Maintaining your liquid assets should be a growing ambition that I believe everyone should look into, however, the problem we might all face is the growing question of just how convenient these services are to be of worth. Climbing a higher APY could very well mean to you a much longer maturity period than you expected on your CD, because what’s more of an inconvenience than your money tied up and untouchable. It’s satisfying to know that CIT Bank has a 3-step solution towards your low-risk investment, reliable return CD needs and “that’s where CD laddering comes in.” If you are interested, be sure to read on!
CIT Bank CD Breakdown:
- Availability: Nationwide
- Soft/Hard Pull: Unknown
- Minimum Balance Requirement:
- $1,000 for term CDs
- $25,000 for RampUp CD ($35,000 for 4-year RampUp)
- $100,000 for Jumbo CDs
- Additional Requirements: None
- Early Withdrawal Fee: There is a fee if you withdraw before the the maturity date.
- Auto-Renewal: Yes, CIT Bank will notify you 30 days before the maturity date. You will have 10 days after the maturity date to cancel the auto-renewal.
CIT Bank Laddering In-Depth Analysis:
CIT Bank Laddering is a combination of multiple necessary CDs with ALL different CD-Terms attached and disperse how much you want to ladder between the multiple CD accounts you have opened. Essentially, these staggered terms provide the balance of maintainable liquidity and higher rates that all investors crave. CIT Bank Laddering makes it easy to create and customize a CD ladder for your long-term and emergency savings.
You don’t have to worry about management fees slowly eating away the value of your hard-earned money. CIT Bank also stresses that their products have the utmost flexibility on your terms necessary, allowing account holders to also raise rates and make additional deposits within the duration of their CD’s term. However, it’s necessary to keep in mind that CIT Bank does push a higher than average minimum deposit amount necessary for some of their accounts (RampUp), which may or may not be suitable for some.
Step 1: Getting Started
First, decide how much money you have to ladder. For this example, we’re starting with $75,000.
Next, divide your money across several CIT Bank CDs with short- and long-term maturities. We chose 1-, 2-, and 3-Year Term CDs, so that one CD matures annually over the next three years.
Step 2: First CD Matures
When your first CD matures, the money is available for any plans or emergencies. Use what you need and reinvest the rest. Or reinvest the entire balance into a new CD equal to the longest term in your ladder, for this example, a 3-Year CD.
Step 3: Next CD Matures
As your next CD matures, repeat the process. By continuing to do this year after year, you can maintain access to your funds while taking advantage of current market rates on long-term CDs.
CIT Bank CD Account Features:
- No monthly fees
- Some of the highest rates available nationwide
- Daily compounded interest rate and credited monthly
- FDIC insured of up to $250,000
Conclusion:
If you want a safe, reliable and easier way to manage your liquidities, then CIT Bank may have the answer for you! CIT Bank Laddering makes it easy to create and customize a CD ladder for your long-term and emergency savings. When your first CD matures, the money is available for any plans or emergencies. Use what you need and reinvest the rest. Or reinvest the entire balance into a new CD equal to the longest term in your ladder, for this example, a 3-Year CD. As your next CD matures, repeat the process. By continuing to do this year after year, you can maintain access to your funds while taking advantage of current market rates on long-term CDs. Be sure to also check out our complete list of the Best National CD Rates for all your banking needs!