CIT Bank Offers 1.15% On 1 Year CD

Currently the top nationally available 1 year CD is at 1.15% from Doral Bank. Apparently, CIT Bank also has the same rate to offer. CIT Bank launched a separate website for their online banking, which is bankonCIT.com. It is common knowledge that online banks are able to give better rates to consumers because of their considerably lower overhead as compared to brick and mortar banks. It seems CIT Bank has lived up to this promise as they offer a 1 year CD with a rate that’s worth having.

CIT Bank Achiever CD

Aside from the high 1.15% interest rate, the CIT Bank Achiever CD has other perks to offer. There are two things that make this CD more interesting than others:
First, depositors are allowed to change their rates once. That means if they come across a rate higher than what they already locked in, they can choose to change their rate even if they are already at the middle of their term.

Second, depositors can add more to their already existing amount. If at any point of your CD term you suddenly have extra cash that you want to put in, no problem. The Achiever CD allows you to do that once.

These two perks alone gives the Achiever CD an edge over CD offers made by other banks. And of course, we can’t forget that juicy interest rate. Another benefit from the CD is the daily compounded interest, which allows your earned interest to also earn interest –daily. This maximizes your potential earnings to the fullest. Plus, the CD charges no monthly maintenance fees or account opening fees. Just open your account and you’re good to go. Also, CIT Bank is FDIC insured, ensuring your money for up to $250,000.

The minimum deposit for the Achiever CD is $25,000. If this amount is too high for you, CIT Bank also offers a 1-year CD with $1,000 minimum deposit but with a rate of 1.13%, which is still considerably high. Of course this low minimum term CD does not have the same perks as the Achiever CD.

About CIT Bank

CIT Bank belongs to CIT Group Inc., a bank holding company with $35 billion in finance and leasing assets. It is well known for its commercial financing and services to small and middle market businesses. CIT Group is different from Citigroup Inc., which in the same way CIT Bank is different from Citibank.


CIT Declares Bankruptcy – 5th Largest Ever

BUSINESS-US-CITThis past weekend CIT Group filed for Chapter 11 Bankruptcy in New York’s bankruptcy court as apart of a “restructuring plan” for the company. With $71 billion in assets, CIT Groups bankruptcy makes it the 5th largest bankruptcy in the history of the USA.

CIT has assured its small and middle market customers that this restructuring plan will not affect its operating subsidiaries. The bankruptcy is structured to have minimal effects on small business’s that use CIT Groups services (thus reducing the effect on the already tattered US economy). The larger effect will be on the companies unable to find other lenders to take on their debt, being as CIT group was one of the largest providers of loans for small and middle sized business’.

Many retail stores across the US use CIT to borrow money needed to keep shelves stocked full of merchandise. If CIT is unable to continue lending to such companies, and these companies are unable to find that credit somewhere else, we could see a dramatic effect on retail stores as we head into the holiday season.

A recent Yahoo article stated that CIT’s filing will wipe out current holders of its common and preferred stock. The US government (ie the tax payer), which gave the struggling company $2.3 billion from the federal Troubled Asset Relief Program (TARP) last year, is likely to lose that money. This loss of money makes it the first complete loss of funds from federal bailout programs.

Just a few short years ago CIT stock was trading at more than $60 a share, as of the end of last week it was barely trading at $0.60 a share. This past summer CIT Stock was trading at around $3 a share.