Top No-penalty CDs July 1, 2009

If you’re afraid of the long term commitments of CDs or just inexperienced, take a look at a type of CD called No-Penalty (No-Penalty CDs are also known as liquid CDs or bump-up CDs). Traditionally No-Penalty CDs have a bit lower APY than regular CDs, but with such difficult financial times and if your job may be at risk, it’s a perfect way to invest. Here is a rundown of some No-Penalty  CDs by months:

9 Months CD No-penalty CD

1.20% APY: When it comes to 9 month CDs, two of the best-known banks give you simple options with a good rate for your investment. Bank of America is currently offering 1.20% APY with a minimum deposit of $5,000. The Risk Free CD gives you the option to access funds prior to maturity date without any penalties.

2.15% APY: For no minimum deposit and a 2.15% APY, Ally Bank is sure to make you consider this 9-month, no penalty, no monthly fees investment that allows you to withdraw and receive earned interest prior to end-date of the CD.

12 Month CD No-penalty CD

Although the national average of regular 12-month CDs (that have fees and penalties for early withdrawal) is a bit above 2% APY, there is a decent rate out there for the same amount of time but with no penalties.

1.75% APY: Virginia Commerce Bank is offering 1.75% APY with a minimum deposit of $5,000. So if you have doubts about whether or not you might need that invested money within the next year, this penalty proof option is definitely something to consider.

1.10% APY: On the other hand, if you don’t have that much money to invest but you have the time, PNC Bank has an offer of 1.10% APY on just a $1,000 investment. Although it is almost 0.5 % lower than the MyBankTracker average, it should still be in the runnings if you are looking for an annual deal.

18 month CD No-penalty CD

2.4% APY: Meridian Bank has an offer of 2.4% APY with a minimum deposit of $1,000, which makes this the most profitable investment in this group. With a rate of 0.7% above the MyBankTracker average, this deal is hard to pass up.

For more comparisons of the nation’s best Regular, Jumbo, and No-Penalty CD rates on the market that we have listed, visit our CD comparison section.

About the banks

 

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other. It operates in 32 states, the District of Columbia and 30 foreign countries.

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Ally

Banking starts over here and now. Built on the foundation of GMAC, Ally is an online bank with no monthly fees, no minimum balances and no minimum deposits. Our rates are always among the most competitive and we offer live 24/7 Customer Care Support. Member FDIC.

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Virginia Commerce Bank

Virginia Commerce Bank is a Virginia state-chartered, full-service community bank that is a wholly-owned subsidiary of Virginia Commerce Bancorp, Inc. We opened our first branch in 1988 in Arlington, Virginia, where we maintain our headquarters. VCB pursues a traditional community banking strategy, offering a full range of business and consumer banking services through our expanding network of branch offices, a residential mortgage office and an investment services office.

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Meridian Bank, National Association

Meridian Bank has been part of Arizona for 30 years and has the foundation of over 60 years in the banking industry. Meridian's parent company, Marquette Financial Companies, is a $3 billion financial services company with $400 million of available capital and a diversified business portfolio.

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