7 Best No-Penalty CD Rates of November 2022 - MagnifyMoney

7 Best No-Penalty CD Rates in November 2022

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What if I need the money? That’s a typical concern for people considering a certificate of deposit (CD). CDs tend to have better interest rates than savings accounts, but you generally have to keep your money in that CD until it matures, as early withdrawals come with penalties.

For the more hesitant, though, no-penalty CDs are great if you desire the higher rate offered by a CD, but also want fee-free access to your money. Yearslong commitments on CDs can be intimidating, as emergencies or unexpected financial challenges could hit. But with a no-penalty CD, you can withdraw funds early with no fee.

The best rate no-penalty CD rate is Sallie Mae Bank via SaveBetter’s 4.05% annual percentage yield (APY).

Best no-penalty CD rates in November 2022

Sallie Mae Bank via SaveBetter No-Penalty CD


on Sallie Mae Bank’s secure website

Member FDIC

TermAPYMinimum opening deposit
14 months4.05% on all balances$1
10 months4.00% on all balances$1

Sallie Mae, via SaveBetter, earns the top two spots on our list, with their 14- and 10-month no-penalty CDs. SaveBetter is a fintech company that partners with banks and credit unions on exclusive, competitive APYs. With SaveBetter accounts, your entire experience is through SaveBetter, not with the bank or credit union in question. That means your SaveBetter account doesn’t have account and routing numbers and you must access your funds using the SaveBetter platform. Regardless, your money is still FDIC- or NCUA-insured. SaveBetter doesn’t charge any fees.

Interest is compounded daily and credited monthly on this CD. If you withdraw early, interest is credited through the withdrawal date. You’re allowed a full withdrawal at no cost, but you must wait at least one week after opening the CD.

CIT Bank No-Penalty CD


on CIT Bank’s secure website

Member FDIC

  • Term: 11 months
  • APY: 3.30% on all balances
  • Minimum opening deposit: $1,000

CIT Bank is part of First Citizens Bank, a privately owned financial institution. CIT has a few branch locations in California, Nevada and Arizona, but mainly operates as an online bank.

CIT offers several traditional CD terms, but its no-penalty CD is one of its top two certificate accounts. All CIT Bank CDs require a $1,000 minimum, and you can close out your entire no-penalty CD beginning a week after the bank has received your funds.

Patriot Bank via SaveBetter No-Penalty CD


on Patriot Bank (CT)’s secure website

Member FDIC

  • Term: 17 months
  • APY: 2.70% on all balances
  • Minimum opening deposit: $1

Read above to learn about SaveBetter, whose offerings handily top our list of the best no-penalty CD rates this month.

Like the Sallie Mae Bank via SaveBetter No-Penalty CD, interest is compounded daily and credited monthly. You can make one free full withdrawal of this CD after it’s been open for one week. Interest is credited through the withdrawal date.

USALLIANCE Financial No Penalty CD


on USALLIANCE Financial’s secure website

NCUA Insured

  • Term: 11 months
  • APY: 4.00% on all balances
  • Minimum opening deposit: $500

USALLIANCE was founded by IBM employees in the 1960s and serves the tri-state area of New York, New Jersey and Connecticut. But anyone can qualify for membership by opting to join one of the charitable organizations listed on their application. USALLIANCE offers traditional checking and savings products, including money market accounts, CDs, HSAs and IRAs.

With USALLIANCE’s 11-month certificate special, you can withdraw the full amount before maturity without penalty, at which point your CD will be closed out. This does not apply to the first 7 calendar days after the date of deposit, and partial withdrawals aren’t allowed. Interest is compounded daily and credited on the last day of every month.

Rising Bank No Penalty CD


on Rising Bank’s secure website

Member FDIC

  • Term: 15 months
  • APY: 2.50% on balances of $1,000 to $1 million
  • Minimum opening deposit: $1,000

The online-only Rising Bank, which launched in 2018, is a division of St. Louis-based Midwest BankCentre. Rising Bank offers a variety of deposit accounts, loans, auto refinancing and other products.

With this CD, you can make a full withdrawal for free at least one week after the funds have been received by the bank, but you’ll forfeit any interest not yet credited to your account. Because interest is only credited every three months on this CD, that means you could lose out on a decent amount of interest depending on when you make that withdrawal.

