CIT bank is a fully digital, online financial institution, offering a variety of banking and lending products including CDs. Unlike many financial institutions, CIT has a decent variety of CD options to help you to choose the one best suited to your requirements and preferences.
This includes term CDs, no penalty CDs, Jumbo CDs for those with a large sum to invest and for existing customers, the Ramp Up CDs. But, how do the CIT CD rates stack up against the competition? Here we’ll delve into these products in more detail.
CIT Bank CDs
APY Range
Minimum Deposit
Terms
Our Rating
APY Range
Minimum Deposit
Terms
Our Rating
CIT Bank CD Rates
The CIT standard CD is called its Term CD. This is available in a variety of terms from six months to five years. The current rates vary from 0.30% – 3.50%. CIT offers some of the highest rates for 6-month CDs.
CD Term | APY |
|---|---|
6 Months | 3.00% |
11 Months – No Penalty | 3.50% |
13 Months | 3.50% |
18 Months | 3.00% |
36 Months | 0.40% |
48 Months | 0.50% |
60 Months | 0.50% |
CIT also has an 11 month no penalty CD, currently offering a rate of 3.50%. Again, you’ll need a minimum opening deposit of $1,000, but there are no maintenance fees. You’ll receive daily compounding interest, but if you need access to some or all of your funds before maturity, there is no penalty.
The CIT Bank Jumbo CD is available with a two, three, four or five year term. You’ll need a minimum of $100,000 to open this type of CD and you can receive a rate of 0.50% for five-year terms and 0.40% for the two or three-year terms.
Therefore, you won't be able to utilize long-term CDs offering high rates. Therefore, if your interest lies in finding the best 5-year CD rates, you'll have to explore options at different banks.
How Much Can You Earn If You Deposit $10,000 Today?
Using our CD calculator, you can calculate the anticipated earnings (before taxes), assuming interest compounds every day and there is no early withdrawal fee:
* Make sure to adjust APY, terms and deposit
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How CIT Bank CDs Work
There is a minimum opening deposit of $1,000 required for the Term CDs and you can lock in your rate for the full term length. There are no maintenance fees and interest is compounded daily.
However, if you do need to access the funds before the CD maturity date, you will incur an early withdrawal penalty. This is calculated according to your full CD term. If the term of your CD is one year or less, the penalty is three months of simple interest. This increases to six months simple interest for terms of one year to three years and 12 months of simple interest for CD terms over three years.
For existing customers, there is also the RampUp CD. This is available with a choice of one, two, three or four year terms, requiring a minimum initial deposit of $25,000 (except for the four year RampUp, which requires $50,000.) The current rate for these CDs is 0.25% and the same early withdrawal fees as the term CDs apply if you withdraw some or all of your funds before the maturity date.
CD Term | Early Withdrawal Penalty |
|---|---|
6 Months | 3 months of interest
|
11 Months – No Penalty | / |
13 Months | 6 months of interest |
18 Months | 6 months of interest |
36 Months | 6 months of interest |
48 Months | 12 months of interest |
60 Months | 12 months of interest
|
Are CIT Bank CD Rates Competitive Compared to Other Banks?
The current national average rate for 12 month CDs in the US is approximately 1.73%, which means that CIT CD rates are a mixed bag in terms of being competitive.
While the No Penalty CD and the 13 and 18 month Term CDs offer several times the national average rate, the other CD products fall well below this average. However, this does not mean that CIT Bank is not competitive compared to other banks.
When you’re comparing CIT Bank CDs with many traditional banks, CIT rates are quite favorable. Many traditional banks rarely offer lower rates on CDs. This is typically because traditional banks need to cover the cost of maintaining a branch network, which CIT Bank does not have.
The comparison between CIT Bank and other online banks is a little more tricky. Online banks and credit unions typically offer the highest CD rates, so in some cases CIT stands up favorably, but with some of its other products, they fall short. For example, the Jumbo CD has a high minimum deposit and yet offers a lower rate than the 11 month No Penalty CD, which only requires a $1,000 initial deposit.
So, if you’re looking for the best possible rates, you’ll need to look carefully at specific CIT Bank products and compare CD like for like with other banks.
