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CIT Bank Increases Rates on 1-, 2- and 3-Year CDs and IRA CDs


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CIT Bank increased the rates today on several of its CDs and IRA CDs. Most of its 1-, 2- and 3-year CD and IRA CD rates went up by 5 basis points. The 4- and 5-year CD rates remained the same. That continues a trend that we’ve been seeing this year in which long-term rates stagnate while short-term rates inch up.

CIT Bank’s CD rates are now even more competitive. Its 2-year RampUp Plus CD now has a 1.40% APY which is just 1 basis point under the rate leader (PenFed). When you factor in the two RampUp Plus CD features (one-time add-on deposit and a one-time rate bump), it becomes the best deal for a 2-year term.

CIT Bank’s 1-year RampUp Plus CD isn’t quite as competitive as the 2-year, but it’s still a very good deal. It now has a 1.25% APY, and like the 2-year CD, customers are allowed one add-on deposit and one rate bump during the term.

Below is the full list of CDs that had rate increases today. Note, these same rates apply to CIT Bank’s IRA CDs.

0.40%$1k-CIT Bank2-Year Term CD
0.40%$1k-CIT Bank3-Year Term CD
0.40%$100k-CIT Bank3-Year Jumbo CD
0.30%$1k-CIT Bank1-Year Term CD
Rates as of April 12, 2024.

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  • 3 months’ interest for the amount withdrawn if your account has an original maturity of one year or less
  • 6 months’ interest for the amount withdrawn if your account has an original maturity of more than one year and less than or equal to three years
  • 12 months’ interest for the amount withdrawn if your account has an original maturity of more than three years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 2-Year and 1-Year RampUp Plus CD

For those who prefer short-term and mid-term CDs, the RampUp Plus CDs have become a good deal. They have two features that can be helpful. First, they have 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 one of these CDs, you may want to consider using the ramp-up option now. You may be tempted to wait longer for a higher rate. 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. In that case, you can add to this CD rather than opening a short-term CD. The RampUp Plus CD rate will probably be higher than the short-term CD if rates stay low.

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 financial 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 2.71% (excellent) based on December 31, 2014 data. It’s also a sizable internet bank with over $21 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 and 2-Year RampUp Plus CD Rates Compare

For simplicity, I just compared the two RampUp Plus CDs with the best regular CD rates from other banks and credit unions. All CDs included are nationally available. As you can see, the RampUp Plus CDs compare favorably even when you don’t take into consideration the add-on and bump-up features.

To search 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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  |     |   Comment #1
The bump up will soon be limited to 2x-0.05%. If you login you might be offered higher rates, eg, 0.08% on the 2 year bump CD or 0.1% on the 5 year CD.
  |     |   Comment #2
With the bonus rate the results are:
1.30% for 1 Year RampUp Plus CD
1.48% for 2 Year RampUp Plus CD
2.37% for 5 year Jumbo CD

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