CIT Bank Certificates of Deposit

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Anytime I find a 12-month certificate of deposit paying more than 1% APY it’s worth talking about. And the one I have today comes from a well-known bank I’ve never heard of–CIT Bank.

CIT Bank is an online bank that specializes in certificates of deposit. As a matter of fact, it only offers CD’s. CIT Bank is the newest addition to the well-known CIT, a bank lending company, that has been around for years – since 1908 to be exact. CIT is a Fortune 500 company that provides financing and leasing capital to small business and middle market clients.

Before we get to CIT’s interest rates, let’s touch on the safety and soundness of the institution. CIT is FDIC insured, so your money is protected up to the FDIC limits. You can actually check out the bank’s FDIC insurance certificate if you’re so inclined.

CD Options

CIT Bank offers three different CD options:

  • CIT Bank Achiever CD: This CD offers two terms: 1 year or 2 year. The minimum deposit for both terms is $25,000. The Achiever CD is known as a “Raise Your Rate” CD, meaning that if rates go up after you’ve opened your account, you can opt to “lock in” the higher rate once during the term of the CD. You also have the option to add cash to your CD one time at any point during the term.
  • CIT Bank Term CD: You have four options with this Low Minimum CD – 6 months, 1 year, 2 years and 3 years. You only need $1,000 to get started with any of them. The rates vary based on the term. This type of CD is ideal for saving for things like vacations, home remodeling, or a new car.
  • CIT Bank Jumbo CD: With the Jumbo CD you can choose from a 2-year or 3-year term. You have to have $100,000 to open a Jumbo CD and this is ideal for a long-term savings. The advantage of a Jumbo CD is that the interest rates are higher.

CIT CD Rates

Here are the interest rates (APY) currently offered by CIT. Because these rates can and do change frequently, be sure to double check the rates at the CIT website.

Savings Option
Term
Minimum To Open
Rate (APY)
Acheiver CD1 Year$25,0001.10%
2 Years$25,0001.20%
Low Minimum Term CD6 Months$,10000.45%
1 Year$1,0001.01%
2 Years$1,0001.15%
3 Years$1,0001.30%
Jumbo CD2 Years$100,0001.20%
3 Year$100,0001.35%
*Rates as of January 17, 2013. Early withdrawals are subject to a penalty fee.

What Are The Fees?

With CD’s, there are two types of fees to be concerned with (there I go again with the prepositions). First, you need to be mindful of any fees to open or maintain your account. And second, you need to understand the penalties for taking out your money early.

With regard to the first, CIT does not charge any fees to open or maintain your account. There are, however, penalty fees for early withdrawal of your funds. These fees vary based on the term of your CD. CD’s with a shorter term are subject to a smaller penalty than CD’s with a longer term. Here are the penalty fees for taking your money out early:

  • 3 months interest for CD terms of 1 year and less
  • 6 months interest for CD terms greater than 1 year

While you can find no penalty CD options, the tend to pay a little less in interest. So if you know you’re going to keep your money in the CD, CIT is a great option. If you’re not so sure, check out the no penalty CD’s.

How To Open An Account

Opening an account is easy and can be done by completing an online application. All you have to do is choose the product you want (there are 3 choices), fill out the application and make a transfer. The process takes about 10 minutes and there are basically three pieces of information you will need on hand:

  1. Your Social Security Number
  2. Your Driver’s License (or State ID, Passport, Military ID or Permanent Residence Card)
  3. Check or Bank Account # to make transfers from

If you start your application, but don’t have time to finish, you can save your application and pick right back up where you left off. Just click on Open An Account from the homepage and then go to Resume Application. For more information or to open an account, visit the CIT website.

And if you want to check out more options, see our page of the best CD rates available today.

Published or Updated: February 12, 2013
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

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