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5 Best No-Penalty CD Rates for July 2024

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Written by Spencer Tierney
Senior Writer
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Edited by Sara Clarke
Assistant Assigning Editor
Fact Checked

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A no-penalty certificate of deposit is a type of CD that charges no fee for withdrawing money before the term expires. It offers more flexibility than other CDs.

Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.

Strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.

More than 90 financial institutions surveyed by our team of experts.

More than 50 data points considered for each bank and credit union to be eligible for our lists. For this CD list, three data points were considered per institution.

No-penalty CD terms tend to be around one year. You generally can withdraw the full balance any time starting the week after the day you fund a CD. In contrast, when you withdraw early from a regular CD, you pay at least several months’ of interest earned.

» Want to see a wider pool of high rates? See our list of the best high-interest accounts

Here’s a look at some of the best no-penalty CD rates.

APY research methodology: The APYs shown are current as of the publication date of this page. Each weekday, we review account rates to make sure we have the most up-to-date APYs.

A no-penalty certificate of deposit is a type of CD that charges no fee for withdrawing money before the term expires. It offers more flexibility than other CDs.

Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.

Strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.

More than 90 financial institutions surveyed by our team of experts.

More than 50 data points considered for each bank and credit union to be eligible for our lists. For this CD list, three data points were considered per institution.

No-penalty CD terms tend to be around one year. You generally can withdraw the full balance any time starting the week after the day you fund a CD. In contrast, when you withdraw early from a regular CD, you pay at least several months’ of interest earned.

» Want to see a wider pool of high rates? See our list of the best high-interest accounts

Here’s a look at some of the best no-penalty CD rates.

APY research methodology: The APYs shown are current as of the publication date of this page. Each weekday, we review account rates to make sure we have the most up-to-date APYs.

🤓Nerdy Tip

Some banks have started lowering CD yields, though overall rates remain high. With a CD, you can lock in high rates while they’re still around.

Best No-Penalty CD Rates

Our pick for

No-Penalty CD Rates

NerdWallet rating 

2.5

/5
CIT Bank No-Penalty CD
Minimum deposit

$1,000

Member FDIC

APY

3.50%

Why We Like It

CIT has a 3.50% for its 11-month no-penalty CD and a low opening minimum.

NerdWallet rating 

5.0

/5
Marcus by Goldman Sachs No-Penalty CD
Minimum deposit

$500

Member FDIC

APY

4.70%

Why We Like It

Marcus offers three no-penalty CDs: a 7-month CD with a rate of 4.70% APY (annual percentage yield) as of 02/23/2024, an 11-month CD with a rate of 4.70% APY and a 13-month CD with a rate of 4.70% APY.

NerdWallet rating 

5.0

/5
Ally Bank No Penalty CD
Minimum deposit

$0

Member FDIC

APY

4.00%

Why We Like It

Ally's 11-month no-penalty CD has no minimum balance and a competitive rate.

NerdWallet rating 

2.5

/5
Climate First Bank No-Penalty CD
Minimum deposit

$500

Member FDIC

APY

5.34%

Why We Like It

This Florida-based community bank is available online to U.S. residents nationwide. It has several no-penalty CDs including a 6-month CD with a rate of 5.34% APY and a 1-year CD with a rate of 5.00% APY. The minimum deposit of $500 is low. However, the bank doesn’t offer standard CDs or terms longer than 25 months online.

NerdWallet rating 

2.5

/5
Bank of America Flexible CD
Minimum deposit

$1,000

Member FDIC

APY

4.25%

Why We Like It

The banking giant Bank of America offers a no-penalty CD, what it calls a “flexible CD,” for a 1-year term. The opening minimum of $1,000 is on the lower end. The rate is based on a San Francisco ZIP code; rates may vary by location.

No-penalty CDs: Pros and cons

No-penalty CDs can be a solid option, but see if the positives outweigh the negatives.

Pros

  • Competitive 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 your financial institution 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.

What's involved in opening a no-penalty CD?

You'll need to decide on where to open the no-penalty CD, what term to get and whether to open a single or joint account. To see all five steps, check out this guide to opening a CD account.

Best no-penalty CD rates for July 2024

  • Climate First Bank: 5.34% APY for 6-month CD; 5.00% APY for 1-year CD. $500 minimum to open.

  • Ally Bank: 4.00% APY for 11-month CD. No minimum to open.

  • CIT Bank: 3.50% APY for 11-month CD. $1,000 minimum to open.

  • Marcus by Goldman Sachs: 4.70% APY for 7-month CD; 4.70% APY for 11-month CD; 4.70% APY for 13-month CD. $500 minimum to open.

  • Bank of America: 4.25% APY for 1-year CD. 1,000 minimum to open. (Rate is based on a San Francisco ZIP code. Rates may vary by location.)

Last updated on July 24, 2024

Methodology

We featured easy-to-join financial institutions that NerdWallet has vetted and reviewed with the highest rates for no-penalty CDs.

We took a close look at over 90 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.

Financial institutions and providers surveyed are: Affirm, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Customers Bank, Delta Community Credit Union, Discover® Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, Global Credit Union, GO2bank, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road Bank, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, NASA Federal Credit Union, Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank.

To recap our selections...

NerdWallet's Best No-Penalty CD Rates for July 2024

Frequently asked questions