Best no-penalty CD rates for December 2021

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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 find you need to withdraw your money early.

Best no-penalty CD rates for December 2021

Compare: No-penalty CD rates by term

1. Ally Bank: 0.50% APY, $0 minimum deposit

Ally is an online bank that was formed out of the GMAC Bank. Ally offers an 11-month no-penalty CD with no minimum opening deposit (1 cent).

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-month 0.50% $0

2. Marcus by Goldman Sachs: 0.25% to 0.45% APY, $500 minimum deposit

Marcus by Goldman Sachs offers three terms of no-penalty CDs: seven months, 11 months and 13 months.
Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. Marcus offers a variety of CDs terms and a savings account.
Term APY Minimum balance to earn APY
7-month 0.45% $500
11-month 0.35% $500
13-month 0.25% $500

3. America First Credit Union: 0.30% APY, $500 minimum deposit

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

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 should search for another no-penalty CD.

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

Term APY Minimum balance to earn APY
12-month 0.30% $500

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

CIT Bank is CIT’s national direct bank and it’s an online bank. CIT Bank NA is a subsidiary of CIT Group Inc. CIT Bank offers one no-penalty CD with an 11-month term. CIT Bank also offers eight terms of CDs and jumbo CDs.

In addition to CDs, CIT Bank offers two savings accounts and a money market account.

Term APY Minimum balance to earn APY
11-month 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 three CDs: a six-month no-penalty CD, a 10-month no-penalty CD and a 10-month regular CD.

You need to deposit at least $500 to open any CD.

Term APY Minimum balance to earn APY
6-month 0.15% $500
10-month 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 NA. 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-month 0.15% $10,000
13-month 0.10% $10,000
14-month 0.10% $10,000

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

TD Bank has a broad variety of CD terms, including a no-penalty CD in either six-month or 12-month terms. The no-penalty account requires a $250 opening deposit. If you’re looking for the best APYs, however, you will have to look elsewhere.

Term APY Minimum balance to earn APY
6-month 0.05% $250
12-month 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 has a savings account with a competitive yield. But that account, the Citi Accelerate Savings, is only available in certain markets.

Term APY Minimum balance to earn APY
12-month 0.05% $500

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

Citizens Access is the online division of Citizens Bank. It launched in July 2018 with a savings account and CDs.

The bank offers competitive yields on its CDs and savings account. All of its products require a $5,000 minimum deposit.

Term APY Minimum balance to earn APY
11-month 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?

CDs are safe if they are either 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 December 2021

Financial Institution APY Minimum Deposit Learn More
Ally Bank 0.50% $0
Marcus by Goldman Sachs 0.25% to 0.45% $500
America First Credit Union 0.30% $500
CIT Bank 0.30% $1,000
Investors eAccess 0.15% $500
PurePoint Financial 0.10% to 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 Dec. 1, 2021. 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.

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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