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CD Rates Leaderboard For Oct. 18, 2011: Online Bank Debuts With Add-On Option

This is a great page to bookmark so you can always find the best nationally available deals on the most popular CD rates.This week brings another new bank to the CD Rates Leaderboard — CIT Bank, which debuts as co-leader of the 12-month term.

And when we say new, we mean new.

CIT Group Inc., a New York-based commercial lender (not to be confused with Citigroup), on Monday launched its online FDIC-insured bank, CIT Bank.

For now, it’s offering only certificates of deposit, although the website (www.bankoncit.com) says additional products may include checking and savings accounts in 2012.

We’re anxious to see those, as CIT Bank’s initial CD rates are pretty dang good.

For starters, although its 12-month CD rate of 1.15% ties with Doral Bank Direct for the term’s top spot, CIT Bank’s is a better option.

It’s labeled an “Achiever CD,” but is what we typically refer to as a bump-up and add-on CD. In other words, CIT Bank allows you to raise the rate once if CD rates go up during the term, and add to your deposit at any time.

The minimum deposit on that Achiever CD is a hefty $25,000.

CIT Bank also offers decent standard term CDs in 6-, 12-, 24- and 35-month terms, with a $1,000 minimum deposit, that we’re keeping an eye on. (The 12-month CD pays a not-too-shabby 1.13% APY, but with no ability to bump the rate or add to the deposit.)

Three other banks pay more than 1.10% APY on 12-month CDs.

They are:

AloStar Bank of Commerce (www.alostarbank.com), an online bank based in Birmingham, Ala., which pays 1.13% APY with a $1,000 minimum deposit.

Ascencia (www.ascenciabank.com), the online division of PBI Bank in Louisville, Ky., which pays 1.11% APY with a $500 minimum deposit.

Goldwater Bank (www.goldwaterbank.com), with a single location in Scottsdale, Ariz., which pays 1.11% APY and requires a $5,000 minimum deposit.

In other Leaderboard news, Goldwater Bank now leads the 24-month term with an offering of 1.32% APY. Former leader Aurora Bank dropped its CD rates across the board today.

Banks qualify for our rankings by accepting deposits from all savers, regardless of where they live, either online or through the mail.

Compare these returns with the best CD rates from scores of banks in our extensive database.

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