Best No Penalty CD Rates – 5.06% APY (June 2023)

With interest rates rising, many investors want to take advantage of the highest deposit rates they’ve seen in years. Since there’s no guarantee that current rates will remain at their current level, many would are looking to Certificates of Deposit (CDs) because they offer an opportunity to lock in current rates for as long as five years (or even more!).

But one of the challenges for savers is that rates continue to rise. You don’t want to lock your funds into a CD if the rate is going to go up at the next FOMC meeting! (and penalties for withdrawing early tend to be quite steep)

Fortunately, there is a solution – no-penalty certificates of deposit.

A no-penalty CD lets you withdraw some or all your funds from the certificate before the maturity date without paying an early withdrawal penalty. The terms will dictate what you are able to do, so read those carefully. This gives you the flexibility to liquidate the certificate and put it into a higher-yielding instrument later on.

There is often a trade-off though – the increased flexibility means that the rates may be slightly lower than for regular-term CDs of the same maturity period.

But if you want to combine a competitive rate with liquidity, it’s hard to beat no-penalty CDs.

If you’re wondering what kind of interest you can earn on a no-penalty CD, here is our list of the best rates available today.

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Table of Contents
  1. No-Penalty CDs: Rate Summary
  2. Best No-Penalty CD Rates
    1. FVCbank – 12-Month, 5.06% APY
    2. Ponce Bank – 1-Month, 5.10% APY
    3. Blue FCU – 9-Month, 5.00% APY
    4. First Mid Bank & Trust – 12-Month, 4.92% APY
    5. – 6-Month, 4.92% APY
    6. Sallie Mae – 14-Month, 4.75% APY
    7. CIT Bank – 11-Month, 4.90% APY
    8. Ally Bank – 11-Month, 4.25% APY
    9. Marcus by Goldman Sachs – 13-month, 4.15% APY
    10. Citi – 12-Month, 4.05% APY
    11. Synchrony Bank – 11-Month, 3.90% APY
  3. Important Facts about No Penalty CDs
  4. No Penalty CD Frequently Asked Questions
  5. Final Thoughts on No Penalty CDs

🔃Updated May 2023: Updated with current interest rates and re-ordered the table to reflect the new rates and proper ordering. We also added information about the latest yield results from Treasury auctions and how that informs what you might wish to do (lock in rates now). The top rate now is a 5.06% APY from FVC Bank through the SaveBetter platform.

No-Penalty CDs: Rate Summary

These are ordered in roughly the highest rate and terms first but rates change all the time so sometimes the table won’t be perfectly ordered.

Also, it’s hard to compare given differing terms and rates so read the whole table to find the best one for your needs.

Should I wait to open a no penalty CD? After the last few Federal Reserve rate hikes, we saw banks increase their no penalty CD rates fairly aggressively. I believe it’s because they thought rates would continue to increase afterwards and banks hoped to “get ahead” of the pack. With the most recent rate hikes in December and February, banks have not been increasing their no penalty CD rates.

I believe this is in part because of the U.S. Treasury yields for longer maturities are not going up. These prices are set at auction and posted on TreasuryDirect. We see that the yields on 26-week bills at around 4.90% and 2-3 year notes at just under 4.00% (May auctions).

If you are interested in a no-penalty CD rate, I’d lock them in today just to be safe.

Bank NameCD TermCD Rate
FVCbank12-Month5.06% APYLearn more
Ponce Bank1-Month*5.10% APYLearn more
Blue FCU9-Month5.00% APYLearn more
First Mid Bank & Trust12-Month4.92% APYLearn More
mph.bank6-Month4.92% APYLearn more
Sallie Mae14-Month4.75% APYLearn more
CIT Bank11-Month4.90% APYLearn more
Ally Bank11-Month4.25% APYLearn more
Marcus by Goldman Sachs13-month4.15% APYLearn more
Citibank12-Month4.05% APYLearn more

Best No-Penalty CD Rates

Below are some of the best banks currently offering the highest no-penalty CD rates.

All rate quotes and terms are accurate as of the publishing date but are subject to change, so confirm on the bank’s website.

BlueFCU, First Mid Bank & Trust, FVCbank,, Ponce Bank, and Sallie Mae offer these high rates through the SaveBetter platform. With SaveBetter, you open an account with SaveBetter and get the higher rate through them. Your account is managed through SaveBetter but the funds are still at the bank and get FDIC insurance. You don’t get an account number at the bank though, it’s all grouped together with other SaveBetter customers, but it’s still insured and protected. The benefit is that you get higher rates and can easily move it between partner banks to get even higher rates. SaveBetter negotiates these higher rates because they can get deposits for the bank much cheaper than their own marketing efforts.

