Virginia Heritage Bank is offering a 2-year no-penalty CD with a 2.00% APY. It allows a one-time penalty-free withdrawal. Minimum deposit is $5,000. This special is listed on the bank's front page and in the bank's rate table as of the morning of 3/16/2010. There are also other competitive standard CD and IRA CD rates listed. These include a 1.75% APY 12-month CD and a 2.00% APY 18-month CD. IRA CD rates are 5 basis points higher.
It appears that a branch visit is required to open an account. Branches are located in the northern Virginia cities of Fairfax, Gainesville, Chantilly and Vienna.
The bank's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 12/31/09 data) and 3 stars (performing) at Bankrate.com (based on 9/30/09 data). The bank has been a FDIC member since 2005 (FDIC Certificate # 58174).
Thanks to the reader who mentioned this special in the comments
Other No-Penalty Certificates of Deposit
No-Penalty feature in a CD is nice to have these days when there's the possibility that interest rates will go much higher in the next year. Ally Bank offers a 9-month no-penalty CD, but the rate has gone way down. It's currently below 1.00% APY. Wilshire State Bank also offers a liquid CD called the Flex CD which allows both penalty-free withdrawals and add-on deposits. Like Ally, it's available nationwide. Also like Ally, the rate has fallen quite a bit over the last year. It's now at 1.40% APY for a 12-month term (see my old review).