bank rates

CIT IRA CD Promotion Tops Best Deals

CIT Bank logoCIT Bank is offering bumped-up rates to current customers who use new money to open selected IRA CDs on or before April 15.

The promotion comes on the heels of CIT deals last year offering premium rates to customers opening jumbo IRA CDs (minimum investment, $100,000) at the New York-based online bank and small-business lender.

The current IRA promotion covers not only jumbo CDs but 2-year Achiever CDs (minimum investment, $25,000) and 2-, 3-, 4- and 5-year term CDs (minimum investment, $1,000).

Here are the promotional rates for the CDs included in the offer, compared with CIT’s currently posted rates:

CIT Bank IRA CD Rates

CD Term Posted APY Promotional APY
2-year 1.17% 1.30%
2-year Achiever 1.20% 1.33%
2-year jumbo 1.25% 1.38%
3-year 1.27% 1.42%
3-year jumbo 1.40% 1.55%
4-year 1.65% 1.85%
4-year jumbo 1.75% 1.95%
5-year 2.00% 2.20%
5-year jumbo 2.20% 2.30%

All the promotional 2-, 3- and 5-year rates top the offers for these maturities on our CD Rates Leaderboard.

By including term CDs, with their $1,000 minimum deposit, in the promotional mix, CIT is making the enhanced rates available to customers for current IRA contributions.

Because of the large minimum investment, the Achiever and jumbo CD offers seem geared to customers looking to transfer or roll over to a CIT CD existing IRA or other tax-deferred plan assets presently at another institution.

CIT personnel have advised me of the following additional details concerning the promotional offer:

  • The offer is only available to current customers who use IRA funds not already on deposit at CIT to open CDs on or before April 15. Applications are by phone. Online or mail applications are not available.
  • If the CD is funded by a current IRA contribution, the funds must be received by CIT by April 15 to ensure the receipt of a bumped-up rate.
  • If the CD is being funded by trustee-to-trustee transfer or rollover of IRA assets at another institution, CIT intends to apply its informal policy of holding the rate on the CD up to 60 days after the account opening date so long as the customer’s funds are received within that period.

In my view, the CIT offer is an innovative approach to cementing customer loyalty and attracting additional deposits.

Hopefully, other banks and credit unions will follow its example.

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