Click here to learn more about how SaveBetter works.

FVCbank – 12-Month, 5.06% APY

FVCbank, through the SaveBetter platform, has a 12-Month no penalty CD yielding 5.06% APY.

For a while, it was the top offer but First Mid Bank & Trust took over. Fortunately, if you had this CD, you can close it and move your money over to First Mid Bank & Trust without any hassles because they’re both available on SaveBetter.

With no penalty CDs, there’s no reason not to take a longer period because you’re guaranteed that rate. If they go up, just close it and open a new one.

You can open a CD with a minimum deposit of just $1 and no maintenance fees.

👉 Learn more about this offer

Ponce Bank – 1-Month, 5.10% APY

Ponce Bank offers several CDs worth knowing looking at.

– 1-Month, 5.10% APY CD

First, there is a 1-Month CD with an interest rate of 5.10% APY.

⚠️ This is NOT a no-penalty CD, it’s just a CD with a super short maturity and high rate, which makes it very similar to a no-penalty CD. That’s why we listed it. With a rate of 5.10% APY, it was higher than the field for some time but others have overtaken it.

– 4-Month, 5.06% APY No Penalty CD

Alternatively, if you prefer to stick with no penalty CDs, you can get the 4-Month CD with an interest rate of 5.06% APY.

You can open a CD with a minimum deposit of just $1 and no maintenance fees.

New York City-based Ponce Bank began operating in 1960. As a Community Development Financial Institution (CDFI), the Bank works as an investor in the future of underserved and under-banked communities. But they make their savings products available to consumers nationwide. 

Ponce Bank also offers checking, savings, and retirement accounts, complete with access to online banking. They also provide business banking, residential mortgages, home equity lines of credit, and consumer loans.

👉 Learn more about this offer

Blue FCU – 9-Month, 5.00% APY

Blue Federal Credit Union is a credit union founded in 1951 with locations in Colorado and Wyoming but through the SaveBetter platform, anyone can take advantage of their high rates. Blue FCU traces its roots to the Air Force, having started as Warren Federal Credit union on F.E. Warren Air Force Base.

They currently offer a 5.00% APY no-penalty CD with a rate of 9-Month, one of the highest available (only beaten by the 1 month offer above).

It is NCUA insured and you can close it at anytime (after the first 7 days) without paying a penalty. Minimum opening deposit is just $1 and interest is compounded daily and credit at the end of the month.

👉 Learn more about this offer

First Mid Bank & Trust – 12-Month, 4.92% APY

First Mid Bank & Trust, through the SaveBetter platform, has a 12-Month no penalty CD yielding 4.92% APY. This is now the top offer because it has a slightly higher APY than FVCbank and is for the same term.

Since most of the top rates for no penalty CDs are on SaveBetter, you can easily move them around and chase the highest rate without having to deal with opening brand new accounts.

You can open a CD with a minimum deposit of just $1 and no maintenance fees.

👉 Learn more about this offer – 6-Month, 4.92% APY, through the SaveBetter platform, has a 6-Month no-penalty CD that yields a 4.92% APY. is the online bank of Liberty Savings Bank, which also offers higher interest rates through SaveBetter, but separately has a bonus offer directly through

You can open a CD with a minimum deposit of just $1 and no maintenance fees.

👉 Learn more about this offer

Sallie Mae – 14-Month, 4.75% APY

Sallie Mae also offers banking services, including a 14-Month No Penalty CD with an outstanding 4.75% APY. You can open a certificate with as little as $1, and interest is compounded daily and credited monthly.

You can make a one-time full withdrawal of the CD with no penalty, you just have to wait until 7 days after opening.

They also have a 10-Month No Penalty CD with a yield of 4.70% APY but I don’t know why you’d pick that over the higher rate.

Sallie Mae also offers term CDs ranging from six months to 60 months, paying interest as high as 3.25% APY. Each of these CDs requires a minimum deposit of $2,500. Their High-Yield Savings Account pays 1.95% APY on all balances with no maintenance fees. They also offer a Money Market Account with no minimum balance and maintenance fees.

