CIT Bank CD Rates and Terms

Review of: CIT Bank CDs
Savings Account:
CIT Bank
1.06% APY

Reviewed by:
On October 17, 2012
Last modified:October 29, 2012


CIT Bank CDs have competitive rates than their peers. With a minimum initial deposit of $1,000, you can open a 1-year CD account and earn 1.06% yield. The account is FDIC insured up to $250,000.

These days, if you want to have a short-term saving vehicle that gives you better than 1% APY yield, you will have to look at Certificate of Deposit (CD) instead of the more liquid savings accounts, thanks to the Fed’s low rate policy that has been in place since 2008. The policy was designed to spur economic recovery by lowering short-term borrowing costs, however four years later, the recovery is still pretty weak and we ordinary people who work very hard in such a tough economic environment are left with dismal return for their money.

Usually, when we discuss short-term saving goals and ways to help us achieve these goals, we are talking about saving for a new car, a home improvement project, or a vacation, objects that we can accomplish normally in less than a five-year frame. For such a short time, putting money in the stock market is usually not a sound option because of the volatility and the potential of losing money. So essentially, for short-term, the safety of the capital is more important then return. But that doesn’t mean that we shouldn’t seek good return for the money.

To meet our short-term saving goals, there are a few vehicles we can choose, including short-term Treasury bills, money market funds, savings accounts and Certificate of Deposits. Among them, short-term CDs, with terms from 6 months to 5 years, are a valid option because they provide savers both protection and growth of the principal.  Today, I want to talk about CD products from CIT Bank, which offers attractive rates for different terms and minimum balances.

CIT Bank currently offers three different flavors of CDS, Term CD, Achiever CD, and Jumbo CD, depending on the amount of initial deposit you want to put in the CD. For a small amount of $1,000, you can get one of CIT Bank’s Term CDs:

  • 6-month: 0.45% APY
  • 1-year: 1.06% APY
  • 2-year: 1.20% APY
  • 3-year: 1.42% APY
  • 5-year: 1.80% APY

To see whether you get a good deal with CIT Bank CDs, let me compare the 1-year CD with the same offers from other popular banks such as

As you can see from the above comparison  CIT Bank 1-year CD does have a competitive rate, even though it requires a little bit higher initial deposit. For 5-year CD, CIT Bank also stands out among its peers with a 1.80% APY. Of course, a longer term requires a longer commitment. If you want to maintain some flexibility while getting better yield than the 1-year 1.06% APY, consider building a CD ladder with different maturity, from 1-year all the way to 5-year, instead.

If you have a larger amount you want to put into a CD, then consider the Achiever CD or even Jumbo CD from CIT Bank. The minimum deposit required for the Achiever CD is $25,000 and for that amount of money, you get 1.10% APY in return for a 1-year and 1.25% APY for a 2-year Achiever CD. For an initial deposit of $100,000 or more, CIT Bank’s Jumbo CD becomes available, but with a longer term. Currently, the rate of 2-year Jumbo CD is 1.25%, 3-year 1.44%, and 5-year 1.85%.

Personally, I think CIT Bank’s Term CDs are more attractive than its Achiever or Jumbo CDs because the latter requires significantly higher initial deposit, yet the yield is only marginally higher than what the Term CDs offer with the same term. What do you think?

CIT Bank CDs have competitive rates than their peers. With a minimum initial deposit of $1,000, you can open a 1-year CD account and earn 1.06% yield. The account is FDIC insured up to $250,000.

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