% APY the entire time and then the $250 bonus on a $100,000 balance. That would leave an ending balance of $100,000 + ~$427.50 interest + $250 bonus = $100,677.50. That works out to ~$677.50 in interest and ~1.81% annualized return over 4.5 months.
If kept your $100,000 in there for a full 12 months, you’d end up with $15,000 + $1150 interest + $250 bonus = $101,400. That works out to $1,400 in interest and ~1.40% annualized return over 12 months.
Bottom line. I wouldn’t call this is a screaming deal but if you wanted to put aside around $15,000 to $30,000 for the next 3 to 12 months, this promo makes it one of the highest effective APYs for an FDIC-insured account out there. (I’d run specific numbers if significantly more than $15,000.) You wouldn’t be able to move your money for at least 3 months to get the bonus, though you would still earn the 1.15% APY if you did withdraw early. You’d have to decide for yourself if the effort is worthwhile. Reportedly, CIT Bank does not perform a “hard” credit check when opening a new account.