CIT Bank CD Rates: January 2025

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December 30, 2024
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Learn how much you can earn with a CIT Bank certificate of deposit

Fact checked by Michael Rosenston

CIT Bank is one of the nation’s most popular online banks. In addition to its other bank services, CIT Bank offers certificates of deposit (CDs), with terms ranging from six months to five years. The bank’s CDs have interest rates of up to 3.5%, which is fairly good, but not as competitive as some of the best CD rates.

Compare CIT Bank CD Rates

When it comes to choosing the right CD rate, it’s important to consider more than just APY. Before putting your money in a CD, consider how much you plan to deposit and how long you want your money locked up. Those factors can help you choose the right bank.

Another consideration is the early withdrawal penalty. Many banks impose a penalty when you withdraw the funds from your CD before the maturity date. These penalties are often based on a certain number of months of interest, as is the case with CIT Bank.

Like CIT Bank, some banks may also offer a penalty-free CD. If you think you may need to access your funds before your CD matures, looking at your penalty-free options may be a good idea.

CIT Bank CDs: Key Features

In addition to its standard and jumbo term CDs, CIT Bank offers an 11-month no-penalty CD. With an attractive interest rate and a minimum deposit of $1,000, this CD allows you to access your funds at any time before maturity without penalties.

Pros and Cons of CIT Bank CDs

Pros

No-penalty CD option
Fairly competitive rate
Varying terms

Cons

Potentially better rates elsewhere
Minimum deposit

Pros Explained

No-penalty CD option: CIT Bank offers an 11-month CD that has no penalty for early withdrawal.
Fairly competitive rate: CIT offers rates as high as 3.5%, which is higher than rates on many other CDs.
Varying terms: CIT Bank offers CDs in different term lengths, which can provide flexibility.

Cons Explained

Potentially better rates elsewhere: CIT Bank CDs are fairly competitive, you can most likely find even higher rates by shopping around.
Minimum deposit: Like many CDs, CIT Bank CDs have a minimum deposit requirement. You will need to invest at least $1,000. For Jumbo CDs, you will need at least $100,000.

About CIT Bank

CIT Bank, a subsidiary of First Citizens Bank, is an online-only bank. CIT Bank doesn’t have an ATM network. However, it doesn’t charge its customers any ATM fees, and it provides reimbursement of up to $30 per month for other banks’ ATM fees.

CIT Bank also offers savings accounts, a money market account, and an e-checking account.

Alternatives to CIT Bank CDs

High-yield CDs: There are many nationwide providers of CDs, and although some of CIT Bank CD rates are decent, you can potentially find better CD rates. There are many online banks and credit unions offering excellent APYs for a wide variety of terms, giving you more investing flexibility.
High-yield savings accounts: If you don’t want to commit to locking your money in an account for months or years, another option is a high-yield savings account (HYSA). HYSAs offered by banks and credit unions have rates similar to those of top CDs, yet they provide more flexibility since your money is easily accessible.
Money market accounts: Money market accounts (MMAs) are another common investment tool; they’re like savings accounts, but they allow you to write checks and sometimes they come with ATM and/or debit cards. The best MMAs have rates similar to those of the best CDs and savings accounts.
Series I bonds: CDs have locked-in APYs for their term duration, but if you’re worried about how fluctuating interest rates will affect your overall CD strategy, consider opening a Series I bond instead. These bonds are designed to protect you against inflation. They earn both a fixed rate of interest and a rate that changes every six months to adjust for inflation.

Frequently Asked Questions (FAQs)

Is CIT Bank CD FDIC Insured?

Yes, CDs at CIT Bank are FDIC-insured. Like most banks, CIT Bank’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. If you have CDs or other deposit accounts at multiple banks, you’ll have up to $250,000 of coverage at each bank.

Are CIT Bank CD Rates Competitive?

CIT Bank has some of the best maximum CD rates on the market. But whether they are best for you depends on the CD term you are interested in. CIT Bank has high APYs for its CDs with terms of six months, 13 months, and 18 months. However, for its one-, two-, three-, four-, and five-year CD terms, CIT Bank is much less competitive.

How Do You Get the Best CD Rate With CIT Bank?

You’ll get the best CD rate with CIT Bank by choosing the six-month term and leaving your money in place until the CD matures.

However, because of the short term on this CD, you may have a new interest rate—and possibly a lower one—when your CD renews. If you anticipate interest rates may go down, and you want a longer term, you may have the best return by opting for the 18-month CD.

Are There Fees That CIT Bank Charges to Maintain Your CD?

CIT Bank doesn’t charge account opening or maintenance fees on its CDs. The only fee you may be subject to is an early withdrawal fee if you take your money out of the CD before it reaches maturity.

How Do You Open a CD With CIT Bank?

Because CIT Bank is an online-only bank, you can easily open a CD online in just a few simple steps. First, you’ll provide personal information like your name, Social Security number, and contact information. Next, you’ll need to transfer at least $1,000 via electronic transfer, a mailed check, or a wire to open the account. Once your transfer has been received, your CD account will be opened, and you’ll receive a confirmation email.