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The Best No-Penalty CD Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

CDs, or certificates of deposit, work under an easy-to-understand premise: You agree to place your money with a bank or credit union for a set amount of time, during which it will earn interest. At the end of the period, you get your money back plus a nice chunk of interest earnings. But if you withdraw money from your CD before the term expires — or before the CD “matures,” in financial parlance — the institution will charge you a penalty fee for breaking the terms of your agreement.

Generally depositors understand that they can’t touch their funds while they’re in the CD account. But the accounts below are special CDs that let customers withdraw money from a CD account with no penalty charge at whatever time they want. No-penalty CDs aren’t generally widespread, but we’ve selected the best of these accounts available nationwide, based on the following criteria:

  • An APY of at least 1.80%
  • No penalties for early withdrawal of funds
  • Available across the nation

The best no-penalty CD rates in November 2019

1. My eBanc

TermAPYMinimum balance to earn the APY
11-month2.00%$10,000
11 months1.90%$100,000

This Florida-based online savings bank may go by a somewhat generic name, but it’s a division of BAC Florida Bank, a financial institution with more than 45 years of history. The no-penalty CD offered here is called the Flex Time Deposit, and if customers who deposit at least $100,000 can earn an APY of 1.90%, which ranks at the top of the accounts on this list. Depositing at least $10,000 will earn you a decent APY of 2.00%.

Where this account truly shines is that it allows for two partial withdrawals of your funds without having to close your CD account entirely (as long as the balance still remains at $10,000 or more). All of the other no-penalty CD accounts on this list require you to withdrawal all of the principal and any interest earned.

LEARN MORE Secured

on My eBanc’s secure website

Member FDIC

2. Marcus by Goldman Sachs®

TermAPYMinimum balance to earn the APY
7-month2.00%
$500
11-month1.90%
$500
13-month1.85%
$500

Marcus by Goldman Sachs stakes a strong claim to offering the best no-penalty CDs around, requiring a mere $500 deposit for customers to start earning solid APYs beginning at 2%. Interested customers should be aware, however, that like other no-penalty CDs on this list, the accounts offered by this bank lock in your money for seven days after you deposit. You can’t open a 7-month no-penalty CD on Monday and take out your money on Wednesday (if you needed to for whatever reason).

In addition, these accounts don’t allow any partial withdrawals of the principal. If you deposited $1,000 in an account and want to withdrawal money before that CD matures, you won’t be hit with any penalties — but you have to take out all $1,000 and your account will then be closed.

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

3. Ally Bank

TermAPYMinimum balance to earn the APY
11 months1.65%Up to $5,000
11 months1.70%$5,000
11 months1.90%$25,000

Online-only bank Ally offers a single no-penalty CD account with an 11-month term that earns more APY depending on how much you deposit. Because it has a low minimum balance requirement, this account will attract consumers without a lot of money to spare who still want a no-penalty CD. Higher balances can earn better APYs.

Similar to all of the other products listed, this Ally no-penalty CD account makes you wait for the seventh day after the initial deposit to withdraw your funds, and the bank doesn’t allow for partial withdrawals. The bank also offers what it calls its 10 Day Best Rate Guarantee, promising that if depositors fund this CD within 10 days of opening it, Ally will make sure the account earns the highest rate available should the bank change its rate within that 10 day period. It’s by no means a game-changer, but a nice bonus to avoid feeling left out if you deposit a pile of money in your CD on Thursday, only to discover on Friday that Ally hiked its rates.

LEARN MORE Secured

on Ally Bank’s secure website

Member FDIC

4. PurePoint Financial

TermAPYMinimum balance to earn the APY
11-month1.65%$10,000
13-month1.90%$10,000
14-month1.75%$10,000

The online arm of Union Bank offers a great APY among the no-penalty CD accounts reviewed, which makes it a no-brainer — assuming you have the $10,000 needed for the minimum deposit. PurePoint’s sweet spot is the 13-month term no-penalty CD account, which offers an APY of 1.90%.

This no-penalty CD accounts come with the usual caveats — you can’t make any partial withdrawal of funds, and you have to wait seven days after your initial deposit before withdrawing. However, if you have the sizable chunk of change needed to open one of these accounts, you’ll earn some of the highest APY for your money.

