CIT Bank CD Review: Many Options With No Fees

CIT Bank CD rates and terms appeal to small investors as well as high rollers.

CIT Bank is known for its business lending expertise, but its 2015 merger with OneWest Bank gave it a solid footing in retail and commercial banking. OneWest Bank has 70 branches in Southern California, but customers throughout the U.S. can take advantage of the CIT Bank certificate of deposit portfolio via its online banking option.

CIT Bank is right on trend with its online banking because 62 percent of Americans prefer to bank online, according to Bank of America’s 2016 Trends in Consumer Mobility Report. CIT Bank CD rates are attractive and the bank serves both consumers and businesses. Keep reading to find out more about CIT Bank and decide whether it’s the best online bank for you.

CIT Bank CD Review

CIT Bank offers a full array of financial products, including CDs. All CIT Bank CDs include the following features:

  • No fees
  • Interest compounded daily
  • FDIC insurance to $250,000
  • Online transaction monitoring, layered security and firewalls to prevent fraud

This CIT Bank review¬†takes a closer look at the bank’s five CD options because each has special features. Check out the CIT Bank CD lineup:

  1. Term CDs: These CDs’ terms run up to five years, require a minimum opening deposit of $1,000 and earn up to 1.70% APY.
  2. No-Penalty CDs: You can get a term as long as 11 months and withdraw the full balance and interest seven days after the funding date. This CD has a lower interest rate of up to 1.25% APY and requires a $1,000 minimum deposit.
  3. RampUp CDs: Available in three- and four-year terms, these CDs pay up to 1.38% APY and require a $25,000 and $50,000 minimum deposit, respectively.
  4. RampUp Plus CDs: You’ll need a $25,000 minimum opening deposit for one of these. You can choose between a one- or two-year term and you’ll earn up to 1.27% APY.
  5. Jumbo CDs: These CDs come with the highest deposit requirements — and jumbo CDs offer the most interest at up to 1.75% APY. The minimum opening deposit is $100,000 for this high-yield CD.

If the options seem overwhelming, CIT Bank offers an online CD calculator that enables you to compare your choices. It’s a convenient way to see exactly how much you’ll get in returns with different CD options.

CIT Bank recommends laddering your CDs, which involves investing in a mix of long- and short-term CDs. When you create a CD ladder, you get the highest interest rates on some of your money without tying up all your funds for too long. You can mix and match CIT Bank CDs to use this strategy.

Find Out: How CD Laddering Works

How to Open a CIT Bank CD

You can open your CIT CD account online. Gather the following information before you start the application process:

  • Social Security number
  • Driver’s license or another form of valid state ID
  • Bank routing number and account number — or a check from the account you’re using to fund your CIT Bank CD
  • Details for your account beneficiary

If you prefer to fund your CIT Bank CD by check or wire transfer instead of via electronic deposit, the bank provides its mailing address and routing information on the website.

CIT Bank CDs: Pros and Cons

Every financial investment has its strengths and weaknesses. Consider the advantages and disadvantages of a CIT Bank CD so you can better decide if they’re the right financial tool for you.

Pros of CIT Bank CDs

Aside from the online convenience that CIT Bank offers, its CDs feature a number of other benefits. Here are the advantages of CIT Bank CDs:

  • Variety of products to meet anyone’s needs
  • No fee for opening or maintaining the account
  • Customized online banking experience
  • FDIC insured for up to $250,000
  • Interest compounded daily
  • 10-day grace period with no early withdrawal penalty

Cons of CIT Bank CDs

Before you commit to a CIT Bank CD, understand the associated drawbacks. Here are the disadvantages of CIT Bank CDs:

  • Early withdrawal penalty that ranges from three to twelve months’ worth of interest
  • Only one account on offer that lets you add to your CD once during its term

Read: 5 Insider Tips to Get the Highest CD Rate

Should You Open a CIT Bank CD?

If you want to use a ladder strategy for investing, CIT Bank’s range of CD options makes it easy. And the 10-day grace period — should you change your mind about your investment — is a great feature.

CIT Bank is backed by FDIC insurance. It might have a commercial focus, but don’t let that scare you away. CIT Bank CD rates and features make it a viable option for individuals as well as businesses.

Next Up: 6 Tips for Choosing a CD Account