Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.
A no-penalty CD, also known as a penalty-free CD or a liquid CD, is a type of certificate of deposit that allows you to lock in a good savings rate without having to lock up your money.
CDs are a popular savings option because their above-average interest rates are fixed for a certain period. The caveat is that you generally must keep your funds untouched for the entire CD term, or otherwise pay a penalty fee for an early withdrawal. No-penalty CDs, however, offer a workaround — they allow you to make a one-time early CD withdrawal at zero cost.
CNBC Select compared over a dozen banks and credit unions offering no-penalty CDs to determine which are best. Our top picks offer competitive APYs, attainable minimum deposit requirements and are all FDIC-insured. (See our methodology for more information on how we chose the best no-penalty CD accounts.)
Best no-penalty CD rates of July 2026
- Best from an online-only bank: Marcus by Goldman Sachs® - 4.15% APY
- Best for no minimum deposit requirement: Ally Bank - 2.80% APY
- Best for a large deposit: M.Y. Safra Bank - 4.05% APY
- Best for a shorter term: Climate First Bank - 4.34% APY
- Best from a big bank: Bank of America - 3.25% APY (may vary by region)
Compare CD rates
Best from an online-only bank
Marcus by Goldman Sachs® CDs
Annual Percentage Yield (APY)
From 3.85% to 4.05% APY
Terms
From 6 months to 6 years
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
The penalty is based on the term of your CD and the principal. For CD terms of less than 1 year, the penalty is 90 days' interest on the principal balance at the interest rate in effect for the CD. For terms between 1 year and 5 years, the penalty is 180 days' interest. For CDs with terms of more than 5 years, the penalty is 270 days' interest. No-penalty CDs are not subject to penalty after seven days.
Early withdrawal penalty = interest rate ÷ 365 (or 366) × penalty days × original principal balance
Terms apply.
Pros
- Above-average APYs
- Low $500 minimum opening deposit
- 10-Day CD rate guarantee
- Offers no-penalty and bump-up CDs
Cons
- No-penalty CD requires you to withdraw your entire principal and interest balance at once.
- No physical branch locations
Best for no minimum deposit requirement
Ally Bank® CDs
Annual Percentage Yield (APY)
From 2.80% to 3.80% APY
Terms
From 3 months to 5 years
Minimum balance
None
Monthly fee
None
Early withdrawal penalty fee
High Yield CDs and Raise Your Rate CDs have early withdrawal penalties that vary based on your CD term. With the No Penalty CD, withdraw all your money any time after the first 6 days following the date you funded the account and keep the interest earned with no penalty.
Terms apply.
Read our Ally Bank High Yield CD review.
Pros
- Above-average APYs across terms from 3 months to 5 years, with enough variety to match almost any savings goal.
- No minimum balance required, so you can open a CD with whatever amount you have ready.
- No monthly fees, so every dollar you deposit stays working for you.
- Offers a strong lineup of CD types, including a no-penalty CD, a Raise Your Rate CD, and IRA CDs for retirement savings.
- A 0.05% loyalty reward is automatically added when you renew your CD, rewarding you for staying with Ally.
Cons
- Early withdrawal penalties apply to High Yield and Raise Your Rate CDs, so it’s worth reviewing the terms for your specific term length before committing.
- No physical branch locations, so all banking is handled online or by phone.
Best for a large deposit
M.Y. Safra Bank CDs
Annual Percentage Yield (APY)
From 3.25% to 4.15% APY
Terms
From 30 days to 60 months
Minimum deposit
$500 for standard CDs; $5,000 for no-penalty CD
Monthly fee
None
Early withdrawal penalty fee
For no-penalty CD, early withdrawal of funds without penalty is permitted up to 2 times; 3rd withdrawal request will result in closure of the account. You may not withdraw the principal amount of a no-penalty CD for the first 6 days following the date on which the account was funded or within 6 days of the most recent partial withdrawal. Any withdrawal which reduces the balance remaining in the account below the required minimum balance of $5,000 will result in account closure. For all other CDs, a penalty will be imposed for early withdrawal of principal.
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Offers CD option to withdraw with no penalty
Cons
- $500 minimum deposit for standard CDs; $5,000 for no-penalty CD
- For standard CDs, you can’t access your money before your CD term ends
- Early withdrawal penalty fees apply for standard CDs
- Only 1 physical branch location in NYC
Best for a shorter term
Climate First Bank CDs
Annual Percentage Yield (APY)
From 2.68% to 4.34% APY
Terms
From 6 months to 15 months
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
Penalty-free CDs are penalty-free, with the exception of the regulatory required penalty if withdrawn within the first 6 days of opening. For 15-month flex CD, account holder may make one withdrawal of up to one-half the initial principal balance without penalty; this applies only after the first 7 days of making a deposit. There will be penalties for subsequent withdrawals.
