Liquid CD and no-penalty CD
By Bankrate.com • Bankrate.com

What's the difference between a liquid CD and a no-penalty CD?

Essentially they are the same type of CD. Liquid CDs offer consumers the opportunity to withdraw money from the certificate of deposit without incurring a penalty.

The interest rate should be higher than the bank's money market rate, but would usually be lower than a traditional CD of the same term and minimum.

The term "no-penalty CD" is sometimes substituted for bump-up or liquid CDs. Essentially they are the same type of CD.