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Matthew Goldberg
Written by
Marc Wojno
Edited by
Robert R. Johnson
Reviewed by
Best available rates across different account types for Wednesday, June 12, 2024
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What To Know First
Most CDs have one characteristic that consumers don’t like: penalties for early withdrawals. No-penalty CDs, however, are an exception. Thesecertificates of depositmay provide a higher fixed yield than you could earn with asavings accountand without having to pay a penalty should you need to withdraw your money early.
The best no-penalty CD rates are generally available at online-only banks. But a credit union or a brick-and-mortar bank may also offer a competitive yield on no-penalty CDs.
Bankrate’s picks for the top no-penalty CD rates
- America First Credit Union: 5.00% APY, $500 minimum deposit
- Marcus by Goldman Sachs: 4.70% APY, $500 minimum deposit
- Ally Bank: 4.00% APY, $0 minimum deposit
- Bank of America: 3.51% APY, $1,000 minimum deposit
- CIT Bank: 3.50% APY, $1,000 minimum deposit
Note: Annual percentage yields (APYs) shown are as of June 7. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings. Bankrate’s editorial staff has compiled the list of no-penalty CDs on this page. Advertiser offers and other non-editorial listings on the page may be for additional types of deposit products.
On This Page
- Bankrate's picks for the top no-penalty CD rates
- What is a no-penalty CD?
- Pros and cons of no-penalty CDs
- No-penalty CD FAQs
- Research methodology
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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
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Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money.
Show me:
The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
Certificate of Deposit (CD)
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking account
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings / Money Market Accounts (MMA)
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Current savings trends
Bankrate Partner average
4.88% APY
National average
0.58% APY
The "Bankrate Partner average" is calculated from the average of the top savings account offers from the institutions we track, included on this page as of 6/12/2024. "National average" is determined by Bankrate's comprehensive national survey of savings accounts and CDs.
On This Page
On This Page
- Bankrate's picks for the top no-penalty CD rates
- What is a no-penalty CD?
- Pros and cons of no-penalty CDs
- No-penalty CD FAQs
- Research methodology
Bankrate's picks for the top no-penalty CD rates
Note: Annual percentage yields (APYs) shown are as of June 7. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
America First Credit Union: 5.00% APY, $500 minimum deposit
America First offers a 12-month Flexible Certificate account that is a bit different from a traditional no-penalty CD. It allows one penalty-free withdrawal during the first five calendar days of each quarter. Customers can also deposit up to $10,000 into the CD each month, with up to $100,000 in total additional deposits.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 1 year | 5.00% | $500 |
Marcus by Goldman Sachs: 4.70% APY, $500 minimum deposit
Marcus is the consumer banking unit of Goldman Sachs Bank USA. It offers three terms of no-penalty CDs — seven, 11 and 13 months — along with a variety of standard CDs terms and a savings account.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 7 months | 4.70% | $500 |
| 11 months | 4.70% | $500 |
| 13 months | 4.70% | $500 |
Ally Bank: 4.00% APY, $0 minimum deposit
Ally is an online bank formerly known as GMAC Bank. Ally offers an 11-month no-penalty CD with no minimum opening deposit.
Ally also offers a Raise Your Rate CD in terms of two years and four years as well as standard CDs in different terms.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 11 months | 4.00% | $0 |
Bank of America: 3.51% APY, $1,000 minimum deposit
Bank of America’s 12-month flexible CD lets you withdraw interest and your entire balance during the CD’s term. The CD automatically renews into a nine-month CD at maturity.
Bank of America is one of the largest banks in the U.S. and it has the third most branches in the U.S.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 12 months | 3.51% | $1,000 |
CIT Bank: 3.50% APY, $1,000 minimum deposit
CIT Bank, an online bank, became a subsidiary of First Citizens Bank following the completion of a merger in January 2022. In addition to the 11-month no-penalty CD, CIT Bank offers eight terms of regular CDs and four terms of jumbo CDs.
CIT Bank also offers savings and money market accounts.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 11 months | 3.50% | $1,000 |
What is a no-penalty CD?
A no-penalty CD usually doesn’t have a penalty if you withdraw the funds before the term ends. Early withdrawal isn’t permitted within the first week of funding or opening a no-penalty CD, but after that a penalty-free withdrawal is possible.
No-penalty CDs may be a good fit for people who aren’t sure when they’ll need access to their money but still want to earn a possible higher APY.
Generally you would pay a penalty with a no-penalty CD if you withdraw money during the first six days of the term.
Pros and cons of no-penalty CDs
Consider the following pros and cons to see if a no-penalty CD is the right financial choice for you.
Pros
You won’t have to worry about an early withdrawal penalty with a no-penalty CD.
Savings accounts usually have a variable APY, while no-penalty CDs generally offer fixed rates for the duration of the term.
Some no-penalty CDs may carry a higher yield than a savings account.
Cons
CDs that have an early withdrawal penalty generally pay higher yields.
Generally, you won’t be able to withdraw your entire balance from a no-penalty CD until the seventh day after your deposit.
No-penalty CD FAQs
Research methodology
Bankrate’s editorial team is made up of seven banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.
The banks and credit unions on this page are selected based on popularity, Bankrate’s review score and CD APYs. The listings are ordered based on Bankrate’s scoring system, and ties are broken through minimum balance requirements and then alphabetical order.
Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.
