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 should you decide to withdraw your money early.
Best no-penalty CD rates for July 2021
- Ally Bank: 0.50% APY
- Marcus by Goldman Sachs: up to 0.45% APY
- America First Credit Union: 0.30% APY
- CIT Bank: 0.30% APY
- Investors eAccess: 0.15% APY
- PurePoint Financial: up to 0.15% APY
- TD Bank: 0.05% APY
- Citibank: 0.05% APY
- Citizens Access: 0.05% APY
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 ($0.01).
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: up to 0.45% APY, $500 minimum deposit
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, based on assets, in the U.S. It has more than 1.2 million members.
It offers a Flexible Certificate account. This is a little 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 account, Premium Checking, Money Market Checking, Share Savings, a Money Market account, 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, N.A. 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 two CDs: a six-month no-penalty CD and a 10-month regular CD.
You need to deposit at least $500 to open either CD.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 6-month | 0.15% | $500 |
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 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 one no-penalty CD in either a 6-month or 12-month term. The no-penalty account has 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 minimum deposits on CDs vary based on your location. The minimum is $1,000 in California and Nevada, $2,500 in Florida, Maryland and Washington, D.C., and $500 in all other markets.
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 is a CD that usually doesn’t have a penalty if you withdraw the funds before the term ends. Early withdrawal usually isn’t allowed within the first week of funding or opening a no-penalty CD, but after that you can 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 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, around the first week is the only time you’ll face a fee.
- Possible higher APY than a savings account: 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 rise, in either savings accounts or CDs, you could close your no-penalty CD and put your money into one of those 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 July 2021
Note: The APYs (Annual Percentage Yields) shown are as of July 19, 2021. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated. The APYs for some products may vary by region.
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