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Best no-penalty CD rates for May 2022

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Most CDs have one characteristic that consumers don’t like: penalties for early withdrawals.

No-penalty CDs, however, are an exception. These certificates of deposit may provide a higher fixed yield than you could earn with a savings account and without having to pay a penalty, should you need to withdraw your money early.

Best no-penalty CD rates for May 2022

Compare: No-penalty CD rates by term

1. Marcus by Goldman Sachs: 0.35% to 0.75% 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 0.45% $500
11 months 0.35% $500
13 months 0.75% $500

2. Ally Bank: 0.70% 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 0.70% $0

3. America First Credit Union: 0.40% APY, $500 minimum deposit

America First Credit Union was founded in 1939 in Salt Lake City. It has more than 100 locations, more than 1.2 million members and is among the 10 largest credit unions in the U.S., based on assets.

America First offers a Flexible Certificate account, which is a bit different from a traditional no-penalty CD, because it allows you penalty-free access to your money only during the first five calendar days of each quarter. Those looking to withdraw their money without incurring a penalty at any time may want to consider other no-penalty CDs.

America First Credit Union offers a regular checking, Premium Checking, Money Market Checking, share savings and money market accounts, along with traditional CDs and other products.

Term APY Minimum balance to earn APY
1 year 0.40% $500

4. CIT Bank: 0.30% APY, $1,000 minimum deposit

CIT Bank, an online bank, is a subsidiary of First Citizens Bank, following the completion of a merger in January 2022. CIT Bank offers seven terms of CDs, as well as four terms of jumbo CDs and an 11-month no-penalty CD.

CIT Bank also offers savings and money market accounts.

Term APY Minimum balance to earn APY
11 months 0.30% $1,000

5. Investors eAccess: 0.15% APY, $500 minimum deposit

Investors eAccess is an online bank and a trade name of Investors Bank. It offers two CDs: a six-month no-penalty CD and a 10-month regular CD.

A $500 minimum deposit is required to open either CD.

Term APY Minimum balance to earn APY
6 months 0.15% $500

6. PurePoint Financial: 0.10% to 0.15% APY, $10,000 minimum deposit

PurePoint Financial is a division of MUFG Union Bank. It offers nine regular CD terms and three terms of no-penalty CDs. It also has a savings account that offers a competitive yield. But, like all of PurePoint Financial’s products, it comes with a $10,000 minimum deposit to open the account.

Term APY Minimum balance to earn APY
11 months 0.15% $10,000
13 months 0.10% $10,000
14 months 0.10% $10,000

7. TD Bank: 0.05% APY, $250 minimum deposit

TD Bank offers a broad variety of CD terms, including a no-penalty CD in either six-month or one-year terms, but other banks offer better APYs. The no-penalty account requires a $250 opening deposit.

Term APY Minimum balance to earn APY
6 months 0.05% $250
1 year 0.05% $250

8. Citibank: 0.05% APY, $500 minimum deposit

Citibank is one of the largest banks in the U.S. It offers fixed-rate CDs, a step-up CD and a no-penalty CD.

Citi also offers Citi Accelerate Savings, a savings account with a competitive yield. But it isn’t available in all U.S. markets.

Term APY Minimum balance to earn APY
1 year 0.05% $500

9. Citizens Access: 0.05% APY, $5,000 minimum deposit

Citizens Access is the online division of Citizens Bank that launched in July 2018. It offers a savings account and CDs, which offer competitive yields. All products require a $5,000 minimum deposit.

Term APY Minimum balance to earn APY
11 months 0.05% $5,000

No-penalty CD FAQs

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.

Are CDs safe?

Certificates of deposit are safe if they are held at a Federal Deposit Insurance Corp. (FDIC) bank or at a National Credit Union Administration (NCUA) credit union and within insurance guidelines and limits.

Both FDIC and NCUA accounts are backed by the full faith and credit of the U.S. government.

Advantages of no-penalty CDs

  • Peace of mind: You generally don’t have to worry about incurring early withdrawal penalties with no-penalty CDs. Usually, withdrawing during the first week is the only time you’ll face a fee.
  • Possible higher APY than a savings account: Some no-penalty CDs may carry a higher yield than a savings account.
  • A fixed APY: Savings accounts usually have a variable APY, while CDs offer fixed rates for the duration of the term.
  • Flexibility: Should yields rise, you are able to close a no-penalty CD and put your money into a higher rate savings account or CD.

Disadvantages of no-penalty CDs

  • They might have lower APYs than other CDs: You may be sacrificing a higher APY with a no-penalty CD. CDs that have a penalty for early withdrawals tend to offer higher yields.
  • Savings accounts may have higher APYs: Some savings accounts may have comparable or higher APYs than a no-penalty CD.
  • They might not have long terms: No-penalty CDs tend to have short terms, usually between six months and 14 months. Terms may be longer or shorter than that range.
  • You might not be able to make a partial withdrawal from a no-penalty CD. The bank may require you to take out the entire balance and close the CD, if you wish to withdraw money early.

Summary of the best no-penalty CD rates for May 2022

Financial Institution APY Minimum Deposit Learn More
Marcus by Goldman Sachs 0.35%-0.75% $500
Ally Bank 0.70% $0
America First Credit Union 0.40% $500
CIT Bank 0.30% $1,000
Investors eAccess 0.15% $500
PurePoint Financial 0.10%-0.15% $10,000
TD Bank 0.05% $250
Citibank 0.05% $500
Citizens Access 0.05% $5,000

Note: Annual percentage yields (APYs) shown are as of May 18, 2022. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products.

Written by
Matthew Goldberg
Consumer banking reporter
Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance.
Edited by
Wealth editor
Reviewed by
Professor of finance, Creighton University