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Best No-Penalty CD Rates

Written by James Ellis | Updated on 8/16/2021

Certificates of deposit (CDs) work because everybody involved gets what they want. Depositors get a safe banking product with a guaranteed interest rate, while banks can count on funds remaining on deposit for a fixed term. The stability offered by CDs make these accounts highly reliable vehicles for growing savings that don’t need to be used for emergency spending.

Some banks offer special certificates that sweeten the deal even more for depositors: No-penalty CDs, which allow customers to withdraw funds from the account early without having to pay the usual financial penalty. Conventional CDs revoke several months worth of interest if you withdraw funds before the term of the CD is up; no-penalty CDs don’t have this drawback.

As you might imagine, these accounts are limited and tend to offer lower interest rates than similar CDs with traditional early-withdrawal penalties. But these atypical certificates can provide peace of mind for depositors who need flexibility to pursue changing APYs.

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All rates are current as of 8/16/2021

How we found the best no-penalty CD rates offered nationwide

The universe of no-penalty CDs offered by banks and credit unions isn’t huge. Still, there’s enough available to separate the wheat from the chaff when it comes to these products, and ensure that consumers can find the best no-penalty CDs available. We selected our picks based on the following criteria:

  • Nationwide availability: It’s possible better no-penalty CDs exist at a strictly local level, but we want to make sure the accounts you read about below are available for you to fund no matter where you live in the U.S.
  • No penalty of any kind for the early withdrawal of funds: Most importantly, none of the accounts listed below levy any sort of penalty on the customer for withdrawing funds before the CD matures.

The best no-penalty CD rates

CFG Bank One-Time Withdrawal CD

Term APY Minimum balance needed to earn APY
13 months 0.62% $500

While CFG Bank does not officially call its 13-month CD a no-penalty CD, it effectively functions as one by allowing depositors to make a one-time penalty-free withdrawal during the term of the certificate.

The 13-month CD, which can be opened online or at a bank branch, features a competitive APY of 0.62%. There is a minimum deposit of $500 required for this product, which is also the minimum amount you will need to obtain the high APY. CFG Bank does not allow for additional deposits after the initial deposit is made.

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Ally Bank No Penalty CD

Term APY Minimum balance needed to earn APY
11 months 0.50% None

One of the mainstays of online banking, Ally offers customers interested in no penalty CDs an 11-month term with no minimum deposit required.

Ally’s no-penalty CD doesn’t allow partial withdraws, and you’ll have to wait six days from funding the account before closing it. Ally will adjust the rate of your CD if the bank changes the rate favorable (for you) within 10 days of opening it.

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Marcus by Goldman Sachs No-Penalty CD rates

Term APY Minimum balance needed to earn APY
7 months 0.45% $500
11 months 0.35% $500
13 months 0.25% $500

For depositors who are not ready to make a five-figure commitment to a CD, Marcus by Goldman Sachs offers a suite of no-penalty CDs that only require a $500 minimum deposit to fund. After you fund these certificates, you must wait at least seven days before withdrawing your money — Marcus by Goldman Sachs won’t allow you to touch your money before then.

Customers already familiar with Marcus by Goldman Sachs’ CDs should also note that unlike the high-yield CDs the institution offers, no-penalty CDs won’t permit you to add additional funds during a 30-day grace period after you open the account. Additionally, you can’t make any partial withdrawals on the no-penalty CD. You will, however, receive the interest for the month you choose to withdraw your money and close the account.

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Colorado Federal Savings Bank No Penalty Certificate of Deposit

Term APY Minimum balance needed to earn APY
11 months 0.45% $5,000

Founded in 1990, the Colorado Federal Savings Bank now operates as a branchless-bank, headquartered in Greenwood Village, Colorado. It offers an array of financial products, including a number of certificates of deposit.

The Colorado Federal Savings Bank features an 11 month no-penalty CD, with an APY of 0.45%. This CD requires a minimum deposit of $5,000, with no maximum deposit limit. With this CD, you’re able to withdraw the full balance – including interest and principal – with no penalty, seven days after you begin funding the account.

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My eBanc Flex Time Deposits

Term APY Minimum balance needed to earn APY
11 months 0.35% $10,000
11 months 0.40% $100,000

This online-only bank is a division of BAC Florida Bank, but anyone in the country can fund a Time Deposit, the bank’s name for certificates of deposit. The two no-penalty accounts offered by My eBanc both have an 11-month term, but those who deposit a higher balance — a minimum of $100,000 — enjoy a higher APY at 0.40%. A balance of at least $10,000 is all you need in order to open an account earning 0.35% APY.

These accounts truly earn their “flex” name by allowing you to make two partial withdrawals on your funds, a feature most no-penalty CDs lack. You can withdraw the entire amount in your account, but just keep in mind that it counts as one of the two withdrawals you’re allowed to make before incurring an early withdrawal penalty. Two caveats to the partial withdrawals are that you must give My eBanc seven days in advance before withdrawing the money, and you must still maintain the minimum balance for the account.

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CIT Bank No-Penalty CD

Term APY Minimum balance needed to earn APY
11 months 0.30% $1,000

Based in Pasadena, Calif., CIT Bank offers customers nationwide an 11-month, no-penalty CD earning 0.30% APY, provided they have the $1,000 minimum needed to open the account.

