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3 Best No-Penalty CD Rates for September 2021

Spencer TierneySep 1, 2021

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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. They offer more flexibility than other CDs.

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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.

Summary of Best No-Penalty CD Rates for September 2021

Marcus by Goldman Sachs No-Penalty CD

4.5

NerdWallet rating 
Marcus by Goldman Sachs No-Penalty CD

Minimum Deposit

$500

Member FDIC

APY

0.45%

Why we like it

Marcus offers a 7-month rate of 0.45% APY (annual percentage yield) as of 12/9/2020 as well as a 13-month no-penalty CD with a 0.25% APY and an 11-month rate of 0.35% APY.

Read Full Review

CIT Bank No-Penalty CD

3.0

NerdWallet rating 
CIT Bank No-Penalty CD

Minimum Deposit

$1,000

Member FDIC

APY

0.30%

Why we like it

CIT has a 0.30% for its 11-month no-penalty CD and a low opening minimum.

Read Full Review

Ally Bank No Penalty CD

5.0

NerdWallet rating 
Ally Bank No Penalty CD

Minimum Deposit

$0

Member FDIC

APY

0.50%

Why we like it

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

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

  • 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

  • Marcus by Goldman Sachs: 0.45% - 0.25% APY, 7 months - 13 months, $500 minimum to open

  • CIT Bank: 0.30% APY, 11 months, $1,000 minimum to open

  • Ally Bank: 0.50% APY, 11 months, no minimum to open

Last updated on September 1, 2021

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 2021

Frequently asked questions