Updated May 16, 2024 3:11 PM PT

CIT Bank No Penalty CD Review

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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 principal 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.

How much can you earn with CIT No Penalty CD

How much interest you get on a CIT Bank No-Penalty CD depends on how much you can deposit in the CD.

Here's a simple CD calculator you can use to check how much you can earn with different amounts.

How much can your earn on a no-penalty CD?

CIT No Penalty CD Pros & Cons


  • 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


  • 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!

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 Other CIT Bank Accounts

CIT Bank Term CDs
CIT's No Penalty CD has one of its highest APYs, beating out most of its other CDs. But, it might not be the best no-penalty CD rate in the market.

If the 11-month term doesn't suit your plans, CIT's Term CDs has more options for you. Note though that these are standard CDs. So, there will be early withdrawal penalties.

CIT Bank Jumbo CDs
For folks who can deposit more money into a CD, CIT Jumbo CDs might be worth a try. However, the rates aren't as good as its no-penalty option. The APY might be a far cry among the top jumbo CD rates.

CIT Bank Platinum Savings
You might find the lock-in period troublesome if you need to move your money around frequently. In this case, CIT's Platinum Savings might be a better option.

When you keep at least $5,000 in the account, you can earn a competitive 5.00% APY. That's higher than its No-Penalty CD rate and you have more access to your funds.

CIT Bank Savings Connect
If maintaining a certain amount is an issue, you can still earn a decent rate with CIT's Savings Connect. With just a $100 opening deposit, you get a 4.65% APY.

Higher than the No-Penalty CD rate, with all the convenience and accessibility you might need.

CIT No Penalty CD Alternatives

Determined to get a no-penalty CD but hoping for a better APY? Then, look beyond CIT Bank. Check out other banks and credit unions that offer higher rates on their no-penalty CD.

Some online banks might offer attractive APY. However, take note that the CD term availability may vary between institutions.

Top No-Penalty CD Rates:

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.

CIT's Contact Center can be reached at 855-462-2652.

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!

Write to Katarina Rodriguez at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

CIT Bank
Member FDIC

CIT Bank Platinum Savings - 5.00% APY

  • 5.00% 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
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