LEARN MORE Secured

on PurePoint Financial’s secure website

Member FDIC

5. CIT Bank

TermAPYMinimum balance to earn the APY
11-month 1.80%$1,000

If you have the $1,000 minimum deposit for this no-penalty CD account, CIT Bank will give you a rate of 1.80% APY on an 11-month term. While that’s not as much as you can earn with a comparable CD term with some of the options above, the deal offered by CIT could provide a decent alternative.

LEARN MORE Secured

on CIT Bank’s secure website

Member FDIC

6. Investors eAccess

TermAPYMinimum balance to earn the APY
6-month1.80%$500

Another no-penalty CD requiring a minimal balance is the 6-month CD offered by Investors eAccess. This New Jersey bank provides one of the most competitive products when it comes to short-term CDs in the no-penalty category, but it does come with a few caveats.

First of all, there are no partial withdrawals allowed by this CD. If you need to take money out, you have to liquify the entire account. You’ll also receive your funds via paper check sent first class mail, so don’t expect an instantaneous turnover of funds should you want to make an early withdrawal. That said, the APY and low minimum account balance make this an excellent choice for short-term savings.

LEARN MORE Secured

on Investors EAccess’s secure website

Member FDIC

7. Chartway Credit Union

TermAPYMinimum balance to earn the APY
12-month share certificate1.35%
$500

This credit union may be based in Virginia Beach, Va., but you can potentially become a member, so long as they meet one of the following conditions:

  • You reside or go to school or a place of worship in one of the areas served by a local branch of the credit union. Currently, Chartway Credit Union operates branches in the states of Florida, Texas, Utah and Virginia.
  • You have a family member who’s already a Chartway member
  • You or someone in your immediate family works at a company that utilizes Chartway’s financial services for its employees
  • You make a $10 donation to the We Promise Foundation, a charity founded by the credit union.

Once you’re a member, you can open a 12-month share certificate. Doing so requires a minimum deposit of $500, on which you’ll earn an APY of 1.35%. As with all the other no-penalty CD accounts listed, you can’t make a partial withdrawal of your funds — it’s all or nothing.

LEARN MORE Secured

on Chartway Federal Credit Union’s secure website

NCUA Insured

What to watch out for with no-penalty CDs

Although no-penalty CDs, like any certificate of deposit, carries with it minimal risk of losing your principal, it’s important you thoroughly understand the terms of the account and understand what circumstances you can withdraw funds. Otherwise, your supposedly no-penalty CD will start devouring your funds with fees.

One of the biggest differences between no-penalty CDs lies with whether you can make partial withdrawals or if you have to withdraw the entire amount. If the account allows for partial withdrawals, make sure you understand if the bank or credit union considers a full withdrawal (and closure of the account) count toward your withdrawal limit. It’s easy to imagine a scenario where you skim the fine print, read a CD allows for two partial withdrawals, make those two withdrawals, then get hit with a penalty when you later try to close the account early because the bank considers that a “third” partial withdrawal.

Another concern you should have when shopping for no-penalty CDs is whether or not the bank or credit union will continue to offer it. AgFed Credit Union, for example, occasionally offers competitive no-penalty share certificates but they’re only available for funding for a limited time. If you snooze on some of these no-penalty CDs, don’t be surprised if they have vanished by the time you are ready to pull the trigger and fund one.

Learn more: Is a no-penalty CD worth it?

According to Ken Tumin, our in-house savings expert and founder of LendingTree-owned DepositAccounts.com, no-penalty CDs aren’t a bad option since there isn’t really much risk to trying one out. Just aim to find the longest term no-penalty CD deal you can since the rates will generally be higher.

“When the bank has your money for longer, they’ll usually offer a higher interest rate — and that interest will have more time to compound,” Tumin says. “So if you open a no-penalty CD, you should go for the one with the longest term possible. The rates will likely still be higher, and after all, if you decide to take the money out early, it’s no problem.”

Also, look for no-penalty CDs that offer the benefit on full withdrawals. Some banks only allow penalty-free partial withdrawals, Tumin warns.

Building a CD ladder to avoid withdrawal fees

If you’re interested in using CDs while still maintaining access to your funds, there’s another approach you could consider: building a CD ladder.

It’s can be a complicated strategy, but in short, you split your deposit up into smaller chunks and open several CDs with various term lengths. When the CDs reach maturity, you can renew the account and lengthen the term or withdraw the money if you need to. This way, you can take advantage of higher interest rates while still avoiding early withdrawal fees.

