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Switch From Savings To No-Penalty CD?

StayinAlive
  |     |   33 posts since 2017

1. CIT Bank recently raised their Savings Connect rate to 1.35%, and their no-penalty CD to 1.4%. With rates expected to continue rising, is there any benefit, other than the additional 0.05%, to moving funds from savings to the CD? It seems to me that their savings rate will move up with the next hike, but the CD will remain stagnant.

2. Am I correct in thinking that banks offering no-penalty CDs are looking for new money to build capitalization? If so, would it be a good strategy for them to offer one or more "rate boosts" during the holding period, or would that be too risky for them?

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highly_intrestd
  |     |   23 posts since 2022
I wouldn't bother with the no penalty CD for such a tiny gap, given that we are due for another fed increase in less than a month, the savings rate will easily surpass the 1.4% CD which is fixed, why bother opening that account when your savings will surpass it in a month. You're better off locking a 1 year CD elsewhere (up to 2.5%) or sticking with the savings account.
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