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CIT Bank’s Rate Changes - Higher 1-Year RampUp Plus CD Rate


CIT Bank raised some of its short-term CD rates, but it reduced its 4-year CD rates. We have been seeing this trend over the last two months at internet banks. CD rates for terms around 1-year have been inching up while long-term CD rates have been inching down. In the latest change, CIT Bank increased its 1-year CD rates to 1.20% APY. This applies to both its 1-year Term CD (minimum $1K) and its 1-year RampUp Plus CD (minimum $25K). The 2-year Jumbo CD rate (minimum $100K) also had a slight increase (1.43% APY). This time the 4-year CDs had rate declines. The 4-year Jumbo CD rate fell 2 basis points to 2.00% APY, and the 4-year Term CD rate fell 5 basis points to 1.85% APY. The 4-year RampUp CD rate remains at 1.90% APY.

1.22%$1k-CIT Bank1 Year Term CD
1.16%$25k-CIT Bank1 Year RampUp Plus CD
Accounts mentioned in this post. Rates as of October 26, 2016.

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  • 3 months’ interest for the amount withdrawn if your account has an original maturity of one year or less
  • 6 months’ interest for the amount withdrawn if your account has an original maturity of more than one year and less than or equal to three years
  • 12 months’ interest for the amount withdrawn if your account has an original maturity of more than three years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.

Note About the 1-Year RampUp Plus CD

For those who prefer short-term CDs, the RampUp Plus CD has become a pretty good deal. It has two features that can be helpful. First, it has a ramp-up feature that gives the customer the option to increase the rate once during the term of the CD if CIT Bank’s rates go up. If you already have this CD, you may want to consider using the ramp-up option now. Last year the rate had been as low as 1.00% APY. You may be tempted to wait longer for a higher rate than 1.20% APY. However, the longer you wait, the less time you’ll benefit from the higher rate.

The second nice feature of the RampUp Plus CD is the add-on deposit feature. You’re allowed to add to your original deposit once during the term of your CD. However, it should be noted that CIT Bank’s small print states that it reserves the right to limit the additional deposit to your RampUp Plus account to $250,000. Nevertheless, this offers a nice feature if rates stay low. If you had been planning to open a 6-month CD in a few months, you may want to consider opening this 1-year RampUp Plus CD with the minimum deposit and then wait for six months. If rates are still low, you can add more to this CD. You will likely earn more interest this way than by opening a new 6-month CD.

Savings Account Reminder

CIT Bank has been keeping its savings account rate competitive. Last year it 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 1-Year CD Rate Compares

You’ll have to rely on an all-access credit union if you want a nationally available 1-year CD with a significantly higher rate than what CIT Bank is now offering. You can get a little higher rate at another internet bank. However, you won’t get the ramp-up and add-on deposit feature that CIT Bank offers.

To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD rates table.

Related Pages: CIT Bank, CD rates

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Anonymous   |     |   Comment #1
Seeing the recent Forum post of over 3% APY for a 10 year CD from CIT Bank (through a brokerage account), why should anyone deposit directly with CIT when nothing comes close to that rate as being available to CIT customers?  And/or is CIT saying that it expects rates to go up "very soon?"  Or both?
Anonymous   |     |   Comment #2
It was a 10-year brokered CD. In the past two years these have been available in the 3.3% to 2.8% interest range. Current rate is 3.15% for a Goldman Sachs 10-year CD. Most often, the interest is paid to your account twice a year and, therefore, does not compound. If it's a personal account taxes are owed on interest earned. FDIC applies.

Anonymous   |     |   Comment #3
And your point is?    If CIT will not offer directly FDIC CDs w/o the middle "man" at a comparable rate why should anyone do business with CIT directly?