Best no-penalty CDs for 2023
A certificate of deposit (CD) can be a great savings tool. Unlike high-yield savings accounts, whose interest rates vary with the current rate environment, CDs lock in a rate when you open them. If you open one when rates are high, you'll be guaranteed to earn that amount no matter where rates go in the future.
However, one of the downsides of CDs is that you must agree to keep your funds in the account for a predetermined period, known as the term. If you withdraw funds before the term expires, you'll often incur penalty charges. Often — but not always. If you know where to look, you can find a CD that offers a high interest rate and gives you the option to withdraw funds early without penalty.
Below, we've rounded up some of the top no-penalty CDs for savers who'd like the flexibility to withdraw funds early if needed.
View current CD rates here to see how much you could earn.
Best no-penalty CDs
No-penalty CDs tend to offer lower annual percentage yields (APYs) than other CDs, but that doesn't mean you can't still earn a competitive return. All of the CDs on this list earn above 4.00% — not too much below today's highest-rate CDs.
Note that no-penalty CDs typically don't allow you to withdraw funds within the first week you open or fund them. After that time, you may withdraw funds at any time without penalty.
CIT Bank: 4.90% (11 months)
CIT Bank's No-Penalty CD offers the highest APY on our list at 4.90%. You must deposit a minimum of $1,000, and interest compounds daily, which means you could earn more than with a CD that compounds monthly.
America First Credit Union: 4.35% (12 months)
America First Credit Union's Flexible Certificate earns 4.35% and requires a minimum deposit of $500. As with other credit union products, you must be a member of America First Credit Union to open this account. You can check membership requirements here to see if you qualify.
Unlike the other CDs on this list, you're not required to take all of your money out at once if you make an early withdrawal. Instead, you can make one partial withdrawal during the first five calendar days of each quarter. You may also deposit an additional $10,000 per month — another unique feature not offered by the others.
Ally Bank: 4.25% (11 months)
You'll earn 4.25% with Ally Bank's No Penalty CD. This account has no minimum deposit requirement, and interest compounds daily. This account is eligible for Ally's Ten-Day Best Rate Guarantee. If you fund the CD within 10 days of opening it, you'll get the best rate Ally offers (for your term and balance tier) if rates go up during that time.
Marcus by Goldman Sachs: 4.25% (13 months)
You can earn 4.25% with Marcus by Goldman Sachs' 13-month No-Penalty CD. You must deposit at least $500, and interest is compounded daily. Marcus also offers seven- and 11-month terms, but those only earn 0.45% and 0.35%, respectively.
Synchrony No-Penalty CD: 4.10% (11 months)
Synchrony Bank's No-Penalty CD offers a still-competitive rate of 4.10%. There is no minimum deposit required, and interest compounds daily.
Check out today's top CD offers online now!
The bottom line
If you're in the market for a CD, there are plenty of options to choose from. You can secure the best rate at the best terms for your needs by shopping around and carefully reviewing each account's terms and conditions. Get started by comparing current rates here.
