CIT Bank has recently increased the rates of its 5-year and 4-year Jumbo CD and IRA CD rates. It’s another example of banks increasing their long-term CD rates. It’s a trend that started a couple of months ago after Treasury yields had big gains. CIT Bank’s Jumbo 5-year CD APY increased from 1.75% to 1.85%, and the Jumbo 4-year CD APY increased from 1.55% to 1.60%. Minimum deposit is $100,000. These rates are accurate as of 8/30/2013.
According to CIT Bank’s FAQs, the early withdrawal penalty is equal to “12 months’ interest for the amount withdrawn if your account has an original maturity of more than three years.”
The unique feature about CIT Bank is its Achiever CDs which allow a one-time add-on deposit and a one-time bump-up in the rate during the term of the CD. These are available for both 1-year and 2-year terms, and both are now available in an IRA. There’s a 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's overall health score at DepositAccounts.com is 5 stars (out of 5) with a Texas Ratio of 1.17% (excellent) based on June 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).