Share

Why You Should Choose a 1-Year CD


One year. Twelve months. Three-hundred-sixty-five days. A lot can happen in a year. Interest rates can dip. The stock market can fluctuate. If you have money to put away for this amount of time and want to keep your funds safe and growing, a 1-year certificate of deposit (CD) just might be the perfect savings product for you.

Why You Should Choose a 1-Year CD

What is a CD?

A CD is a savings product known as a time deposit account. When you open a CD, you invest a fixed amount of funds for a specific time period (your term) in return for an interest rate that is typically higher than a traditional savings or money market account. Your interest rate is locked in for the term and you will be unable to access your money penalty-free until the CD's maturity date. CIT Bank offers CDs with terms ranging from 6 months to 5 years. A 1-year CD is a 12-month investment.

What happens if the 1-year CD rate changes?

A 1-year CD isn't for everyone, but if you are looking for a stable, short-term investment and don't require liquidity, there are many benefits to this savings product:

What happens at maturity?

At maturity, you have the option of rolling over the CD to another CD for the same term or a different term, or you can cash it out.

What are some of the disadvantages of a 1-year CD?

A 1-year CD can be a smart choice for reaching your financial goals, but it does have some drawbacks. Keep in mind the following before opening a CD:

When is a 1-year CD right for you?

A 1-year CD could be a great option for you if:

How to choose the best 1-year CD account

With so many financial institutions offering 1-year CDs, deciding which one to trust with your money can seem overwhelming. Here are some things you should look for when comparing your CD choices:

Enjoy savings growth and security

A 1-year CD provides a good return on your investment in a short amount of time. Your funds will be unaffected if CD rates decrease, so you'll be able to continue moving toward your savings goals.

The CIT Bank 1-Year CD was chosen as one of the "Top 10 Best CD Accounts of 2017"1 by GOBankingRates.com. With a low minimum deposit and a 1-year CD rate that beats the national average, the CIT Bank 1-Year CD could be the ideal fit for your financial plans.2Learn more!

Open an account


Selected products ()
Product
APY**
Minimum balances
Available as IRA
Available as Custodial
APY**
Minimum balances
Available as IRA
Available as Custodial