Alyssa Lane
CIT Bank, formerly known as CIT Group, is a commercial credit company that became an FDIC-insured bank during the financial crisis. FDIC insurance is a guarantee that the federal government will protect deposits up to a certain amount if the bank fails. However, in 2022, CIT Bank was acquired by First Citizens Bankshares and is no longer a separate FDIC-insured entity. This has raised questions about the validity of CIT Bank's URLs, cit.com and citbank.com, which cannot be found on the FDIC Bank Find website, leading to concerns about potential fake websites set up by hackers.
| Characteristics | Values |
|---|---|
| Is CIT Bank a real bank? | Yes, CIT Bank was a real bank that was FDIC insured. In 2022, it was acquired by First Citizens Bankshares and is now likely a trade name under which First Citizens operates. |
| Is FDIC coverage still valid? | Yes, CIT Bank is now owned by First Citizens Bank, the 20th biggest bank in the US, so FDIC coverage is still valid. |
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What You'll Learn
- CIT Bank was FDIC-insured during the financial crisis
- CIT Bank was acquired by First Citizens Bankshares in 2022
- CIT Bank's FDIC insurance status changed after the acquisition
- CIT Bank's website claims FDIC coverage, but the FDIC website doesn't recognise it
- CIT Bank may be a trade name under which First Citizens Bank operates
CIT Bank was FDIC-insured during the financial crisis
CIT Bank, which started as CIT Group, a commercial credit company, became a FDIC-insured bank during the financial crisis. However, in 2022, it was acquired by First Citizens Bankshares and ceased to be a separate FDIC-insured entity. This means that during the financial crisis, CIT Bank deposits were insured by the FDIC, protecting customers' funds up to a certain amount in case the bank failed.
The FDIC, or Federal Deposit Insurance Corporation, is a United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was created by the Banking Act of 1933, enacted during the Great Depression to restore trust in the American banking system. Since its inception, not a single depositor has lost a penny of FDIC-insured funds.
Being FDIC-insured means that even in the event of a bank failure, depositors' funds are protected. The FDIC insures deposits in a variety of accounts, including checking and savings accounts, money market deposit accounts, and certificates of deposit (CDs). The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
During the financial crisis, many banks failed or were at risk of failing, and having FDIC insurance was crucial for protecting customers' funds. While CIT Bank was FDIC-insured during this time, it's important to note that the FDIC does not insure against losses due to a decrease in the market value of an insured deposit or a loss of income resulting from rates paid on deposit accounts. The FDIC only covers depositors' losses of insured deposits due to the failure of an FDIC-insured bank.
In summary, CIT Bank was indeed FDIC-insured during the financial crisis, providing an extra layer of security and peace of mind for its customers during a turbulent economic period.
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CIT Bank was acquired by First Citizens Bankshares in 2022
CIT Bank, a division of CIT Group, was acquired by First Citizens Bank in 2022. The acquisition was first announced in October 2020, with the merger finally being completed in November 2022. The deal was structured so that CIT stockholders would receive approximately 0.06 shares of First Citizens Class A stock for each share of CIT common stock they owned. This resulted in First Citizens stockholders owning 61% of the combined company, while CIT stockholders would own the remaining 39%.
The merger created a $100 billion financial institution, with First Citizens growing through the serial acquisition of failed bank assets. The merger was described as a "transformational partnership" designed to create long-term value for shareholders, customers, associates, and communities.
Following the acquisition, CIT Bank customers were automatically converted to First Citizens online banking, with new login instructions provided. The First Citizens Mobile Banking app was also made available to customers, allowing them to access their accounts on their mobile devices or tablets.
The Holding family, who have led First Citizens through the Great Recession, retained a majority of voting power in the combined company, with their shares nearly tripling in value since 2009.
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CIT Bank's FDIC insurance status changed after the acquisition
As of January 1st, 2022, CIT Bank, N.A., the national banking subsidiary of CIT Group Inc., is now part of First-Citizens Bank & Trust Company, Raleigh, NC. This acquisition combines two long-standing institutions with a shared commitment to delivering strong relationships and technology-driven solutions. The combined bank will operate under the First Citizens name and logo.
The change means that CIT Bank's FDIC insurance status has transitioned. FDIC insurance is a guarantee that protects depositors against financial loss should an FDIC-insured bank fail. Prior to the acquisition, CIT Bank was insured by the FDIC under the name "CIT Bank, N.A." Any deposits held in this bank were insured up to the FDIC insurance limit of $250,000 per depositor for each account ownership category.
Now, as part of First Citizens Bank, CIT Bank's deposits are insured under the new name. This means that if you have accounts at both CIT and First Citizens, your deposits may be combined for insurance purposes, and you should review your accounts to ensure they are correctly titled and structured to maximize FDIC insurance coverage.
