CIT Bank Raises Savings Account Rate

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CIT Bank today raised its savings rate from 0.90% APY to 0.95% APY. It follows a move from GE Capital Retail Bank earlier in the week to raise the rate on several CD terms. As the unemployment rate continues to drop, look for more and more banks to begin raising rates.

CIT Bank today raised the rate on its online savings account from 0.90% APY to 0.95% APY on balances above $25,000. For those with balances under $25,000, the rate increased from 0.85% to 0.90% APY. This moves continues to keep CIT close to the top online savings account rate in the country according to BestCashCow data.

Learn more about CIT Bank's 0.95% APY Online Savings Account

This week has been a relatively active week for bank rate increases. GE Capital Retail Bank raised the rate on two CD terms:

  • 60 Mo CD 100K from 2.05% APY to 2.15% on GE Capital Retail Bank
  • 48 Mo CD 100K from 1.70% to 1.80% on GE Capital Retail Bank

In addition, Doral Direct increased the rates every so slightly on two of their CD terms:

  • 36 Mo CD 0.5K from 1.20% to 1.21% on Doral Direct
  • 48 Mo CD 0.5K from 1.32% to 1.33% on Doral Direct

Overall, rates on online savings accounts and longer-term CDs have been rising while the yields on shorter-term CDs continue to gradually drift down. The top, nationally available 1 year CD is Pentagon Federal Credit Union at 1.16% APY. Is the extra .21% in yield worth it to lock money up? I don't think so. Rates are moving up and it's possible by year end online savings account rates could be close to 1.16% APY anyway.

The unemployment rate now stands at 6.6%. The Fed has initially said that it would keep the Fed Funds rate low until unemployment reached 6.5%. So, we are close. It's clear from the recent rise in longer-term CDs, mortgage rates, and online savings account rates, that the long decline in bank rates is over. Barring any economic, political, or natural catastrophe, we are now entering a rising rate environment. For more on my thoughts about the nature of this enviroment, please read my 2014 Savings Rate Outlook.

Find the best savings account rates.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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