Introduction
Consumers generally dislike the penalties for early withdrawals that are present with most CDs. However, no-penalty CDs are an exception. If you need to withdraw your money early, these certificates of deposit might offer a higher fixed yield than you could get from a savings account without charging you a fee.
What is a no-penalty CD?
If you withdraw the money from a no-penalty CD before to the term’s expiration, there is typically no penalty. After the first week of funding or starting a no-penalty CD, early withdrawal is permissible without incurring penalties.
People who are unsure of when they may need access to their money but yet wish to potentially earn a higher APY may be a suitable candidate for no-penalty CDs.
Bankrate’s picks for the top no-penalty CD rates
1.5% APY; $1,000 minimum deposit; CIT Bank
2.00% APY and $0 minimum deposit at Ally Bank
Citibank: $500 minimum deposit; 1.75% APY
Marcus by Goldman Sachs: $500 minimum deposit; APY range of 0.35% to 1.75%
Synchrony Bank: $0 in required deposits; APY of 1.60%
Minimum deposit of $500; 1.20% APY; America First Credit Union
Annual percentage yields (APYs) as of February 2, 2023 are noted. The editorial staff at Bankrate updates this data frequently, usually every two weeks. The APYs for some items may have changed since they were last updated and may differ by area.
A closer look at the top no-penalty CD rates
CIT Bank: 2.15% APY, $1,000 minimum deposit
After a transaction was completed in January 2022, the online bank CIT Bank became a division of First Citizens Bank. CIT Bank also offers four terms of jumbo CDs, seven terms of normal CDs, and an 11-month no-penalty CD.
Additionally, CIT Bank provides money market and savings accounts.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 11 months | 2.15% | $1,000 |
Ally Bank: 2.00% APY, $0 minimum deposit
Formerly known as GMAC Bank, Ally is an online bank. An 11-month no-penalty CD is available from Ally with no initial deposit requirement.
Along with ordinary CDs in a variety of periods, Ally also offers a Raise Your Rate CD with terms of two and four years.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 11 months | 2.00% | $0 |
Citibank: 1.75% APY, $500 minimum deposit
One of the biggest banks in the United States is Citibank. It provides step-up CDs, no-penalty CDs, fixed-rate CDs, and CDs.
Citi also provides Citi Accelerate Savings, a competitively yielding savings account. But not all American markets have access to it.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 1 year | 1.75% | $500 |
Marcus by Goldman Sachs: $500 minimum deposit, APY ranging from 0.35% to 1.75%
The consumer banking division of Goldman Sachs Bank USA is called Marcus. It provides a range of normal CD periods, a savings account, and three no-penalty CD terms: seven, eleven, and thirteen months.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 7 months | 0.45% | $500 |
| 11 months | 0.35% | $500 |
| 13 months | 1.75% | $500 |
Synchrony Bank: 1.60% APY, $0 minimum deposit
The 11-month no-penalty CD from Synchrony Bank is a brand-new offering in addition to its 14 conventional CD maturities and two-year bump-up CD. Additionally, the bank provides money market and savings accounts. The savings account has no minimum balance restriction and offers a competitive APY.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 11 months | 1.60% | $0 |
1.20% APY, $500 minimum deposit, America First Credit Union
One of the top ten credit unions in the United States is America First Credit Union.
A 12-month Flexible Certificate account from America First is a little different than a conventional no-penalty CD. During the first five calendar days of each quarter, it permits one withdrawal without incurring any penalties.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 1 year | 1.20% | $500 |
Bankrate’s Best CD Rates Methodology
We at Bankrate work hard to provide you with financial guidance. To prevent sponsors from influencing our editorial content, we adhere to strict restrictions. Our editorial staff is not directly compensated by advertisements, and the veracity of our content is carefully verified.
The largest banks and credit unions, as well as several well-known online banks, make up the roughly 70 widely accessible financial institutions that Bankrate regularly examines.
Our editorial staff examines a number of variables, including the annual percentage yield (APY), the minimum requirement to earn the APY (or to open the CD), and the degree to which the CD is widely accessible, in order to identify the top CDs. The National Credit Union Share Insurance Fund or the Federal Deposit Insurance Corporation insures each and every account on this website.
To help you avoid early withdrawal penalties, take into account the use of the money and when you’ll need access to these funds while choosing the appropriate CD for you.
Banks we monitor
These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank 5 Connect, Bank of America, Bank of the West, Barclays, BB&T, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens Access, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, E-Trade Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, LegacyTexas Bank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, PenFed Credit Union, PNC Bank, Popular Direct, Purepoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Suntrust Bank, Synchrony Bank, TD Bank, TIAA Bank, UFB Direct, Union Bank (California), U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.