CIT Bank No-Penalty, 11-Month CD [An Honest Review]

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Choosing a savings account is tough—there are a lot of options, and it’s hard to know which one is right for you.

But if you’re looking for a no-risk, high-yield savings account without hidden fees, the CIT Bank No-Penalty, 11-Month CD is definitely worth a look.

In this article, we’ll give you an honest review of the account, including the pros and cons, so you can decide if it’s right for you and your financial goals.

Let’s dive in!

CIT Bank No-Penalty, 11-Month CD: The Basics

So, what exactly is the CIT Bank No-Penalty, 11-Month CD?

For all intents and purposes, it’s a savings account—but that isn’t strictly true. It’s actually a certificate of deposit (CD), which is a type of savings account that typically offers higher interest rates than a traditional savings account.

With a CD, you deposit money into the account for a set period of time—in this case, 11 months—and agree not to withdraw the money during that time. If you do need to withdraw the money before the end of the term, you’ll typically have to pay a penalty.

However, as the name implies, the CIT Bank No-Penalty CD doesn’t have that penalty. You can withdraw your money at any time without incurring a fee, which makes it more like a traditional savings account.

Now, let’s take a look at some key account details.

What is a certificate of deposit?

A certificate of deposit (CD) is a financial product offered by banks and credit unions that allows individuals to deposit money for a fixed period of time, usually ranging from a few months to several years.

In exchange for depositing money into a CD, the bank or credit union offers a higher interest rate than a traditional savings account. The interest rate on a CD is typically fixed, meaning it doesn’t fluctuate with market conditions, and the interest is compounded either daily, monthly, or quarterly.

CDs are considered to be low-risk investments because the funds are FDIC-insured up to a certain amount (currently $250,000 per depositor, per insured bank). However, in exchange for this safety, individuals must commit to leaving their money in the CD for the entire term. If they withdraw their funds early, they may face penalties, which could include losing a portion of the interest earned or paying a fee.

CDs are a good option for individuals who have money they don’t need immediate access to and who want to earn a higher interest rate than a savings account while keeping their principal safe.

CIT Bank No-Penalty, 11-Month CD: Account Details

Minimum Deposit and Interest Rate

The CIT Bank No-Penalty CD requires a minimum deposit of $1,000 to open an account.

Once you have your account open, you’ll earn interest on your deposited funds. The interest you earn is compounded daily—that means you’re maximizing your earnings by having the interest you’ve already earned reinvested in your account and working for you.

The current interest rate for the account is 2.75% 4.9% APY according to the CIT Bank website. And if you’re wondering, that’s a very competitive rate for a savings product. The average interest rates for a savings account and 1-year CDs are 0.13% APY and 0.60% APY, respectively.

Term

The CIT Bank No-Penalty CD only has a single term—11 months.

Normally, a CD’s term refers to the amount of time your money will be locked away. With a longer-term CD, you’ll typically earn a higher interest rate.

However, since the CIT Bank No-Penalty CD doesn’t have an early withdrawal penalty, the term simply refers to the amount of time your interest rate will be locked for. Once your term is up, CIT Bank could potentially adjust your interest rate to a less favorable one.

Fees

There are no fees associated with the CIT Bank No-Penalty, 11-Month CD. There’s no monthly maintenance fee, and as I’ve already mentioned, there’s no early withdrawal penalty.

However, there is one very slight asterisk here—you’re only able to withdraw your money without penalty after a 6-day holding period. So, you should only put your money in if you’re 100% sure you won’t need it within the week.

CIT Bank No-Penalty, 11-Month CD: Extra Features and Benefits

CIT Bank App and Online Banking

CIT Bank is an online-only bank.  That means you won’t be able to walk into a physical branch to deposit your money or speak to a teller.

But don’t worry—online banking has come a long way in recent years, and it’s now just as safe (if not safer) than traditional banking. And CIT Bank makes online banking easy with their user-friendly app and website.

You can use the app or website to do everything from open an account and deposit money to track your account balance and activity, transfer money, and more. You can even set up alerts, so you’re always aware of what’s going on with your account.

Customer Service

Even though you won’t be able to visit a physical branch, CIT Bank still offers decent customer service.

You can reach a customer service representative by phone:

• Monday – Friday: 9:00 AM to 9:00 PM (ET)
• Saturday: 10:00 AM to 6:00 PM (ET)
• Sunday: CLOSED

So, if you run into some sort of problem on a Sunday, you’re just going to have to wait. The fact that there isn’t a live chat or email support option available at the time of writing is also unfortunate.

Insurance

Like all savings accounts and CDs offered by FDIC-insured banks, the CIT Bank No-Penalty CD is insured up to $250,000 by the FDIC.

That means that even if CIT Bank went under tomorrow, your money would be safe—you’d simply be transferred to another FDIC-insured bank, and you wouldn’t lose a dime.

CIT Bank No-Penalty, 11-Month CD: Pros and Cons

Pros

• High interest rate: The current interest rate for the CIT Bank No-Penalty CD is 2.75% 4.9% APY. That’s a very competitive rate, especially when you compare it to the average savings account interest rate of 0.13% APY.
• No early withdrawal penalty: One of the best features of the CIT Bank No-Penalty CD is that there’s no early withdrawal penalty. That means you can access your money at any time without having to pay a penalty fee.
• FDIC insured: Another great thing about the CIT Bank No-Penalty CD is that it’s FDIC insured. That means that your money is safe in the event that CIT Bank goes under.
• Very accessible:  CIT Bank is a very accessible bank. They offer an easy-to-use app and website, and you can reach a customer service representative by phone six days a week.

Cons

• Short term: The CIT Bank No-Penalty CD only has a single term—11 months. That’s shorter than most CDs, which typically have terms of 12 months or more.
• Potential for interest rate decrease: Once your 11-month term is up, CIT Bank could potentially adjust your interest rate to a less favorable one.
• No physical branches: CIT Bank is an online-only bank, which means there are no physical branches that you can visit.

CIT Bank No-Penalty, 11-Month CD vs. the Competition

The CIT Bank No-Penalty, 11-Month CD is a great savings product—no doubt about it. But how does it stack up to other, similar CDs on the market?

As I’ve mentioned a few times now, the CIT Bank No-Penalty CD offers a very competitive interest rate. That said, there are a select few no-penalty CDs on the market that beat it out.

Here are the top four no-penalty CDs by interest rate:

1. Sallie Mae 14-Month CD: 3.30% APY ($1 minimum deposit)
2. Sallie Mae 10-Month CD: 3.20% APY ($1 minimum deposit)
3. Ponce Bank 36-Month CD: 3.10% APY ($1 minimum deposit)
4. CIT Bank 11-Month CD: 2.75% 4.9% APY ($1,000 minimum deposit)

Interest rate isn’t the only important factor when choosing a savings account—but it’s definitely one of the most important factors nonetheless. Unless you have something against Sallie Mae or Ponce Bank, we’d recommend going with one of their CDs instead if interest rates are the main driving force behind your decision.

However, CIT Bank still offers customers incredible value.

Is the CIT Bank No-Penalty CD Right for You?

The CIT Bank No-Penalty CD is a great option for anyone who’s looking for a high interest rate and the flexibility to access their money at any time. Overall, the CIT Bank No-Penalty CD is a great choice for most people—especially if you’re okay with banking online.

That said, there are a few no-penalty CDs on the market with higher interest rates. So, do your research before blindly opening a CIT Bank CD!

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