Bellco Credit Union Smart Move CD


on Bellco Credit Union’s secure website

NCUA Insured

  • Term: 36 months
  • APY: 4.00% on all balances
  • Minimum opening deposit: $2,500

To be eligible to join Bellco Credit Union, you’ll need to live or work in certain areas of Colorado, work for an eligible company, have a family member who’s already a member or donate at least $10 to the Bellco Foundation. You’ll also have to pay a $5 membership fee and a $5 share deposit. The credit union has several branch locations in Colorado.

Unlike many other financial institutions on this list, Bellco Credit Union notably has multiple terms for no-penalty CDs: 18-month, 24-month, 30-month and 36-month terms. Since the 36-month no-penalty has the highest APY at 3.15%, it may be the best option, but their 24- and 30-month CDs come in not too far below our list, at 2.15%. With this CD, you can make one penalty-free withdrawal during the account term, as long as you keep at least $1,000 in the account. Two other perks of the account are the ability to “bump up” to the next interest rate anytime once during the term of your CD and add an additional deposit of $100 or more — also allowed just once.

What is a no-penalty CD?

A no-penalty CD allows you to withdraw your money without incurring a penalty; this is unlike traditional CDs, which have penalties for early withdrawal before maturity. Usually those penalties are calculated as a few months of interest paid on the account balance.

All CDs are timed deposits with a predetermined interest rate and term. CDs generally pay higher rates than savings accounts and other deposits, but you sacrifice liquidity with traditional CDs. If, however, you know that you might need to access your funds before your CD matures, a no-penalty CD is a good alternative to traditional CDs.

Some no-penalty CDs allow you to withdraw your entire balance and close the account, while others require you to keep a portion of your funds in the CD. Some allow multiple withdrawals, but not all do. Read the fine print to learn the specific conditions for early withdrawals from a no-penalty CD.

No-penalty CD vs. savings account

There are some important differences between a no-penalty CD and a savings account. Savings accounts can have some monthly withdrawal limits, but you can deposit money whenever. On the other hand, no-penalty CDs may only allow you to withdraw your money once or only allow you to withdraw a portion.

Moving money into and out of a savings account is much easier. If you need more liquidity, a savings account is better than a no-penalty CD. At the same time, a no-penalty CD may have better interest rates than a savings account and protects you from withdrawal penalties if you need the money before it matures.

No-penalty CD pros and cons

Here are some of the most important advantages and disadvantages.

You can withdraw funds without incurring an interest penaltyLimits to how much or how often you can withdraw funds
May pay higher interest rates than savings accountsGenerally pay lower interest rates than traditional CDs
Interest rates are guaranteed for the entire termTerms tend to be shorter than many traditional CDs

Other types of CDs

No-penalty CDs are one of several timed deposit accounts offered by financial institutions.

  • Traditional CDs: A traditional CD requires you to keep your funds in the account for a set time frame to avoid an early withdrawal penalty. MagnifyMoney regularly surveys numerous banks and credit unions to find the best CD rates available nationwide.
  • Jumbo CDs: Some CDs require a high minimum opening deposit and may pay better interest rates than traditional CDs. Those are called jumbo CDs, and opening balances of $100,000 are often required.
  • Bump-up CDs: Most CDs lock in interest rates for the entire term, but many institutions offer CDs under various names that allow you to bump the CD to a higher interest rate once before the CD reaches maturity.
  • Brokered CDs: Brokerages offer CDs as a low-risk investment option, and they can buy and sell CDs on the market. Brokered CDs can be traded like other securities, and their value could change.

Summary of the best no-penalty CDs in November 2022

Financial institutionTermAPYMinimum opening deposit
Sallie Mae Bank via SaveBetter14 months4.05% on all balances$1
Sallie Mae Bank via SaveBetter10 months4.00% on all balances$1
CIT Bank11 months3.30% on all balances$1,000
Patriot Bank via SaveBetter17 months2.70% on all balances$1
USALLIANCE FInancial11 months4.00% on all balances$500
Rising Bank15 months2.50% on balances of $1,000 to $1 million$1,000
Bellco Credit Union36 months3.15% on all balances$2,500

Methodology: How we chose the best no-penalty CD rates

Using information from our sister site DepositAccounts and other sources, we reviewed the best certificates of deposit with no penalty for early withdrawals. These no-penalty CDs have the highest available annual percentage yields (APYs) and minimum balances needed to earn the APY of $10,000 or less. Financial institutions must be nationally available and have deposit insurance through the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). Any credit unions included must have broad membership eligibility requirements. No-penalty CDs with any term are eligible for consideration.