Best CD Rates No Penalties — February 2023

Most CDs have one feature that consumers don’t like. That’s the penalty for early withdrawal. The exception is non-penalty CDs. These certificates of deposit offer a higher fixed rate of return than you can earn with a savings account, and you don’t have to pay penalties if you need to withdraw your money early.

What is No Penalty CD?

With non-penalty CDs, there is usually no penalty for withdrawing funds before the term ends. No early withdrawals are allowed within his first week of fundraising or non-penalty CD opening, but non-penalty withdrawals are possible thereafter.

Penalty-free CDs may be suitable for people who don’t know when they will need access to their money, but want to earn the highest possible APY.

Bankrate Picks for Top Penalty CD Rates

• America First Credit Union: 4.35% APY, minimum deposit $500

• Citic Bank: 4.10% APY, minimum deposit $1,000

• Citibank: 4.05% APY, minimum deposit $500

• Ally Bank: 3.85% APY, $0 Minimum Deposit

• Marcus by Goldman Sachs: 0.35%-3.85% APY, minimum deposit $500

• Synchronous bank: 3.50% APY, $0 Minimum Deposit

Note: Annual Yield (APY) shown is as of February 1, 2023. Bankrate’s editorial team updates this information regularly, usually bi-weekly. APY may have changed since the last update and may vary by region for some products.

Explore Top No Penalty CD Rates

America First Credit Union: 4.35% APY, minimum deposit $500

America First Credit Union is one of the ten largest credit unions in the United States.

America First offers a 12-month flexible certificate account that is a little different than the traditional no-penalty CD. During the first 5 calendar days of each quarter he is entitled to 1 withdrawal without penalty.

CIT Bank: 4.10% APY, minimum deposit $1,000

Online bank CIT Bank became a subsidiary of First Citizens Bank after the merger was completed in January 2022. CIT Bank offers 8 regular CDs and 4 jumbo CDs in addition to 11 months of penalty free CDs. .

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CIT Bank also offers savings and money market accounts.

Citibank: 4.05% APY, minimum deposit $500

Citibank is one of the largest banks in the US, offering fixed rate CDs, step-up CDs and no penalty CDs.

Citi also offers Citi Accelerate Savings, a competitive yield savings account. However, it is not available in all US markets.

Ally Bank: 3.85% APY, $0 Minimum Deposit

Ally is an online bank formerly known as GMAC Bank. Ally offers her CDs penalties free for 11 months with no minimum starting deposit.

Ally also offers Raise Your Rate CDs in 2- and 4-year increments, as well as standard CDs in various terms.

Marcus by Goldman Sachs: 0.35% to 3.85% APY, minimum deposit $500

Marcus is the consumer banking division of Goldman Sachs Bank USA. We offer a variety of standard his CD durations and savings accounts plus his 3 month no penalty CDs of 7 months, 11 months and 13 months.

Synchrony Bank: 3.50% APY, $0 minimum deposit

Synchrony Bank’s 11-month no-penalty CD is a new addition to their line-up of traditional 14-period CDs and 2-year bump-up CDs. The bank also offers savings accounts and money market accounts. Savings accounts earn competitive APYs and have no minimum balance requirements.

Penalty free CD FAQ

• Are CDs safe?

  Certificates of deposit are held with Federal Deposit Insurance Company (FDIC) banks or National Credit Union Administration (NCUA) credit unions and are safe within insurance guidelines and limits. Both FDIC and NCUA accounts are backed by the full trust and credit of the U.S. Government.

• What are the advantages of No Penalty CD?

  Peace of mind: Normally, with a non-penalty CD, you don’t have to worry about incurring an early withdrawal penalty. Normally, only his first weekly withdrawal is charged a fee.Potentially higher APY than savings accounts: Some non-penalty CDs have higher yields than savings accounts.Fixed APYs: While savings accounts typically have variable APYs, CDs offer a fixed interest rate for the duration of the term.Flexibility: If yields rise, you can close your non-penalty CDs and put your money into a higher rate savings account or CDs.

• What are the disadvantages of no-penalty CDs?

  APY may be lower than other CDs. A non-penalty CD may come at the expense of a higher APY. CDs with penalties for early withdrawal tend to offer higher yields.APY for savings accounts can be higher. Some savings accounts may have an APY equal to or greater than a non-penalized CD.They may not have a long duration: Penalty-free CDs tend to be short term, typically 6 to 14 months. A term can be longer or shorter than its scope.Potential need for partial withdrawal: Partial withdrawals may not be possible from non-penalty CDs. Banks may require you to withdraw all balances and close CDs if you want to withdraw your money early.

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Bankrate Best CD Rate Methodology

At Bankrate, we strive to help our clients make smarter financial decisions. We follow strict guidelines to ensure our editorial content is unbiased and unaffected by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy.

Bankrate regularly surveys approximately 70 widely available financial institutions, consisting of large banks, credit unions and many popular online banks.

To find the best CDs, our editorial team analyzes various factors. For example, Annual Yield (APY), the minimum required to earn that APY (or open a CD), whether it is widely available, etc. All accounts on this page are insured by the Federal Deposit Insurance Company or the National Credit Union Stock Insurance Fund.

When choosing the best CD for you, consider what your money is for and when you need access to these funds to avoid early withdrawal penalties.

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These financial institutions are featured in our CD rate survey: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BB&T, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Finance (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank , Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Suntrust Bank, Synchrony Bank, TD Bank, TIAA Bank, UFB Direct, Union Bank (California), US Bank, U SAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo, Zions Bank.