Here you’ll find a list of the latest and best no penalty CD rates.
If you’re familiar with CDs, you’ll learn that you’ll incur a penalty for early withdrawals (prior to maturity date). Now, no penalty CDs have an exception – you’ll be able to withdraw your money early without incurring a penalty fee for doing so.
Let dive into learning more about the no penalty CDs and the best rates available below.
Best No Penalty CD Rates
Ponce Bank No Penalty CD
With the Ponce Bank 4-Month No-Penalty CD, you’ll earn 4.41% APY on your funds.
FDIC insured. No fees.- Bank with purpose: your deposit helps us keep investing in underserved communities hard hit by the Covid crisis.
(powered by SaveBetter)
Sallie Mae No Penalty CD
Earn competitive rates with the Sallie Mae No Penalty CD. Start with as little as a $1 minimum deposit.
| Term | APY | |
| 10-Month | 4.25% | Learn More |
| 14-Month | 4.40% | Learn More |
CIT Bank No Penalty CD
With the CIT Bank No-Penalty 11-Month CD, you’ll earn 4.10% APY on your funds with just a $1,000 minimum deposit.
- No penalty to access funds if needed before maturity
- No opening or maintenance fees
- Daily compounding interest to maximize your earning potential
- FDIC insured
(Visit CIT Bank to learn more)
America First Credit Union Flexible Certificate Account
With the America First Credit Union Flexible Certificate Account, you’ll earn 4.35% APY on your funds with a minimum deposit of $500 to open an account.
High Yield- Minimum opening deposit $500
- Automatic renewal option
- Additional deposits up to $10,000 per month (Each member is limited to deposits of $100,000 in any one or combination of Flexible Certificate accounts.)
- One penalty free withdrawal quarterly
- Total deposits in Flexible Certificates not to exceed $100,000 per member
Citi No Penalty CD
With the Citi No-Penalty 12-Month CD, you’ll earn 4.05% APY on your funds with a $500 minimum deposit to open an account.
Flexibility to withdraw full balance- No withdrawal penalty beginning 7 days after account funding1
- $500 minimum deposit required
USALLIANCE Financial No Penalty CD
With the USALLIANCE Financial No-Penalty 11-Month CD, you’ll earn 4.00% APY on your funds with a $500 minimum deposit to open an account.
Interest Compounded Daily. Dividends are compounded daily and credited monthly- Open With as Little as $500
- Choose the amount that fits your budget
Ally Bank No Penalty CD
With the Ally Bank No-Penalty 11-Month CD, you’ll earn 3.85% APY on your funds with no minimum deposit to open an account.
Digital banking tools. It’s easy to bank anytime, anywhere with the Ally Mobile app.- Your money, FDIC-insured.
- No monthly maintenance fees.
- Earn a 0.05% Loyalty Reward when you renew your CD to any CD.
Marcus by Goldman Sachs No Penalty CD
With the Marcus by Goldman Sachs No-Penalty 13-Month CD, you’ll earn 3.85% APY on your funds with a minimum deposit of $500 to open an account.
Earn a competitive fixed rate.- Ability to withdraw your full balance beginning 7 days after funding.
- $500 minimum balance. Multiple terms available.
Marcus by Goldman Sachs No Penalty CD (For AARP Members)
With the Marcus by Goldman Sachs No-Penalty 8-Month CD for AARP Members, you’ll earn 3.85% APY on your funds with a minimum deposit of $500 to open an account.
Open and enroll online or by phone- No fees and no early withdrawal penalty
- Easy transfers to/from other banks
- Deposits are FDIC insured and backed by the financial expertise of Goldman Sachs
- Contact Center available 7 days a week
Synchrony Bank No Penalty CD
With the Synchrony Bank No-Penalty 11-Month CD, you’ll earn 3.50% APY on your funds with no minimum deposit to open an account.
No minimum balance- Flexible and steady savings.
- No early withdrawal penalty if you need to access to your money
- Your commitment to save is rewarded with higher rates than a traditional savings account
Bellco Credit Union Smart Move CD
With the Bellco Credit Union Smart Move CD, you’ll earn up to 3.40% APY on your funds with a $2,500 minimum deposit to open an account.