For a step-by-step guide to building a CD ladder, check out our guide linked above. And for even more savings strategies and tactics, keep your eye on the blog. We’re always reviewing the latest financial products and accounts to help you find the best solutions for your money.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here

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The Best 18-Month CD Rates in 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Sometimes you need a shorter-term CD, but the rate of return on a 12-month CD just isn’t quite enough. Thankfully, many institutions offer 18-month CD or 19-month CD options. They typically have higher rates than a 12-month account, while remaining a viable choice for near-term savings goals when a 24-month CD would be too long a commitment.The key is to find the right 18-month CD to maximize your savings. If you look around, you can find rates just around 2.50% APY, compared to the average 18-month CD rate of 1.384%. To make the search process easier for you, we’ve uncovered the best 18-month CDs using data from DepositAccounts.com to find the highest APY. We also took each account’s minimum deposit requirement into consideration.

The 10 best 18-month CD rates in 2019

InstitutionAPYMinimum deposit amount to earn APY
Sallie Mae Bank2.30%$2,500
Alabama Credit Union2.27%$500
Wings Financial Credit Union2.27%$5,000
USALLIANCE Financial2.25%$500
TAB Bank2.25%$1,000
Communitywide Federal Credit Union2.25%$1,000
M.Y. Safra Bank2.15%$500
Live Oak Bank2.15%$2,500
Merrick Bank2.15%$25,000
Pen Air Federal Credit Union 1.95%$500

Sallie Mae Bank — 2.30% APY, $2,500 minimum deposit

Sallie Mae isn’t just for student loan management. You can also build your savings there, too, including its several certificates of deposit. Plus, its 18-month CD earns at the highest rate there. You just need $2,500 to open. Making an early withdrawal will trigger a penalty equal to 180 days’ simple interest on the amount withdrawn.

Sallie Mae was founded in 1972 and offers savings accounts, loans, credit cards and more financial services and aid.

LEARN MORE Secured

on Sallie Mae Bank’s secure website

Member FDIC

Alabama Credit Union — 2.27% APY, $500 minimum deposit

You can get started with an 18 month CD from Alabama Credit Union with just $500 in new money not currently held at Alabama Credit Union. Interest is compounded quarterly. The early withdrawal penalty equals 180 days’ interest.

Based in Tuscaloosa, Ala., Alabama Credit Union was established in 1956 to serve The University Of Alabama community. Today, in addition to select schools, membership is open to employees of at Value Partner organizations and businesses and residents in select communities. Alabama Credit Union is NCUA-insured.

LEARN MORE Secured

on Alabama Credit Union’s secure website

NCUA Insured

Wings Financial Credit Union — 2.27% APY, $5,000 minimum deposit

Among Wings Financial Credit Union’s handful of CDs is its 17-Month Certificate Special. This account requires at least $5,000 in new deposits to open. Balances between $5,000 and $49,999 earn 2.27% APY when interest is paid quarterly. You can increase your rate by depositing $50,000 or more into the account. An early withdrawal will result in a heavy loss equivalent to 2 years’ dividends (730 days).

Wings Financial Credit Union was founded in 1938 by a few Northwest Airlines employees. Today, membership is open to employees in U.S. aviation, immediate family members of a current member, residents and workers in the Minneapolis-St. Paul area or the Seattle-Tacoma area and members of the Wings Financial Foundation. Wings Financial is based in Apple Valley, Minn. and is insured by the NCUA.

LEARN MORE Secured

on Wings Financial Credit Union’s secure website

NCUA Insured

USALLIANCE Financial — 2.25% APY, $500 minimum deposit

USALLIANCE Financial offers the chance to earn at a competitive Special Rate on its 18 Month Certificate when you open the account with money not currently held in a USALLIANCE deposit account. Plus, interest is compounded daily, which grows your money even faster. You need just $500 to open the account. Early withdrawal penalties will equal 360 days of dividends on the amount withdrawn.

USALLIANCE Financial was started in 1966 by a handful of IBM employees. Today, its membership has expanded; you can join USALLIANCE Financial through your place of residence, employer, place of worship, school or organization.

LEARN MORE 

NCUA Insured

TAB Bank — 2.25% APY, $1,000 minimum deposit

Open a new TAB Bank CD with at least $1,000 and start growing your money according to its 2.25% APY. The penalty for an early withdrawal will equal 180 days interest on the amount withdrawn.

TAB Bank, or Transportation Alliance Bank, was founded in 1998 and is based in Ogden, Utah.

