Update:  Since this was posted, the rate on CIT’s 11-Month, No-Penalty CD has been raised to 1.85% and the rate on the top tier of Ally’s 11-Month, No-Penalty CD has been lowered to 1.5%.  So, as of March 2nd, 2018, CIT has a commanding lead in this product space.

Back in November, we reported on how CIT Bank and Ally had the best no-penalty CD rates we could find. Earlier this month, Ally leapfrogged CIT for deposits of $25,000 and above by raising their rate from 1.5% to 1.6%, thereby beating CIT’s 1.55% rate.  However, for deposits less than $25K, CIT still has the the more-compelling offer since Ally’s tiered rates for their no-penalty, 11-month CD now look like this:

• 1.60% APY for deposits of $25,000 or more
• 1.35% APY for deposits between $5,000 and $24,999.99
• 1.15% APY for deposits of less than $5,000

Apart from those changes, the rest of our earlier comparison should be accurate as of December 15, 2017.

You can read the fine print and apply for Ally Bank’s no-penalty, 11-month CD here and for CIT Bank’s no-penalty, 11-month CD here.