Keeping your life’s savings in a traditional savings account is one way to keep your money close and accessible. You’ll earn a little interest each month, and if you maintain a balance, you might earn a few dollars each year.
If you don’t know much about investments and savings accounts, you may not question the slow growth. But there is a better way to earn interest on your money. Ready to take your savings account to the next level? Learn how a 12-month CD from CIT Bank can help you.
Definition of a CD Account
A certificate of deposit, or CD account, is a timed deposit option offered by banks and credit unions. It’s a type of savings account, but unlike an ordinary savings account offered by a bank, a 1-year CD features higher rates. In fact, the typical rate on a CIT Bank CD is also higher than many money market accounts. Why keep your money in a low-rate savings account when you can earn a higher return?
With a CD, the CIT Bank determines the interest rate before you complete the initial deposit, and you’re guaranteed to get back your money, plus interest. It’s one of the safest investment options available.
Not to suggest that ordinary savings accounts are unwise; quite the opposite, as it’s smart to have multiple savings accounts. CIT Achiever certificates of deposit are perfect if you can afford to be without funds for a specific length of time — at least one year in this case. But it’s a good idea to keep some funds in your regular savings for emergency cash.
Because a 1-year CD is a timed deposit, there is a penalty for withdrawing funds before the account matures. With a regular savings, you can quickly access cash for car repairs and other incidentals, while keeping the bulk of your money in a certificate of deposit.
How Does a CIT Achiever CD Work?
Acquiring a 12-month CD with CIT Bank is not difficult, nor is the concept difficult to understand. By opening a CD account, you give the bank permission to use your money. The bank may use these funds to create new loans, or invest the money.
As compensation for your deposit, the bank will pay you interest on the deposit. As expected, 1-year CD rates are lower than the rate on longer CDs. As of December 2012, the interest rate on a CIT Achiever 12-month CD is 1.05% APY.
CIT Bank Review: Why Bank on CIT?
Practically every bank offers a certificate of deposit, so why should you bank with CIT? It’s all about the product features. A CIT Bank CD does have a high minimum deposit requirement of $25,000, which may not be feasible for some people. But if you can afford this minimum, there are many reasons to invest in a 12-month CD.
- Higher interest rate during CD term
- No fee to open a CD account
- No monthly maintenance fees
- CD accounts are FDIC-insured
- Automatically renew your CIT Achiever at maturity
- Option to increase your deposit during CD term
- Daily compounding interest
Opening Your CIT Bank CD
Ready to earn a higher interest rate on your money? Visit the institution’s website and select the best product for your needs. If you’re not an existing member, make sure to have your Social Security number and driver’s license/passport number ready, as well as the bank account number of any existing bank account.
Once you have set up your CD account, transfer money from your checking or savings account directly into your new Achiever CD to start reaping the benefits of saving with CIT Bank.