Best no-penalty CD rates for July 2025

Written by

Matthew Goldberg

Edited by

Yuliya Goldshteyn

Reviewed by

Robert R. Johnson

Expert verified

Rates updated between July 6 and July 12

At Bankrate we strive to help you make smarter financial decisions. Though our partners compensate us from links on this page, we maintain editorial integrity, and partners don't influence our product evaluations. Here's how we make money and here is our advertiser disclosure.

No-penalty certificate of deposits (CDs) offer a fixed interest rate like a traditional CD, but allow you to make a full or partial withdrawal before the CD matures without incurring a penalty. No-penalty CDs are a good option if you suspect you may need access to your cash before the end of the term but you still want the guarantee of a fixed annual percentage yield (APY), a perk you wouldn’t get with a savings account, which have variable APYs that can change at any time.

Current no-penalty CD trends

Bankrate Partner average

4.08% APY

National average

1.70% APY

CD rates remain high, but are projected to move lower.

The Fed is predicted to continue cutting rates in 2025. Read more from Bankrate's experts in our CD rates forecast.

PERSONALIZE YOUR SEARCH

Deposit amount

Zip code

Product type

Why choose Bankrate

Backed by over 40 years of experience, our team at Bankrate strives to help you make the right decisions for any financial situation.

Years experience

3,000 +

Deposit rates tracked

100 +

Banks reviewed

Table of contents

Bankrate's picks for top no-penalty CD rates
What is a no-penalty CD?
Pros and cons of no-penalty CDs
No-penalty CD FAQs
Research methodology

Bankrate's picks for top no-penalty CD rates

Note: Annual percentage yields (APYs) shown are as of May 21. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

4.4

Overview

M.Y. Safra Bank has some online-only offerings through a division they call M.Y. Safra Direct. One of the offerings is a 13-month no-penalty CD with a competitive rate, but also with a steep $5,000 minimum deposit.

Note that early withdrawal of funds without penalty is allowed up to two times. The third withdrawal results in an account closure. Withdrawals of the principal amount are allowed on the seventh day after the date the account was funded or within seven days of the most recent partial withdrawal.

Read Bankrate's Expert M.Y. Safra Bank Review

Term APY Minimum balance to earn APY

13 months 4.05% $5,000

Term	APY	Minimum balance to earn APY
13 months	4.05%	$5,000

Overview

America First offers a 12-month Flexible Certificate account that is a bit different from a traditional no-penalty CD. It allows one penalty-free withdrawal during the first five calendar days of each quarter. Customers can also deposit up to $10,000 into the CD each month, with up to $100,000 in total additional deposits.

Not everyone can join this credit union, though. Among other criteria, you’re eligible to join if you live, work, worship, volunteer or attend school in certain western states, or if you’re a member of certain employers or affiliated associations.

Read Bankrate's Expert America First Credit Union Review

Term APY Minimum balance to earn APY

1 year 4.05% $500

Term	APY	Minimum balance to earn APY
1 year	4.05%	$500

4.5

Overview

Marcus is the consumer banking unit of Goldman Sachs Bank USA. The bank consistently offers high yields on its no-penalty CD and a wide variety of its other CD terms and types (including traditional and rate bump options). It offers three terms of no-penalty CDs — seven, 11 and 13 months. The full balance can be withdrawn beginning seven days after funding the account.

Read Bankrate's Expert Marcus by Goldman Sachs Review

Term APY Minimum balance to earn APY

7 months 4.00% $500

11 months 3.90% $500

13 months 3.90% $500

Term	APY	Minimum balance to earn APY
7 months	4.00%	$500
11 months	3.90%	$500
13 months	3.90%	$500

4.6

Overview

Ally is an online bank that offers an 11-month no-penalty CD with no minimum opening deposit. You can withdraw your full balance and any interest at any time after the first six days of funding the CD.

Ally also offers a Raise Your Rate CD in terms of two years and four years as well as standard CDs in different terms.

Read Bankrate's Expert Ally Bank Review

Term APY Minimum balance to earn APY

11 months 3.55% $0

Term	APY	Minimum balance to earn APY
11 months	3.55%	$0

4.5

Overview

Colorado Federal Savings Bank offers an 11-month no-penalty CD with a $5,000 minimum deposit. Penalty-free withdrawals are allowed after seven days of the CD funding.

Read Bankrate's Expert Colorado Federal Savings Bank Review

Term APY Minimum balance to earn APY

11 months 3.50% $5,000

Term	APY	Minimum balance to earn APY
11 months	3.50%	$5,000

2.8

Overview

CIT Bank is an online bank and a subsidiary of First Citizens Bank. In addition to the 11-month no-penalty CD, CIT Bank offers eight terms of regular CDs and four terms of jumbo CDs. Penalty-free withdrawals can be made beginning seven days after the bank has received the funds.

CIT Bank also offers savings and money market accounts.

Read Bankrate's Expert CIT Bank Review

Term APY Minimum balance to earn APY

11 months 3.50% $1,000

Term	APY	Minimum balance to earn APY
11 months	3.50%	$1,000

2.9

Overview

Bank of America, one of the largest banks in the U.S., has a 12-month flexible CD that offers a competitive rate, unlike most of the bank’s other CD offerings, which tend to offer rock-bottom rates.