LEARN MORE Secured

on TAB Bank’s secure website

Member FDIC

CommunityWide Federal Credit Union — 2.25% APY, $1,000 minimum deposit

Open a CommunityWide Federal Credit Union Term Share Certificate with at least $1,000 to start saving at its competitive rate. Note that CW does not automatically renew your certificate at maturity, leaving that choice up to you. CW calculates its early withdrawal penalty a little differently than other institutions. It will equal the amount of the withdrawal times the remaining term (in days) of the certificate at the rate of two times the certificate’s current APR (divided by 365). The penalty will be deducted from the amount withdrawn.

CommunityWide FCU was founded in 1967 as the West Washington Association Federal Credit Union, gaining its current name in 1985. You can join CW if you’re a member, employee or retiree of select organizations, a spouse of someone who died while a member or an immediate family member of qualified members.

LEARN MORE Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

M.Y. Safra Bank — 2.15% APY, $500 minimum deposit

Turn to M.Y. Safra’s online-only bank, MYSB Direct for better rates, including on its 18 Month Online CD. With a minimum deposit of $750, you can start growing your money at 2.15% APY. The early withdrawal penalty will depend on how close you are to your account’s maturity date, how much you have in the account and the amount you want to withdraw.

MYSB Direct is the online-only arm of New York City-based bank M.Y. Safra Bank, founded in 2000.

LEARN MORE Secured

on M.Y. Safra Bank’s secure website

Member FDIC

Live Oak Bank — 2.15% APY, $2,500 minimum deposit

With CD rates well above 2%, it’s no wonder Live Oak Bank’s 18-month CD makes it on this list. You’ll need at least $2,500 to open an account. Interest earned can be paid out monthly. An early withdrawal will cost you a penalty equal to 90 days of interest on the amount withdrawn.

Largely focused on loans and business banking, Live Oak Bank doesn’t have any consumer bank branches other than its headquarters in Wilmington, N.C. It was founded in 2008.

LEARN MORE Secured

on Live Oak Bank’s secure website

Member FDIC

Merrick Bank — 2.15% APY, $25,000 minimum deposit

Merrick Bank may offer only a few CDs, but they all earn at excellent rates, including its 18 Month CD. Just note that you’ll need at least $25,000 to open one of these accounts. The early withdrawal penalty is equal to 2% of the account balance or seven days’ interest, whichever is greater.

Merrick Bank was founded in 1997 and also provides loans and financing products along with its CDs.

LEARN MORE Secured

on Merrick Bank’s secure website

Member FDIC

Pen Air Federal Credit Union — 1.95% APY, $500 minimum deposit

You’ll need at least $500 to open an 18-month Pen Air Certificate. Then you can start earning at its 1.95% APY. The early withdrawal penalty for this term will equal 180 days’ dividends.

Founded in 1936, Pen Air Federal Credit Union is based in Pensacola, Fla., and maintains locations in Northwest Florida and Southeast Alabama. Pen Air membership is open to you if you’re active duty or retired military, a civil service employee, an employee at a partnering Select Employer Group or an immediate family member of eligible members. You may also join by becoming a member of the Friends of the Navy-Marine Corps Relief Society, Inc., whose one-time $3 donation Pen Air will make for you.

LEARN MORE Secured

on Pen Air Federal Credit Union’s secure website

NCUA Insured

Is it worth getting an 18-month CD over a 1-year CD?

When we discuss CD rates, we tend to center the conversation on 1-year CDs. They’re helpful to look at when assessing changes in rates over time, typically compared to long-term CDs. They also the general starting point when creating a CD ladder. So where do the slightly longer 18-month CDs fit in?

18-month CDs are only six months longer than 1-year CDs. It might seem like too little of a difference, especially when you’re squirreling away cash. However, because of this extra time a bank gets to hold your money, banks are willing to pay higher rates on your 18-month deposits, thus boosting your savings a little bit more.

Let’s say you deposit $1,000 into a bank’s 3% APY 18-month CD. At maturity, you’ll have earned around $46. Making that same deposit into the same bank’s 1-year CD at 2% APY, would earn just a little over $20. Of course, rates vary from bank to bank. That’s why it’s important to look for the best CD rates for each term to make locking your money away more worthwhile.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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The Best 3-Year CD Rates in November 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Three-year CDs are a great choice for your mid-term savings goals. They offer higher APYs than 1-year certificates, while avoiding the time commitment of a longer 5-year CD term. To make sure you give your account the best chance to grow your money, you’ll want to find the best CD rates available.

