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The best no-penalty CDs of February 2021


Best no penalty CD 4x3

 Summary List Placement

This post was reviewed and updated on February 22, 2021.

The best no-penalty CDs of February 2021

Bank
APY
Minimum deposit
Next steps

0.60% APY
$0
Ally Ally No Penalty CD

0.35% to 0.55% APY
$500
Marcus by Goldman Sachs Marcus by Goldman Sachs No-Penalty CD

0.35% APY
$1,000
CIT CIT Bank Certificate of Deposits (CD)

0.30% APY
$500
America First Credit Union America First Credit Union Flexible Certificate

If you want to grow your money but keep it safe from the turbulence of the stock market, a certificate of deposit (CD) may be a good option. 

What if you end up needing the money before your CD matures, though? If you’re worried about accessing your savings early, you may want to open a no-penalty CD. Unlike most CDs, no-penalty CDs let you take money out of your account without charging an early withdrawal penalty.

You also may want to consider a high-yield savings account rather than a CD if you want easy access to your cash. But the main perk of a no-penalty CD is that you’ll earn a fixed interest rate. If rates decrease in general, your savings account rate could also go down — but your no-penalty CD interest rate will stay the same. 

No-penalty CDs aren’t very common, so you only have a few strong banks to choose from. Keep reading to learn more about your best options.

Table of Contents: Masthead StickyLearn more about our top picks
Ally No Penalty CD

Why it stands out: Ally is the only institution on our list that doesn’t require an opening deposit, so you can open a CD with any amount. 

Term length: 11 months

What to look out for: Types of CDs. Ally pays a good rate on its no-penalty CD, but you can earn higher rates with some of its other CDs. The Ally High Yield CD pays high rates on various term lengths. You also may want to look at the Raise Your Rate CD, which lets you increase your rate should Ally’s rates go up. You’d be able to increase rates once during a 2-year term and twice during a 4-year term.

Marcus by Goldman Sachs No-Penalty CD

Why it stands out: Most banks only have one term length for no-penalty CDs. But Marcus offers multiple term options, making it easier to find one that’s a good match.

Term lengths: 7 months, 11 months, 13 months

What to look out for: Marcus’ no-penalty CD doesn’t have any major red flags. But if you’re looking for an 11-month term, you may find a slightly higher rate elsewhere.

CIT Bank No-Penalty CD

Why it stands out: CIT Bank pays a competitive rate on its no-penalty CD.

Term length: 11 months

What to look out for: The main downside is that the CIT Bank No-Penalty CD just isn’t as competitive as some of our other top picks. You can find a slightly better rate and lower minimum deposits elsewhere. But if you already bank with CIT Bank, it could be worthwhile to use the bank for a no-penalty CD, too.

America First Credit Union Flexible Certificate

Why it stands out: America First Credit …read more

Source:: Business Insider

      

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