CIT Bank CD rates aren’t very competitive compared to other top financial institutions, but the bank does offer a broader range of account types than many of its competitors. For example, CIT Bank offers an 11-month no-penalty CD in addition to its regular term CDs.
The bank’s traditional term CDs can last anywhere from six months to five years, during which you earn interest with a fixed rate you agree to ahead of time.
Here are CIT CD rates, the minimum deposit amount required and other details you’ll need to know before getting a CD with CIT Bank.
Overview of CIT Bank CDs
CIT Bank is an online-only financial institution that offers certificates of deposit (CDs), savings accounts, a money market account, an online checking account and home loans. CIT Bank requires a minimum deposit of at least $1,000 to open a CD, although there are no account opening or monthly maintenance fees.
The chart below shows today’s CIT Bank CD rates for various term lengths as of April 2024.
CIT Bank term CD rates
| Term | Annual percentage yield (APY) |
|---|---|
6 month CD | 3.00% |
12 month CD | 0.30% |
13 month CD | 3.50% |
18 month CD | 3.00% |
24 month CD | 0.40% |
36 month CD | 0.40% |
48 month CD | 0.50% |
60 month CD | 0.50% |
CIT Bank jumbo CD rates
| Term | Annual percentage yield (APY) |
|---|---|
24 Month CD | 0.40% |
36 Month CD | 0.40% |
48 Month CD | 0.50% |
60 Month CD | 0.50% |
CIT Bank no-penalty CD rates
| Term | Annual percentage yield (APY) |
|---|---|
11 Month CD | 3.50% |
Understanding the earning potential with CIT Bank’s CD rates
How much interest you can earn with CIT Bank CD rates depends on the amount you deposit, the term length of the CD and where rates fall on the date you fund your account.
As you can tell by the advertised rates from CIT Bank, you’ll earn the most if you opt for a CD that lasts for six months, 13 months or 18 months, or if you open one of CIT Bank’s 11-month, no-penalty CDs.
The chart below shows how much interest you could earn with various CDs from CIT Bank.
| Amount deposited | CD term | Interest rate | Total interest earned |
|---|---|---|---|
$5,000 | 6 months | 3.00% | $75.47 |
$5,000 | 13 months | 3.50% | $192.94 |
$5,000 | 18 months | 3.00% | $229.85 |
$10,000 | 6 months | 3.00% | $150.94 |
$10,000 | 13 months | 3.50% | $385.87 |
$10,000 | 18 months | 3.00% | $459.69 |
$25,000 | 6 months | 3.00% | $377.35 |
$25,000 | 13 months | 3.50% | $964.68 |
$25,000 | 18 months | 3.00% | $1,149.23 |
Comparing CIT Bank’s CDs with other financial institutions
When you compare CIT Bank CD rates to rates from other financial institutions, you can see how they lag.
The chart below provides a side-by-side comparison of CD rates from CIT compared to banks that offer more competitive rates for their certificates of deposit.
| CD term | CIT Bank | Barclays | Capital One | Marcus by Goldman Sachs |
|---|---|---|---|---|
12 months | 0.30% | 5.00% | 4.80% | 4.90% |
18 months | 3.00% | 4.50% | 4.45% | 4.60% |
24 months | 0.40% | 4.00% | 4.00% | 4.20% |
36 months | 0.40% | 3.50% | 4.00% | 4.15% |
48 months | 0.50% | 3.50% | 3.95% | 4.05% |
60 months | 0.50% | 3.75% | 3.90% | 4.00% |
The consequences of early withdrawal from a CD
Like other banks that offer CDs, CIT Bank will impose penalties if you need to access funds deposited in this type of account before the CD reaches maturity.
If you deposit $10,000 into a 24-month CD with CIT Bank but you need the money before two years are up, for example, you will have to give up some of the interest you earned to make a withdrawal.
CIT Bank early withdrawal penalties for its CDs vary based on the initial term length chosen.
- For terms up to one year, the early withdrawal penalty equals three months of simple interest.
- For terms between one and three years, the early withdrawal penalty is six months simple interest.
- For terms longer than three years, the penalty is 12 months of simple interest.
Deciding between a CD or a savings account
One of the biggest downsides of this type of account is that you typically have to pay early withdrawal penalties if you need to access money in a CD early.
The other is the fact you have to “lock in” an interest rate for a specific amount of time. This can mean missing out on greater returns if interest rates rise during your CD’s term, but of course the opposite is also true and you can wind up earning more if rates drop.
Ultimately, this is part of the reason you’ll want to choose carefully between certificates of deposit and online savings accounts. The upside of a savings account is that you can access your funds at any time without any penalty, and often with rates that are competitive with the best CD rates available.
On the flipside of that, your savings account interest rate can rise or fall based on market conditions, and you can’t lock in your rate like you can with a CD.
Should You Get a CIT CD Account?
Because CIT Bank CD rates aren’t as high as many other banks offer, you should probably look elsewhere — at least for now. There are quite a few banks that offer online CDs with more competitive rates and no minimum deposit requirements, and it makes sense to secure a higher return on your savings when you can.
How to open a CIT Bank CD
To open an account with CIT Bank, you’ll head to the bank’s main website. From there, you will follow the instructions to open the account of your choosing, which requires you to submit the following information and documentation:
- Full name, address and phone number
- Social Security number (SSN)
- Driver’s license or other valid state identification
You’ll need to create an account login and password to open a CD with CIT Bank. You’ll also need to submit a check or your bank routing and account numbers from a bank you’ll use to fund your account.
Is CIT Bank FDIC Insured?
Yes, CIT Bank is FDIC-insured. The CDs are held under the names of First Citizens Bank and Trust Company (FCB), which is an FDIC-insured institution. This means money kept in a CIT Bank CD is insured in amounts up to $250,000 per depositor, per institution and for each ownership category.
Frequently asked questions (FAQs)
Some of CIT Bank’s CD rates are higher than the national average, whereas others are not. For example, the national average rate for a six-month CD is 1.57% APY as of April 15, 2024 per the FDIC, whereas a CD with the same term from CIT Bank earns 3.00% APY.
Meanwhile, a 60-month CD from CIT Bank earns just 0.50% APY, compared to the national average of 1.39% APY.
CIT Bank offers more than just certificates of deposit (CD). You can turn to the bank for savings accounts, money market accounts, an online checking account or a home loan.
CD Bank CDs don’t have any account opening fees or monthly fees, but you will be assessed an early withdrawal penalty if you need to access your funds before your CD reaches maturity.
