CIT Bank reduced the top-tier rate of its savings account by 5 bps. It's now 1.00% APY for balances of at least $25,000. It remains 0.90% APY for balances under $25,000.
CIT Bank launched this savings account last April. In May it increased the top-tier yield to 1.05% and that had held until yesterday. Please see my April CIT Bank savings account review for more details.
CIT Bank also reduced its Achiever CD rates by 5 bps. The 2-year Achiever CD now pays 1.20% APY, and the 1-year CD now pays 1.05% APY. Minimum deposit is $25,000. These Achiever CDs allow you to make one additional deposit of any size during the term. Also, they allow for one rate bump. If the Achiever CD rate goes up, you can take advantage of the higher rate. Please see my CIT Bank Achiever CD review for more details.
CIT Bank's regular 1-year and 2-year CD rates also fell by 5 basis points.
CIT Bank's Jumbo 5-year CD yield of 1.85% has held since October, and it remains as one of the rate leaders for internet banks.
CIT Bank Overview
CIT Bank started offering internet CDs in 2011. Don't confuse CIT Bank with Citigroup Inc. which is the bank holding company of Citibank. CIT Bank is one of the businesses that make up CIT Group Inc., a bank holding company best known for providing commercial financing and other services to small and middle market businesses. CIT Group had some difficulties in 2009. However, the FDIC-insured CIT Bank is financially strong. That's the most important factor for depositors. The bank's overall health score at DepositAccounts.com is 5 stars (out of 5) with a Texas Ratio of 0.13% (excellent) based on June 2012 data. Please refer to our financial overview of CIT Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35575).
How These Savings Account and CD Rates Compare
Before this rate cut CIT Bank was in a group with four other internet banks that were offering a 1.05% APY on their savings and money market accounts. The 1.05% APY remains as the top non-promo yield without a balance cap from an internet bank. TIAA Direct still offers 1.25% APY, but the account remains closed to new customers. EverBank and Salem Five Direct are also offering 1.25% APY, but these are promo rates. Redneck Bank, AmericaNet Bank and Evantage Bank offer 1.10% APY on their Mega Money Market Accounts, but this is limited to a $35,000 balance.
The Achiever CD rates are no longer rate leaders for internet bank CDs, but they remain near the leaders. The highest 1-year CD rate at an internet bank is 1.11% APY at Alostar Bank of Commerce. The highest 2-year CD rate is 1.30% APY at NexBank.
If you include all-access credit unions, PenFed offers the best 2-year CD deal with a 1.50% APY.
The above rates are accurate as of 12/04/2012.
When you're comparing the Achiever CD rates with CD rates from other banks and credit unions, don't forget to factor in the add-on deposit and rate bump-up features of the Achiever CDs.
Searching for the Best CD and Money Market Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following tables at DepositAccounts.com: