CIT Bank has just increased the rates on its 5-year CDs by 5 basis points. Its Jumbo CD rate is now 2.40% APY, which is the leader for nationally available 5-year CDs. The Term CD rate is now 2.30% APY. The Jumbo CDs have a $100,000 minimum deposit, and the Term CDs have a $1,000 minimum.
The 2-year and 1-year CD rates also had rate increases. I think the best deal is CIT Bank’s RampUp Plus CDs. The 2-year RampUp Plus CD rate increased 5 basis points to 1.35%, and the 1-year RampUp Plus CD rate increased 3 basis points to 1.15% APY. These have a $25,000 minimum deposit, and they allow the customer one option before maturity to bump up the rate and to make an additional deposit (CIT Bank reserves the right to limit the additional deposit to your RampUp Plus CD to $250,000.)
The 2-year Jumbo CD and Term CD rates increased by 5 basis points. The new rates are 1.40% APY for the Jumbo and 1.25% APY for the Term.
Lastly, the 1-year Term CD rate increased 3 basis points to 1.10% APY.
To see rates of other CIT Bank CDs and IRAs, please refer to our CIT Bank CD rates page.
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- 3 months’ interest for the amount withdrawn if your account has an original maturity of one year or less
- 6 months’ interest for the amount withdrawn if your account has an original maturity of more than one year and less than or equal to three years
- 12 months’ interest for the amount withdrawn if your account has an original maturity of more than three years
One nice perk that CIT Bank has provided to its CD customers is a renewal bonus rate. One reader commented that when he had an 18-month CD mature, CIT Bank offered him a 2.45% APY on a 5-year CD. This isn’t a standard offering, and it may not always be offered, but it’s nice to see that CIT Bank has a history of offering these renewal rates.
Savings Account Reminder
CIT Bank has also kept its savings account rate very competitive. It just recently joined the 1% club. The savings account currently has a 1.00% APY for balances of at least $25K, and a 0.95% APY for balances under $25K.
CIT Bank Overview
CIT Bank started offering online CDs in 2011. It’s important not to 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 consideration for depositors. The bank has an overall health grade at DepositAccounts.com of an A+ with a Texas Ratio of 2.94% (excellent) based on September 30, 2014 data. It’s also a sizable internet bank with over $20 billion in assets. Please refer to our financial overview of CIT Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35575).
How the 5-Year Jumbo CD Compares
When compared to other similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationwide, CIT Bank’s Jumbo 5-Year CD comes out on top:
To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD rates table.