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6 Best No-Penalty CD Rates for September 2020

Spencer TierneySeptember 1, 2020

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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. 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.

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

Summary of Best No-Penalty CD Rates for September 2020

Marcus by Goldman Sachs No-Penalty CD

Marcus by Goldman Sachs CD

APY

0.75%

With $500 minimum balance

Minimum Balance

$500

Member FDIC


Why we like it

Marcus offers a 7-month rate of 0.75% APY (annual percentage yield) as of 8/25/2020 as well as a 13-month no-penalty CD with a 0.55% APY and an 11-month rate of 0.65% APY.

Read Full Review

CIT Bank No-Penalty CD

CIT Bank CD

APY

0.35%

With $1,000 minimum balance

Minimum Balance

$1,000

Member FDIC


Why we like it

CIT has a 0.35% for its 11-month no-penalty CD and a low opening minimum.

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Ally Bank No Penalty CD

Ally Bank CD

APY

0.75%

With $0 minimum balance

Minimum Balance

$0

Member FDIC


Why we like it

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

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Citizens Access Liquid CD

Citizens Access CD

APY

0.55%

With $5,000 minimum balance

Minimum Balance

$5,000

Member FDIC


Why we like it

Citizens Access, the online division of Citizens Bank, has an 11-month no-penalty CD with a rate similar to its online savings account. The minimum to open is $5,000, which is somewhat steep.

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PurePoint® Financial CD

PurePoint® Financial CD

APY

0.70%

With $10,000 minimum balance

Minimum Balance

$10,000

Member FDIC


Why we like it

PurePoint has one of the steepest minimums among online bank CDs, but the 0.70% APY for its 13-month no-penalty CD is competitive. It offers two other no-penalty options: an 11-month rate of 0.75% and 14-month rate of 0.65%.

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Simple No-Penalty CD

Simple CD

APY

0.70%

With $250 minimum balance

Minimum Balance

$250

Deposits are FDIC Insured


Why we like it

Simple launched its no-penalty 1-year CD this year as its sole CD offering. Its rate is somewhat competitive in the current rate environment. The minimum is low.

Read Full Review

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.

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

  • Marcus by Goldman Sachs: 0.75% - 0.55% APY, 7 months - 13 months, $500 minimum to open

  • CIT Bank: 0.35% APY, 11 months, $1,000 minimum to open

  • Ally Bank: 0.75% APY, 11 months, no minimum to open

  • Citizens Access: 0.55% APY, 11 months, $5,000 minimum to open

  • PurePoint Financial: 0.75% - 0.65% APY, 11 months - 14 months, $10,000 minimum to open

  • Simple: 0.70% APY, 1 year, $250 minimum to open

Last updated on September 1, 2020

Methodology

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

To recap our selections...

NerdWallet's Best No-Penalty CD Rates for September 2020

Frequently asked questions