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CIT Bank 11 Month No-Penalty CD: Earn Expired

4.90% APY*
-24 Deal Score
295,942 Views
CIT Bank, our partner, offers the following benefits with their No-Penalty CD.

Thanks to community member psychojinx for sharing this deal.
  • $1,000 minimum to open
  • No penalty to access funds if needed before maturity
  • No opening or maintenance fees
  • Daily compounding interest to maximize your earning potential
  • Member FDIC
  • *See site for details
Slickdeals may be compensated by CIT Bank

Original Post

Written by
Edited May 9, 2023 at 10:03 AM by
CIT Bank, our partner, offers the following benefits with their No-Penalty CD.
  • $1,000 minimum to open
  • No penalty to access funds if needed before maturity
  • No opening or maintenance fees
  • Daily compounding interest to maximize your earning potential
  • Member FDIC
  • *See site for details
Slickdeals may be compensated by CIT Bank
in Finance CIT Bank
If you purchase something through a post on our site, Slickdeals may get a small share of the sale.
Deal
Score
-24
295,942 Views
4.90% APY*

467 Comments

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Featured Comments

CIT is a subsidy of First Citizen Bank.
Awful , awful reviews

https://wallethub.com/profile/fir...-13003328i
We've been with Ally for 10 years and never had a single complaint about them. Customer service is available 24/7 and everyone speaks intelligible English.
Just buy them directly from Treasury. The Treasury Direct website won't win any awards for user friendliness, but it's not difficult to set up an account, the search function is very good for finding answers and it's a full service website. And of course there are a zillion resources available on the Internet.

I spoke to Fidelity about buying T-bills or bonds through them and my recollection is that there are two ways to do it, one involves fees and one doesn't. I figured for the same effort it would take to fully understand the difference, I could probably figure out the Treasury Direct site and I was correct about that.

The idea is to balance risk and get a better return than what my bank offer. UST Direct accomplish that with one stop shopping. You get a better rate and don't have to spend ungodly amounts of time chasing rates at unknown banks all over the country.

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Joined Jun 2011
L4: Apprentice
> bubble2 358 Posts
40 Reputation
ethemartian
09-06-2023 at 07:24 PM.
09-06-2023 at 07:24 PM.
Quote from dazedxxx :
Is the CD you mention callable? Meaning that they can cut it short... say if the rates drop where it's unfavorable to keep it going.

This is exactly the type of question i dont know to ask. I was considering the CIT one in the OP, will have to look into it.

Any other gotchas I should be looking for?
Reply
Joined Feb 2016
...confuzed
> bubble2 3,290 Posts
650 Reputation
dazedxxx
09-06-2023 at 07:46 PM.
09-06-2023 at 07:46 PM.
Quote from ethemartian :
This is exactly the type of question i dont know to ask. I was considering the CIT one in the OP, will have to look into it.

Any other gotchas I should be looking for?

None that i can think of, and im no financial adviser.... I Just always see if callable, and what fees for early withdrawl, and if its FDIC Insured. Usually brick and morter banks in my area dont offer callable cds, but they do charge penalties for terminating early.
Reply
Joined Feb 2016
...confuzed
> bubble2 3,290 Posts
650 Reputation
dazedxxx
09-06-2023 at 07:59 PM.
09-06-2023 at 07:59 PM.
Quote from ethemartian :
This is exactly the type of question i dont know to ask. I was considering the CIT one in the OP, will have to look into it.

Any other gotchas I should be looking for?

Also find out if it autoamticaly rolls into the same cd (whatever the rate then may be) if you should miss the window for withdrawing once it matures, and what happens then?

... and dont forget to put your benificiaries on it, if you need to.
Reply
Joined Jun 2011
L4: Apprentice
> bubble2 358 Posts
40 Reputation
ethemartian
09-06-2023 at 09:05 PM.
09-06-2023 at 09:05 PM.
Quote from dazedxxx :
Also find out if it autoamticaly rolls into the same cd (whatever the rate then may be) if you should miss the window for withdrawing once it matures, and what happens then?

