Best No-Penalty CD Rates December 2023

Here are some of the best no-penalty CD rates available now, with some offering APYs of over 4%.

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A certificate of deposit, or CD, is a type of savings account that holds a fixed amount of money for a fixed period of time. For most CDs, your cash isn’t accessible until your term length is over, whether it’s a 1-year CD or a 5-year CD. If you do decide to withdraw funds from your CD before the term expires, you’ll usually be penalized. This, and the fact they earn a higher APY on deposits, is how they differ from traditional savings accounts. 

A no-penalty CD is a type of certificate of deposit that allows individuals to withdraw funds early without a fee, although there are pros and cons to opening one. 

Best no-penalty CD rates December 2023

Use our tool, in partnership with Bankrate, to compare the rates of some of the best CD accounts available now.  

Here is a selection of the best no-penalty CD rates.

CIT Bank

APY: 4.90%

Minimum deposit: $1,000

Term: 11 months

Ally Bank

APY: 4.55%

Minimum deposit: $0

Term: 11 months

America First Credit Union

APY: 5.00%

Minimum deposit: $500

Term: 12 months

Synchrony Bank

APY: 4.50%

Minimum deposit: $0

Term: 11 months

Marcus by Goldman Sachs

APY: 4.60%

Minimum deposit: $500

Term: 13 months

SkyOne Federal Credit Union

APY: 5.41%

Minimum deposit: $1

Term: 12 months

Ponce Bank

APY: 5.30%

Minimum deposit: $1

Term: 4 months


APY: 5.40%

Minimum deposit: $1

Term: 5 months

Mission Valley Bank

APY: 5.35%

Minimum deposit: $1

Term: 3 months

Greenwood Credit Union

APY: 5.37%

Minimum deposit: $1

Term: 12 months

Withdrawing Funds from a No-Penalty CD

With a no-penalty CD, sometimes called a liquid CD or penalty-free CD, you’ll have to wait a week after funding the account before you can withdraw funds. And while penalty-free withdrawal can be useful if you think you might need the cash at some point in the foreseeable future, keep in mind that it’s not as easy as withdrawing from a traditional savings account. You’ll need to give your bank advance notice before taking out funds. Additionally, many institutions require you to withdraw all cash from an account, not just a partial amount, if you decide to “break open” your CD.  

Opening a No-Penalty CD Account 

Like other CD accounts, no-penalty CDs offer higher APYs on deposits than traditional savings accounts. Therefore, they're good savings options for individuals that want guaranteed returns on their savings but don’t want to commit to a traditional CD account in case they need access to their cash before the CD maturity date. Most of the time, no-penalty CDs have relatively short terms, typically under 13 months. 

With a no-penalty CD, you’ll lock in an APY when opening the account. If banks drop rates, your APY won’t be affected. On the other hand, since there are no penalties for withdrawing your cash early, you have the option to put your cash in a new CD account if rates go up. Our savings calculator can help you determine just how much you’ll earn in interest after your CD term is through. 

Before opening any kind of savings account, it’s important to make sure your bank is FDIC insured, which protects up to $250,000 in individual deposit accounts and up to $250,000 for each person’s share of joint accounts.  

No-Penalty CDs vs Savings accounts 

Swipe to scroll horizontally
Header Cell - Column 0 No-Penalty CDSavings Account
Interest RatesFixedVariable
Access to fundsYou will need to wait seven days after opening the account to access funds. You also need to give your bank advance notice before withdrawing cash. Cash can be accessed at any time.
TermTypically under 13 monthsNone
Minimum DepositMinimum deposit requirements vary from bank to bank.Often require a low minimum deposit or none at all.
Withdrawals/DepositsPartial withdrawals and additional deposits after the opening of the account are not allowed.Funds can be withdrawn or deposited anytime.

Pros of No-Penalty CDs

  • Accessibility: Non-penalty CDs allow you to withdraw funds before the CD’s maturity date. If an unexpected emergency were to arise, you won’t have to pay a hefty fee to take out your cash, which can give individuals peace of mind. 
  • Maximize earnings: Since non-penalty CDs allow you to take out cash for no fee, it’s beneficial if banks raise rates. You’ll be able to take out cash and put it in an account with a higher APY. 
  • Guaranteed returns: Because most CD accounts are FDIC insured and have higher APYs than traditional savings accounts, they offer fixed, predictable and safe returns on savings.

Cons of No-Penalty CDs

  • Regular CD rates: There is a drawback to the added flexibility of no-penalty CDs. Usually, no-penalty CDs don’t offer APYs as high as those on a standard CD account. 
  • No partial withdrawal: If you decide to “break open” your non-penalty CD, you’ll likely have to withdraw your entire savings, not just a partial amount. 
  • No additional deposits: Like standard CD accounts, in most cases, cash can only be deposited upon opening the non-penalty CD. No additional deposits can be made.  

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Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.