Start with a minimum of $2,500.- Make a one-time “bump-up” to the next interest rate anytime during the term of your CD.
- Ability to add a one-time additional deposit of $100 or more to your existing account.
- Flexibility to make one withdrawal during the account term with no penalty—as long as a minimum balance of $1,000 is left in the account.
My eBanc Flex Time Deposit CD
With the My eBanc Flex Time Deposit CD, you’ll earn 3.10% up to 3.20% APY on your funds with a minimum deposit of $10,000 to open an account.
No maintenance fees- Daily compound
- Interest for maximum earnings
- Free online and mobile banking
Workers Credit Union No Penalty CD
With the Workers Credit Union Holiday Dash Jump CD 13-Month Special, you’ll earn 3.05% APY on your funds with a $500 minimum deposit to open an account.
Holiday Dash CD 16 Month Term Special available for a limited time only.- One penalty-free withdrawal may be made during the term.
- This account automatically renews at maturity, unless we received written notice from you within the grace period mentioned below.
- Note: Upon the automatic renewal of your Holiday Dash CD, your account will automatically renew into a 24-month regular term account.
Colorado Federal Savings Bank No Penalty CD
With the Colorado Federal Savings Bank No-Penalty 11-Month CD, you’ll earn 2.75% APY on your funds with a minimum deposit of $5,000 to open an account.
No monthly maintenance fee, ACH fee or online account fee.- Each depositor is FDIC insured to at least $250,000, for each account ownership category. Click here for more information from the FDIC.
- No-Penalty CD only: You may withdraw penalty-free the full balance of your No-Penalty CD, including principal and interest earned, after a seven-day period, starting on the day you fund your CD. No withdrawals of principal will be permitted during this seven-day period. Your proceeds will be sent to the original funding account used to open the CD. changes to this account at the time of withdrawal could delay your closing.
MainStreet Bank No Penalty CD
With the MainStreet Bank No-Penalty 1-Year CD, you’ll earn 2.75% APY on your funds with a minimum deposit of $500 to open an account.
Fixed Rate & Term. Even if market rates fall, your CD remains fixed.- Automatic Rollover. Terms that end and reset automatically unless you choose to redeem.
- FDIC Insured. Maximum allowed by law insured by the Federal Deposit Insurance Corp.
Old Missouri Bank No Penalty CD
With the Old Missouri Bank No-Penalty 11-Month CD, you’ll earn 2.35% APY on your funds with a $1,000 minimum deposit to open an account.
No setup or maintenance fees- One time penalty-free withdrawal
- $1,000 minimum deposit
First Republic Bank Liquid CD
With the First Republic Bank 8-Month Liquid CD, you’ll earn 1.75% APY on your funds with a minimum deposit of $10,000 to open an account.
Guaranteed interest rate for a fixed length of time so you can plan for the future. View rates- Penalty-free withdrawals every seven calendar days offer you the flexibility to access your money when you need it
- Flexible terms to fit your individual needs
- FDIC-insured to the legal maximum for your protection and peace of mind
- Minimum opening balance of $10,000
- Minimum daily balance of $10,000 to earn interest
- Cannot be opened in connection with an IRA
- Penalty for closure prior to maturity or withdrawals more frequently than allowed
- Automatically renews at end of term
Chartway Federal Credit Union Share Certificate with No Penalty
With the Chartway Federal Credit Union 12-Month Share Certificate with No Penalty CD, you’ll earn 1.50% APY on your funds with a minimum deposit of $500 to open an account.
$500 minimum (no maximum deposit)- No penalty for an early withdraw
- Share Certificate only
- New deposits only (funds must come from a non-Chartway account)
What Is A No Penalty CD?
Simply put, a no penalty CD does not incur a penalty fee when you withdraw your funds prior to the CD’s maturity date like your traditional CDs. Now keep in mind that you will not be permitted to withdrawing your funds the first week of opening/funding your no penalty CD, but you will be able to after this period. Penalties are typically a few months of interest accrued.