👉 Learn more about this offer

CIT Bank – 11-Month, 4.90% APY

CIT Bank’s No-Penalty, 11-Month CD is paying 4.90% APY, compounded daily, and requires a minimum deposit of $1,000. There is no penalty if you access funds before the CD matures.

CIT Bank also offers their interest-bearing eChecking account, currently paying from 0.10% APY to 0.25% APY and a High-Yield Money Market account paying 1.55% APY. They also offer term CDs, which top off at 0.50% APY on a 60-month certificate.

👉 Learn more about this offer

Ally Bank – 11-Month, 4.25% APY

Ally Bank offers has an 11-Month No Penalty Certificate of Deposit. The CD pays 4.25% APY, with no minimum deposit required to open a certificate. You can withdraw your entire balance, including interest, after the first six days of funding the CD.

Just as important, Ally Bank offers their Ten Day Best Rate Guarantee. You’ll get a better rate if rates rise within ten days of opening your CD.

Ally Bank offers interest checking, online savings, a money market, and their high-yield CD. But perhaps the most exciting CD product is their Raise Your Rate CD. They offer it in terms of two years and four years, but you’ll have an opportunity to raise the rate once during the two-year term or twice during the four-year term. 

Ally is also a fully diversified financial firm, offering mortgages, personal loans, and some of the best auto loans in the business. But you can also benefit from self-directed or managed investments through Ally Invest.

Marcus by Goldman Sachs – 13-month, 4.15% APY

Marcus by Goldman Sachs offers their 13-month No-Penalty CD, currently paying 4.15% APY. The minimum deposit is $500, and there is no early withdrawal penalty beginning seven days after funding your certificate.

The No-Penalty CD is available in shorter durations but at lower rates. For example, the 7-month CD currently pays 0.45% APY, while the 11-month CD pays 0.35% APY.

Marcus by Goldman Sachs is another well-diversified financial service provider. Their Online Savings Account currently pays 4.15% APY, while they also offer a High-Yield CD paying 4.75% APY for a 12-month term.

Marcus by Goldman Sachs also offers self-directed and managed investment accounts, IRAs, credit cards, and personal and home improvement loans.

Citi – 12-Month, 4.05% APY

Citi offers their no-penalty CD for a full 12-Month. The certificate currently pays 4.05% APY, and the minimum initial deposit is just $500.

Citi is one of the largest banks in the US and provides full-service banking, including a full range of loan products and deposit accounts. 

Their fixed-rate CDs have terms ranging between three months and five years. Rates vary based on maturities, but the best deal is on the 12-month CD, which currently pays 4.15% APY on all balance ranges.

Citi also offers their Accelerate Savings account, currently paying 3.40% APY, and is available as long as you open a Citi checking account.

Synchrony Bank – 11-Month, 3.90% APY

Synchrony Bank might have the widest selection of high-yield CDs in the banking industry. Their 11-Month, No-Penalty CD is currently paying 3.90% APY with no minimum deposit required and no maintenance fees. You can withdraw funds without penalty after the first six days following funding your certificate.

Synchrony Bank’s CDs range from 3 to 36 months and pay interest of up to 4.30% APY. Their Bump-Up CD has a 24-month term, no minimum balance, and yields a bit less. It provides one-time flexibility to request a higher rate during the term.

Synchrony Bank also offers High-Yield savings, money market, IRAs, and credit cards.

Important Facts about No Penalty CDs

Before you open a no penalty CD from a bank, it’s important to know these details about them before you open an account:

  • Withdrawal terms – Each CD’s withdrawal terms are different. Some CDs will let you withdraw some of your balance without closing the entire CD. Others will only allow you to withdraw the whole balance – know the difference.
  • Minimum deposit – Many online banks will let you open a CD with just $1 but some will require at least $1,000. This is important because you can open multiple CDs at a single bank – so if the minimum is low, you can open multiple no penalty CDs at once.
  • Maximum deposit – Some CDs have a maximum deposit amount because they want to limit how much you can earn at the higher interest rate. This is rarer but still possible.

These features are important because let’s say you have a bank that offers a no penalty CD where you can only withdrawal the entire balance. If the minimum is low, say $1, then you could divided your savings across several no penalty CDs.

Then, if you need access to your money, you simply withdraw from one CD and leave the rest.

For example, you have $5,000 you want to put in a no penalty CD. Split it up into five separate $1,000 CDs. If you need your cash, just close one and get access to your $1,000 while the remaining $4,000 accrue interest.