... and dont forget to put your benificiaries on it, if you need to.
this is great info, thanks!
Reply
Joined Oct 2014
L1: Learner
> bubble2 20 Posts
10 Reputation
varasinp
09-07-2023 at 02:41 AM.
09-07-2023 at 02:41 AM.
I recommend people look into this site.
https://www.raisin.com/
Reply
Joined Jul 2008
You can call me "Al"
> bubble2 18,305 Posts
38,677 Reputation
MsGal
09-07-2023 at 10:57 AM.
09-07-2023 at 10:57 AM.
Quote from lostmyoldsdaccount :
I would watch news on Ally. They might have some issues next year
Such as?
Reply
Joined Dec 2003
L10: Grand Master
> bubble2 311 Posts
165 Reputation
prospero
09-07-2023 at 02:34 PM.
09-07-2023 at 02:34 PM.
Quote from patelpa4 :
3-month New issue CDs on fidelity are sitting around 5.10 right now
Just FYI, if you're paying 3rd party prices your price is more like $98.27 (vs. $100) so you're really only getting 3.6% on a 5.4% T-bill.

e.g. - 1 bond = $1000, ask is at 98.296 on a bond yield that's 5.469. If you purchase 1 bond = $1,000 you'll receive $982.96 worth, at 5.469 over 3-months that's $1036.71 (+3.67%)

High-Yield Savings account where your money is liquid is >4.25%
https://www.americanexpress.com/e...s/account/
1
Reply
Last edited by prospero September 7, 2023 at 02:37 PM.

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Joined Feb 2016
...confuzed
> bubble2 3,290 Posts
650 Reputation
dazedxxx
09-07-2023 at 04:43 PM.
09-07-2023 at 04:43 PM.
Quote from prospero :
Just FYI, if you're paying 3rd party prices your price is more like $98.27 (vs. $100) so you're really only getting 3.6% on a 5.4% T-bill.

e.g. - 1 bond = $1000, ask is at 98.296 on a bond yield that's 5.469. If you purchase 1 bond = $1,000 you'll receive $982.96 worth, at 5.469 over 3-months that's $1036.71 (+3.67%)

High-Yield Savings account where your money is liquid is >4.25%
https://www.americanexpress.com/e...s/account/

On fidelity second market there is a bid price (what the bond is actually sold with a given percentage to original buyer), and a ask price (what you will get, and it will be lower than the bid). The percentages are given, and usually you get between a tenth to a quarter of 1 percent less than its actual value. So if the bid on the t-bill with the rate listed as 5.5%, and ask is 5.25% your only losing 0.25%.


Not sure about your math, or if I misunderstood how it was explained to me.


This is a video that covers it from DiamondNestEgg

https://youtube.com/watch?v=kxxP8...ure=shared

You can buy new offered T-bills and avoid the secondary market all together (but you wont know the rate until after you put up the money). Also you can sell your t-bills as well thru fidelity (I haven't had to yet), so there is some liquidity there, and no state tax if you live in a state that taxes, unlike the savings you linked.
1
Reply
Last edited by dazedxxx September 7, 2023 at 06:23 PM.
Joined Jun 2019
L3: Novice
> bubble2 137 Posts
104 Reputation
Pro
ScarletWing8449
09-07-2023 at 07:46 PM.
09-07-2023 at 07:46 PM.
Betterment apy savings yield is 4.75... 4 million fdic insurance for married couples, 2 million for singles.
Reply
Joined Feb 2020
L3: Novice
> bubble2 100 Posts
30 Reputation
Respinoza89
09-07-2023 at 08:06 PM.
09-07-2023 at 08:06 PM.
Quote from duckeggs :
tyvm!!!!!!

That app really sucks though. Zelle limits are weird as opposed to my BofA and Wellsfargo. On the other hand, they have better APY on savings accounts. Wells Fargo has a 5.00APY on 7 month cd and 5.25% on 11 month if you have a prime account with them
Reply
Joined Dec 2003
L10: Grand Master
> bubble2 311 Posts
165 Reputation
prospero
09-08-2023 at 01:05 PM.
09-08-2023 at 01:05 PM.
Quote from dazedxxx :
On fidelity second market there is a bid price (what the bond is actually sold with a given percentage to original buyer), and a ask price (what you will get, and it will be lower than the bid). The percentages are given, and usually you get between a tenth to a quarter of 1 percent less than its actual value. So if the bid on the t-bill with the rate listed as 5.5%, and ask is 5.25% your only losing 0.25%.


Not sure about your math, or if I misunderstood how it was explained to me.


