Nichole Martinez
CIT Bank CD rates top out at 3.25% APY, a solid figure for an online bank but not the strongest offer available once you look past the shortest terms.
Where the Best Rates Sit on the Term Ladder
CIT Bank, an online only bank owned by First Citizens Bank, sells certificates of deposit ranging from six months to five years. The standout numbers show up in the middle of the short end: the 13 month CD pays 3.25% APY, while the six month and 18 month terms both pay 2.75% APY. Every one of these requires a minimum deposit of $1,000.
Once you move past 18 months, the picture changes sharply. The 12 month term pays just 0.30% APY, and the two year and three year terms both sit at 0.40% APY. Four year and five year CDs pay 0.50% APY. In other words, locking up money for longer at CIT Bank does not reward you the way it might elsewhere. Savers chasing yield on multi year terms will likely do better shopping around.
| CD Term | APY | Minimum Balance |
|---|---|---|
| 6 months | 2.75% | $1,000 |
| 12 months | 0.30% | $1,000 |
| 13 months | 3.25% | $1,000 |
| 18 months | 2.75% | $1,000 |
| 24 months | 0.40% | $1,000 |
| 36 months | 0.40% | $1,000 |
| 48 months | 0.50% | $1,000 |
| 60 months | 0.50% | $1,000 |
The No Penalty CD and Jumbo Options
CIT Bank also sells an 11 month no penalty CD paying 3.25% APY with the same $1,000 minimum. This product lets you pull your money out early without losing interest, a genuine perk for savers who worry about needing cash before maturity but still want a rate above what a typical savings account pays.
Jumbo CDs, which require a $100,000 minimum, follow the same lackluster pattern as the standard longer terms. Two year and three year jumbo CDs pay 0.40% APY, and four year and five year jumbo CDs pay 0.50% APY. Putting more money down does not buy a better rate here, so there is little reason to choose the jumbo tier over the standard CDs unless you specifically need an account structured that way.
| Product | Term | APY | Minimum Balance |
|---|---|---|---|
| No Penalty CD | 11 months | 3.25% | $1,000 |
| Jumbo CD | 2 years | 0.40% | $100,000 |
| Jumbo CD | 3 years | 0.40% | $100,000 |
| Jumbo CD | 4 years | 0.50% | $100,000 |
| Jumbo CD | 5 years | 0.50% | $100,000 |
How Withdrawal Penalties and Fees Work
CIT Bank does not charge fees to open or maintain a CD. The one cost to watch is the early withdrawal penalty, which scales with the term length. Pull money from a CD with a term of one year or less and you forfeit three months of simple interest. Terms between one and three years carry a six month simple interest penalty, and anything three years or longer carries a full 12 months of simple interest as the penalty.
There is a small cushion built in after a CD renews automatically: customers get a 10 day grace period during which they can withdraw funds without facing a penalty. Interest compounds daily across the standard CD lineup, which modestly boosts the effective yield over the stated APY.
Weighing the Pros Against the Drawbacks
The case for CIT Bank rests on three things: the no penalty CD option, a genuinely competitive rate at select terms, and a range of term lengths that gives savers some flexibility in matching a CD to their timeline. The 13 month and six month rates in particular hold up well against much of the online banking market.
The drawbacks are just as clear. Rates on the one, two, three, four, and five year terms lag well behind what many competing banks and credit unions offer, meaning a saver who wants a longer term deposit could likely find a meaningfully better return elsewhere. There is also a flat $1,000 minimum deposit on every standard CD, and jumbo CDs demand $100,000, which shuts out savers with smaller balances from that tier entirely.
What Else CIT Bank Offers Account Holders
Beyond CDs, CIT Bank runs savings accounts, a money market account, and an e-checking account, all under the same online only structure. There are no branches and no proprietary ATM network, but the bank does not charge its own ATM fees and reimburses customers up to $30 a month for fees charged by other banks' machines.
Every CD and deposit account at CIT Bank carries FDIC insurance up to $250,000 per depositor, the same standard protection that applies at any FDIC member bank. Savers holding accounts at several institutions get that $250,000 of coverage separately at each one.
Alternatives Worth Comparing Before You Commit
Because CIT Bank's rates thin out past 18 months, it pays to look at what else is on the market before locking money away for years. Several banks and credit unions post higher yields on comparable terms, and comparison shopping among the best CD rates can turn up meaningfully better returns for the same commitment.
- High yield savings accounts: these offer rates close to top CDs without locking up your funds, useful if you might need the money on short notice.
- Money market accounts: similar to savings accounts but often paired with check writing privileges and sometimes a debit card, with rates that can rival top CDs and savings accounts.
- Series I bonds: these carry a fixed rate plus an inflation adjusted rate that resets every six months, an option worth considering if you are wary of committing to a fixed CD rate for years at a time.
Choosing the Right Term for Your Own Timeline
Getting the strongest return from CIT Bank means picking the six month term and letting it run to maturity, though that short window means the rate you get upon renewal could end up lower than what you locked in originally. Savers who expect interest rates to fall and want to lock in a rate for longer may find the 18 month CD a reasonable middle ground between yield and duration.
Opening an account is straightforward since CIT Bank operates entirely online. Applicants provide basic personal details, including a Social Security number, then fund the CD with at least $1,000 through an electronic transfer, mailed check, or wire. The bank confirms the new account by email once it receives the deposit.
Jenny Ellis