No Penalty CD Frequently Asked Questions

What does no penalty CD mean?

No Penalty CD means that you can close the CD and withdraw your money without paying a penalty. A typical CD has a penalty if you want to withdraw it early before the term is up, usually 3-6 months of interest. On a 12-month CD, you would pay a penalty if you want access to your money before the 12 months have passed. With a 12-month No Penalty CD, you can withdraw your money at any time and pay no penalty.

What exactly is the cost of the early withdrawal penalties on CDs?

The fee structure varies somewhat from bank to bank, but most use a tiered rates structure. That means how much you will pay for the penalty will depend on when you make a withdrawal against the CD.

For example, a typical arrangement is to charge a penalty equal to 90 days of interest on a CD with a term of one year or less. The bank may charge a penalty equal to 180 days’ interest on a CD with a term greater than one year.

Are no penalty CDs worth buying?

There is no definitive answer to this question because it depends on the future direction of interest rates. If you are pretty certain rates have peaked, you’ll be better off with a regular-term CD. The rate will be higher than on a no-penalty CD, and you’ll want to lock in that rate for as long as possible.

But a no-penalty CD is the better choice if there’s a reasonable chance you’ll be liquidating the certificate early. That might be the case in a rising-rate environment, where you may want to cash in the CD to free up the funds for a higher-paying CD in the future.

Do no penalty CDs have FDIC insurance?

Yes. Like other CDs and bank deposit products, FDIC insurance covers no-penalty CDs. That will protect your savings for up to $250,000 in total funds per financial institution, per depositor.

Are partial liquidations of a no-penalty CD subject to the early withdrawal penalty?

That depends on the terms of the CD and the bank issuing it. Many permit only a one-time penalty-free withdrawal, while others may accommodate partial liquidations. You should check with the issuing institution to ensure this is the case.

Do CDs ever lose money?

No, you can never lose money with a CD. They are FDIC insured so you are protected against fraud. With no penalty CDs, you will not pay a penalty if you withdraw a CD early. With a traditional CD, if you close it before the term expires, you would have to pay back some of the interest but you never lose any money.

Final Thoughts on No Penalty CDs

There you have it, our list of the best no-penalty CD rates. Your number one consideration for purchasing a no-penalty CD should be liquidity. If there’s a possibility that you may require access to your funds before the maturity date, you’ll appreciate the peace of mind and flexibility no-penalty CDs offer.

I don’t recommend buying a cashable CD for the sole purpose of re-investing if rates increase. As with the stock market, no one can predict when interest rates will rise or how high. If you’re ready to buy a no-penalty CD, there’s no better time than the present.

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About Jim Wang

Jim Wang is a forty-something father of four who is a frequent contributor to Forbes and Vanguard's Blog. He has also been fortunate to have appeared in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money.

Jim has a B.S. in Computer Science and Economics from Carnegie Mellon University, an M.S. in Information Technology - Software Engineering from Carnegie Mellon University, as well as a Masters in Business Administration from Johns Hopkins University. His approach to personal finance is that of an engineer, breaking down complex subjects into bite-sized easily understood concepts that you can use in your daily life.

One of his favorite tools (here's my treasure chest of tools,, everything I use) is Personal Capital, which enables him to manage his finances in just 15-minutes each month. They also offer financial planning, such as a Retirement Planning Tool that can tell you if you're on track to retire when you want. It's free.

He is also diversifying his investment portfolio by adding a little bit of real estate. But not rental homes, because he doesn't want a second job, it's diversified small investments in a few commercial properties and farms in Illinois, Louisiana, and California through AcreTrader.

Recently, he's invested in a few pieces of art on Masterworks too.

>> Read more articles by Jim

Opinions expressed here are the author's alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.

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  1. Thomas W says

    Thanks for the info – my question is about savebetter? How sure are you in this company? How much do you trust it? If my money is pooled with everyone else how protected would I be in the event the company goes chapter 11? I recently was burned by celsius crypto earn…

    • Jim Wang says

      Thomas – fantastic question – your money is pooled but it’s in an account at the bank. It’s similar to how fintech companies do it now, like what SoFi did before they became a bank and what Betterment and others do. Your account is with SaveBetter but the funds themselves are FDIC insured with the bank.

      It’s completely different than crypto, which is never FDIC insured and no one thinks is FDIC insured (so it’s not a case of misunderstanding).

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