Finding the Best 1-Year CD Rates can be a challenge if you’re looking for no-penalty certificates of deposit. Certificate of Deposits are a safe and secure way to grow your savings.
The fact that 1-year CD rates can provide a good return on your investment in a short amount of time is negated if it becomes necessary to withdraw early and penalties are incurred.
Early withdrawal penalties for certificates of deposit can range from 1 month up to 6 months of interest.
Best 1-Year CD Rate With No Penalty
Quontic Bank 1-Year CD (4.50% APY)
Quontic Bank operates entirely online which is one of the reasons they can offer a very competitive rate on CDs. Withdrawals before the CD maturity date are subject to penalties. Interest is compounded daily and credited to your account monthly.
Pros
- $500 minimum deposit to open.
- Once the maturity date arrives, you have the option of cashing out or automatically renewing the CDs for another term.
- You may withdraw the total balance and interest earned, without penalty, beginning seven days after funds have been received for your CD.
- Robust digital banking portal that allows customers to easily carry out all their banking activities online.
- Daily compounding interest to maximize your earning potential.
- FDIC insured.
Cons
- Requires a $500 minimum deposit that might make this bank’s CDs out of reach for some.
- Only branch location in New York but available online in 50 states.
Blue Federal Credit Union CD (4.25% APY)
Blue Federal Credit Union is based in Wyoming with a history dating back to 1951. This credit union provides a range of services, including personal and business banking along with mortgage, student, auto and personal loans. The CD is offered through the Raisin platform.*
Pros
- $1 minimum deposit to open.
- Earn 5.10% APY.
- Excellent rates with NO fees.
- The term automatically renews at maturity unless you choose to cash-out and close your Certificate.
- NCUA Insured up to $250,000.
Cons
- Only branch locations in Wyoming but available online in 50 states.
CIT Bank No-Penalty CD (3.50% APY)
With a CIT Bank No-Penalty CD, you get the security of an 11-month CD plus know you can withdraw the total balance and interest earned without penalty. The No-Penalty CD kicks into full effect 7 days after your deposit is made. That means you can access your funds, if needed, so long as it’s seven days after they’ve been received.
Pros
- $1,000 minimum deposit to open.
- A fixed-rate CD lets you lock in a guaranteed rate throughout the 11-month term plus get access to your funds when you need them.
- You may withdraw the total balance and interest earned, without penalty, beginning seven days after funds have been received for your CD.
- Earn a higher rate than the interest rate on regular savings accounts.
- Daily compounding interest to maximize your earning potential.
- FDIC insured.
Cons
- Requires a $1,000 minimum deposit that might make this bank’s CDs out of reach for some.
- Only available online, no physical locations.
*Disclaimer
Raisin partners with a variety of banks and credit unions to offer above-average There’s no monthly maintenance fee for CD accounts when you open it through the Raisin platform.
You always have access to your account through the Raisin website. You can log in, schedule a deposit from a linked bank account or transfer money out to a different bank.
You’ll need to create a Raisin user login with your email address and password. You’ll also need to tell Raisin your first and last name.
From there, you can select the account you want to open. You’ll need to tell Raisin the following:
- Your address
- Date of birth
- Social Security number
- Preferred minimum deposit (There is a $1 Minimum Deposit required.)
- You’ll need your banking information to link an account to make your initial deposit.
Once your account is open, you can manage it online through the Raisin website.
