CIT Increases Interest Rates Further on Savings and CD Accounts (January 2023)

Summary:

The recent increase in the federal funds rate has made borrowing money more expensive, but it has also provided a boost for savers. CIT Bank has responded to the increase by raising the annual percentage yield (APY) on its Savings Connect and CD accounts.

The Federal Reserve raised the federal funds rate for the seventh time this year, by half a percentage point. This prompted financial institutions to increase the interest rates on deposit accounts for savers. In response, CIT Bank has increased the APY on its high-yield savings account from 3.85% to 4.05%.

The CIT Savings Connect is a high-yield savings account offered by CIT Bank, which also offers customers the opportunity to earn more through the bank’s Relationship Rewards program. Customers can easily manage their accounts through CIT Bank’s digital banking tools, including mobile and online banking. The CIT Savings Connect is FDIC-insured, providing an added layer of protection for deposits.

CIT offers up to 4.05% APY on savings accounts

CIT Bank increased the APY again on its high-yield savings account from 3.85% to 4.05%. CIT Savings Connect is a high-yield savings account offered by CIT Bank. It offers a competitive annual percentage yield (APY) and allows customers to earn more with the bank’s Relationship Rewards program. Customers can easily manage their accounts online or on the go with CIT Bank’s digital banking tools, including mobile banking and online banking. CIT Savings Connect is FDIC-insured, providing an added layer of protection for customers’ deposits.

CIT CD accounts now have a maximum APY of 4.75%

CIT Bank has also increased the maximum APY on its CD accounts (18-month term) from 4.50% to 4.75%. In addition to its high-yield savings account, CIT Bank offers a variety of CD options, including regular term CDs, RampUp CDs, and Jumbo CDs, with terms ranging from three to 60 months.

TermAPY
6-Month APY4.15%
11-Month APY4.10%
12-Month APY0.30%
13-Month APY4.65%
18-Month APY4.75%
2-Year APY0.40%
3-Year APY0.40%
4-Year APY0.50%
5-Year APY0.50%

CIT Bank’s CD rates are competitive and offer the potential for higher returns on savings compared to checking or savings accounts. There is a minimum of $1,000 to open an account, and a penalty may be imposed if principal is withdrawn from the account before the term ends. However, customers can avoid the prepayment penalty by opting for a CIT Bank No-Penalty CD, although the APY for this option is lower.

CIT Bank’s CD rates are competitive and offer the potential to earn higher returns on your savings than with a checking or savings account. There is a minimum of $1,000 to open an account, and a penalty may be imposed if you withdraw principal from your account before the term ends.

You can avoid the prepayment penalty if get a CIT Bank No-Penalty CD. The trade-off is that APYs are lower with the “no prepayment” penalty option.

CIT’s money market account rates stayed at 1.55% APY, but that’s still high compared to the average national rates for money market accounts.

Key takeaways

  • Competitive interest rates: CIT Bank increased its rates on its savings accounts to 4.05% APY. CD accounts can now earn up to 4.75% APY.
  • Range of options: CIT Bank offers a variety of savings and CD account options, including traditional savings accounts, money market accounts, and CDs, with terms ranging from three months to 60 months.
  • Digital banking tools: CIT Bank has a strong focus on technology and offers a range of digital banking tools, including mobile banking and online banking, to make it easy for customers to manage their accounts on the go.
  • FDIC-insured: CIT Bank is FDIC-insured, which means that deposits are insured up to $250,000 per depositor, providing an added layer of protection for customers’ savings.
  • Relationship Rewards program: CIT Bank’s Relationship Rewards program allows customers to earn more on their savings and CD accounts by maintaining a balance and using other CIT Bank products and services.

About CIT Bank

CIT Bank is a national bank headquartered in Pasadena, California. It is a subsidiary of CIT Group, a financial holding company that provides financing, leasing, and other financial services to small and medium-sized businesses. CIT Bank offers a variety of banking products and services, including checking and savings accounts, money market accounts, and certificates of deposit.

In addition to its retail banking products, CIT Bank also provides commercial lending, equipment financing, and other financial services to businesses. The bank has a strong focus on technology and offers a range of digital banking tools, including mobile banking, online banking, and a user-friendly website. CIT Bank is FDIC-insured, which means that deposits are insured up to $250,000 per depositor.