The FDIC offers a tool called the Electronic Deposit Insurance Estimator (EDIE), which can help you calculate your FDIC insurance coverage. This tool can be useful if you have multiple accounts or large deposits. Additionally, you can contact the FDIC directly with any questions about your insurance coverage.
In summary, while the name and branding of CIT Bank may have changed, the security of your deposits remains a priority. Your funds are still FDIC-insured, and you can have peace of mind knowing that your money is protected by one of the most trusted and long-standing insurance programs in the US financial system.
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CIT Bank's website claims FDIC coverage, but the FDIC website doesn't recognise it
CIT Bank, a subsidiary of CIT Group Inc., is a well-known digital bank that offers a range of financial products and services to its customers. On its website, CIT Bank prominently displays the FDIC logo and assures its customers that their deposits are FDIC-insured up to the maximum amount allowed by law. This is a common practice for many banks, as it instills confidence and trust in potential and existing customers.
However, upon checking the FDIC's official website and utilizing their "Bank Find" tool, one might notice that CIT Bank is conspicuously absent from the list of FDIC-insured banks. This discrepancy can be concerning for customers and those considering opening an account with CIT Bank. It is essential to understand the reason behind this inconsistency and whether CIT Bank deposits are truly safe and insured.
The absence of CIT Bank from the FDIC's list might be due to a lag in updating the FDIC's records or a technical glitch on their website. It is important to remember that FDIC insurance is a guarantee provided by the U.S. government, and for a bank to display the FDIC logo, it must have undergone a thorough vetting process and met stringent requirements. CIT Bank, being a well-established and regulated financial institution, has likely satisfied these requirements and is indeed FDIC-insured.
In fact, upon further investigation, one can find that CIT Bank is a member of the Federal Deposit Insurance Corporation (FDIC) and that its deposits are insured up to $250,000 per depositor, for each account ownership category, in the event of bank failure. This information can be verified through CIT Bank's disclosure and account agreement documents, which are typically available on their website or upon request.
It is always advisable to conduct your own due diligence and verify the accuracy of any information provided. In this case, customers and interested individuals can refer to CIT Bank's official disclosures and agreements, contact their customer support for clarification, or even seek confirmation directly from the FDIC. Taking these additional steps can provide peace of mind and ensure that your understanding is correct and up-to-date.
In conclusion, while there may be a discrepancy between CIT Bank's website claiming FDIC coverage and the FDIC website's omission, it is likely an administrative or technical issue rather than an indication of CIT Bank's lack of FDIC insurance. Customers can rest assured that their deposits in CIT Bank are protected and insured, as affirmed by the bank's own disclosures and the nature of FDIC insurance as a federal guarantee.
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CIT Bank may be a trade name under which First Citizens Bank operates
CIT Bank is now a division of First Citizens Bank, following a merger between First Citizens BancShares Inc. and CIT Group Inc. in 2022. First Citizens Bank is headquartered in Raleigh, North Carolina, and has been in operation since 1898. The merger created a top 20 US financial institution with over $100 billion in assets, making it the largest family-controlled bank in the nation.
The merger brought together the complementary strengths of both organizations. First Citizens Bank has a robust retail franchise and a full suite of banking products, while CIT Bank has a strong market position in nationwide commercial lending and direct digital banking. CIT Bank's online banking customers were automatically converted to First Citizens' online banking platform on November 14, 2022.
CIT Bank customers can continue to bank as they normally do through their current branches, websites, mobile apps, bankers, and advisors. Over time, a series of conversions to First Citizens' systems and operations will take place. Eventually, all products and services will be fully combined and operate under the First Citizens name.
First Citizens Bank is committed to providing its customers with the same level of service, security, and commitment, while also offering them more services, more ways to manage their money, and more locations to access their banking services. The merger allows First Citizens to build on its legacy of stability and long-term thinking, spanning generations.
Therefore, CIT Bank operates as a trade name under First Citizens Bank, and customers can expect a smooth transition to the combined entity over time.
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Frequently asked questions
Yes, CIT Bank is a real bank that was acquired by First Citizens Bankshares in 2022. It is now an online-only bank.
CIT Bank was FDIC insured during the financial crisis. It is now owned by First Citizens Bank, the 20th biggest bank in the US, which is likely the FDIC insured entity.
You can verify CIT Bank's FDIC insurance status by visiting the FDIC Bank Find website. However, as of 2024, users have reported that the website cannot find CIT Bank's URLs (cit.com or citbank.com).
FDIC insurance means that deposits held in the bank are protected by the Federal Deposit Insurance Corporation. This protection covers up to $250,000 per depositor and ensures that depositors will be reimbursed in the event of a bank failure.
