CIT Bank CDs review

23 March 2018

Choose from a range of hassle-free terms, rates and flexibility to steadily grow your savings.

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If you’re looking for a higher rate of return on your savings, you might want to look into a certificate of deposit. These fixed-rate savings tools pay higher APYs that depend on how much you want to invest and how long you’re willing to tie it up.

CDs are smart, hassle-free ways to meet your savings goals. But which is the best fit your needs? We take a look at CD options with direct-bank CIT Bank to help you narrow down the best account for your needs.

What is CIT Bank known for?

CIT Bank is a subsidiary of financial holding company CIT Group Inc., headquartered in New York City.

This nationwide direct bank offers mobile online banking solutions to customers across the US. It is a savings-focused bank with a range of high-yield certificates of deposit and savings accounts to select from — but no checking account options.

What are the benefits of a CD with CIT Bank?

With CIT Bank, you have five CD options to choose among. All CDs with CIT Bank come with no maintenance fees, are FDIC-insured and benefit from daily compounded interest.

• Term CDs. Terms range from six months to five years with APYs of 0.72% to 1.70%. A minimum opening deposit of $1,000 is required.
• No-Penalty CDs. Deposit at least $1,000 for up to 11 months with the option to withdraw your full balance within seven days without penalty.
• RampUp CDs. Flexible CDs on at least $25,000 for three years or at least $50,000 for four years. If CIT Bank’s rates increase over your term, you’re given one chance to increase your rate to match it.
• RampUp Plus CDs. Flexible CDs on $25,000 or more with deposit options for up to two years. Once over your term, you can either add to your initial deposit or take advantage of increased rates.
• Jumbo CDs. Get more generous rates on higher balances of at least $100,000 for up to five years.

What should I look out for?

While CIT Bank’s CDs boast flexible terms and no maintenance fees, you’ll want to be aware of a few potential drawbacks.

• Early withdrawal penalties. With the exception of the No-Penalty CD, CIT Bank imposes withdrawal penalties for funds withdrawn prior to the CD’s maturity. Depending on the length of your term, CIT applies a penalty equal to three to 12 months of interest on the initial amount you deposited.
• Rate increase cap. RampUp and RampUp Plus CDs offer the opportunity to increase your rate once during the term of your CD. However, CIT Bank enforces a rate cap that limits any APY increase to twice the amount of the initial rate minus 0.05%.

What other savings options does CIT Bank offer?

In addition to its CDs, CIT Bank also offers a high-yield savings account. This account comes with no maintenance fees, daily compounded interest and a competitive 1.30% APY on balances of $100,000 or less. Balances greater than $100,000 receive a healthy 1.25% APY.

The CIT Group Inc. Business Scholarship program

CIT Group, CIT Bank’s parent company, helps fund the education of local college students through its scholarship program.

It offers scholarships to six postsecondary institutions across the US that are available to students majoring in business studies and maintaining a minimum 3.0 GPA.

Bottom line

Low-maintenance CIT Bank CDs provide flexible terms and APYs with several advantageous options to increase your rate, add to your deposit or withdraw funds without penalty.

However, early withdrawal penalties can apply, depending on the CD you choose, and rate caps could limit your ability to boost your return.

Common questions about CIT Bank

• How do I open a CD with CIT Bank?

  Open your CD online through CIT Bank’s website. You’ll need to provide your Social Security number, your driver’s licence or other state ID and a check or bank routing and account number from the external account you’re using to fund the CD.

• Will my CD with CIT Bank automatically renew?

  Yes. CIT Bank CDs renew automatically on maturity at the same term and current market rate.

• Can I withdraw my funds early with CIT Bank?

  Yes — with a No-Penalty CD. These CDs allow you to withdraw funds without incurring a penalty. For all other CDs, you have a 10-day grace period for penalty-free withdrawals that begins on the date of maturity. Any withdrawals made outside this grace period are subject to an early-withdrawal penalty.