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No-Penalty CD: Rates and How They Work

Spencer TierneySeptember 1, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Summary of No-Penalty CD: Rates and How They Work

BankAPYMinimum DepositLearn More
Ally Bank

Ally Bank

2.10%

$25,000

CIT Bank

CIT Bank

2.05%

$1,000

Goldman Sachs Bank USA

Goldman Sachs Bank USA

2.00%

$500

PurePoint® Financial

PurePoint® Financial

2.00%

$10,000

BankAPYMinimum DepositLearn More
Ally Bank

Ally Bank

2.10%

$25,000

CIT Bank

CIT Bank

2.05%

$1,000

Goldman Sachs Bank USA

Goldman Sachs Bank USA

2.00%

$500

PurePoint® Financial

PurePoint® Financial

2.00%

$10,000

APY

2.10%

Minimum Deposit

$25,000

APY

2.05%

Minimum Deposit

$1,000

APY

2.00%

Minimum Deposit

$500

APY

2.00%

Minimum Deposit

$10,000

No-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

We featured easy-to-join financial institutions that we've reviewed with the highest rates currently listed on NerdWallet's CD rates tool. For the ZIP code and minimum deposit requirement, we used 94103 and $10,000, respectively. We also included select, standout rates from other trusted online financial institutions that we have reviewed. Higher rates might be available elsewhere

To recap our selections...

NerdWallet's No-Penalty CD: Rates and How They Work