CIT Bank 11 Month No-Penalty CD: Earn Expired

Yea, but you would need to have the money in the savings account, then close the 4.8% CD into the savings account. Then create the new CD at whatever $ amount you want, up to the entire balance of the savings account but leaving behind $1.

E.g.

Deposit $12,000 into CIT savings, its available for use.
Close 4.8% CD of $15,000 opened May 3rd. CD closure deposits $15,035.46 into savings.
Open 4.9% CD for $27,034.46. New CD earns $3.63 per day.
Savings account has $1 remaining.

So in other words I have to transfer all of the money in the 4.8% CD back over to my savings account first and then redo the 4.9% CD completely with the higher amount???

Yes, that is what I did. This gives you access to all interest that you have earned for the new CD. If you don't care about the interest you can use an existing CD to fund a new CD. If you go the CD to CD route with CIT I believe you then get the earned interest in your savings account the next business day, or maybe a few business days, but the interest will be trapped outside of the CD you just created, since CDs can only be funded a single time. (This is the explanation I was given by CIT customer service over the phone, I have not done a CD to CD funding personally).

This is not an issue with Ally bank. However, Ally bank has a substantially worse APY at the moment (4.25% vs 4.9%). So you will literally make less money using ally banks better banking UI that offers greater control. If CIT and Ally ever have identical rates, Ally is a much better choice. FWIW I have CDs at both banks.

It's a bit of a pain in the ass, but you can also extend your 11 month no penalty CD duration by closing and reopening the CDs every so often. For example if you have had an 11 month no penalty CD with CIT bank for the last 2 months, you only have 9 months of the rate left. But if you close all of those CDs while they are still offering 4.9%, and then reopen them all, you now have another 11 months. Meaning you will have earned 13 months of the interest guaranteed, vs 11 months if you didn't close and reopen. If you have CDs imo it is worth closing and reopening them all once a month, as long as the rate is still the same or better. Eventually the rate will be worse than what you have secured. By extending it through closing and reopening CDs, granting you extra months, you will make a lot of extra money.

I heard from this thread that all the interest is credited to the new CD from the existing CD. You are talking .10 here. With a 100k CD you might be lucky to get a free pizza worth of interest.

Is the interest you earned also wrapped into the auto renew. ie, you invest $1K. At the end of the term, you now have your principal + interest. Lets say its $1,050. If you are set up to auto renew, is your new investment now have a principal of $1,050? Or do they send you the $50 and auto renew the $1K?

Just remember folks you still have to pay federal taxes on these.

Go with their platinum savings. No sense given the difference in interest is like nothing.

I heard from this thread that all the interest is credited to the new CD from the existing CD. You are talking .10 here. With a 100k CD you might be lucky to get a free pizza worth of interest.

Why would anyone buy this over T-bills?

People keep saying this, but new issues aren't that high on Fidelity. Not even close.

One month of interest on $100k in this CD would be $408 (not even accounting for daily compounding). You must buy some fancy pizzas.

One month of interest on $100k in this CD would be $408 (not even accounting for daily compounding). You must buy some fancy pizzas.