An inheritance, work bonus or insurance settlement can put sizable cash in your pocket. You might be tempted to make a beeline to your bank and deposit this cash in your savings account, but if you want to get the most out of your savings, consider other investment vehicles.
Bank savings accounts are a safe place to hold your money, and with a savings account, your money is easily accessible. However, if you check the interest rate on most bank savings accounts, the findings might alarm you. Even if you deposit a large sum of money, the amount you earn in interest doesn’t compare with certificate of deposit (CD). Why shortchange your savings?
There is a better way to save. If you have $100,000 or more, and you’re exploring various options, consider a CIT Jumbo 5-year CD.
Explanation of a Certificate of Deposit
If a traditional bank savings account has been your primary savings tool, certificates of deposit may be a foreign concept. Traditional savings accounts are easy to open, and as a result, many people get comfortable with this option — a little too comfortable. However, there are more profitable options available to you.
CDs are extremely popular and favored by conservative investors. With this type of account, you deposit your money with the bank for a specific length of time. In the case of a 5-year CD with CIT Bank, your money remains in the CD for a period of no less than 5 years (or 60 months).
During this period, the bank may invest your money or create loans with the funds. As a thank you, the bank pays you interest on your deposit. This interest rate is higher than traditional savings accounts, online savings accounts and money market accounts. CDs are also safe investments because the bank returns your money, plus interest, when the CD matures.
CIT Bank offers a variety of CD products to accommodate varying financial circumstances. This include short-term CDs that feature a low minimum deposits, as well as the 5-year Jumbo CD option.
A jumbo CD is a certificate of deposit with a very large minimum deposit — typically $100,000. This option can work if you’re looking to maximize your return on a large sum of money. Jumbo CD rates are higher than the rate on other CDs. Plus, the longer you have a jumbo CD, the more you’ll earn. For example, CIT Bank offers 1.75% APY on a 5-year Jumbo CD. This is considerably higher than their offer of 1.40% APY on a 2-year Jumbo CD.
CIT Bank has numerous tools in place to help grow your money faster and maximize your earnings. There is no fee to open an account, nor does the bank charge a monthly maintenance fee. And since interest compounds daily, you earn interest on your interest each day.
Deposits are FDIC insured, and you can opt to automatically renew your 5-year jumbo CD at maturity. Maximizing your return is the perfect way to meet long-term financial goals and save for retirement.
Get Started and Open an Account
Opening a Jumbo CD with CIT Bank is quick and simple. To get started, visit the financial institution’s website and select your CD product. As a new customer, you can open your first account online, or add an account if you’re an existing customer. The application will ask basic information, such as your name and Social Security number, plus you’ll need valid proof of identification. After you’ve completed the application and opened the account, transfer funds from your existing bank account to your 5-year CD.