No penalty suits well for those who are wanting to open a CD earning a competitive rate but may need access to their money (liquidity) within the term of the CD.
Overall, CDs are time deposits with select terms and rates for those terms. CDs are an attractive (and safe) means of investment money as it often pays higher rates than most savings and money market accounts. However, you do sacrifice liquidity with traditional CDs. With that being said, this is why no penalty CDs is a great option for many people so you gain more flexibility.
Keep in mind that some no penalty CDs will allow you to withdraw your entire account balance and close the account with no fee. On the flip side, some may require you to leave some funds in the CD; some may allow multiple withdrawals but that all depends on the terms of the CD (please be sure to read the fine print to learn more).
No Penalty CD vs Savings Account
So what is the difference between a no penalty CD and a savings account?
Now, savings accounts typically have a cap on withdrawal limits each moth (typically 6 withdrawals), but you may deposit money as you please.
With no penalty CDs, you may only be allowed to withdraw your money all at once or a portion.
As far as moving money inbound or outbound, a savings account offers more flexibility. So if you’re looking for a more liquid option, a savings account will reign higher than its counterpart. Now, typically CDs in general will offer better and more competitive rates than a savings account.
Are CDs Safe?
Yes, certificate of deposits (CDs) are safe and are FDIC insured (if a bank) or NCUA insured (if a credit union) – both are backed in full faith and credit via the U.S. government.
Advantages of No Penalty CDs
- Peace of mind: You’ll earn a guaranteed rate of return on your funds and will not have to worry about incurring fees (unless if you’re withdrawing within the first week of account opening)
- Potentially higher APY than savings accounts: You’ll typically see that CDs will offer higher rates than savings accounts.
- Fixed APY: Savings accounts may fluctuate, however, CDs will offer a fixed rate for the duration of the stated/selected term.
- Flexibility: If your fixed rate CD happens to be lower than the current/present day rate, you’re able to close the account and move your money to another account/newer term.
Disadvantages of No Penalty CDs
- May have a lower APY than other CDs: You’ll typically earn lesser rate than a traditional CD, but you won’t have the flexibility of a no penalty CD (in terms of withdrawing funds prematurely without a fee).
- Savings accounts may offer a higher APY: Some savings account do offer higher rates so be sure to compare rates before applying!
- May not have term flexibility: You’ll typically see that no penalty CDs offer shorter terms (typically between six and 14 months give or take).
- The potential need for partial withdrawals: Some CDs may not enable you to make partial withdrawals so you may need to withdraw the entire fund and close the CD.
What To Look For In A No-Penalty CD
If you’re browsing around looking to open a no penalty CD, below are some factors to consider:
- APY. You’ll typically find competitive rates with no penalty CDs, but it’s ideal to research to help you get the best rate of return on your funds (even if it’s a savings or money market account, etc)
- Compounding schedule. You’ll want to find a CD that offers daily compounding so your interest accrues more quickly vs compounding weekly or monthly, etc.
- Is there a minimum deposit? It’s vital to know if your budget allows you to contribute to the deposit to open certain CDs.
- Goals. Whether you’re looking to open a CD for the short or long term, you’ll need to find terms that suit your needs best. No penalty CDs are best for the short term.
Conclusion
A no penalty CD is a great way to potentially earn the best or higher rates on your funds and gain the flexibility of liquidity. It’s important to read the terms of the CD you’re looking to open to know what to expect.
Otherwise, CDs in general are a safe investment vehicle to make your money work for you.
For more options, see our list of the best CD rates here and more interest bearing accounts like savings and money market accounts here.
Check back for updates on the best no penalty cd rates.
Looking for a specific term? See below for our list of the best CD rates in the following terms:
- Best 6-Month CD Rates
- Best 9-Month CD Rates
- Best 1-Year CD Rates
- Best 18-Month CD Rates
- Best 2-Year CD Rates
- Best 3-Year CD Rates
- Best 4-Year CD Rates
- Best 5-Year CD Rates
