Table Of Content
Two major players in the CD market are CIT and Synchrony, both of which offer a range of terms and interest rates. In this article, we'll compare CIT and Synchrony CDs, focusing on their different terms and early withdrawal fees.
By the end of this article, you'll have a clear understanding of the similarities and differences between these two CD providers and be better equipped to choose the best option for your financial goals.
CIT Bank | Synchrony Bank | |
|---|---|---|
CD Range | 0.30% – 3.50% | UP TO 4.85 % |
Minimum Deposit | $1,000 | $0 |
Early Withdrawal penalty | 3 – 12 months of interest | 90 – 365 days of interest |
Terms | 6 months – 5 years | 3 months – 5 year |
CD Rates Comparison
There is no clear winner in the CD battle between CIT and Synchrony bank, but the options you'll get with Synchrony bank seem to be better.
First, Synchrony CD rates on long-term 36, 48, and 60 months CDs are higher than CIT offers. In addition, Synchrony offers a CD for 3 -months which is not available with CIT Bank.
While CIT offers higher rates on specific terms, both CIT Bank and Synchrony offer very competitive CD rates compared to other banks.
CD Term | CIT Bank | Synchrony Bank |
|---|---|---|
3 Months | N/A | 0.25% |
6 Months | 3.00% | 4.40% |
9 Months | N/A | 4.85% |
12 Months | 3.50% (13 months) | 4.70% |
18 Months | 3.00% | 4.25% |
24 Months | N/A | 4.00% |
36 Months | 0.40% | 4.15% |
48 Months | 0.50% | 4.00% |
60 Months | 0.50% | 4.00% |
No Penalty CDs: CIT Bank Offers Better Rate
The No-Penalty CD from Synchrony Bank comes with an 11-month term and an attractive fixed rate, without requiring a minimum balance to open. After the first six days of account funding, you can withdraw your funds at any time without any penalty. This is a novel approach to smarter savings with Synchrony Bank.
Similarly, CIT offers an 11-month no-penalty CD with daily compounding interest. As of October 2024, the rate offered by CIT Bank is a slightly higher than what Synchrony offers.
CIT Bank | Synchrony Bank | |
|---|---|---|
11 Months | 3.50% | 0.25% |
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CD Early Withdrawal Penalty: How They Compare?
Synchrony and CIT Bank early withdrawal rate is quite similar.
The penalty amount for early withdrawal from your CD is determined by the term of your CD. If your CD term is 12 months or less, you will be charged a penalty equal to 90 days of simple interest.
However, if your CD term ranges from 12 to 36 months, the penalty increases to 180 days of simple interest, and for terms longer than 36 months, the penalty is 365 days of simple interest.
CD Term | CIT Bank | Synchrony Bank |
|---|---|---|
3 Months | N/A | 90 days of interest |
6 Months | 3 months of interest
| 90 days of interest
|
9 Months | N/A | 90 days of interest |
12 Months | 6 months of interest | 90 days of interest |
18 Months | 6 months of interest | 180 days of interest |
24 Months | N/A | 180 days of interest |
36 Months | 6 months of interest | 180 days of interest |
48 Months | 12 months of interest | 365 days of interest |
60 Months | 12 months of interest
| 365 days of interest |
About Synchrony Bank
Established in 2003, Synchrony is a fully online bank that aims to offer technology and financial solutions to help its customers achieve their goals.
As an online bank, Synchrony does not have any physical branches, but it provides a generous ATM policy. Customers are reimbursed up to a monthly limit for domestic ATM fees charged by the machine owner.
Synchrony has earned a solid reputation for its impressive rates on savings accounts, CDs, and money market accounts. In addition, it offers a line of credit cards. However, the bank does not provide checking accounts at present. So, if you intend to transfer all of your day-to-day finances to a new bank, Synchrony may not be the best option for you.
About CIT Bank
CIT Bank is an online bank that was founded in 2009 and is a subsidiary of CIT Group Inc. With no physical branches, CIT Bank's products and services are entirely online. The bank offers a range of accounts, including savings accounts, checking accounts, CDs, and money market accounts, all with competitive interest rates. CIT Bank also provides loans, including personal loans, mortgages, and home equity loans.
One of CIT Bank's standout features is its commitment to transparency. The bank discloses all of its fees and penalties upfront, making it easy for customers to understand the costs associated with its products. It also offers a range of mobile and online banking tools, including a mobile app and online bill pay.
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How We Compare CDs: Methodology
In our comprehensive certificate of deposit (CD) comparison, The Smart Investor team meticulously evaluated various CDs across four key categories to assist you in selecting the most suitable option for your savings goals.
- CD Rates: We thoroughly examined the interest rates offered by each CD, considering their competitiveness in the market. Higher rates typically translate to greater returns on your investment over the CD's term. Additionally, we scrutinized any special promotional rates or conditions that might affect the overall value of the CD.
- CD Features: This category focuses on the unique features and terms associated with each CD. We assessed factors such as minimum deposit requirements, early withdrawal penalties, and the availability of flexible terms. Additionally, we considered any additional perks like interest compounding frequency or options for automatic renewal.
- Customer Experience: A positive customer experience is crucial in banking, and we evaluated each institution's performance in this regard. We looked into aspects such as the ease of opening a CD, the quality of customer service, and the availability of support channels. Reviews from reputable sources such as Trustpilot and JD Power rankings were also considered to gauge overall user satisfaction.
- Bank Reputation: The reputation of the bank is a significant factor in the decision-making process. We examined the bank's financial stability, regulatory compliance, and public perception to assess its overall trustworthiness and reliability as a CD provider.
