Best no-penalty CD rates for January 2021


At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

CDs usually have one characteristic that people don’t like: penalties.

However, no-penalty CDs are the exception to this. These CDs may give you a higher, fixed yield than you could earn with a savings account, without having to pay a penalty.

Best no-penalty CD rates for January 2021

Compare: No-penalty CD rates by term

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

Ally Bank is an online-only bank that has been around for a little more than 10 years. Ally Bank’s 11-month no penalty CD doesn’t have a minimum opening deposit amount.

The bank offers several different types of CDs. In addition to its no-penalty CD, Ally Bank has seven terms of standard CDs and a raise your rate CD. The raise your rate CD allows the interest rate to increase once with the two-year CD or twice with the four-year CD if the balance tier increases on your CD.

Term APY Minimum balance to earn APY
11-month 0.50% $0

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

Marcus by Goldman Sachs offers three terms of no-penalty CDs: 7 months, 11 months and 13 months.

Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. Marcus offers a variety of CDs, three no-penalty CD 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. Investors eAccess: 0.40% 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.

You only need to deposit at least $500 to open either CD.

Term APY Minimum balance to earn APY
6-month 0.40% $500

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

America First Credit Union was founded in 1939 in Salt Lake City, Utah. It has 131 locations and is the ninth largest credit union, based on assets, in the U.S. It’s also the sixth largest based on membership with more than a million members.

It offers a Flexible Certificate account. This is a little different than a traditional no-penalty CD because it only allows you to access your money during the first five calendar days every quarter. Those looking to withdraw their money without incurring a penalty at any time, after the first few days of opening the account, should look at another no-penalty CD.

America First Credit Union offers a Regular Checking account, Money Market Checking, Share Savings, a Money Market, CDs and other products.

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

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

CIT Bank is CIT’s national direct bank. CIT Bank, N.A. is a subsidiary of CIT Group Inc. CIT Bank only offers one no-penalty CD, which has an 11-month term.

CIT Bank also offers eight terms of CDs and jumbo CDs.

In addition to its CDs, CIT Bank offers two savings accounts and a money market account. CIT Bank also launched its eChecking account in November 2019.

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

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

PurePoint Financial is a division of MUFG Union Bank, N.A.

It offers nine regular CD terms and three terms for its no-penalty CDs.

It also has a savings account that offers a competitive yield. But it also has a $10,000 minimum requirement to open the account, like all of PurePoint Financial’s products.

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

Citizens Access launched in July 2018. It made its debut with a savings account and CDs. And then in November 2019 it added an 11-month liquid CD and stopped offering the six and 18-month CDs.

The bank offers a competitive yield 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 is a CD that usually doesn’t have a penalty if you break the term early. Usually an early withdrawal isn’t allowed around the first week of funding or opening a no-penalty CD, but after that you can usually make a penalty-free withdrawal.

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 annual percentage yield (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 accounts and NCUA credit unions backed by the National Credit Union Share Insurance Fund (NCUSIF) 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, around the first week is the only time you’ll face a fee.
  • Possible higher APY than a savings account: Generally, some no-penalty CDs may have a higher yield than a savings account.
  • A fixed APY: Savings accounts usually have a variable APY, though some introductory rates are the exception to this.
  • Flexibility: If yields were to skyrocket, in either savings accounts or CDs, you could close your no-penalty CD and put your money into one of these accounts.

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.

Summary of the best no-penalty CD rates for January 2021


Financial Institution APY Minimum Deposit Learn More
Ally Bank 0.50% $0
Marcus by Goldman Sachs up to 0.45% $500
Investors eAccess 0.40% $500
America First Credit Union 0.30% $500
CIT Bank 0.30% $1,000
PurePoint Financial up to 0.15% $10,000
Citizens Access 0.05% $5,000

Note: The APYs (Annual Percentage Yield) shown are as of Jan. 4, 2021. The rates for some products may vary by region.

Learn more: