CIT Bank vs Ally 2026: Tiered vs Flat Rates
CIT advertises higher rates but uses tiers. Ally pays less but treats everyone equally. Which actually earns you more?
⚠️ The CIT Catch
CIT's headline 4.10% APY only applies to balances over $5,000. Below that threshold, you earn just 0.25%. This changes the math significantly for many savers.
| Feature | CIT Bank | Ally | Winner |
|---|---|---|---|
| APY (over $5K) | 4.10% | 3.70% | 🏆 CIT |
| APY (under $5K) | 0.25% | 3.70% | 🏆 Ally |
| Savings Buckets | ✗ No | ✓ Yes | 🏆 Ally |
| Checking Account | ✓ Yes | ✓ Yes | Tie |
| No-Penalty CD | ✓ Yes | ✓ Yes | Tie |
| ATM Access | Limited | 43,000+ | 🏆 Ally |
| Mobile App | 4.6★ | 4.7★ | 🏆 Ally |
The Math: When Does CIT Actually Win?
CIT's tiered structure means your effective rate depends on your balance:
Annual Interest by Balance
Key insight: CIT only wins if you maintain $5,000+ consistently. Below that, Ally earns you 14x more interest.
The $5,000 Trap
Life happens. You might dip below $5,000 for:
- Emergency expenses
- Large purchases
- Income gaps between jobs
- Moving money to investments
With CIT, dropping to $4,999 even briefly tanks your rate to 0.25%. With Ally, you earn 3.70% regardless of balance fluctuations.
Beyond Savings: Full Banking Comparison
Ally offers a more complete banking ecosystem:
- Savings buckets: Organize goals within one account
- Better ATM access: 43,000+ fee-free ATMs vs CIT's limited network
- Checking integration: Seamless transfers and overdraft protection
- Higher-rated app: 4.7★ vs 4.6★
CIT is primarily a savings-focused bank. If you want full-service online banking, Ally delivers more.
Who Should Choose CIT?
- You'll always maintain $5,000+ minimum
- You want the highest possible rate for larger balances
- You already have checking elsewhere
- You're comfortable with the tiered structure
Who Should Choose Ally?
- Your balance might fluctuate below $5,000
- You want consistent, predictable rates
- You value savings buckets for organization
- You want full-service online banking
- ATM access matters to you
The Bottom Line
CIT's 4.10% rate is real—but only for balances over $5,000. If you'll never dip below that threshold, CIT earns you more.
For most savers, Ally's consistent 3.70% with no minimums, better features, and full banking ecosystem is the smarter choice. The rate difference (0.40%) isn't worth the risk of falling into CIT's penalty tier.