MagnifyMoney can help you find the right 3-year CD for your savings. Using data from DepositAccounts.com, similar to Magnify Money, a LendingTree-owned site, we’ve found the highest 3-year CD rates available nationwide. We also looked at each account minimum deposit and each bank’s relative health to ensure top picks.

The 10 best 3-year CD rates in November 2019

InstitutionAPYMinimum deposit amount
Pennsylvania State Employees Credit Union2.25%$500
Dow Chemical Employees’ Credit Union2.70%$1,000
Wheelhouse Credit Union2.60%$500
Hughes Federal Credit Union2.58%$1,000
Home Loan Investment Bank, F.S.B.2.55%$1,000
Garden Savings Federal Credit Union2.53%$500
American 1 Credit Union2.50%$500
Affinity Plus Federal Credit Union2.50%$500
Xcel Federal Credit Union2.50%$500
Greenwood Credit Union2.50%$1,000

Pennsylvania State Employees Credit Union — 2.25% APY, $500 minimum deposit

With competitive rates across the board, Pennsylvania State Employees Credit Union offers a great deal on its 36 months certificate with a 2.25% APY. You need just $500 to open an account. PSECU Certificates are set apart from most CDs in that they allow recurring deposits throughout the term. Early withdrawals will lose you 180 days’ worth of dividends on the amount withdrawn, whether or not the certificate has earned anything.

PSECU was founded in 1934 by Pennsylvania state workers and is headquartered in Harrisburg, Pa. PSECU offers NCUA insurance on your balances. Membership is open to family or household members of current members; students, graduates or employees of partner schools; select state or local employees; and members of the Pennsylvania Recreation and Park Society, whose membership fees PSECU will help pay for.

LEARN MORE 

NCUA Insured

Dow Chemical Employees’ Credit Union — 2.70% APY, $1,000 minimum deposit

Get started with a high-rate 36 Months Simple CD at Dow Chemical Employees’ Credit Union with a $1,000 minimum deposit. The penalty for an early withdrawal will equal 365 days’ worth of simple interest earned on the amount withdrawn.

As you might have guessed, the Dow Chemical Employees’ Credit Union was first opened to serve members of the The Dow Chemical Company in 1937. Today, membership is still open to The Dow Chemical Company and its affiliated companies as well as Dow Corning Corporation and its affiliated companies, other Select Employer Group companies, family members of eligible individuals and members of select other groups. The credit union also invites you to give them a call if you’re not eligible now so as to try and find a path of eligibility for you.

LEARN MORE Secured

on Dow Chemical Employees' Credit Union’s secure website

NCUA Insured

Wheelhouse Credit Union — 2.60% APY, $500 minimum deposit

Take advantage of Wheelhouse Credit Union’s slightly shorter 33-month certificate for its more competitive interest rate. You can get started with just $500. After the 33-month certificate matures, it will renew into a 36-month account. The early withdrawal penalty will depend on how far along in the term you are: the further away from maturity, the larger the penalty.

Wheelhouse Credit Union was founded in 1934 by a handful of City of San Diego employees. It is the second-oldest credit union in San Diego. You’re eligible for membership if you live and/or work in San Diego County, are a Zoological Society member or have a family member who is a current member.

LEARN MORE Secured

on Wheelhouse Credit Union’s secure website

NCUA Insured

Hughes Federal Credit Union — 2.58% APY, $1,000 minimum deposit

Making a minimum deposit into a Hughes Federal Credit Union 36 Month Certificate can get you its competitive rate. Depositing even more money can make it a Mini-Jumbo or Jumbo CD, boosting the rate a bit higher. Partial withdrawals from a Certificate Account are not allowed, so if you make a withdrawal before maturity, you’ll have to withdraw all the funds, close the account and pay a penalty of  $50.00 or 180 days dividend, whichever is greater.

Hughes Federal Credit Union was founded in 1952 in Tucson, Ariz. to serve Hughes Aircraft Company employees and their families. Today, the credit union serves select employee groups and anyone who lives, works, worships or attends school in Tucson.

LEARN MORE Secured

on Hughes Federal Credit Union’s secure website

NCUA Insured

Home Loan Investment Bank, F.S.B — 2.55% APY, $1,000 minimum deposit

In addition to its standard Certificates of Deposit, Home Loan Investment Bank also offers a handful of e-CDs. These eBanking accounts earn at much more competitive rates, including the 3 Year e-CD. You need at least $2,500 to open a Home Loan e-CD.

