This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Disclosure, visit this page.
An 11-Month No Penalty CD from CIT Bank can offer a better return than many high-yield savings accounts. Additionally, it allows for early withdrawals if you come across a more advantageous investment opportunity. If you haven’t heard of CIT Bank before, they are a reliable online bank backed by the FDIC.
CDs can be an important investing asset and can add to your savings quickly. Here’s how much you can earn with $10,000 in a CD. Read this post if you are interested in learning about the best investment newsletter. Okay, let’s dive deeper into how this short-term financial instrument can enhance your financial health.
Link to CITs site to learn more: CIT Bank 11-Month No Penalty CD
What is the CIT Bank No Penalty 11-Month CD?
First of all, CIT is a trusted and legitimate online bank many consumers trust. The CIT Bank 11-Month No Penalty CD earns 3.50% APY with a $1,000 minimum deposit. The certificate matures 11 months after account opening. However, unlike a traditional term CD, you withdraw your funds as soon as seven days after the funds are received.
This account is FDIC-insured up to $250,000. Interest compounds daily and there are no opening or maintenance fees.
Related: CIT Bank Review: Checking, Savings, CD, & More
What is a CIT Bank No Penalty CD?
CIT Bank offers no-penalty CDs and term CDs. Specifically, a no-penalty CD doesn’t charge early redemption penalties starting seven days after the account funding date. However, the hidden cost for this flexibility is a potentially lower interest rate than term CDs with a similar maturity date.
For example, you can earn more with a 12-month term CD compared to a 12-month no-penalty CD as you forfeit some of your interest when requesting an early redemption.
However, there are exceptions to the rule as the CIT Bank 11-Month No Penalty CD can earn a higher yield than some of the bank’s longer-dated term CDs. You can compare the current rates for CIT Bank Certificate of Deposits (CD).
CIT Bank currently only has one no-penalty CD term of 11 months duration.
Can You Withdraw From a No Penalty CD Early?
CIT Bank lets you close your no-penalty CD beginning seven days after the institution receives your funds. It’s not possible to redeem your balance during the first six days, even if you pay an early redemption fee.
There are no fees or forfeited interest income when withdrawing your funds before the maturity date. Similar to a term CD, you must withdraw your entire deposit amount and all earned interest.
What is the Downside of a No Penalty CD?
A no-penalty CD typically has a lower yield than term CDs of a similar length. Additionally, most no-penalty terms are for 12 months or shorter and are not a long-term investment idea.
Is the CIT Bank No Penalty 11-Month CD Worth It?
This federally-insured CD is worth it when you can earn a better rate on the money you won’t need for the following year. Just in case you do need it for an unexpected bill or find a higher yield, you can make a penalty-free withdrawal as soon as a week after funding your account.
Related: Is CIT Bank Trustworthy? What To Know About The Online Bank
Alternatives to CIT Bank No Penalty CD
The 11-Month No Penalty CD is one of CIT’s highest-yielding products, but some of these products can be a better fit to earn more interest or have a smaller minimum deposit.
- Short-term CIT Bank Certificate of Deposits (CD) can earn up to 3.50% APY (consider the 6-month, 13-month, and 18-month terms first) with a $1,000 minimum deposit.
- CIT Bank Platinum Savings Account earns 5.05% APY on balances above $5,000. The minimum opening deposit is only $100.
- A CIT Bank Money Market Account earns 1.55% APY on all balances and only requires a $100 minimum deposit.
Summary of CIT Bank 11-Month No Penalty CD Review
The CIT Bank 11-Month No Penalty CD lets you secure a competitive rate for 11 months instead of the variable rate that high-yield savings accounts offer. In addition, being able to withdraw your balance early provides peace of mind.
Related Articles:
