Certificates of deposit (CDs) usually have a major flaw: If you withdraw your funds before the term is done, you get charged early withdrawal penalties. But with no-penalty CDs, you can waive goodbye to those annoying fees. We’ve gathered the best no-penalty CDs on the market with high APYs and reasonable deposit requirements.
Sallie Mae No Penalty CD through Raisin
| 10-month APY | 3.95% |
|---|---|
| 14-month APY | 4.00% |
| 10-month APY | 3.95% |
|---|---|
| 14-month APY | 4.00% |
CIT Bank No-Penalty CD
| 11-month APY | 3.50% |
|---|
| 11-month APY | 3.50% |
|---|
Freedom Bank No Penalty CDs
| 9-month APY | 4.25% |
|---|---|
| 1-year APY | 4.40% |
| 9-month APY | 4.25% |
|---|---|
| 1-year APY | 4.40% |
Marcus by Goldman Sachs No-Penalty CDs
| 7-month APY | 4.70% |
|---|---|
| 11-month APY | 4.70% |
| 13-month APY | 4.70% |
| 7-month APY | 4.70% |
|---|---|
| 11-month APY | 4.70% |
| 13-month APY | 4.70% |
Ally No Penalty CD
| 11-month APY | 4.00% |
|---|
| 11-month APY | 4.00% |
|---|
Finder’s experts compare hundreds of CD offers and terms to narrow down the best no-penalty CD options. We only consider CDs that meet these requirements:
If you want to avoid early withdrawal penalties, earn interest on your cash and still have access to said cash, no-penalty CDs could be just what you’re looking for.
Typical CDs are deposit accounts with a set term where your funds are “locked away” until maturity, with terms ranging from 30 days to 10 years. If you withdraw your funds before your term is over, you almost always get hit with early withdrawal penalties, often around 30 to 180 days of earned interest depending on the bank and the CD’s term.
In short, most typical CDs penalize you for withdrawing funds before maturity — but not with no-penalty CDs.
No-penalty CDs let you withdraw your entire balance without forfeiting earned interest, with the ability to withdraw funds typically starting one week after opening. In most cases, you’re allowed one full withdrawal before maturity without paying penalties or sacrificing earned interest.
No-penalty CDs are a little different from typical fixed-rate CDs, so here’s what to know before opening one:
Fixed-rate and no-penalty CDs are generally considered a very safe way to earn passive interest. CDs are deposit accounts, which means they’re protected by FDIC or NCUA insurance, typically up to $250,000 per depositor.
Most CDs lock rates for the entire term — they don’t have variable rates like a savings account. For example, if you open a 5% APY CD for a 12-month term, you’ll earn 5% on your balance throughout those 12 months. If you were to open a 5% APY savings account with a variable rate, the bank could adjust your interest rate at any time, so you’re not guaranteed to get that 5% APY for any set period.
The downside with no-penalty CDs is that they normally have lower rates than fixed-rate CDs, though this depends on the bank and the term. You’re also likely to have fewer term options than with regular CDs. No-penalty CDs are relatively rare, and not all banks offer this type of CD.
If your main gripe with CDs is having to pay penalties for withdrawing your own cash, then a no-penalty CD could be the perfect choice. However, they’re not as abundant as other CD options, and most no-penalty CDs only allow one withdrawal. Compare more savings options here.
At CD maturity, you can roll over your money into a new CD or cash it out and move your money to a checking, savings or investing account.
Compare, choose and apply for a certificate of deposit on finder.com. Competitive interest rates from leading financial institutions in the US.
The highest CD rates in Texas are from Ciera Bank, Quontic Bank, Susser Bank, Ally Bank and more. See the full list here.
Some of the highest CD rates in Florida are from Quontic Bank, Bethpage Federal Credit Union, First Internet Bank and more. See the full list here.
Some of the highest CD rates in Michigan are from Flagstar Bank, Quontic Bank, First Internet Bank, Ally Bank and more. See our full list here.
Finding the best CD rate is vital to ensuring that your savings balance grows to the maximum amount possible in the shortest time.
Raisin’s Sallie Mae CDs offer a big APY for a small opening deposit.
See what the average interest rate was in the US for 3-month, 60-month, 1-year, 3-year and 5-year CDs since 2009 and learn how the economy affects rates.
Money market accounts offer easy access to your money, while CDs lock your savings away for a set time and often have higher interest rates.