This no-penalty CD lets you withdraw interest and your entire balance prior to maturity. Note that a penalty of seven days’ worth of interest will be charged for withdrawals within the first six days of the term or within six days following any partial withdrawal. This CD automatically renews into a three-month CD at maturity, which earns a much lower rate. You’ll need to manage this CD closely to make sure you move your funds after maturity.

Read Bankrate's Expert Bank of America Review

Term APY Minimum balance to earn APY

12 months 3.25% $1,000

Term	APY	Minimum balance to earn APY
12 months	3.25%	$1,000

What is a no-penalty CD?

A no-penalty CD is a type of CD that lets you withdraw your money before the end of the term without paying a penalty. There is one exception to this, set by Federal law: even with a no-penalty CD, you’ll pay a penalty for withdrawing money within the first week of funding a CD.

When should you choose a no-penalty CD?

There are a few situations when a no-penalty CD might be a good choice for you:

If you’re a new saver who isn’t comfortable locking away money completely, or if you’re uncertain about future financial needs.
If you’re saving money for specific purposes, such as a down-payment for a home, but aren’t sure when you’ll need the cash.
If you’re risk-averse but still want a higher (and fixed) yield than a regular savings account can offer.
If you want to keep your options open so you can freely move your funds into a higher-yielding investment, if one arises, without paying a penalty.

Bankrate staff insights

Opting for a no-penalty CD offers the advantage of more flexibility in the event of a need for access to funds without taking the monetary hit. A benefit also is the predictability of the return because of the stable rate, as opposed to a high yield savings account which can see changes or variability. Consider it another tool in one’s savings toolbelt.

Mark Hamrick, Bankrate senior economic analyst.

Pros and cons of no-penalty CDs

Consider the following pros and cons to see if a no-penalty CD is the right financial choice for you.

Pros

You won’t have to worry about an early withdrawal penalty with a no-penalty CD.
Savings accounts usually have a variable APY, while no-penalty CDs generally offer fixed rates for the duration of the term.
Some no-penalty CDs may carry a higher yield than a savings account.

Cons

CDs that have an early withdrawal penalty generally pay higher yields.
Generally, you won’t be able to withdraw your entire balance from a no-penalty CD until the seventh day after your deposit.

No-penalty CD FAQs

Savings accounts, money market accounts and standard CDs are the main alternatives to no-penalty CDs.

Compare top-yielding savings accounts and no-penalty CD yields to see which is higher. But keep in mind that savings accounts generally have variable yields, and no-penalty CDs usually have fixed APYs.
No-penalty CDs can be worth it for you depending on your financial situation and the general rate environment. No-penalty CDs offer fixed yields, which can insulate you from rate decreases in the future, and also give you the flexibility to access your money without paying an early withdrawal penalty. Whereas with a savings account, you’d have your money in an account with a variable APY, meaning that yields are subject to change at any time, but you can add to your savings account, and take out money, whenever you want.
Certificates of deposit are safe if they’re held at a bank insured by the Federal Deposit Insurance Corp. (FDIC) 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.

Meet the Bankrate Experts

Written by: Matthew Goldberg, Senior Consumer Banking Reporter

Matthew is a senior consumer banking reporter with more than two decades of journalism and financial services expertise, helping readers make informed decisions about their personal finance needs. His banking career includes being a banker in New York City and a bank officer at one of the nation's largest banks. Matthew is currently a member of the Board of Governors at the Society for Advancing Business Editing and Writing (SABEW), chairing its training member engagement committee and is co-chair of its Finance Committee.

Research methodology

Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.

To find the best no-penalty CD rates, we regularly survey no-penalty CD offerings from the banks and credit unions that offer these specialty CDs.

The banks and credit unions on this page are selected based on their current APY for a no-penalty CD of any term. Learn more about how we choose the best banking products and our methodology for reviewing banks.

Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Axos Bank, Banesco USA, Bank of America, Bank of Hope, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Alto, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, BrioDirect, Capital One, CFG Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Credit One Bank, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Bank, Emigrant Direct Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, First Tech Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, Limelight Bank, Live Oak Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Morgan Stanley Private Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank, Northpointe Bank, Openbank, Patelco Credit Union, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, SouthState Bank, Star One Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, Truist Bank, UFB Direct, Umpqua Bank, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VyStar Credit Union, WebBank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank

Best no-penalty CD rates for July 2025

Current no-penalty CD trends

Why choose Bankrate

Bankrate's picks for top no-penalty CD rates

Overview

Terms offered

Overview

Terms offered

Overview

Terms offered

Overview

Terms offered

Overview

Terms offered

Overview

Terms offered

Overview

Terms offered

What is a no-penalty CD?

When should you choose a no-penalty CD?

Bankrate staff insights

Pros and cons of no-penalty CDs

Pros

Cons

No-penalty CD FAQs

What are the alternatives to no-penalty CDs?

Are no-penalty CDs worth it?

Are CDs safe?

Meet the Bankrate Experts

Research methodology

Banks we monitor