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2.75%$1k-CIT Bank6-Month Term CD
0.40%$1k-CIT Bank2-Year Term CD
0.40%$1k-CIT Bank3-Year Term CD
0.40%$100k-CIT Bank2-Year Jumbo CD
0.40%$100k-CIT Bank3-Year Jumbo CD
0.30%$1k-CIT Bank1-Year Term CD
Rates as of December 8, 2022.

CIT Bank Raises Savings Account and CD Rates


In today's interest rate environment it's rare to see a bank increasing deposit rates. That happened yesterday at CIT Bank when it increased rates of its savings accounts and CDs. The savings account had the largest rate increase. The top-tier yield went up from 0.90% to 1.05% APY. The most noteworthy CD rate increase was on the 2-year Achiever CD. Its yield increased from 1.20% to 1.25% APY. Below is a summary of all of the CIT Bank rate increases (as of 5/15/2012):

CIT Savings Account

  • 1.05% APY $25K+, 0.90% APY under $25K [was 0.90%/0.85%]

Achiever CDs, $25,000 minimum deposit

  • 2-Year: 1.25% APY [was 1.20%]
  • 1-Year: 1.10% APY [was 1.08%]

Jumbo CDs, $100,000 minimum deposit

  • 3-Year: 1.44% APY [no change]
  • 2-Year: 1.25% APY [was 1.21%]

Term CDs, $1,000 minimum deposit

  • 3-Year: 1.42% APY [no change]
  • 2-Year: 1.20% APY [was 1.19%]
  • 1-Year: 1.06% APY [no change]
  • 6month: 0.45% APY [no change]

CIT Savings Account

CIT Bank launched the savings account in March when the top tier rate was only 0.85%. That was increased to 0.90% in early May. I think CIT Bank realized that in today's environment, new internet banks have to offer something compelling to attract deposits. This new 1.05% APY is now very competitive although it's still quite a bit less than the 1.25% APY offered by the savings account leader, TIAA Direct. Just like TIAA Direct, there's no clue about how long this rate will last. In addition to TIAA Direct, Barclays is another new internet bank. The competition from the new and old internet banks will hopefully prevent these new internet banks from being quick to lower these rates.

One downside with CIT Bank savings account is that they still don't have an online ACH bank-to-bank transfer service. Currently, to initiate ACH transfers at CIT Bank, you'll have to call and give them your other bank's routing number, account number and account type. In April I was told they are working on the online service. I called again today, and it's still in the works.

Even though they don't have an online ACH bank-to-bank transfer service, they do offer one nice feature. If you maintain a balance of at least $25,000, they provide free wire transfers (including outgoing). I was told they need some written information for a wire transfer. This can be done by fax or email. Then you can initiate the transfer with a call.

Another way to make transfers is to initiate them from your other bank. I was told they do not block ACH transfers that originate from your accounts of other banks.

Please refer to my CIT Savings account review for more details.

CIT Bank Achiever CD

The Achiever CDs are the best CD deals at CIT Bank, and with the new rate hikes, they become even better deals. The only downside is that they have a $25K minimum deposit. The Achiever CDs have two nice features:

  • add an additional deposit to your CD during the term
  • increase your rate once during the term

I especially like the add-on feature for the 2-year CD. Add-on features are most useful for longer-term CDs. Assume you open this 2-year Achiever CD today, and you choose to add to the CD one year from now. Adding to the CD will be like opening a 1-year CD with a 1.25% APY. If interest rates overall stay the same in the next year, that would probably be better than any 1-year CD. If rates continue to fall, it becomes even more competitive.

Please refer to my CIT Bank CD review for more details.

Related Pages: CIT Bank, savings account, CD rates

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  |     |   Comment #1
I concede this is a very interesting product offering.  It might be suitable for many folks.

For myself, though, lack of ACH capability is a deal killer.  As soon as that changes, if it changes, I would surely be looking to climb aboard.
  |     |   Comment #2
Their website clearly gives the impression that ACH is up and running now. Direct quote from FAQ page:  

How do I make the first deposit to my CIT Savings account?

Electronic ACH transfer. The easiest way to make the first deposit into a new CIT Savings account is to transfer funds electronically from one of your other bank accounts to CIT Bank. Our application process will walk you through the few required steps quickly and easily. (All you need is the information on a bank check from the institution holding your account.)
  |     |   Comment #3
Unfortunately, that's only for the initial deposit. After the account is opened, the FAQ says the following:

How do I make deposits and withdrawals from my account?
All you need to do is call our Customer Service Center at 855-GO-BANKCIT (855-462-2652). Our representatives will verify your identity and then carry out your request to make additional deposits to, or withdrawals from, your CIT Savings account.
  |     |   Comment #4
Two New York deals: Capital One Smart Savings guarantees .60% APY for 12 mos. with $300 minimum on deposit; Doral Bank's Gold Interest Checking pays 1.10% for 12 mos., $5,000 min. kept on deposit to avoid fees.
  |     |   Comment #5
you are now able to make transfer out of your account. Limit of 6 per month.
  |     |   Comment #6
Are you talking about ACH transfers??  If you are, is it too much trouble to type:  "ACH"

Also, how about ACH transfers into the account??

Bottom line:  A bank that does not recognize from day one the importance of ACH capability to customers is not a bank deserving of my business.  I have enough problems managing money these days.  I don't need to deal with fools.  Who knows what they won't think of next!  
  |     |   Comment #7
The CIT FAQ page calls it "Funds Transfer". They don't mention "ACH", although the description sounds exactly like ACH. Here are some excerpts from the  FAQ page:

Can I link my accounts at other banks to my CIT Savings account?
Yes. Using the online Funds Transfer service, you can add up to three linked accounts. All you need is the information on a check from the institution holding your account. You will be asked to verify each linked account by confirming two small deposit amounts that CIT Bank will credit to your other bank account. These amounts need to be verified within seven calendar days. Once they’re verified, you will be able to deposit to or withdraw from your other bank account using Funds Transfer when you log in to your CIT Savings account.

Are there limits on my daily deposits or withdrawals?
CIT Bank does not impose limits on the amount that you may deposit or withdraw from your account. However, when using the online Funds Transfer service, you may make up to three withdrawals a day, totaling no more than $75,000, and three deposits a day, totaling no more than $75,000.

Is there a minimum required balance?
Yes. To open and maintain an account, you must have a balance of at least $100.

  |     |   Comment #8
Thank you Sandra.  I apologize to pacmar21 for having been so harsh earlier.  I was wrong.  I should have guessed this bank was the culprit.

CIT?  NOT for me.  I can't live without ACH.  They need to have it and be smart enough to state they have it.  This bank sounds to me like a loser.  It puts me into a bad mood.  

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