These CDs Have No Minimum Deposit Required

While yields on many certificates of deposit (CDs) have been on the decline, they’re still higher than they’ve been in over a decade, outside the current rate cycle. This means there’s still time to lock in a high yield, and you’ll thank yourself if rates on new CDs decrease further. 

That’s because a fixed-rate CD is guaranteed to earn the same yield until it matures, even if the bank lowers the rates on new CDs it issues. Since the rate is fixed (instead of variable, as with most savings accounts), this rate will not change for your term.

You might be interested in taking advantage of a CD’s high fixed yield without locking in a large amount of money (considering that most CDs charge an early withdrawal penalty). While CDs often require a set minimum opening deposit — with some even requiring $10,000 or more — the good news is plenty of banks require no set minimum.

Below you’ll find a list of federally insured banks offering CDs with no minimum deposit requirement. Such CDs may be a good option for savers wishing to lock in a high annual percentage yield (APY) on some funds while still maintaining a healthy balance in a liquid savings account for emergencies.

What are the benefits of a no-minimum-deposit CD?

CDs without minimum deposit requirements are more accessible to all savers. While it’s common to come across CDs that require minimums of $500, $1,000 or more, it’s also not difficult to find ones with no requirement whatsoever. The benefits of no minimum CDs include:

• Anyone, with any amount of savings, can open such a CD, rather than only those who intend to deposit more than a set amount.
• Without a minimum deposit requirement, you may be less likely to lock money into the CD that you might need in the meantime for emergencies or other living expenses.
• In a falling-rate environment, an advantage of any fixed-rate CD (regardless of minimum deposit requirements) is you’ll continue to earn the same rate throughout its term, even if the bank lowers the going rates on new CDs it issues.

What to consider when shopping for a CD with no set minimum deposit

In addition to seeking out a CD that won’t require a set minimum deposit, it pays to consider various other factors:

APY: Look for a CD that earns a competitive APY. While yields on many CDs have been decreasing in recent months, it’s still relatively easy to find CDs with rates that are outpacing the rate of inflation. With such a rate, your money won’t lose purchasing power by being kept in the account. You’ll also likely thank yourself for locking in a high rate should rates on new CDs continue to decline. Use Bankrate’s CD calculator to determine exactly how much you will earn on your deposit given the APY and the length of your term.

Term length: Pick a CD term that fits in with your plans for the money. For instance, if you plan to get married in a little more than two years, a two-year CD could be a viable option. Terms commonly range from three months to five years or more. Considering a term length is important since most CDs have an early withdrawal penalty, which is a fee for accessing your money before the specific term ends.

Federal deposit insurance: Choosing a bank insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured through the National Credit Union Administration (NCUA). This ensures your money is kept safe should the financial institution fail, for up to a limit of $250,000 per depositor, per insured bank or credit union, per ownership category. (Keep in mind that if you’re looking for a CD at a credit union, these are often referred to as share certificates there.)

Keep money elsewhere for emergencies: With any guaranteed-rate CD, it’s important only to lock in funds you won’t need before the term expires. This way, you’ll avoid being subjected to an early withdrawal penalty, which could eat into your interest and possibly even a portion of your balance. Before you determine what you can deposit into a CD, factor in having enough money to cover everyday expenses plus an emergency fund.

Banks that offer CDs with no minimum deposit

1.) Ally Bank

Range of CD term lengths: 3 months to 5 years

Additional details: Ally Bank offers competitive APYs on all of its CDs, which consist of seven standard CDs, a no-penalty CD and a raise-your-rate CD. The online-only bank also offers a high-yield savings account, a money market account and an interest-bearing checking account, none of which require a minimum opening deposit.

2.) American Express National Bank

Range of CD term lengths: 11 months to 5 years

Additional details: American Express National Bank offers seven terms of traditional CDs, all of which earn APYs well above national averages. It also offers a high-yield savings account, as well as a checking account that earns a competitive APY.

3.) Barclays

Range of CD term lengths: 3 months to 5 years

Additional details: Many of the nine CD terms offered by Barclays earn high APYs. Barclays also offers two savings accounts, neither of which require a set minimum deposit or charge monthly service fees.

4.) Capital One

Range of CD term lengths: 6 months to 5 years

Additional details: Capital One offers 10 terms of CDs, and rates are competitive for a big bank. The bank’s high-yield savings account and interest-bearing checking account also don’t require any set minimums. 

5.) Synchrony Bank

Range of CD term lengths: 3 months to 5 years

Additional details: Synchrony issues nine standard CDs, as well as a robust lineup of specialty CDs that include a no-penalty CD, a bump-up CD, traditional IRA CDs and Roth IRA CDs. None of these require a set minimum balance.

CDs with a low minimum deposit

In addition to CDs that don’t have any minimum deposit requirement, various banks and credit unions require just a relatively low minimum amount, making them highly accessible to many savers:

• America First Credit Union share certificates: $500 minimum deposit
• Bank5 Connect CDs: $500 minimum deposit
• CIBC Bank USA CDs: $1,000 minimum deposit
• Marcus by Goldman Sachs: $500 minimum deposit
• Navy Federal Credit Union share certificates: $1,000 minimum deposit for standard share certificates, $50 for EasyStart certificates
• Quontic Bank CDs: $500 minimum deposit
• Vio Bank CDs: $500 minimum deposit

The minimum deposits, terms and available products listed in this article are as of 10/16/2024. Please check the bank or credit union for the most up-to-date information.

Alternatives to no-minimum-deposit CDs

A CD that doesn’t require any minimum balance is a viable option for savers who don’t have the desire or the means to deposit a large amount of money. However, if you don’t wish to lock your funds into a CD for the entire term, there are various alternatives that often don’t require a set minimum opening deposit.

High-yield savings accounts

It’s not hard to find a high-yield savings account that doesn’t have any minimum opening deposit requirement. While online-only banks often don’t require any minimums, you may also be able to find such an account at a bank with branches.

For instance, you can also find high-yield savings accounts with no minimum deposit requirement at each of the five institutions in our above list of banks that require no minimums for their CDs.

Money-market accounts

Like savings accounts, money market accounts are generally liquid accounts, meaning you’re not required to lock in your money for a certain period of time. Although, the number of transactions may be limited. When it comes to minimum deposit requirements, however, it may be more difficult to find a money market account without such a requirement than a savings account.

That said, various banks do currently offer no-minimum-deposit money market accounts. These include Ally Bank, Sallie Mae Bank and Synchrony Bank. 

Bottom line

CDs that require no set minimum deposit amount make it possible for more savers to lock in some money at a guaranteed rate. Fortunately, it’s not difficult to find a no-minimum-deposit CD when you shop around. Other factors to look for in a CD include a high APY, federal deposit insurance and a term length with which you’re comfortable.