Best no-penalty CD rates for September 2026: Earn up to 4.18% APY

A no-penalty CD, also known as a penalty-free or liquid CD, is a certificate of deposit that allows you to take out your money before maturity without paying a fee. In most cases, you must wait seven days after account opening and can only make a full withdrawal and close the account. Of the institutions we reviewed, only BTG Pactual Bank allows multiple partial withdrawals.

To determine the top picks for no-penalty CDs, CNBC Select compared APYs, terms, withdrawal options, deposit requirements and more. APYs listed in this article are current as of Sept. 4, 2026.

See our methodology for more information on how we made our choices.

Climate First's penalty-free Flex CDs allow you to make additional $100 deposits after opening, up to one-half of the initial principal balance. They are available in 8-month and 12-month terms, both with $500 opening deposit minimums.

No-penalty withdrawal rules: One withdrawal of up to half of the initial principal balance without penalty.

Traditional CD terms offered: 6 months to 60 months

Raisin isn't a bank — it's a financial platform that allows you to compare and open savings products, including penalty-free CDs from smaller institutions like OptimumBank, NexBank and Ponce Bank. Current options include no-penalty CDs with 3-, 4,- 5-, 6-, 9- and 12-month terms.

No-penalty withdrawal rules: Vary by partner institution.

Traditional CD terms: Vary by partner institution.

BTG Pactual Bank has a 13-month no-penalty CD with a 3.20% APY. The minimum deposit is $5,000 and there is a $500,000 cap.

No-penalty withdrawal rules: Up to three penalty-free withdrawals allowed, starting seven days after funding the account.

Traditional CD terms: 1 month, 90 days, 3 months, 6 months, 9 months, 12 months, 13 months, 18 months, 24 months, 36 months, 48 months and 60 months

Marcus by Goldman Sachs offers 7-month, 11-month and 13-month no-penalty CDs with a modest $500 minimum deposit and rates from 3.75% to 4.00% APY.

No-penalty withdrawal rules: Account holders can withdraw their full balance beginning 7 days after funding. Partial withdrawals not allowed.

Traditional CD terms: 6, 9, 12, 14, 18, 24, 36,48, 60 and 72 months

With a Bank of America 12-month Flexible CD, the larger your deposit, the bigger your return:

• $1,000 to $99,999: 3.00% APY
• $100,000+ : 3.51% APY

No-penalty withdrawal rules: After the first 6 days of funding, the full balance and any interest can taken out but partial withdrawals are not allowed.

Traditional CD terms offered: 28 days to 10 years

Online institution CIT Bank offers an 11-month penalty-free CD with a 3.90 % APY and a $1,000 minimum opening deposit. While some banks compound CD interest monthly, CIT Bank compounds daily, so your money can grow faster.

No-penalty withdrawal rules: You must withdraw the entire balance and earned interest. CIT Bank does not allow partial withdrawals on its no-penalty CD.

Traditional CD terms offered: 6, 12, 13, 18, 24, 36, 48 and 60 months

Ally Bank's 11-month no-penalty CD has a modest 2.70% return,, but there's no minimum deposit required.

No-penalty withdrawal rules: You can withdraw your full balance and interest any time after the first 6 days of funding your CD. Partial withdrawals are not allowed.

Traditional CD terms: 3, 6, 9, 12, 18, 36 and 60 months.

A no-penalty CD is similar to a traditional CD, in that it offers a fixed interest rate for a fixed period. The chief difference is you can withdraw funds before maturity without penalty. As a trade-off, no-penalty CDs tend to have lower APYs than traditional CDs.

In most cases, you may only withdraw all the funds in your CD and close the account. Some liquid CDs, like the ones from BTG Pactual Bank, allow several withdrawals up to a stated limit.

Federal regulations generally prohibit withdrawals during the first 7 days after account opening.

When choosing any CD, consider how long of a term you're comfortable with. (No-penalty CDs usually have fewer options, mostly 13 months or shorter.)

Once you know the term, there are several other factors to consider:

• Annual percentage yield (APY)
• Minimum deposit requirement
• Early withdrawal penalty
• Availability of no-penalty, bump-up or other CD types
• Other banking products
• Online experience and customer support

Not many banks offer no-penalty CDs, although they are more common at credit union and online banks

You can open a CD in just a few minutes online or in person, although many of the most competitive rates are with institutions that don't have physical branches. There are several steps to follow, however.

