CD At A Quick Glance:
- APY: 1.85%
- Deposit Length: 11 months
- Penalty: None
- Minimum deposit required: $1,000
- Insurance: FDIC
The Offer
- CIT Bank is offering a No-Penalty 11-Month 1.85% APY CD. There is a minimum deposit of $1,000
Rate History
Keep in mind if the rate increases, your account doesn’t increase unless you open a new CD.
- March 3rd, 2018 – Current: 1.85%
Our Verdict
The current highest basic savings account is 1.8%, this is slightly higher than this but you won’t get any further rate increases. I’d expect rates to increase over the next 11 months, but if you disagree then locking in a rate for 11 months would make sense and there is no early withdrawal penalty if you’re wrong. We recently started covering CD rates . Most people would be better off putting their emergency funds and other spare cash into high interest rewards accounts to get up to 5% APY with minimal effort.
View Comments (19)
With these no-penalty CD, is my account credited with interest on a monthly basis?
For example, if I open a CD and then take all the money out after 3 months, do I get 3 months of interest or do I lose all the interest I would have accumulated?
Thanks!
I had a 1.55% 11 mo. no penalty CD that I cashed out after about two months to open this one. Monthly interest appears on your statement and is added to the principal. I then received prorated interest up to the day I cashed out.
I've never opened a CD before so I have a question, might be specific to CIT. I assume if I open a CD I'll get a Chexsystem inquiry. If I open a $1000 CD, then another a month later, maybe another one after that, do I get an inquiry for each one I open or just for the first?
Now 1.55%.
+1. Savings now at 1.35%.
The website doesn't allow funding a new CD from an existing CIT savings account. They claim to be working to fix this. In the meantime, the workaround is to specify funding by check, and then calling them to transfer funds from the existing savings account.
Was just coming here to complain about this. It's dumb.
According to a CIT Bank CSR, if you call and close the CD by transferring into an existing CIT Bank savings account, the money will be transferred the following business day.
Ally's 11-month no penalty CD has been at 1.50% for a few weeks now, and by all accounts they're a better bank than CIT in every aspect.
The only drawback is the higher minimum deposit ($25k for Ally), but considering the article praises the lack of cap at CIT I'm assuming it isn't meant for people who are looking to park a few hundred bucks.
Well, for less than $35k, there is the 1.5% money market at All America Bank / Redneck Bank...
https://allamerica.bank/mega-money/
https://redneck.bank/mega-money-market/
That's a good point, I'll add it to our post.
I'm staying away from this bank after reading a lot of negative DPs (many are saying their CS sucks), there are some who did not get their sign up bonuses from the banner offers online so I'd rather not waste a chex on this.
I can't believe how difficult they are to deal with. The application was ridiculous with questions like the date you got your drivers license. After a wait of 4 days, they asked for photo copies of drivers license etc.. I think they may be a scam.
Luckily it forced me to explore and I found that Discover has a high rate and they are super nice.
I've had no problem with CIT, have participated in 2 or 3 of their seasonal bonus promotions, plus 2 CDs. Due for one of those bonus payouts end of this month (required 3 full monthly statement cycles), will be happy to report if there are issues but I really don't expect any based on past experience.
My local credit union offers CDs with 2.35% APR, so I can't see how this one is a good deal.. they are long term (60 m - https://www.citadelbanking.com/save/certificates), but the penalty is 180-days interest only, it might work out to more money in a lot of cases anyway - unless you move your money around a lot.
Memory Bank pays 1.5% on up to $250K for the first year. A completely liquid account. Only monthly required activity: 5 debits and 1 (any amount) incoming ACH. And since it's a checking account there is no six withdrawal limitation per month. Rate has never dropped since opening the account in the Spring. Top of my list, if not yours.
Yup, it's the top of our list for restrictive options.
It's all thanks to you! I never even knew about Memory Bank until I started reading DoC. As rates creep up I think you'll see promotions like Memory's 1.5% extended indefinitely. United Bank's 1.35% fully liquid six month "special" has already rolled over for an additional six months. I'll help update as I learn these changes occur.
Thanks, Nick. Appreciate it.