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CD vs. savings account


Simple ways to upgrade your savings and earn more interest.

In order to reach your savings goals, knowing what savings options are available and whether they suit you is critical. But first you need to consider your goals, your timing, and your need for liquidity. Once you know these three things, opening a new savings account is simply a matter of moving some money from your checking into the right account. This can be an ordinary savings account where you'll have the advantage of a low minimum deposit or a higher-interest alternative that can earn you considerably more.

money stacks

Should you choose a CD or savings account?

Once you've figured out your goals, it's a question of liquidity. If you can put your money aside for a while, a CIT Bank CD might be the ideal place for it. If not, CIT Bank High Yield Savings allows you to make withdrawals without a penalty. The important thing is to always be saving. And both of these options will offer higher interest rates than an ordinary savings account. So what's the difference between a savings account and a CD?

With CIT Bank High Yield Savings, you'll enjoy an effective long-term investment vehicle, with tiered rates to help you get the most from higher balances. So while it takes only $100 to open an account, if you can maintain a balance of $25,000 or more, you'll benefit from a premium rate.

CIT Bank CDs can give you the best rate on your investment but won't have the flexibility of regular access to your savings. This makes it a question of when you'd need your money-in one year, two years, or even up to five years. You might even consider buying several CDs and staggering the terms, which is known as laddering, so you'll have access to part of your money at scheduled intervals. If you're concerned about locking in a set rate, CIT Bank RampUp™ CDs give you the freedom to increase your rate once during your term should rates go up, and our RampUp™ Plus CDs let you increase both your rate and your deposit once during your term. So you can commit to saving without committing to a rate.

Overall, the key to saving is to keep your day-to-day cash where it is but put your savings where it can really grow.

The advantages of online accounts

Today a growing number of consumers continue to diversify their portfolios with online banks, such as CIT Bank. Without relying on brick-and-mortar branches, online banks can offer a range of higher interest rates and products. Plus, they provide a relatively easy way to move cash. Along with such convenience, many online banks charge no fees as long as you maintain a specified minimum account balance, so more money stays in your account. And, of course, when you choose CIT Bank, you also get the peace of mind of knowing your deposits are FDIC-insured.*


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Product
APY**
Minimum balances
Available as IRA
Available as Custodial
APY**
Minimum balances
Available as IRA
Available as Custodial