1. Compare CD options. Review APYs, term lengths, minimum deposit requirements and early withdrawal penalties to find the CD that's right for you.
2. Complete the application. Provide your personal information, including your name, address, Social Security number or Taxpayer Identification Number. You'll likely be asked for a copy of your government-issued ID.
3. Fund your account. Make your opening deposit by transferring money from a linked bank account, using a wire transfer, mailing a check, or another funding method. To open a CD account for the first time, many banks require a deposit of new money, meaning you can't transfer funds you already had in an account at that bank.
4. Review your maturity options. Decide whether you want the CD to renew automatically, transfer the funds to another account or pay out the balance when the term ends. Many CDs automatically renew at maturity unless you choose otherwise.
5. Monitor your maturity date. If there is an auto-renew feature, you should still have a grace period to withdraw funds without penalty. Set a reminder on your calendar for when the CD matures so you can control what happens to your money.

While no-penalty CDs can give savers an added sense of security, many banks offer other types.

1. Traditional CDs: A traditional CD locks your funds into a fixed rate until maturity. Terms can range from three months to 60 months (or longer). Early withdrawals come with a penalty.

2. Bump-up CD: A traditional CD locks your funds into a fixed rate until maturity. With a bump-up CD, if your bank raises interest rates, you can request the higher rate during your term. Most banks only allow you to opt into a rate increase once per term. Step-up CDs are similar, except that the rate is automatically raised to a higher yield at specific points in your term.

3. Add-on CD: With a traditional CD, you can only deposit a lump sum when opening your account. Add-on CDs allow you to make additional deposits throughout the term. Most banks restrict how many additional deposits you can make, based on the term.

4. Jumbo CD: Traditional CDs often have minimum deposits of $500 or $1,000, though some have no minimum at all. Jumbo CDs typically require a minimum deposit of $50,000 or $100,000. And while they historically offered higher interest rates, many banks now pay yields similar to—or even lower than—standard CDs.

5. Brokered CD: Brokered CDs are sold through investment firms and operate as securities. You can sell them on the secondary market before their maturity date, which makes them more liquid than traditional CDs. It also means you could lose money if you have to sell for less than your original investment.

6. IRA CD: A retirement savings account that holds one or more certificates of deposit, combining the safety of a CD with the tax advantages of an IRA. Because of its low risk, an IRA CD is preferred by savers near or in retirement looking for predictable returns without market volatility. However, early withdrawal could result in paying two penalties.

Pros

• Flexibility to withdraw early at no cost
• You can move your money into a better-earning savings vehicle

Cons

• Tend to have lower interest rates
• Most don't allow partial withdrawals
• You can't take advantage if rates go up.

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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 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.

To determine the best no-penalty CDs, CNBC Select reviewed top banks and credit unions offering no-penalty CDs. We prioritized the highest APYs, but also considered a number of other criteria, including:

• Annual percentage yield (APY): No-penalty CDs tend to have lower APYs, but we prioritized those with more competitive yields, compared with the national average and other no-penalty CDs.
• Minimum opening deposit: Accounts with low or no minimum deposit requirements were given more weight.
• CD types: In addition to penalty-free CDs, we considered whether institutions offered other types, including bump-up, add-on and brokerage CDs.
• Partial withdrawal policy: While no-penalty CDs typically only allow you to withdraw the full balance and close the account, we gave preference to CDs with less restrictive terms.
• Fees: None of the institutions on this list charge a monthly maintenance fee for CDs
• Deposit insurance: We only considered CDs offered by banks insured by the Federal Deposit Insurance Corporation (FDIC) or credit unions insured by the National Credit Union Administration (NCUA). We also considered whether institutions offered expanded FDIC insurance through deposit sweep programs that can extend coverage beyond the standard $250,000 limit.
• Customer experience: We considered whether a bank offered online account opening, mobile banking and weekend customer support hours. We also reviewed the overall ease of managing the account.
• Branch availability: We considered whether an institution had physical branches for savers to conduct in-person banking.
• Additional banking services: We considered whether an institution also offered checking and savings accounts, credit cards, personal loans, mortgages, investment accounts and other financial products.
• Availability: Institutions that serve savers nationwide were given more weight.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.