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 bank that may be new to you–CIT Bank.
CIT Bank is an online bank that specializes in certificates of deposit. As a matter of fact, they once only offered CDs. But they’ve recently begun to offer savings accounts, as well.
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.
Headquartered in Pasadena, CA, the bank is well capitalized. It has an excellent Texas Ratio, which measures a bank’s capital in relation to its loan portfolio. Its equity to asset ratio is near 14%, which is considered excellent.
Now on to its savings products and rates.
CIT CD Options
CIT Bank offers one savings account and five CD options:
- CIT Bank Term CDs: These are your typical certificates of deposit. The bank offers terms of six months, 13 months, one year, two years, three years, four years, and five years. As of this update (October 14, 2017), the rates range from .72% APY on the six-month CD and 1.70% APY on the five-year CD. Each of these accounts has a minimum opening deposit of $1,000.
- CIT Bank No-Penalty CD: This 11-month CD offers a 1.45% APY. It also has a $1,000 minimum deposit. But you can withdraw the total balance and interest earned with no penalty after the account has been open for at least a week. This lets you earn a slightly higher rate than with the high-yield savings account, but gives you more flexibility.
- CIT Bank RampUp Plus CDs: This is a great option in a rising-rate environment. It lets you boost your rate and your deposit once during your term. As of October 14, 2017, CIT offers this option in one-year and two-year terms, with starting interest rates of 1.26% APY and 1.27% APY, respectively. The minimum opening deposit for these CDs is $25,000.
- CIT Bank RampUP CDs: This is similar to the RampUp Plus CD, but these options are longer-term and somewhat lower interest. CIT offers a three-year and a four-year term, with rates from 1.20% APY to 1.38% APY. The minimum opening deposit is $25,000 for the three-year CD, and $50,000 for the four-year CD.
- CIT Bank Jumbo CDs: Do you want to put a lot of money into a CD? Check out these jumbo CD options. They have terms ranging from two to five years, and rates ranging from 1.45% to 1.75% APY. The minimum deposit is $100,000.
Bonus: Custodial Accounts
This isn’t another account type, but it lets you hold the CD for a minor. Most of CIT’s CD options offer this option.
CIT Savings Account Option
This high-yield savings account charges no account opening or monthly maintenance fees. You’ll need a $100 deposit to open the account, but it has no minimum balance requirement. You’ll earn 1.35% APY on balances of up to $250,000 and 1.30% APY on balances over $250,000.
Because rates can change daily, check out the current rates directly at CIT’s website. According to our best CD rates chart, CIT’s current CD rates on some accounts are near the top of the list, though shorter-term accounts have lower rates.
Where CIT really shines right now is with its savings account. It beats out Ally Bank, Capital One 360, and other well-known online banks as of this writing. You can check out the best high-yield savings account rates here.
What Are The Fees?
With CDs, there are two types of fees to consider. 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. Only the first applies to high-yield online savings accounts.
With regard to the first, CIT does not charge any fees to open or maintain your CD or savings account. There are, however, penalty fees for early withdrawal of your funds from some CD products. These fees vary based on the term of your CD. CDs with a shorter term are subject to a smaller penalty than a CD 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 of 1 to 3 years
- 12 months’ interest for terms of more than 3 years
While you can find no penalty CD options, they 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 CDs, including the one that CIT offers.
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 three choices), fill out the application, and make a transfer from an existing bank account. The process takes about 10 minutes, and you basically need three pieces of information on hand:
- Your Social Security Number
- Your Driver’s License (or State ID, Passport, Military ID or Permanent Residence Card)
- 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.