6 Best No-Penalty CD Rates in 2022

Certificates of deposit (CDs) might provide higher rates of interest than high-yield financial savings accounts. However, you could usually wait till the CD time period ends to withdraw your funds if you wish to keep away from early redemption penalties.

Fortunately, a no-penalty CD gives the upper rates of interest of time period CDs together with the power to withdraw your funds early with out charges. 

As a outcome, you now not must determine whether or not to place your money in a CD or a high-yield financial savings account. Instead, you may get a wonderful price with one of the best no-penalty CDs.

Top No-Penalty CD Rates

A no-penalty CD could be top-of-the-line short-term investments because you earn a aggressive rate of interest. Several banks provide enticing charges with low minimal steadiness necessities. 

In alphabetical order, listed here are one of the best no-penalty CD charges.

1. Ally Bank 11-Month CD

Ally Bank gives a unbelievable price for his or her 11-month no-penalty CD. You’re capable of request a penalty-free withdrawal on the seventh day after your opening deposit, just like most different platforms.

The financial institution has a 10-day rate of interest assure. If Ally Bank raises the CD yield inside 10 days of opening your account, your price matches the upper one for your entire time period.

When you maintain your Ally Bank CD to maturity, you possibly can qualify for a loyalty reward that will increase your rate of interest in the event you renew your time period. 

For instance, in November 2022, the reward is 0.05% above the usual yield. The financial institution lists your reward 30 days earlier than the maturity date.

In addition, Ally is without doubt one of the greatest on-line banks because it gives a number of merchandise, together with fee-free financial savings, checking and funding accounts. 

Term: 11 months

Rate: 3.10% APY

Minimum and Maximum Balance: $1 minimal, no most

2. CIT Bank 11-Month CD

CIT Bank requires a comparatively excessive minimal deposit of $1,000, but it surely tends to supply top-of-the-line no-penalty CD charges. 

You will get pleasure from the identical price for 11 months and might withdraw cash penalty-free seven days after opening your account.

Like different on-line banks on this record, this platform gives a number of high-interest financial savings merchandise. You can also like its eChecking account that provides as much as $30 in month-to-month ATM charge reimbursements.

Term: 11 months

Rate: 3.05%

Minimum and Maximum Balance: $1,000 minimal and no most

Learn More: CIT Bank Review: Earn More Interest on Your Savings

3. Citibank 12-Month CD

Citibank no penalty CD

Enjoy the identical no-penalty price from Citibank for 12 months. Your minimal deposit is simply $500, which is analogous to the financial institution’s different time period CDs.

As with comparable platforms, you possibly can withdraw cash from this CD the seventh day after account opening.

While this brick-and-mortar financial institution costs charges for a lot of of its banking merchandise, there are not any opening or ongoing charges.

Term: 12 months

Rate: 3.10% APY

Minimum and Maximum Balance: $500 minimal and no most

4. Sallie Mae 10-Month CD

Sallie Mae Bank gives an unique rate of interest via SaveBetter for 10 months. You usually are not capable of get this CD straight via the financial institution’s web site. 

This CD requires you to open an FDIC-insured custodian account that additionally helps you to deposit money with different accomplice banks for financial savings accounts and CDs.

While this financial institution gives one of many highest charges, you could wait not less than 30 days earlier than requesting a withdrawal. However, for the reason that minimal deposit is simply $1, you might have extra flexibility to construct a CD ladder.

Term: 10 months

Rate: 3.20% APY

Minimum and Maximum Balance: $1 minimal and no most

5. Sallie Mae 14-Month CD

Sallie Mae no penalty CD

A 14-month no-penalty CD from Sallie Mae Bank offers the next yield than its shorter-term 10-month equal. The minimal deposit is $1, and the ready interval is 30 days earlier than you may make a withdrawal. 

Similar to Sallie Mae’s 10-month CD, this product is completely accessible via SaveBetter. This platform companions with a number of federally-insured on-line and regional banks.

Term: 14 months

Rate: 3.30% APY

Minimum and Maximum Balance: $1 minimal and no most

6. Synchrony Bank 11-Month CD

A Synchrony Bank no-penalty CD helps you to earn the identical aggressive price for 11 months. Additionally, you possibly can deposit as little as $1 to open your account.

While this financial institution’s charges are aggressive, its time period CDs and high-yield financial savings account might provide greater yields. Comparing your whole choices can assist you discover one of the best price and time period.

Term: 11 months

Rate: 2.60% APY

Minimum and Maximum Balance: $1 minimal and no most steadiness

Comparison of the Best No-Penalty CDs

Bank Term Length Rate Balance Requirements
Sallie Mae 14 months 3.30% $1
Sallie Mae 10 months 3.20% $1
Ally Bank 11 months 3.10% $1
Citi Bank 12 months 3.10% $500 
CIT Bank 11 months 3.05% $1,000
Synchrony Bank 11 months 2.60% $1

What To Know Before Opening a No-Penalty CD

Opening a no-penalty CD is simple and just like opening a time period CD. However, you benefit from added flexibility when redeeming your funds.

Here’s all the things it’s best to bear in mind earlier than opening a no-penalty CD.


You can deposit your funds from a linked financial savings or checking account. Your linked account doesn’t should be with the identical platform providing this interest-bearing product. 

Unlike a financial savings account, you possibly can solely add funds on the account opening. If you wish to make a further contribution, all banks require you to open a brand new CD. 

Keep in thoughts that the brand new account could have a special maturity date and rate of interest.

Initial Deposit

The minimal preliminary deposit is from $1 to $1,000 for many banks. Some establishments might provide greater yields in the event you commit extra cash. 