Home Loan was established in 1959 as a home loan lender. It expanded into banking in 1995 and is now headquartered in Warwick, R.I. and has branches and ATMs in both Rhode Island and Massachusetts.

LEARN MORE Secured

on Home Loan Investment Bank, F.S.B.’s secure website

Member FDIC

Garden Savings Federal Credit Union — 2.53% APY, $500 minimum deposit

With a $500 minimum opening deposit, start saving with a Garden Savings Federal Credit Union 3 Years Share Certificate. Compounded interest is paid monthly. The early withdrawal penalty is 180 days of dividends earned. Garden Savings FCU provides NCUA insurance and ESI (Excess Savings Insurance)

Garden Savings Federal Credit Union was founded in 1968 to serve employees of AT&T Bell Laboratories, now known as Alcatel-Lucent. Today, the credit union still serves Alcatel-Lucent employees, as well as employees and retirees of other Select Employer Groups and their relatives. Membership is also open to those who live, work, worship and attend school in select New Jersey areas and members of the American Consumer Council.

LEARN MORE Secured

on United Texas Bank’s secure website

Member FDIC

American 1 Credit Union — 2.50% APY, $500 minimum deposit

American 1 Credit Union offers some solid rates on its certificates, including its 3 Year certificate. You’ll need at least $500 to open the account. Should you want to make an early withdrawal, you’ll have to give up 90 days’ dividends that you would have earned on the amount withdrawn and close your account.

American 1 was founded in 1950 and is based in Jackson, Mich.

LEARN MORE Secured

on American 1 Credit Union’s secure website

NCUA Insured

Affinity Plus Credit Union — 2.50% APY, $500 minimum deposit

You need only $500 to get started with a 36-month Basic Certificate from Affinity Plus Credit Union. The early withdrawal penalty equals 180 days’ dividends.

Founded in 1930, Affinity is based in Minnesota. You can join Affinity Plus Credit Union depending on where you work or volunteer, your school, where you live/work/worship or through relatives and roommates. You may also become eligible by joining the Affinity Plus Foundation with a one-time $25 membership fee.

LEARN MORE Secured

on Affinity Plus Federal Credit Union’s secure website

NCUA Insured

Xcel Federal Credit Union — 2.50% APY, $500 minimum deposit

Open Xcel Federal Credit Union’s 36 Months Certificate with just $500 for its 2.50% APY. There is no maximum deposit limit, which benefits customers with even higher balances. The penalty for an early withdrawal will equal 180 days of dividends on the amount withdrawn.
Founded in 1964 by Port Authority of NY/NJ employees, Xcel Federal Credit Union opens membership up to employees of select companies or organizations and their family members.

LEARN MORE Secured

on Xcel Federal Credit Union’s secure website

NCUA Insured

Greenwood Credit Union — 2.50% APY, $1,000 minimum deposit

With just $1,000, you can open a Greenwood Credit Union Certificates of Deposit like its high-yield 36 Month CD. Any early withdrawals from this account will charge a penalty equal to six months dividends that would have been earned on the amount of principal.
Greenwood Credit Union was founded in 1948 and opens its membership to everyone.

LEARN MORE Secured

on Greenwood Credit Union’s secure website

NCUA Insured

Inflation impact on 3-year CD rates

Inflation reduces the value of any savings or investment balance, including CDs. Your earnings have to exceed the inflation rate for there to be a real return on your money. While mid- and long-term CDs can lock in a high rate today, there’s still potential for inflation to lower your earnings.

For a more inflation-proof savings strategy, consider stock- and bond-based investment products. They can come in handy for long-term savings since their earnings have a better chance of exceeding the inflation rate.

Should I pay early withdrawal penalties if 3-year CD rates rise?

In today’s current rate climate, the zero odds of a Fed rate hike in 2019 don’t point to an increase in 3-year CD rates any time soon. That said, an early withdrawal can sometimes be worth paying the penalties, although you’ll want to do the math and check whether the gains are greater than the costs. Calculate the penalty you would end up paying and ensure it’s lower than the returns on the new CD. This early withdrawal penalty calculator from DepositAccounts.com can run the numbers for you and tell you outright whether breaking your CD is worth it or not.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here