This is a video that covers it from DiamondNestEgg

https://youtube.com/watch?v=kxxP8...ure=shared [youtube.com]

You can buy new offered T-bills and avoid the secondary market all together (but you wont know the rate until after you put up the money). Also you can sell your t-bills as well thru fidelity (I haven't had to yet), so there is some liquidity there, and no state tax if you live in a state that taxes, unlike the savings you linked.
That's only if you resell your T-bill. If you just wait until maturity (whatever the term is) then you get the full % listed.

I was assuming in my example that I paid $1000 for a T-bill and only got $982.96. The truth is the bond is worth $1000 and the difference ($17.04) is what Fidelity keeps and earns interest on. However I still only pay $982.96 and earn interest on that vs. the full value of the T-bill, so it is a very small % difference.

e.g.
$1000 T-bill @ 5.469% should return $1054.69 at the end of term. (+$54.69)
$982.96 T-bill @ 5.469% should return $1,036.71 at the end of term. (+$53.75)
So the $0.94 interest (on $17.04) is what Fidelity gets.
Reply
Joined Feb 2007
L10: Grand Master
> bubble2 7,577 Posts
WindySummer
09-09-2023 at 01:11 AM.
09-09-2023 at 01:11 AM.
Quote from Selman :
Vanguard not only pays more interest, but the expense ration is a fraction of what Fidelity charges
It depends what your investment goal is,

Fidelity ALLOWS you to earn 4.97% in their SPAXX Acct while you decide IF you want to invest in the stock market.

IOW, you could let it sit their FOR YEARS while you decide what, if ANY stocks, you might want to invest in.


Vanguard and Schwab offer NO such option.



SPAXX - Fidelity Money Market
https://fundresearch.fidelity.com.../31617H102


BEST FINANCE WEBSITE TO EXPLAIN IT ALL.

https://www.youtube.com/c/DiamondNestEgg
1
Reply
Joined Jul 2010
YӨЦЯ FishyΣƧƬ ПIGΉƬMΛЯΣ
> bubble2 4,216 Posts
1,723 Reputation
Selman
09-09-2023 at 02:48 AM.
09-09-2023 at 02:48 AM.
Quote from WindySummer :
It depends what your investment goal is,

Fidelity ALLOWS you to earn 4.97% in their SPAXX Acct while you decide IF you want to invest in the stock market.

IOW, you could let it sit their FOR YEARS while you decide what, if ANY stocks, you might want to invest in.


Vanguard and Schwab offer NO such option.



SPAXX - Fidelity Money Market
https://fundresearch.fidelity.com.../31617H102


BEST FINANCE WEBSITE TO EXPLAIN IT ALL.

https://www.youtube.com/c/DiamondNestEgg

This is completely false information. Vanguard has money market funds, and they are better at it than Fidelity. Of course you could let it sit for years. As I've already said, I have accounts both places. How did you get this so wrong?

VMFXX pays 5.27% with an expense ratio of 0.11%. SPAXX is at 4.97% with a 0.42% expense ratio.

How did you end up so confidently wrong that you thought you should be offering advice on this?
Reply
Last edited by Selman September 9, 2023 at 03:05 AM.
Joined Feb 2007
L10: Grand Master
> bubble2 7,577 Posts
WindySummer
09-09-2023 at 09:11 AM.
09-09-2023 at 09:11 AM.
Quote from Selman :
This is completely false information. Vanguard has money market funds, and they are better at it than Fidelity. Of course you could let it sit for years. As I've already said, I have accounts both places. How did you get this so wrong?

VMFXX pays 5.27% with an expense ratio of 0.11%. SPAXX is at 4.97% with a 0.42% expense ratio.

How did you end up so confidently wrong that you thought you should be offering advice on this?
The point of the post is if you sell $50,000 of stock in Fidelity it automatically is stored in (SPAXX) at 4.97% while you wait to reinvest it.

Schwab does NOT offer this option. If Vanguard does, my apologies. Furthermore, Vanguard's investment offerings are miniscule compared to Fidelity.
Reply

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Joined Jan 2006
There she is set for stun
> bubble2 6,487 Posts
1,082 Reputation
Guyman
09-10-2023 at 09:34 AM.
09-10-2023 at 09:34 AM.
Why would you do this CD when the savings account is a higher percentage and 100% liquid money? I guess the CD locks the rate in and savings won't, is that why you'd choose this CD?
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