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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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CIT Bank - New 5-Year CD Rate Leader for Internet Banks

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CIT Bank

CIT Bank has just increased the rates by 15 basis popints on its 5-year CDs and IRA CDs. For the Jumbo 5-year CD, the yield increased from 2.05% to 2.20%. This has a $100,000 minimum deposit. For the regular 5-year CD, the yield increased from 1.85% to 2.00%. This has a $1,000 minimum deposit. This 2.20% APY is now the highest 5-year CD rate for internet banks. It tops EverBank’s 5-year CD yield of 2.16% which had been the internet bank leader. Of course, it’s not close to the CD rates available at certain credit unions. PenFed is offering a 3.04% APY and Navy Federal is offering a 2.55% APY. Nevertheless, it’s always nice to see higher CD rates, and hopefully, this will push the other internet banks to increase their rates.

DETAILSINSTITUTIONAPYMINMAXPRODUCT
CIT Bank2.30%$100k-5 Year Jumbo CD
Learn MoreSponsored Note: Maximize growth and savings. FDIC Insured. Apply Now!
Accounts mentioned in this post. Rates as of July 28, 2014

There is one downside with CIT Bank’s 5-year CDs. That downside is a harsh early withdrawal penalty equal to 12 months’ interest on the amount withdrawn. Below are the early withdrawal penalty details as described in CIT Bank’s FAQs:

  • 3 months’ interest for the amount withdrawn if your account has an original maturity of one year or less
  • 6 months’ interest for the amount withdrawn if your account has an original maturity of more than one year and less than or equal to three years
  • 12 months’ interest for the amount withdrawn if your account has an original maturity of more than three years

Unfortunately, there were no rate increases on CIT Bank’s Achiever CDs. The 1-year Achiever CD yield remains at 1.05%, and the 2-year Achiever CD yield remains at 1.20%. Nevertheless, these are still competitive rates, and these are still great deals since the Achiever CDs allow for one rate bump-up and one unlimited additional deposit. The only downside is a high minimum initial deposit of $25,000.

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 has an overall health grade at DepositAccounts.com of an A+ with a Texas Ratio of 1.57% (excellent) based on September 2013 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).

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To search for the best nationwide rates and the best rates in your state, please refer to our CD rates tables and IRA CD rates tables.


  Tags: CIT Bank, CD rates, IRA rates

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Comments
5 Comments.
Comment #1 by Anonymous posted on
Anonymous
Ken, could you give us a heads up on PenFed CD rates for February or let us know if there will be a reduction in rates for February?  They usually let you know a day or two before the end of the month.  I have funds in OFNB that I will need to reinvest, and want to know if I should do it before January ends. Thanks.

5
Comment #2 by Anonymous posted on
Anonymous
Or get a 10 year brokered CD from them for 3.35%. When my 2 year achiever CD matured this month they offered a 3 year regukar CD rate of 1.4% (or 1.55% for jumbo balance).

3
Comment #3 by Anonymous posted on
Anonymous
Or if 10 yrs is too long, you can also get a CIT brokered CD for 7 years at 2.65%.  So to summarize CIT's offerings:

5 yr at 2.2%
7 yr at 2.65% (brokered)
10 yr at 3.35% (brokered)

Several firms offering 10 year brokered CD's at around 3.2-3.3%

4
Comment #4 by OldGuy posted on
OldGuy
1.  Were the three 3-year rates CIT offered part of a "loyalty bonus" program (a la Ally) available to all holders of maturing Achiever CDs?
2.  Was the bump-up offer conveyed in writing or only over the phone?
I know CIT has been offering special IRA CD deals to existing customers, but this is the first I've heard of any loyalty bump-ups.
Thanks.

3
Comment #5 by Anonymous posted on
Anonymous
The offer was proactively emailed by them at least 3 times during the month the CD matured.

1