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CIT ‘No Penalty CD’: Earn 3.65% and Access Your Money Whenever

You can earn a strong APY and withdraw your money before maturity without worrying about a penalty fee.

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If you’re using a CD as an emergency fund or you’re concerned that you might need access to your savings before a traditional term CD matures, then a no-penalty CD may be what you’re looking for. However, unlike other similar financial products with lower APY, the CIT Bank No-Penalty CD offers a 3.65% APY, which may be ideal for people who want both flexibility and a higher interest rate.

CIT Bank No Penalty CD

Offer Details

Secure application on issuer’s website.

CIT Bank No Penalty CD
APY: Up to 3.65% APY
Minimum Opening Deposit: $1,000
No early-withdrawal fee
Daily compounding interest
No account opening or maintenance fees
FDIC insured

While the idea of making loads of money in stocks and bonds sounds appealing, you know that it may just be a fantasy for most people. In real life, turning a profit on risky investments is incredibly difficult, and there’s a likelihood you’ll end up losing money, especially during financially turbulent times.

Instead, if you’re interested in a more stable way to save money and earn interest at the same time, consider the certificate of deposit, or CD, where you put your money in a secure, FDIC-insured account and watch it gain interest for a pre-defined period of time.

No matter what condition the economy is in, your interest rate is locked in, meaning your money is safe for the duration of your agreement. Additionally, CDs tend to offer higher interest rates than money market or savings accounts, two other types of low-risk options for saving money.

RELATED: The Best Current No-Penalty CD Rates

CIT No-Penalty CD Features

The CIT No-Penalty CD is like your typical CD account. It’s FDIC insured, and it matures over a pre-agreed amount of time — in this case, 11 months. It can also help you build an emergency fund, save for an upcoming project and lock in your guaranteed interest rate.

Term Maturity11 Months
Minimum Opening Balance$1,000
Opening or Maintenance FeesNone
Early Withdrawal FeeNone

However, where the CIT No-Penalty CD differs is that it doesn’t charge you an early withdrawal, or penalty, fee.

So let’s say you deposit $1,000 into your no-penalty CD, but suddenly, you go to the emergency room and have no money to pay for treatment. You can withdraw funds whenever you like from your CIT No-Penalty CD without paying a fee.

The only caveat is that you need to wait until your no-penalty CD has been active for seven days to make a withdraw. If you’ll need your money within the first six days of account opening, you will end up paying a penalty.

Additionally, CIT won’t charge you opening or maintenance fees either. Plus, you’ll get daily compounding interest on your funds, maximizing your earning potential. You can access your account 24/7 on your CIT Bank mobile app or your desktop computer.

What to Do When Your CD Matures

Once you reach the 11-month mark, you can either roll your funds into another CD for the same duration or a different term, or you can cash it out. There are no fees for whatever you choose.


CIT Bank offers a variety of term CDs ranging from six months to five years. Each CIT Back CD APY varies depending on the term length of your certificate of deposit.

11 month (No Penalty)3.65%
6 month2.75%
1 year0.30%
13 month4.35%
18 month4.50%
2 year0.40%
3 year0.40%
4 year0.50%
5 year0.50%

Slickdeals updates average percentage yields periodically. These rates are accurate as of December 2022

CIT Deposit Account Comparison

While savings accounts or money market accounts are safe as well, their interest rates are typically lower, so a CD is a better choice if you want a higher APY. After you make your initial deposit, you cannot add money to your CD, however, like you could with a money market or savings account.

Savings ConnectMoney MarketSavings BuilderTerm CDNo-Penalty CDeChecking
APY3.60%1.55%1.00%Up to 4.50%3.65%0.10-0.25%
Minimum to open account$100$100$100$1,000$1,000$100
Maintenance feesNoneNoneNoneNoneNoneNone
FDIC insuredYesYesYesYesYesYes
More detailsFull reviewFull reviewFull reviewFull reviewFull reviewFull review
Secure applicationApplyApplyApplyApplyApplyApply

Slickdeals updates average percentage yields periodically. These rates are accurate as of December 2022

Drawbacks of CDs

A CD is going to be ideal for you if you want a low-risk way to gain interest on your money. If you like to take high risks, then a CD is not for you. While the interest rate of your CD won’t go down, it also won’t go up if the interest rates in general increase. You may be missing out on gaining even more interest on your funds.

How to Open an Account

If you think the CIT No-Penalty CD is right for you, log onto CIT’s website, hit “Start Now” and fill out an application. You’ll need to provide your primary home address, a valid email address, a valid phone number and a Social Security number. Additionally. you’ll also need to fund the account with a minimum opening balance of $1,000. You can transfer funds into your new CD by electronic transfer, mail-in check or wire.

The CIT No-Penalty CD could be an option if you want to safely store your money in an interest-bearing account. And if a situation arises where you need to make a withdrawal, there’s no need to worry about a penalty.

Read More CIT Bank Articles

While we work hard on our research, we do not always provide a complete listing of all available offers from credit-card companies and banks. And because offers can change, we cannot guarantee that our information will always be up to date, so we encourage you to verify all the terms and conditions of any financial product before you apply.

Ryan M Tronier
Ryan M Tronier
Ryan Tronier is a personal finance expert and writer. His work has been published on NBC, ABC, USATODAY, The Mortgage Reports, Yahoo Finance, MSN, and more. Ryan is the former managing editor of the finance website Sapling, as well as the former personal finance editor at Slickdeals. Find him online at

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