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.


McGraw – Hill Credit Union Offers 2.00% on 8 month CD

McGraw-Hill Federal Credit Union is offering one of the best (if not the best) short term CD rates. Currently it is offering a 2.00% interest rate on an 8 month CD. This is certainly one of the best rates available since even the highest 1 year CD rate is only at 1.15% APY from Doral Bank and even the highest 2 year CD is only at 1.30%. With the large difference in rate plus the 4 month to 1 year difference between maturity, there’s no other offer that comes close to this. A 2.00% interest rate is currently at par with some bank’s 5 year CD’s.

The Offer

McGraw-Hill is calling this special 8 month CD as the Solar CD. It is currently promoting awareness of solar energy and consumers who open an account with the Solar CD will help support a groundbreaking solar energy project led by McGraw-Hill Companies and NJR Clean Energy Ventures.

The Fine Print

To earn the advertised rate, consumers must open a checking account with direct deposit. A minimum deposit of $1,000 is required with a maximum of up to $25,000. Aside from that, a minimum direct deposit of $500 per month must be credited to the checking account monthly. Direct deposits may come from your salary, pension, Social Security, or any other regular monthly income. Should initial deposit not be completed upon six weeks of account opening, the rate will change to 0.40% APY.

The promotion has been available since September 22 of this year, and is subject to change or withdrawal without prior notice.

About McGraw-Hill

McGraw-Hill Federal Credit Union has been around since 1935, serving employees of the McGraw-Hill companies in New York City. Since then it has opened up its membership to other companies and it is currently serving 18,500 members throughout the world. The credit union has assets exceeding $268 million.

Membership Eligibility

Credit union membership is traditionally restricted to people who share a common factor such as the community they are living in, or a common profession. In this case, membership is limited to those who are employed under the McGraw-Hill group of companies. However, McGraw-Hill is also offering an express application in which interested parties can be a member of the credit union when they opt to join the VOICE foundation. To join the foundation all you have to do is pay a $25 membership fee. The express application can be filled up and submitted online, but for faster approval, you may also visit their branches located at New York, NY and East Windsor, New Jersey.

There is no doubting the fact that this offer is definitely one of the best there is. A 2.00% APY on just an 8 month CD is hardly available anywhere else. The only thing you need to consider is having to make a direct deposit of $500 to your account every month. However, if you can link this to your salary payroll, then this shouldn’t be too much of a problem. Given the free for all eligibility and the impressive rate, would you open a Solar CD now?


When are CD Rates Coming Back Up? Part 1

CD Rates are Low

CD Rates are Low

Recently we’ve seen CD rates hit all time lows.  There are a few reasons for this, and understanding them is going to help you structure your CDs in a way that will maximize your interest earned.

Obviously, credit is tight right now.  The minimum FICO scores for lending have increased, banks have arbitrarily cut the limits on credit cards and lines of credit, and banks are still scared to lend in this economy.

These factors coupled with the influx of TARP funds, has created a situation where some banks have too much money.  For these banks, their deposits are beginning to exceed their demand (or desire) to lend.

In response, these banks will have some of the lowest rates in order to slow down the amount of new CDs coming in.  Why would a bank do this? Banks don’t make money on CDs unless they are lending that money out.

As the economy recovers and credit loosens up, we’ll see an increase in CD rates.  In the meantime, look for banks that are located in healthy local economies.  These banks are generally doing more lending, and as a result will generally have higher interest rates on their CDs.  Grab their 12, 18, and 24 month terms.  Don’t go any longer than two years.  If things continue the way they are, we’ll see short term CDs get back around 3% by then.

Read Part 2 of “When Are CD Rates Coming Back Up?