CIT Bank CD Rates vs CIT Bank Savings Rates
CIT offers several savings accounts, all with a minimum opening deposit requirement of $100. This makes them more accessible than the CIT Bank CDs, which need at least $1,000. The most favorable product for comparison is the Platinum Savings account.
CIT Platinum Savings currently offers a rate of Up to 4.35%, which is more than many of the CD products, with the exception of six, 13 and 18 month Term CDs and 11 month No Penalty CD. The key difference is that with the savings account, you can access your funds at any time.
You need to also have an e-checking account. So, if you’re looking for just one account to place your funds, you may not want a Savings Connect.
CDs | Savings | |
|---|---|---|
APY | 0.30% – 3.50% |
Up to 4.35% |
Minimum Deposit | $1,000 |
$100 |
Fees | $0 | $0 |
CIT Bank CD Rates vs Money Market Account Rates
CIT Bank does have a money market account, which currently offers a rate of 1.55%, which again is higher than many of the CD products. The money market account has a minimum opening deposit of $100 and no monthly service fees. With this account, you can have easy access to your funds, via bank transfer, or Zelle, but there is no associated debit card or checks.
As with the savings account, the main reason why you would opt for a CD rather than a money market account is that a CD allows you to lock in your rate. So, if the base rate drops, you will continue to receive the same rate, which will not happen with the money market account.
About CIT Bank
CIT Bank is a division of First Citizens Bank. This makes it part of a long and illustrious banking history, as First Citizens Bank is the largest family-controlled bank that dates back to 1898. However, one of the drawbacks of CIT Bank is that it is a fully online bank with no physical branches.
CIT Bank has a decent selection of personal and business banking products, including several savings accounts, an e-checking account, home loans, and CDs.
FAQs
Does CIT Bank Offer No Penalty CD Rates?
Yes, CIT Bank has an 11 month, no penalty CD, which offers an impressive rate and no penalty if you need to withdraw all or some of your funds before maturity. It's included on our best CDs for no penalty in March 2025.
Do CIT Bank CDs come with a grace period?
Yes, CIT Bank CDs have a 10 day grace period. All CIT Bank CDs auto renew, but with the 10 day grace period, you can make changes, withdraw funds, add more funds or close the account with no penalty.
Once this grace period has elapsed, your CD will renew on a like for like basis. This means that if you had a 12 month CD, unless you otherwise change it, it will renew for another 12 month CD.
How CIT Bank CDs interest are calculated?
Interest on CIT Bank CDs is compounded daily and credited to your account monthly.
How does the CIT Bank early withdrawal penalty work?
The early withdrawal penalty is calculated according to your original CD term. For CD terms of less than one year, the penalty is three months of simple interest.
Terms of one to three years, the penalty is six months simple interest and there is a penalty of 12 months of simple interest if your CD term is over three years.
How We Rate Certificates of Deposits: Our Methodology
The Smart Investor team has thoroughly examined certificate of deposit (CD) offerings from various banks, considering multiple factors to provide a comprehensive evaluation. Here's how we rated them across four key categories:
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CD Rates (50%): We meticulously analyzed the interest rates offered by each bank on their certificate of deposit (CD) products. Higher ratings were awarded to banks offering competitive rates that provide maximum returns for customers' investments. Factors such as the yield curve, current market conditions, and consistency of rates were considered to assess the attractiveness of each bank's CD rates.
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CD Features (30%): This category evaluated the features associated with each bank's certificate of deposit offerings. Factors considered include the variety of terms available, early withdrawal penalties, minimum deposit requirements, and any additional features or benefits. Higher ratings were given to banks offering a diverse range of CD terms, reasonable early withdrawal fees, and flexible options to meet customers' investment needs.
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Customer Experience (10%): A positive customer experience is paramount, even when investing in CDs. We assessed each bank's performance in this area, considering factors such as the ease of opening a CD account, the responsiveness of customer service, and overall user satisfaction. Higher ratings were assigned to banks with efficient account opening processes, helpful customer support, and a track record of satisfying customers.
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Bank Reputation (10%): The reputation of a bank is a critical consideration when investing in CDs. We evaluated each bank's reputation based on factors such as financial stability, regulatory compliance, and public perception. Higher ratings were given to banks with a solid reputation for reliability and trustworthiness, ensuring customers' investments are safe and secure.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when investing in certificate of deposits.