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Offers CD options to raise your APY / make additional deposits and withdraw with no penalty
- Bank is focused on environmental sustainability
Cons
- $500 minimum deposit
- Early withdrawal penalty fees apply for subsequent withdrawals for flex CD
- Only 3 physical branch locations in Florida
Best from a big bank
Bank of America CDs
Annual Percentage Yield (APY)
From 0.03% to 4.00% APY
Terms
From 7 months to 10 years
Minimum balance
$1,000
Monthly fee
None
Early withdrawal penalty fee
The early withdrawal penalty for CDs with terms of less than 90 days, is the greater of all interest earned on the amount withdrawn or an amount equal to seven days of interest on the amount withdrawn; or primarily on the direct or overall costs and expenses associated with providing the particular account or service involved.
Terms apply.
Pros
- Above-average APYs
- A higher deposit can increase savings APY
- Range of CD terms
- No monthly fee
- Physical branches nationwide
Cons
- $1,000 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fee will apply
Compare savings accounts
More on our top no-penalty CDs
Marcus by Goldman Sachs
Marcus by Goldman Sachs, the online-only subsidiary of Goldman Sachs, offers a no-penalty 7-month CD at 4.15% APY, an 11-month no-penalty CD at 3.90% APY and a 13-month no-penalty CD at 4.15% APY, all with only a $500 minimum deposit.
CD terms offered
6 months, 7 months, 9 months, 11 months, 12 months, 13 months, 18 months, 20 months, 2 years, 3 years, 4 years, 5 years, 6 years (only 7, 11 and 13-month terms are available penalty-free)
Monthly fee
None
Early withdrawal penalty fee
There's $0 early withdrawal penalty for no-penalty CDs (must withdraw your full balance beginning 7 days after funding). For other CDs, if you withdraw the balance entire principal amount from your CD account prior to maturity, you'll be charged an early withdrawal penalty based on the term of your CD and the principal. Here's how early withdrawal penalties are calculated...High-yield CD and rate bump CD term: Less than or equal to 1 year = 90 days interest on the original principal balance at the interest rate in effect for the CD; More than 1 year to 5 years = 180 days interest on the original principal balance at the interest rate in effect for the CD; More than 5 years = 270 days interest on the original principal balance at the interest rate in effect for the CD. The early withdrawal penalty is calculated as follows: early withdrawal penalty = interest rate ÷ 365 (or 366) × penalty days × original principal balance.
Ally Bank
Ally Bank is the only place where we found a no-penalty CD that didn't require a minimum deposit — making it a good choice if you don't have much to put away in a CD and want to be able to withdraw without penalty. The no-penalty CD offered is 11 months at 2.80% APY.
CD terms offered
3 months, 6 months, 9 months, 11 months, 12 months, 18 months, 2 years, 3 years, 4 years, 5 years (only an 11-month term is available penalty-free)
Monthly fee
None
Early withdrawal penalty fee
For a no penalty CD, you can withdraw all your money any time after the first 6 days following the date you funded the account and keep the interest earned with no penalty. For all other CDs, early withdrawal penalty will apply.
M.Y. Safra Bank
M.Y. Safra Bank's no-penalty CD is for 13 months at 4.05% APY, with a $5,000 minimum deposit requirement — which marks the highest minimum ask we found for no-penalty CDs, making it a good choice if you have a large deposit.
CD terms offered
30 days, 90 days, 3 months, 6 months, 9 months, 12 months, 13 months, 18 months, 24 months, 36 months, 48 months, 60 months (only a 13-month term is available penalty-free)
Monthly fee
None
Early withdrawal penalty fee
For no-penalty CD, early withdrawal of funds without penalty is permitted up to 2 times; 3rd withdrawal request will result in the closure of the account. You may not withdraw the principal amount of a no-penalty CD for the first 6 days following the date on which the account was funded or within 6 days of the most recent partial withdrawal. Any withdrawal that reduces the balance remaining in the account below the required minimum balance of $5,000 will result in account closure. For all other CDs, a penalty will be imposed for early withdrawal of the principal.
Climate First Bank
Climate First Bank offers a strong APY for a no-penalty CD with a six-month term, at 4.34% APY. If you want to maximize the return you earn over six months with the flexibility to withdraw fee-free, this CD account is for you. Climate First Bank also offers a one-year no-penalty CD offered at 2.91% APY. Both no-penalty CDs require a $500 minimum deposit. Climate First Bank is a digital community bank focused on environmental sustainability.
CD terms offered
6 months, 12 months, 15 months (only 6 and 12-month terms are available penalty-free)
Monthly fee
None
Early withdrawal penalty fee
Penalty-free CDs are penalty-free, except for the regulatory required penalty if withdrawn within the first 6 days of opening. For a 15-month flex CD, the account holder may make one withdrawal of up to one-half of the initial principal balance without penalty; this applies only after the first 7 days of making a deposit. There will be penalties for subsequent withdrawals.
Bank of America
Bank of America, the nation's second-largest bank, offers a one-year no-penalty CD at 3.25% APY with a $1,000 minimum deposit. Bank of America boasts nearly 4,000 physical branches and about 15,000 ATMs for easy in-person access.
CD terms offered
7 months, 10 months, 12 months, 13 months, 25 months, 37 months; 1 month to 120 months for fixed term CD account (only a 12-month term is available penalty-free)
Monthly fee
None
Early withdrawal penalty fee
For flexible CD account, early withdrawal penalty is waived, except in connection with any withdrawals you request within the first 6 days of the account term (or the first 6 days following any partial withdrawal). For all other CDs, an early withdrawal penalty applies to any withdrawal you request outside of the grace period, which begins on the maturity date of your CD. If your account has not earned enough interest to cover an early withdrawal penalty, any interest is deducted first and the remainder of the penalty is taken from your principal.
What's a no-penalty CD?
A no-penalty CD is similar to your standard CD in that it offers a fixed interest rate on your savings for a fixed period, but the no-penalty CD doesn't have the same early withdrawal limitations.
With a no-penalty CD, you can withdraw your funds early without paying a fee. Typically, standard CDs charge an early withdrawal penalty fee of at least a few months of interest. This means that with a no-penalty CD, you don't have to wait for your CD to reach maturity before tapping into it.
How no-penalty CDs work
No-penalty CDs all kind of work similarly. They typically are CD terms around one year. After a week from the day you fund the CD, you can withdraw your funds at any time without a penalty fee. Note that most no-penalty CDs require a one-time withdrawal of your entire CD balance if you're making an early withdrawal; partial early withdrawals are usually not allowed.
No-penalty CDs, like standard CDs, don't come with monthly fees and are federally insured so your money is protected, which makes them one of the safest savings vehicles.
How to choose a no-penalty CD
Since most no-penalty CDs offer similar term limits of around one year, the most important factor in choosing one is focusing on the APY offered. CD terms of this length are typically best reserved for short-term savings goals, like a vacation.
How to compare no-penalty CDs
Not many banks offer no-penalty CDs. When shopping around, look for terms like "penalty-free CD" or "liquid CD," in addition to "no-penalty CD." You'll find that credit unions often offer no-penalty CDs just as much as banks. Compare no-penalty CDs based on their different interest rates and minimum deposit requirements.
Pros of no-penalty CDs
- Flexibility to withdraw early whenever at no cost
- The liquidity is helpful in case of a financial emergency
- You can always opt out of CD if you need to access your money or if a higher rate gets offered
- The access to your funds makes you more comfortable locking up money in a CD
Cons of no-penalty CDs
- They tend to offer lower interest rates than standard CDs since they're more liquid
- Most don't allow partial withdrawals
FAQs
What does a no-penalty CD mean?
A no-penalty CD means you can withdraw funds early from your CD without paying a penalty fee.
Who has the highest no-penalty CD rate?
The banks on this list offer some of the highest no-penalty CD rates, including Climate First Bank, Marcus by Goldman Sachs, Bank of America, Ally Bank and M.Y. Safra Bank.
Can I add money to a no-penalty CD?
Like traditional CDs, most no-penalty CDs don't allow you to make additional deposits throughout the CD term.
Should I put my emergency fund in a no-penalty CD?
Even though no-penalty CDs allow you to access your funds all at once without an early withdrawal penalty fee, we recommend keeping your emergency fund in a high-yield savings account instead, where you can make as many deposits as you want and have more withdrawal flexibility.
What is the catch to a no-penalty CD?
The main catch to a no-penalty CD is that you typically can't make partial withdrawals. If you want to make an early withdrawal of funds, you must withdraw your entire balance and close the account.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every CD review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of savings and banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best no-penalty CDs.
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Our methodology
To determine the best no-penalty CDs, CNBC Select compared over a dozen banks and credit unions offering no-penalty CDs. We only considered those with no-penalty CD terms of at least six months, with most offering no-penalty CD terms around one year.
When ranking the top no-penalty CDs, we prioritized the ones offering the highest APYs. We then compared no-penalty CDs by looking at their minimum deposit requirements, ease of use and industry rankings. We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
All of the CDs included on this list are FDIC-insured up to $250,000 per person. The rates and fee structures banks advertise for their CD accounts are not guaranteed forever. They are subject to change without notice and they often fluctuate in accordance with the Fed rate. If you open a CD account, however, you're often locked into that APY offered at account opening for the entire term length. If you find a higher CD rate offered, with a no-penalty CD you can withdraw your funds to opt into a different CD.
Your earnings depend on the CD term length, the amount you deposit, the APY offered when you opened the account and any associated fees. Generally, a larger deposit and a higher interest rate will earn you the most money. Any early withdrawals may result in penalty fees that lower your principal balance/earnings; however, with a no-penalty CD, you can make a one-time early withdrawal at no cost.
To open a CD account for the first time at a bank, most banks and institutions require a deposit of new money, meaning you can't transfer money you already had in an account at that bank.
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