Dedicated to Deposits: Deals, Data, and Discussion

CIT Bank Takes Back the Top Spot for 5-Year CD Rates

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CIT Bank

CIT Bank has just increased the rates on its 5-year and 4-year CDs and IRA CDs. For the Jumbo 5-year CD, the yield increased from 2.20% to 2.30%. The Jumbo 4-year CD yield increased by 5 bps to 1.80%. These have a $100,000 minimum deposit. For the regular CDs, the 5-year CD yield increased from 2.00% to 2.25%, and the 4-year CD yield increased from 1.65% to 1.70%. These have a $1,000 minimum deposit. This is a nice change for those who don’t have $100K to deposit at CIT Bank. You can get a 2.25% APY 5-year CD with just a $1K deposit.

This 2.30% APY is now the highest 5-year CD rate for internet banks (as of 3/20/2014). It tops the former internet bank leader, GE Capital Retail Bank, which has a 2.25% APY 5-year CD. The best deal that’s nationally available is still at Garden Savings Federal Credit Union which has a 2.53% APY 5-year CD. This is an all-access credit union that makes it easy for anyone to join via an association.

DETAILSINSTITUTIONAPYMINMAXPRODUCT
CIT Bank2.30%$100k-5 Year Jumbo CD
Learn MoreSponsored Note: Maximize growth and savings. FDIC Insured. Apply Now!
CIT Bank2.25%$1k-5 Year CD
CIT Bank1.95%$100k-4 Year Jumbo CD
Learn MoreSponsored Note: Maximize growth and savings. FDIC Insured. Apply Now!
CIT Bank1.80%$1k-4 Year CD
Accounts mentioned in this post. Rates as of August 27, 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 That downside is a harsh early withdrawal penalty equal to 12 months’ interest on the amount withdrawn.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  • 3 months’ interest for the amount withdrawn if your account has an original maturity of one year or less
  • 6 months’ interest for the amount withdrawn if your account has an original maturity of more than one year and less than or equal to three years
  • 12 months’ interest for the amount withdrawn if your account has an original maturity of more than three years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 2.46% (excellent) based on December 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).

Searching for the Best CD and IRA CD Rates

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
7 Comments.
Comment #1 by Anonymous posted on
Anonymous
Are things finally looking up? There seem to be a few rate increases in today's posts.

5
Comment #2 by Anonymous posted on
Anonymous
What do you think is the best CD investment strategy?

4
Comment #3 by QED posted on
QED
Thank you, Ken, for giving us a heads up regarding this good news!  I'd have to say, though, that at this rate one could consider putting today's investable funds into a holding account in hope of another PenFed deal later this year or early in 2015.  There's no way to know whether they will again offer a 3% nationally-available CD opportunity.  But if they do I'd want to have funds available, instead of committing those same funds today at 2.3% for five long years.

5
Comment #4 by Anonymous posted on
Anonymous
This makes sense.  The only problem with this strategy that I see is: where do you keep investable funds in the meantime that is safe?  CDs are FDIC or NCAU insured.  Where can I keep investable funds that is safe while I wait for CD rates to rise?

6
Comment #5 by Anonymous posted on
Anonymous
The very fact that specific details are incredibly difficult to ascertain BEFORE applying/purchasing many CD's is a warning to all. When I go to a bank's offering I expect to see the fine details at the outset, not after the deal has consummated. So much for bank regulation.

1
Comment #6 by paoli2 posted on
paoli2
#5  Are you saying that CIT's Disclosures are not even found online?  Navy FCU makes you wait until the main office mails you the Disclosure if you buy from branch but at least they have it online for us to see and print out if we want to.  This is odd that CIT would not  provide it online.

1