A no-penalty CD (also called a liquid CD) lets you withdraw your balance before maturity without an early withdrawal penalty. The no-penalty rates we read on bank pages in October 2026 were 3.75% (Marcus, 7 months), 4.00% (Marcus, 11 months), 3.80% (Marcus, 13 months) and 3.90% (CIT Bank, 11 months, dated July 1, 2026). The flexibility usually costs some rate compared with a regular CD of similar length.
Key takeaway: If you are weighing a CD against a high-yield savings account, a no-penalty CD is a middle ground: a locked-in rate with a way out.
No-Penalty CD Rates We Read
| Bank | Term | APY | Minimum Deposit |
|---|---|---|---|
| Marcus by Goldman Sachs | 7 months | 3.75% | $500 |
| Marcus by Goldman Sachs | 11 months | 4.00% | $500 |
| Marcus by Goldman Sachs | 13 months | 3.80% | $500 |
| CIT Bank | 11 months | 3.90% | $1,000 |
Marcus rates as of October 15, 2026; CIT Bank as of July 1, 2026; still shown on CIT's site October 15, 2026. Ally and Citi also sell no-penalty CDs, but we did not read a usable rate on their pages. Rates change, so verify before opening.
For comparison, the Marcus 12-month high-yield CD paid 4.40% and its 9-month paid 4.30% (as of October 15, 2026).
How No-Penalty CDs Work
- Open and fund the CD with the minimum shown above
- Lock in your rate for the CD term
- Wait the holding period. Marcus says you can withdraw starting 7 days after funding, and CIT says withdrawals are not permitted during the first 6 days and are penalty-free from day 7
- Withdraw after that without a penalty. Marcus says you must withdraw the full balance
- At maturity, check the bank’s renewal terms
Where No-Penalty CDs Are Offered
No-penalty CDs are mostly offered by online banks and some large banks. Per their own pages, Marcus, CIT Bank and Citi each offer one. Citi’s lets you withdraw the full balance without penalty beginning 7 days after funding, with a $500 minimum. Discover CD accounts are becoming Capital One CD accounts, so Discover is not a separate source.
When to Use a No-Penalty CD
A no-penalty CD fits when:
- You are not sure you will leave the money alone until maturity
- You want to lock in a rate for 6 to 15 months
- You want a safety valve on a savings goal
Stick with a traditional CD when you are certain you will not need the money early and the regular CD pays more for your term.
No-Penalty CD vs. High-Yield Savings Account
| Feature | No-Penalty CD | HYSA |
|---|---|---|
| Rate | Fixed for term | Variable (can change anytime) |
| Flexibility | Withdraw after the holding period | Withdraw as needed, within the bank’s limits |
| Rate protection | Yes, locked in | No |
| Adding money | Not after opening | Anytime |
| FDIC insured | Yes | Yes |
For a savings rate, the FDIC national average was 0.37% as of September 21, 2026, and Bread Savings paid 4.05%.
Early Withdrawal: What to Know
After the holding period you can withdraw the full balance (principal and interest) with no penalty. At Marcus you must withdraw the full balance and cannot take part of it. If you need partial access, a savings account may serve you better.
Related Resources
- CD Rates and Guide — all CD types compared
- Best CD Rates — dated rates across banks
- High-Yield Savings vs. CD — full comparison
- CD Laddering Strategy — spread risk across multiple CDs
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy