Synchrony Bank: 3.90% APY, $0 minimum deposit Bankrate’s picks for the top no-penalty CD ratesĬIT Bank: 4.80% APY, $1,000 minimum depositĪmerica First Credit Union: 4.35% APY, $500 minimum depositĬitibank: 4.05% APY, $500 minimum deposit No-penalty CDs may be a good fit for people who aren’t sure when they’ll need access to their money but still want to earn a possible higher APY. Early withdrawal isn’t permitted within the first week of funding or opening a no-penalty CD, but after that a penalty-free withdrawal is possible. What is a no-penalty CD?Ī no-penalty CD usually doesn’t have a penalty if you withdraw the funds before the term ends. These certificates of deposit may provide a higher fixed yield than you could earn with a savings account and without having to pay a penalty should you need to withdraw your money early.
No-penalty CDs, however, are an exception. Most CDs have one characteristic that consumers don’t like: penalties for early withdrawals.
