Best no-penalty CD rates for April 2025
Rates updated between April 23 and April 29
Most certificates of deposit (CDs) have one characteristic that consumers don’t like: penalties for early withdrawals. No-penalty CDs, however, are an exception. These products may provide a higher fixed yield than you could earn with a savings account and without having to pay a penalty should you need to withdraw your money early.
Current no-penalty CD trends
The following accounts can be found at most banks and credit unions. They're federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
CDs are best for individuals looking for a guaranteed rate of return that's typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They're a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Bankrate's picks for top no-penalty CD rates
Note: Annual percentage yields (APYs) shown are as of March 25. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
Marcus by Goldman Sachs: 4.15% APY, $500 minimum deposit
Marcus is the consumer banking unit of Goldman Sachs Bank USA. It offers three terms of no-penalty CDs — seven, 11 and 13 months — along with a variety of standard CDs terms and a savings account. The full balance can be withdrawn beginning seven days after funding the account.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 7 months | 4.15% | $500 |
| 11 months | 4.00% | $500 |
| 13 months | 4.15% | $500 |
M.Y. Safra Bank: 4.15% APY, $5,000 minimum deposit
M.Y. Safra Bank has some online-only offerings through a division they call M.Y. Safra Direct. One of the offerings is a 13-month no-penalty CD with a competitive rate, but also with a steep $5,000 minimum deposit. Note that Bankrate currently only reviews M.Y. Safra brick-and-mortar division, not the online-only M.Y. Safra Direct.
Note that early withdrawal of funds without penalty is allowed up to two times. However, the third withdrawal results in an account closure. Withdrawals of the principal amount are allowed on the seventh day after the date the account was funded or within seven days of the most recent partial withdrawal.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 13 months | 4.15% | $5,000 |
America First Credit Union: 4.05% APY, $500 minimum deposit
America First offers a 12-month Flexible Certificate account that is a bit different from a traditional no-penalty CD. It allows one penalty-free withdrawal during the first five calendar days of each quarter. Customers can also deposit up to $10,000 into the CD each month, with up to $100,000 in total additional deposits.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 1 year | 4.05% | $500 |
Colorado Federal Savings Bank: 3.50% APY, $5,000 minimum deposit
Colorado Federal Savings Bank offers an 11-month no-penalty CD with a $5,000 minimum deposit. Penalty-free withdrawals are allowed after seven days of the CD funding.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 11 months | 3.50% | $5,000 |
Ally Bank: 3.65% APY, $0 minimum deposit
Ally is an online bank. It offers an 11-month no-penalty CD with no minimum opening deposit. You can withdraw your full balance and any interest at any time after the first six days of funding the CD.
Ally also offers a Raise Your Rate CD in terms of two years and four years as well as standard CDs in different terms.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 11 months | 3.65% | $0 |
CIT Bank: 3.50% APY, $1,000 minimum deposit
CIT Bank, an online bank, became a subsidiary of First Citizens Bank following the completion of a merger in January 2022. In addition to the 11-month no-penalty CD, CIT Bank offers eight terms of regular CDs and four terms of jumbo CDs. Penalty-free withdrawals can be made beginning seven days after the bank has received the funds.
CIT Bank also offers savings and money market accounts.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 11 months | 3.50% | $1,000 |
Bank of America: 3.25%, $1,000 minimum deposit
Bank of America, one of the largest banks in the U.S., has a 12-month flexible CD that lets you withdraw interest and your entire balance prior to maturity. Note that a penalty of seven days’ worth of interest will be charged for withdrawals within the first six days of the term or within six days following any partial withdrawal. The CD automatically renews into a three-month CD at maturity, which earns a much lower rate. You’ll need to manage this CD closely to make sure you move your funds after maturity.
| Term | APY | Minimum balance to earn APY |
|---|---|---|
| 12 months | 3.25% | $1,000 |
What is a no-penalty CD?
A no-penalty CD usually doesn’t have a penalty if you withdraw the funds before the term ends. Typically, early withdrawal isn’t permitted within the first week of funding or opening a no-penalty CD, but after that, a penalty-free withdrawal is possible.
No-penalty CDs may be a good fit for people who aren’t sure when they’ll need access to their money but still want to earn a possible higher APY.
Generally you would pay a penalty with a no-penalty CD if you withdraw money during the first six days of the term.
Pros and cons of no-penalty CDs
Consider the following pros and cons to see if a no-penalty CD is the right financial choice for you.
Pros
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You won’t have to worry about an early withdrawal penalty with a no-penalty CD.
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Savings accounts usually have a variable APY, while no-penalty CDs generally offer fixed rates for the duration of the term.
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Some no-penalty CDs may carry a higher yield than a savings account.
Cons
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CDs that have an early withdrawal penalty generally pay higher yields.
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Generally, you won’t be able to withdraw your entire balance from a no-penalty CD until the seventh day after your deposit.
No-penalty CD FAQs
Research methodology
Bankrate’s editorial team is made up of banking experts. The banks and credit unions on this page are selected based on popularity, Bankrate’s review score and CD APYs. The listings are ordered based on Bankrate’s scoring system, and ties are broken through minimum balance requirements and then alphabetical order.
Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.