Overview

1. CIT Bank Term Certificates of Deposit

• Our Assessment: 3.5/5 stars

• Initial Deposit Required: $1,000

• 1-Year APY: 0.30%, 3-Year APY: 0.40%, 13-Month APY: 3.50% (APYs are accurate as of April 2, 2024, and subject to change without notice)

Insight: Many financial institutions offering CDs typically mandate extended commitment periods of several years or more to access the most competitive interest rates. However, CIT Bank distinguishes itself by favoring shorter-term CDs for optimal rates. Notably, their 13-month CD boasts a lucrative 3.50% APY, providing a convenient avenue for increased savings without prolonged waiting periods.

2. Exceptional Rates for Unconventional Terms

CIT Bank presents a 6-month term CD with an attractive 3.50% APY, catering to individuals seeking short-term interest accrual options. If you prioritize reliability and short-term interest gains, CIT Bank’s CD APY stands out as an appealing choice.

Benefits:

• Competitive rates for 13- and 18-month terms

• FDIC insurance coverage

Drawback:

• Longer-term rates may not be as compelling

CIT Bank Certificates of Deposit Rates

CIT Bank provides customers with a range of certificate of deposit (CD) options, allowing them to choose a term length that suits their savings goals. The annual percentage yield (APY) earned on your deposit varies based on the duration of the CD term you select. The current APY rates for CIT Bank CDs are as follows:

11-month CD terms(No Penalty): 3.50% APY, 6-month CD terms: 3.00% APY, 12-month CD terms: 0.30% APY, 13-month CD terms: 3.50% APY, 18-month CD terms: 3.00% APY, 24-month CD terms: 0.40% APY, 36-month CD terms: 0.40% APY, 48-month CD terms: 0.50% APY, 60-month CD terms: 0.50% APY

Insight into CIT Bank CD Account

To open a CIT Bank CD, a minimum deposit of $1,000 is required. Rest assured, your funds are FDIC insured, safeguarded up to the federal limit. With daily compounding interest, your earnings are optimized, promoting steady growth.

Notably:

• No fees are associated with account opening or maintenance, a rarity in banking.

• Early withdrawal carries a penalty, impacting both principal and interest. It’s essential to consider this before making any premature withdrawals.

Upon maturity, the terms automatically renew. Therefore, it’s wise to plan ahead and determine your strategy for managing your funds post-term.

Reasons to Consider a CIT Bank CD

There are several compelling reasons why opting for a CIT Bank Certificate of Deposit (CD) could be a prudent financial move:

• A Safe Haven for Your Money: CDs provide a low-risk environment for your funds. You can deposit your money for a predetermined period, during which it will earn interest at a fixed rate, insulated from market fluctuations.

• Flexible Term Options: Banks typically offer CDs with a range of maturity periods, from a few months to several years. This variety allows you to choose a term that aligns with your financial goals and liquidity needs.

• Guaranteed Returns: Unlike volatile investments like stocks, CDs offer a fixed annual percentage yield (APY) for the duration of the term. This rate remains unchanged, regardless of economic conditions or interest rate movements, providing certainty and peace of mind.

• Seamless Rollover Opportunities: When your CD matures, you have the option to reinvest the principal and accrued interest into a new CD, potentially at a higher APY, or explore other investment avenues.

In uncertain economic times, such as during a recession or depression, CDs can serve as a reliable safeguard for your hard-earned money. While the APYs on CDs may be lower than some riskier investments, the trade-off is the assurance that your principal is secure and your returns are predictable. Additionally, shorter-term CDs, like those with a 12-month duration, offer the flexibility to access your funds within a reasonable timeframe, unlike longer-term commitments.

Comparing Deposit Accounts: CDs, Savings, and Money Market

Although savings accounts and money market accounts are considered secure, especially when they are insured by the FDIC, they typically offer lower interest rates compared to CDs. Therefore, if you’re aiming for a higher Annual Percentage Yield (APY), a CD might be the preferable option. It’s important to note that once you’ve made your initial deposit into a CD, you cannot add additional funds as you would be able to with a money market or savings account.

Steps to Open a CIT Bank CD

CIT Bank operates exclusively online, meaning you won’t be able to visit a physical branch to open a CD. However, you can easily open an account through their online platform.

To be eligible for a CIT Bank CD, you must be at least 18 years old. The online application process requires standard information such as your residential address, email, social security number, and contact number.

When depositing funds into your CIT Bank CD, you can transfer money from another CIT Bank account or an external bank account. If you choose to link an external bank account, ensure you have the necessary details such as your bank account number and routing number, which can typically be found on your checks.

Should You Consider a CD from CIT Bank?

If you’re looking to securely grow your savings and have at least $1,000 to invest for a minimum of one year, a CIT Bank CD could be an excellent option for you. Whether you’re saving for a future vacation or home improvements and don’t require immediate access to your funds, a CD offers a faster growth rate compared to a standard savings account. Furthermore, if you prefer low-risk investment options and wish to steer clear of stock market volatility, a CIT Bank CD might align well with your financial goals.

CIT Bank CD FAQs

Q1: How do I initiate a CIT Bank CD account?

A1: Opening a CIT Bank CD account is exclusively done online. Applicants must be at least 18 years old and provide basic personal information such as address, email, phone number, and social security number through the online application process.

Q2: What is the minimum deposit required for a CIT Bank CD?

A2: To commence a CIT Bank Term or No-Penalty CD, a minimum deposit of $1,000 is necessary. For Jumbo CDs, the bank stipulates a minimum deposit of $100,000.

Q3: How can I circumvent early withdrawal penalties with a CIT Bank CD?

A3: CIT Bank offers a no-penalty CD option, permitting withdrawals prior to the maturity date. Alternatively, to avoid penalties, it’s advisable to refrain from withdrawing funds until the CD matures. Prior to committing to a CD, it’s prudent to assess your financial needs to ensure you won’t require early access to your funds. Maintaining an emergency fund can serve as a precautionary measure against the necessity of premature CD withdrawals.