Similar to other no-penalty CDs, the one offered by CIT Bank doesn’t allow for partial withdrawals. All in all, it’s a solid choice for customers shopping for a standard, no-penalty CD.

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Investors eAccess No-Penalty CD

Term APY Minimum balance needed to earn APY
6 months 0.15% $500

While this New Jersey-based bank only offers one CD term with a no-penalty option, the account earns a decent APY and requires only a $500 minimum, making it an excellent choice for savers looking for a short-term commitment.

Savers should note that with this no-penalty CD you can only make a complete early withdrawal, not a partial withdrawal. You'll also receive your withdrawn funds via a check mailed First Class by the bank, which may also give you pause if you want to have your money in hand in a hurry.

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PurePoint Financial No-Penalty CD rates

Term APY Minimum balance needed to earn APY
11 months 0.15% $10,000
13 months 0.10% $10,000
14 months 0.10% $10,000

Backed by Union Bank, this online-only institution offers the competitive rates for no-penalty CDs, with the crown jewel being its 11 month, 0.15% APY certificate. You’ll need to fund this account, like all of PurePoint’s No-Penalty CDs, with a minimum deposit of $10,000, and you can’t make any additional deposits before the CD matures. You need to wait seven days after funding the account before you can withdraw the money without penalty (a common restriction with no-penalty CDs). This no-penalty CD also doesn’t allow any partial withdrawals — you have to withdraw all the money, and once you do PurePoint closes the account.

PurePoint also offers a commitment to offer depositors the most competitive rate possible, promising that if the bank’s rate changes to something more favorable within 10 days of your funding, they will lock in the CD APY at the new, better rate rather than the lower one you funded it at.

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Chartway Credit Union No Penalty Share Certificate

Term APY Minimum balance needed to earn APY
12 months 0.10% $500

Being a credit union, Virginia-based Chartway requires you to become a member before you can take advantage of any of its services. Several paths to membership exist, but the easiest one for anyone in the nation to take involves donating $10 to the credit union’s We Promise Foundation.

The single no-penalty Share Certificate — a name for CD used by some credit unions — offered by Chartway has a term of 12 months and requires a minimum deposit of $500. It’s a solid choice for people already banking with Chartway, but unless you’ve been blacklisted by the other banks for whatever reason, it’s difficult to recommend this product over other institutions offering shorter-term no-penalty CDs earning more interest.

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Citizens Access Liquid CD

Term APY Minimum balance needed to earn APY
11 months 0.05% $5,000

Citizens Access is an online-only bank that offers an array of financial products and services, including savings accounts and CDs. Citizens Access is backed by Citizens Bank N.A., which has roots dating back 190 years and touts over $150 billion in assets.

Citizens Access offers a product called a Liquid CD, which functions in the same way as a no-penalty CD. The Liquid CD is for an 11-month term and has a current APY of 0.05%. There is a $5,000 minimum deposit required for this CD, and it features no penalty for a one-time withdrawal of its entire balance as soon as seven days after funding.

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Why you need a no-penalty CD

With a no-penalty CD, you gain in flexibility and liquidity, though you do lose some of the interest offered by conventional CDs of a similar term. However, that doesn’t mean this special type of CD is useless.

The risk for placing your money in a no-penalty CD is low, as you can withdraw your money at virtually any time if rates suddenly rise and you want to place your funds in a higher-earning CD (or in another type of financial product entirely).

As with regular CDs, it’s smart to put your money in an account paying the highest interest rate in order to maximize your earnings and make your money work for you.

  |     |   Comment #1
Thank you for the update James Ellis. Very timely, exactly what I was looking for. Maybe Ken could put a link to all the no-penalty CDs in the drop-down box at the top of the page. Thanks again.
  |     |   Comment #2
all the no-penalty cd rates went down in the last few days. myebanc rate just dropped today.
  |     |   Comment #3
No Penalty CDs
Updated 9.9.19
  |     |   Comment #4
Always good to learn about diff CD options, esp when rates change. I'm not touching the money in my S&P 500 SCH ETF or the few long-term stocks I have no matter what... and have over 100K in various std CDs with very good APYs (3.00 - 3.50) but with stock market being so volatile lately, and rates falling, I was wondering if perhaps I should open a few of these NP-CDs (esp the add-on variety) with some of what I have in my bank's money market savings, which has a somewhat lower APY than those NP-CDs listed above. That way I will have that money liquid with a better interest rate ready to buy the market dip that I'm sure will eventually come. Something to think about. Thanks for the info.
  |     |   Comment #5
Ally bank NP CD no longer at 1.9% for highest tier. As of 3/17/2020, it was 1.75% for highest tier, and today it is 1.55%
  |     |   Comment #7
Surprised Rising Bank didn't make the list. 0.6% APY for a 15-month term.

There is one downside: interest is credited every 3 months, and you lose accrued interest if you close the CD before the interest is credited. Still, that gives you plenty of flexibility to close the CD. You can open a ladder of these CD's if you wish
  |     |   Comment #8
Given current rates...isn’t a checking account with tiered rates similar in impact and w/o limitations on number of transactions?

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