Since CDs solely settle for a single upfront deposit, you received’t have to fret about ongoing minimal steadiness necessities like checking or financial savings merchandise.

Maximum Deposit

Most banks have most deposit limits of as much as $1 million in a single CD. 

However, a extra sensible threshold is the FDIC Insurance protection restrict. This covers as much as $250,000 for many federally-insured banks and credit score unions.

Additionally, a financial institution might encourage opening a jumbo CD as an alternative in the event you intend on investing $100,000 or extra. 

Term Limits

Most no-penalty CDs have comparatively brief maturity dates of roughly 11 to 14 months as they’re a substitute for high-yield financial savings accounts and cash market accounts. 

However, one distinction between these two accounts is that you just’re assured the identical rate of interest for the time period, even when financial savings account charges lower.

The time period size is often shorter than time period CDs as a result of you possibly can withdraw your funds after six days. Therefore, there’s a minimal incentive for banks to supply longer phrases until the minimal funding interval is longer.


Most establishments permit you to begin requesting redemptions after an preliminary six-day ready interval. Once the redemption window opens on day seven, you possibly can redeem your CD steadiness and earned curiosity.

Just as you possibly can solely make a one-time preliminary contribution, all CDs require withdrawing your complete steadiness and shutting the account.

The two greatest causes to withdraw your funds early could be to reinvest your money at the next price or in the event you want the cash for an expense.

If you enable your CD to mature, you possibly can both:

  • Transfer your unique deposit and curiosity into your linked checking account
  • Renew the CD for a brand new time period and rate of interest

Your financial institution will notify you 30 days earlier than the maturity date to assessment your choices. One advantage of renewing a no-penalty CD is that in the event you change your thoughts, you possibly can request a withdrawal six days after the financial institution opens your follow-up account with out penalty.

Features to Consider in a No-Penalty CD

There are a number of components to match as you search for one of the best no-penalty CD. Make positive to maintain these in thoughts as you consider the totally different choices.


The annual proportion yield (APY) is the entire curiosity that you’ll earn for the 12 months. For instance, in the event you make investments $10,000 in a 12-month CD with a 3.00% APY, you’ll earn $300 in curiosity.

Interest compounds month-to-month, however you won’t be capable of obtain these dividends till you redeem your shares.

Longer CD phrases often have greater charges since you’re pledging your funds for an extended funding interval. 

However, charges can range broadly between banks, so you have to to decide on the right steadiness between a excessive APY and an funding interval.

Since you received’t encounter early redemption penalties, chances are you’ll think about selecting the longest time period with the best price. If charges improve, you possibly can swap merchandise to earn extra curiosity.

On the flip facet, if charges lower, you continue to get to obtain the upper price for the rest of the CD’s time period.

Customer Service and Ease of Use

Being capable of entry your money simply is vital. After all, what’s the aim of incomes a excessive rate of interest when you’ve got hassle getting your account or the financial institution looks as if a rip-off?

Before depositing money, chances are you’ll wish to check out the financial institution to find out if their banking expertise is frustration-free. 

In addition, it’s best to see which merchandise your present financial institution gives so that you just don’t should spend time creating a brand new account or transferring funds.

FDIC or NCUA Insurance

While CDs are a low-risk funding that may earn month-to-month earnings, a financial institution failure is at all times potential. You ought to solely think about opening CDs and different banking accounts that qualify for FDIC Insurance (banks) or NCUA Insurance (credit score unions). 

The protection restrict is as much as $250,000 for both banking insurance coverage program. If the financial institution issuing your CD goes out of enterprise, this insurance coverage fund can repay your steadiness as much as $250,000.

For peace of thoughts, all of the CDs on this record are eligible for FDIC or NCUA insurance coverage. 

Minimum Balance Requirements

You should fulfill the minimal steadiness necessities to open your CD. Since you can’t make subsequent contributions, remember to make investments what you’re comfy with on your lump sum.

It’s potential to open a number of CDs sooner or later as extra cash turns into accessible. That mentioned, the rate of interest for every account could be totally different.

FAQs About No-Penalty CDs

Do you continue to have questions on no-penalty CD charges? These solutions would possibly be capable of assist information you as you determine which account to open.

A no-penalty CD helps you to withdraw your steadiness earlier than the maturity date with out sacrificing three to 6 months of curiosity earnings like a time period CD. You can often request a redemption on day seven after opening your account. 

This product is also called a “breakable CD” or a “liquid CD” as a result of there are not any charges or penalties to redeem your steadiness earlier than the maturity date. 

What are the perks of a no-penalty CD?

There are some nice causes to open a no-penalty CD. To begin, you may make withdrawals in as little as seven days after opening your account. Plus, no-penalty CDs can earn extra curiosity than financial savings accounts.

Beyond that, many banks allow you to deposit as little as $1 to open an account. In addition, you received’t encounter any account opening or ongoing service charges that may accompany interest-bearing merchandise from different banks.

What are the downsides of a no-penalty CD?

While there are perks to no-penalty CDs, they do have some downsides. For instance, you can’t add new funds after opening your CD, nor are you able to request a partial withdrawal.

Furthermore, most time period limits are 14 months or much less, which implies you can’t lock in a wonderful price for a number of years like a conventional CD. Plus, you would possibly be capable of get a greater APY with a time period CD.


A no-penalty CD is value pursuing when you possibly can earn a greater price than a financial savings account however don’t need the long-term dedication of a conventional time period CD. 

You have the pliability to earn curiosity till the maturity date or transfer your money early in the event you discover a higher strategy to make investments.

Rates, phrases and funding minimums range by financial institution. As a outcome, spending a couple of minutes evaluating your choices can assist you discover one of the best CD price accessible.