Rates updated between May 13 and May 19
No-penalty certificates of deposit (CDs) are a good option if you suspect you may need access to your cash before the end of the CD term but you still want the guarantee of a fixed annual percentage yield (APY).
See savings and CD rates from different banks and credit unions in one place, so you can quickly compare your options.
Check the rate, terms and requirements, then pick the account that helps your savings grow faster.
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Colorado Federal Savings Bank offers an 11-month no-penalty CD but the minimum deposit is on the steep side at $5,000. Penalty-free withdrawals are allowed after seven days of the CD funding. In addition, Colorado Federal offers seven traditional CDs in terms from three months to five years.
Marcus is the consumer banking unit of Goldman Sachs Bank USA. The bank consistently offers high yields on its no-penalty CDs 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. You’ll earn 3.75% APY with the seven-month CD and 3.80% APY with the 11- and 13-month ones. The full balance can be withdrawn beginning seven days after funding the account.
CIT Bank is an online subsidiary of First Citizens Bank. Its 11-month no-penalty CD allows for penalty-free withdrawals beginning seven days after the bank has received the funds. In addition to the no-penalty CD, CIT Bank offers eight terms of regular CDs and four terms of jumbo CDs.
The online-only Rising Bank is a division of Midwest BankCentre, a St. Louis-based community bank. Its 15-month no-penalty CD earns a high yield, and funds can be withdrawn beginning the seventh day after the bank receives your funds. Rising Bank also offers four traditional CDs, a jumbo CD and two bump-up CDs that are called Rising CDs.
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 deposits.
Not everyone can join this credit union. Among other criteria, you’re eligible to join if you live, work, attend church, volunteer or attend school in certain western states, or if you’re a member of certain employers or affiliated associations.
BTG Pactual (which acquired M.Y. Safra Bank) offers nine traditional CDs and one no-penalty CD. The 13-month no-penalty CD with a competitive rate, but also with a steep $5,000 minimum deposit. You’ll need to deposit new money, rather than transferring money from existing accounts at BTG Pactual.
Note that early withdrawal of funds without penalty is allowed up to two times. The third withdrawal — or any withdrawal that would put the CD under the $5,000 minimum — results in an account closure. Withdrawals of the principal amount are not allowed for the first six days after the date on which you funded the account, or within six days of the most recent partial withdrawal.
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 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.
Bank of America, one of the largest banks in the U.S., has a 12-month flexible CD that offers a solid rate. This stands in stark contrast to the bank’s other CD offerings, which tend to offer rock-bottom rates.
Its 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.
When shopping around, pay particular attention to APY, term length and minimum deposit requirements.
APY: When searching for the right no-penalty CD for you, compare APYs across banks. These days, it’s possible to find top no-penalty rates above 3.5% APY. (Keep in mind that no-penalty CD APYs often have lower APYs than their traditional CD counterparts.)
Term length: Choose a term length that’s in line with when you’ll want access to your money again.
Minimum deposit requirement: While banks like Ally don’t require any minimum deposit, others may require $100, $500 or more. Colorado Federal Savings Bank, which is featured on this page, requires a considerable minimum deposit of $5,000.
Access to your funds: No-penalty CDs commonly don’t allow free access to your money until around the seventh day after the bank received your deposited funds. This can vary from bank to bank, however.
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.
Consider the following pros and cons to see if a no-penalty CD is the right financial choice for you.
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.
CDs that have an early withdrawal penalty generally pay higher yields.
Typically, you won’t be able to withdraw your entire balance from a no-penalty CD until the seventh day after your deposit.
Use a no-penalty CD to save for a house
A no-penalty CD could be a good place to set aside money for your down payment, especially if you’re actively shopping and might need the money on short notice.
Compare CD rates across terms
See the best APYs on terms from three months to five years and see whether locking your money away in a standard CD is worth the APY trade-off.
Calculate your potential CD earnings
Determine how much your money will grow throughout your CD’s term.
Open a high-yield savings account instead
You may find high-yield savings accounts with greater rates than those of no-penalty CDs.
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.
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