CIT Bank Raises Rates On Shorter Term CDs


Availability: Nationwide (internet bank)

Over the weekend, CIT Bank, N.A. (CIT Bank) raised the rates on several of its shorter term CDs.

1.45%$100k-CIT Bank2 Year Jumbo CD
1.40%$1k-CIT Bank2 Year Term CD
1.32%$1k-CIT Bank1 Year Term CD
1.26%$25k-CIT Bank1 Year RampUp Plus CD
Accounts mentioned in this post. Rates as of January 23, 2017.

While the CDs and Jumbo CD are fairly straightforward products, the RampUp™ Plus CD is a bit more detailed. The RampUp™ Plus CD allows for a one-time rate increase before maturity. For those who already have a RampUp™ Plus CD, being aware of when the APY increases is important. The decision of when to utilize the bump-up option can be tricky: if you wait for additional rate increases, the time waiting for the higher rate may offset the higher rate.

In addition to the rate-bump option, there is also a one-time option for an additional deposit. According to the fine print on the CD Rates page,

CIT Bank reserves the right to limit the additional deposit to your RampUp™ Plus account to $250,000.

As stated in the FAQs, the Early Withdrawal Penalty reads as follows:

Terms up to 1 year – The penalty we may impose will equal 3 months’ interest on the amount being withdrawn.
Terms of more than 1 year up to 3 years – The penalty we may impose will equal 6 months’ interest on the amount being withdrawn.

If you plan to deposit at least $25k, you'll have to decide if the RampUp Plus CD features (step-up and add-on deposit) are worth the lower rate. DA guest-commentator, Charles Rechlin, wrote a comprehensive blog post that addresses the pros and cons of Step-Up CDs which may help you to decide.

High Yield Savings Cash Bonus

CIT Bank is also offering a cash bonus of up to $200 when opening a High Yield Savings (1.05% APY) account through January 31, 2017. For a detailed explanation of how the bonus works, please refer to my earlier blog post, but the following explains how the bonus can play out.

There are three bonus amounts ($95, $125, and $200). The bonus amount depends on the lowest average monthly balance that’s maintained through the first three statement cycles as shown below:

    Lowest Average Monthly Balance

    $25,000 - $49,999

    $50,000 - $99,999

    $100,000 or more

    Bonus Amount





Headquartered in Pasadena, California, CIT Bank, N.A. is an internet bank with no brick-and-mortar branches. Accounts can be opened by any U.S. citizen or resident alien, 18 years or older, with a permanent address in the U.S.

Opening a CD can be done online, as can applying for the High Yield Savings account bonus. Funding needs to be done with an electronic funds transfer from an outside bank account. As is typical with setting up an ACH transfer, you provide CIT Bank with the routing and account number of your outside account. You also have the option to mail in a check or perform a wire transfer.

CIT Bank Overview

CIT Bank, N.A. (FDIC Certificate # 58978) has an overall health grade of "A" at, with a Texas Ratio of 9.35% (excellent) as of September 30, 2016. In the past year, CIT Bank has increased its total non-brokered deposits by $804.52 million, an above average annual growth rate of 2.48%. Please refer to our financial overview of CIT Bank, N.A. for more details.

Not to be confused with Citigroup, Inc. (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 Bank merged with OneWest Bank in 2015, becoming CIT Bank, N.A. (National Association). OneWest Bank was previously known as IndyMac Bank, which was sold in March 2009, prompting the rebrand. The OneWest brand will remain active as a division of CIT Bank, N.A.

Following the merger, CIT Bank assumed OneWest Bank’s financial history and FDIC Certificate number. As such, deposits at CIT Bank and OneWest Bank are counted together for purposes of determining FDIC insurance coverage limits. As of September 30, 2016, the Banks’ combined assets exceed $42.9 billion, with deposits of nearly $33 billion.

How the CDs Compare

When compared to the 229 similar length-of-term CDs tracked by, with similar minimum deposit requirements and available nationally, CIT Bank’s 1-Year CD APY currently ranks fourth.

Interest RateCD Length of TermBank/Credit Union
1.41% APY1-Year Share CertificateMelrose Credit Union
1.38% APY12-Month CD SpecialConnexus Credit Union
1.32% APY1-Year CDCIT Bank

When compared to the similar length-of-term CDs tracked by, with similar minimum deposit ($100k minimum) requirements and available nationally, CIT Bank’s 2-Year Jumbo CD APY currently ranks fifth.

Interest RateCD Length of TermBank/Credit Union
1.71% APY29-Month Jumbo CDHughes Federal Credit Union
1.65% APY25-Month Jumbo CDVeridian Credit Union
1.45% APY2-Year Jumbo CDCIT Bank

The above rates are accurate as of 1/23/2017.

To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table or our Rates Map page.

CIT Bank Raises High Yield Savings APY By 10 Basis Points
Availability: Nationwide (internet bank)

CIT Bank, N.A. (CIT Bank) has just raised the rate on its High Yield Savings account to 1.05% APY. CIT Bank has become the first internet bank to raise the rate on a savings account since the Federal Reserve’s rate hike in mid-December. The 10 basis point increase places CIT Bank’s High Yield Savings in the top third of all the Savings/Money Market accounts listed in DA’s current Liquid Accounts Survey.

Since its introduction to the product line in April 2012, the High Yield...

Continue Reading
CIT Bank’s Limited-Time High Yield Savings Account Bonus - Up to $200

UPDATE 1/3/17: Extended through January 31, 2017.

Availability: Nationwide

CIT Bank is offering a cash bonus of up to $200 for opening its High Yield Savings account. The account must be opened and funded on or before December 31, 2016 January 31, 2017. The minimum initial deposit to qualify for the bonus is $25,000, and this money must be new, i.e. not already be on deposit at CIT Bank or its OneWest Bank division. Existing customers can qualify, but a new savings account must be opened, and it must be...

Continue Reading