CIT Bank No Penalty CD Review

CIT Bank offers a CD account that has no penalty for early withdrawal. Read on to learn about the APY and any requirements or fees that come with it.

CIT offers a Certificate of Deposit account that advertises no penalty for early withdrawal. Sound too good to be true? Not sure if you can trust that it really is penalty-free?

Good thing we looked into it for you.

Find out the terms and rates, how it works, and if there are any hidden fees. That way, you can see if this is the right account for you, or if you can earn more with a different type of CD.

What Is CIT's No Penalty CD Account?

CIT Bank's No-Penalty CD is an 11-month CD with a fixed rate of 3.50% APY. It's different from other CDs because there is no penalty if you withdraw funds before the term ends.

This is one of their higher rates with a shorter term. But, you'll need an opening deposit of $1,000. Interest is compounded daily to maximize your earnings.

You can withdraw your funds (both the principle and any interest earned) with no penalty starting from 7 days after the account is funded. No withdrawals are allowed within the first 6 days of funding.

Member FDIC

CIT Bank No Penalty CD - 3.50% APY

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• 3.50% APY
• Option to withdraw full balance and interest after 7 days of CD funding date
• $1,000 minimum to open an account
• 11 months
• No monthly maintenance fee
• Member FDIC

CIT No Penalty CD Pros & Cons

Pros:

• No penalty for early withdrawal (beginning 7 days after receiving the funds)
  
• High APY: 3.50%
  
• No maintenance fees
  
• Daily compounding interest
  
• FDIC insured for up to $250,000
  
• Good customer service

Cons:

• Only has a single term (11-month term)
  
• $1,000 minimum opening deposit
  
• Cannot add more funds
  
• Must contact CIT to withdraw

Fees to Look Out For

CIT's No Penalty CD has no hidden fees. There's no monthly service fee or account opening fee.

The only fee you'll need to worry about is the $1,000 minimum opening deposit. That's it, really!

Is CIT's No Penalty CD Right for You?

CIT's No-Penalty CD account is an excellent option if you have $1,000 to save and you want a high, stable APY with more flexibility than your standard CD.

You won't have to worry about tying up your funds in case you suddenly need them before the term ends (after all, emergencies happen).

This account will let you withdraw early without any penalty. At the same time, you enjoy a high locked-in interest rate. There's really not much to lose.

But if you're just generally looking for a high savings rate and you want to be able to continuously deposit money, then CIT's savings accounts will be better for you instead.

How It Compares to CIT's Other Savings Accounts

CIT Bank also offers:

Member FDIC

CIT Bank Term CDs - Up to 3.50% APY

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• Up to 3.50% APY
• $1,000 minimum opening deposit
• No monthly maintenance fee
• Member FDIC

Term	CD Rates
6 Month	3.00% APY
1 Year	0.30% APY
13 Month	3.50% APY
18 Month	3.00% APY
2 Year	0.40% APY
3 Year	0.40% APY
4 Year	0.50% APY
5 Year	0.50% APY

Member FDIC

CIT Bank Jumbo CDs

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• Up to 0.50% APY
• $100,000 minimum opening deposit
• No monthly maintenance fee
• Member FDIC

Term	CD Rates
2 Year	0.40% APY
3 Year	0.40% APY
4 Year	0.50% APY
5 Year	0.50% APY

Member FDIC

CIT Bank Platinum Savings - 5.05% APY

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• 5.05% APY with a balance of $5,000 or more
• 0.25% APY with a balance of less than $5,000
• $100 minimum opening deposit
• No monthly maintenance fee
• Member FDIC

Member FDIC

CIT Bank Savings Connect - 4.65% APY

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• Earn 11x the national average
• $100 minimum opening deposit
• No monthly maintenance fee
• Member FDIC

CIT's No Penalty CD offers one of the highest APYs, even beating out their longer-term CDs and other savings accounts.

Only the 6-month term CD has higher rate. So, if you're looking to get the highest possible APY and you just want a short-term CD, look into that. Note though, there's a penalty for early withdrawal for this CD (and review their other terms as well).

But generally speaking, their No Penalty CD has one of the best rates, and it's flexible too.

How to Deposit and Withdraw Money

You can fund your No-Penalty CD once at account opening. You can deposit money by:

• Electronic ACH transfer from another bank account
  
• Wire transfer (no fee)
  
• Mailing a check to CIT

Beginning 7 days after receiving the funds, you can withdraw anytime. You can request a withdrawal by simply calling their Contact Center or logging into your CIT account and sending a secure message. Online banking is available 24/7.

Is CIT Bank Safe?

Yes, CIT Bank is a legit bank. It's an online banking division of First Citizens Bank. First Citizens, their parent company, is the largest family-controlled bank in the US and has over $200 billion in assets. They also have over 500 branches in 23 states.

In addition, because First Citizens is FDIC insured (FDIC# 11063) for up to $250,000, so is CIT Bank. This means if the bank fails, the federal government will pay you back what you had, up to $250k.

First Citizens Bank is known for traditional banking services, while CIT Bank is known for high APYs on their savings accounts and CDs. The rates are often higher than other online banks.

Bottom Line

CIT Bank's No-Penalty CD offers a great deal. It has a high interest rate, and it's locked in for the whole term. But you also get peace of mind because you can withdraw early with no penalty.

Remember that a high APY isn't the only factor you should consider when choosing an account to open. CDs mean that you can only deposit funds once. If you plan to save money continuously, CIT's savings accounts may fit your needs more.

Once you figure out how you want your money handled, you'll know the account that's right for you. Happy saving!