7 no-penalty CDs with the highest rates right now


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If early withdrawal fees have deterred you from opening a CD account, there are lots of no-penalty CD options that you may want to consider right now. 

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In today’s high-rate environment, a lot of attention has turned toward certificates of deposit (CDs). Not only are today’s CD rates significantly higher than they were just a few years ago, but when you open a CD, you also lock in your interest rate for the full CD term. So, if future rate fluctuations occur, they won’t affect your earnings potential — not while your rate is locked in, anyway.

But while CDs can be an excellent tool for earning interest, there are a few potential downsides to note. And, one is that you typically have to leave your money in the account until the CD matures. Otherwise, you’ll have to pay a penalty for withdrawing your money early — and depending on the CD account, that could wipe out some or all of the interest you’ve earned.

That can be a big deterrent for savers who may need to access their funds before their CD has matured. But if early withdrawal penalties have kept you from opening a CD in the past, you should know that not all CDs come with these types of fees. There are no-penalty CD options that still offer top rates but won’t charge you for withdrawing your money if you need to. And, the no-penalty CDs highlighted below are some of the best options available to you right now.

Explore today’s top CD options and start earning more interest today.

7 no-penalty CDs with the highest rates right now

You don’t have to worry about paying hefty early withdrawal penalties when you open the following CDs, which also offer some of the highest rates available today:

  • Technology Credit Union 5-month CD — 5.36% APY: This 5-month CD from Technology Credit Union offers one of the highest APYs available on a no-penalty CD right now. And, the minimum deposit requirement is just $1 — which makes it a great option to consider for nearly any type of saver. 
  • Mission Valley Bank 3-month CD — 5.35% APY: If you’re looking for a short-term CD with a high rate and no penalties, Mission Valley Bank’s 3-month CD may be a smart choice for you. In addition to charging no early withdrawal penalties, the minimum opening deposit requirement is just $1, so nearly any type of account holder can take advantage of what this CD offers.
  • Climate First Bank 6-month CD — 5.34% APY: The minimum deposit required to open this 6-month CD from Climate First Bank is $500, making it an accessible option for many budgets. Climate First Bank also currently offers a 9-month no-penalty CD with a 4.69% APY and a 1-year no-penalty CD with a 5.00% APY, giving you options to consider depending on the CD term you desire.
  • CIT Bank 11-month CD — 4.90% APY: The minimum deposit required to open this 11-month CD from CIT Bank is $1,000. While that minimum deposit requirement is higher than some of the other no-penalty options available today, the high rate offered makes it worth considering and the $1,000 minimum is still low enough to make this CD an option for a wide range of savers.
  • Marcus by Goldman Sachs 13-month CD — 4.70% APY: Marcus offers a few different options for no-penalty CDs, but the 13-month CD comes with the highest rate available from this financial institution. At 4.70%, it’s an option worth considering and with the minimum deposit of just $500, it could be a smart choice for those with lower amounts to deposit. The other no-penalty options from Marcus include a 7-month CD with a 0.45% APY and an 11-month CD with a 0.35% APY.
  • Ally Bank 11-month CD — 4.35% APY: While Ally Bank’s 11-month CD doesn’t have an APY that’s as high as Climate First Bank or CIT, it does come with a $0 minimum opening deposit requirement and no early withdrawal penalties. That makes this no-penalty CD a great option for those who want to open an account but can’t meet the higher minimums set by other institutions.
  • Synchrony Bank 11-month CD — 4.05% APY: This no-penalty CD from Synchrony Bank doesn’t have a minimum opening deposit requirement to contend with and the 4.05% APY is still higher than what’s being offered on many traditional CDs. So, if you need a CD with a low opening minimum deposit requirement, it may be worth a closer look. 

Find out how today’s best CDs can boost your savings balance now.

The bottom line

There’s no reason to risk paying for early withdrawal penalties when opening a CD. If you’re unsure of whether you’ll need access to the funds you deposit before your CD matures, it makes sense to consider one of these top no-penalty CDs offering the highest rates right now. That way, you won’t have to settle for a low interest rate in return for flexibility if or when you need it. But as with any type of account, just make sure that the rest of the requirements and restrictions align with what you need from your CD account. Otherwise, you could simply be trading one set of fees for another.



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