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CIT Launches HOA Premium Reserve Solution for Community Associations

February 03, 2020, 09:05 AM
Filed Under: Real Estate
Related: CIT Group

CIT Group announced its newly-acquired Community Association Banking division is launching a new suite of premium reserve accounts for homeowner association deposits. These accounts offer competitive returns and the backing of a surety bond for balances over $250,000 for community associations, and the convenience and efficiency of having both operating accounts and reserve accounts at one bank for community managers.

This new product introduction comes just weeks after CIT acquired Mutual of Omaha Bank on Jan. 1, 2020 and underscores the commitment the company is making to the growth of the business. 

"We understand the unique needs of community association managers and their residents and this new suite of reserve accounts offers a streamlined banking experience with competitive rates and the ability to protect higher balance deposits," said Alan DeTata, president of Community Association Banking. "As part of CIT, the Community Association Banking business is poised for growth and continuing to offer innovative solutions that deliver value."

The new HOA Premium Reserve Solution is composed of four account options that meet the needs of a wide range of homeowner associations and community management companies.

These new accounts include:

  • Premium Sweep Account combining a competitive interest rate, daily access to funds and no limits on withdrawals.
  • Premium CD providing a fixed rate of return over terms ranging from 30 days to 60 months.
  • Premium Ladder CD providing a higher fixed interest rate, while also offering depositors flexible terms for accessing reserve account funds every one, three, six, nine or 12 months.
  • Premium Money Market providing access to reserve funds with minimal limitations and six withdrawals per month.

The full amount in all accounts will be protected against loss by a surety bond for any funds on deposit in excess of the $250,000 covered by FDIC insurance through CIT's banking subsidiary, CIT Bank, N.A.

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