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No-Penalty CD: Rates and How They Work
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Summary of No-Penalty CD: Rates and How They Work
| Bank | APY | Minimum Deposit | Learn More |
|---|---|---|---|
 Ally Bank | 2.10% | $25,000 | |
 CIT Bank | 2.05% | $1,000 | |
 Goldman Sachs Bank USA | 2.00% | $500 | |
 PurePoint® Financial | 2.00% | $10,000 |
| Bank | APY | Minimum Deposit | Learn More |
|---|---|---|---|
Ally Bank | 2.10% | $25,000 | |
CIT Bank | 2.05% | $1,000 | |
Goldman Sachs Bank USA | 2.00% | $500 | |
PurePoint® Financial | 2.00% | $10,000 |
APY
2.10%
Minimum Deposit
$25,000
Ally's 11-month no-penalty CD has three tiers, depending on how much money you deposit: 1.70% APY for deposits below $5,000, 1.95% APY for deposits from $5,000 to $24,999 and 2.10% APY for deposits of $25,000 or higher. For more details, see our review of Ally's CD rates.
Read full reviewAPY
2.05%
Minimum Deposit
$1,000
CIT has a stellar 2.05% for its 11-month no-penalty CD and a low opening minimum.
Read full reviewAPY
2.00%
Minimum Deposit
$500
Marcus offers a 13-month no-penalty CD with a 2.00% APY, as well as 7-month rate of 2.10% APY and 11-month rate of 2.05% APY.
Read full reviewAPY
2.00%
Minimum Deposit
$10,000
PurePoint has one of the steepest minimums among online bank CDs, but the 2.00% APY for its 13-month no-penalty CD is competitive. It offers two other no-penalty options: an 11-month rate of 1.65% and 14-month rate of 1.75%.
Read full reviewNo-penalty CDs: Pros and cons
No-penalty CDs can be a solid option, but see if the positives outweigh the negatives.
Pros
- High rates without penalty: CDs typically have higher rates than savings accounts, but most CDs make you commit to keeping your money locked up for a set period. No-penalty CDs give you the flexibility to withdraw early without losing any money.
- Opportunity to withdraw fee-free if rates go up: CD rates tend to be fixed once you open a CD, so you can miss out if a bank starts offering higher rates. But you don’t have to wait for a no-penalty CD to end its term to put your money into another CD with a higher rate.
» Want to see more CD options? Check out our list of the best CD rates overall
Cons
- Not the highest CD rates: You can find much better yields by comparing the best six-month and one-year CD rates.
- No partial withdrawals generally: If you withdraw early from a no-penalty CD, you might have to withdraw the entire balance and close the account.
- No multiple deposits: This is standard for all CDs, but if you find the flexibility of no-penalty CDs appealing but want to keep contributing savings, your best bet is a high-yield savings account. See the best online options.
Last updated on September 1, 2019
Methodology
To recap our selections...
NerdWallet's No-Penalty CD: Rates and How They Work
- Ally Bank: 2.10% APY
- CIT Bank: 2.05% APY
- Goldman Sachs Bank USA: 2.00% APY
- PurePoint® Financial: 2.00% APY
