Benefits of a No-Penalty CD Account
No-penalty CDs occupy the middle ground between the liquidity of a high-yield savings account (HYSA) and the steady, locked-in return offered by a fixed-term CD account. (“CD” stands for certificate of deposit, which is the most common term banks use for the product. Comparable savings products offered by credit unions may be called certificates or share certificates.)
Here’s the key benefit: You can secure a competitive rate (usually above what a HYSA offers) for the duration of the term of a no-penalty CD — similar to how a fixed-term CD works — however you won’t face any penalty fees in the event you close the account and withdraw funds prior to the account’s maturity date. The reason doesn’t matter; you could need the cash for an emergency expense, or you may want to move it into a harder-working savings product that became available. With a no-penalty CD, you get predictable earnings on your investment through a set, competitive rate, and you don’t forgo access to your cash. For many savers this is a winning combination.
No-Penalty CDs vs. Fixed-Term CDs
Learn More About No-Penalty CDs
What is a CD and what are CD rates?
Find out all about the various types of CDs and how they fare in comparison to other savings and deposit options.
More About No-Penalty CDs
What is a No-Penalty CD?
Think of a no-penalty CD as a twist on a traditional certificate of deposit. No-penalty CDs are similar to traditional CDs except for one key difference. The terms of a traditional CD often impose limitations or penalties or even full restrictions on withdrawals before the account reaches maturity. When does a CD reach maturity? At the conclusion of its term length following the purchase date.
Like its name suggests, a no-penalty CD does not impose early withdrawal penalties if you need to tap your savings before the term is complete. No-penalty CDs are also sometimes known as liquid CDs, as they offer considerable liquidity by allowing you access to your deposited funds. While no-penalty CDs typically offer lower rates than fixed-term CDs, they still provide a higher rate than most regular savings accounts.
If you do need to access funds invested in a no-penalty CD before the term is over, don’t expect to make a partial withdrawal as that’s typically not allowed; you’ll have to extract its full value, closing the account. However, you won't lose any accrued interest. You also cannot make incremental deposits after the first purchase; this is true of both fixed-term and no-penalty CDs.
Considerations with No-Penalty CDs
No-penalty CDs offer similar advantages as a regular CD while also providing the benefits of a savings account:
What Is Raisin?
Raisin brings together high-yielding savings products offered by a network of U.S. financial institutions. It’s your destination to discover competitive savings products and start saving wisely. Select and fund multiple savings products from different institutions and manage them all from one account.
Funds deposited into any of the savings products available through Raisin are always held by a federally insured financial institution. A very easy and safe way to diversify your deposit portfolio. We use a host of cybersecurity measures to protect your funds and sensitive information.
Savings products from our network of financial institutions offer flexible terms and some of the most competitive interest rates. You can easily find the right product or mix of products for you.
One account to hold all your deposit products. Simplified statements. Easy access to manage your funds – all through a streamlined digital platform.
How Raisin Protects Your Money and Personal Information
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the right product for your savings goals.
with an email address and password, then verify your identity and bank information.
the savings products you add to your new Raisin account.
How Raisin Compares
Raisin is a digital platform that gives savers unparalleled access to a variety of deposit products through the convenience of a single account, helping you unlock the growth potential of your cash savings.
Raisin customers use the platform to fund Federal Deposit Insurance Corp. (FDIC) insured deposit products offered by numerous U.S. banks with a wide range of maturities and interest rates, allowing you to build a savings strategy to suit your earning and liquidity needs.
Raisin is not a bank. It’s a New York-based financial technology company (“Fintech” for short) that provides the digital “storefront” where banks can promote their deposit products.
Raisin.com is operated by Raisin LLC, a 100% subsidiary of Deposit Solutions LLC (Deposit Solutions). Headquartered in New York, Deposit Solutions provides a proprietary open architecture platform for deposits products. Deposit Solutions helps banks improve their deposit funding by offering national reach for their retail deposit products, and provides savers with better access, more choice and higher convenience when evaluating savings products from FDIC insured banks.
Deposit Solutions LLC is a 100% subsidiary of Raisin GmbH, a trailblazer for open banking in the deposits and investments space.
Your Raisin account gives you access to savings accounts and Certificates of Deposit (CDs) offered by a variety of banks with the security of FDIC insurance. These products include:
High-yield Savings Account (HYSA). As its name indicates, this account type functions like a traditional savings account—with typically no restrictions on depositing and withdrawing funds—but earns interest at rates that are higher than the national average for standard savings accounts.
Money Market Deposit Account (MMDA). Also known as a money market account or MMA, this type of savings account offers a varying rate that allows you to earn interest on your funds with maximum flexibility for withdrawals. Like a HYSA, an MMDA offers features of a traditional savings account with typically higher returns.
No Penalty CD. Through the flexibility of a No Penalty CD, you can lock in a competitive rate for a fixed term with the option to make a full withdrawal without having to pay a penalty for the early termination. Terms and conditions may vary by product. Please see specific product terms for more details.
Fixed Term CD. With this longstanding savings vehicle, funds are held for a fixed term, and a competitive interest rate provides safe, predictable earnings. In contrast to No Penalty CDs, typically you are charged a fee if you do not complete the full term of the Fixed Term CD.
Interest is compounded daily and posted to your account monthly.
Yes! A depositor’s savings are insured by the FDIC up to the maximum amount in accordance with and as permitted by law at each bank holding their funds.
The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per account ownership category. Ownership categories as defined by the FDIC include single bank accounts (owned by one person/depositor) and joint bank accounts (owned by two or more persons/depositors). Revocable trust accounts and some types of retirement accounts (e.g., IRAs) are among the other ownership categories covered by FDIC insurance.
Deposits held in different ownership categories are separately insured, even if held at the same bank.
All deposits you have at a bank — whether made through Raisin or otherwise — count toward the deposit insurance limit. If funds held at a bank in a certain ownership category exceed the coverage limit, then the amount in excess of the limit will not be insured.
At Raisin, cybersecurity is our priority. Raisin is a SOC 2 certified platform, meaning it has been validated by outside auditors across five (5) key information security principles. We also use a variety of measures to protect our customers' data, privacy and transactions, including:
• User authentication. The Raisin platform uses multi-factor authentication combined with leading authentication technology to validate our customers’ identities.
• Data encryption. Your personal information is encrypted in-transit and at rest using advanced cryptographic security algorithms.
• Site protection. Web application firewall advanced internet protection technologies are implemented to protect Raisin.com from malicious actors, botnets and denial of service attacks (DDOS).
• Monitoring. An always-on information security monitoring platform detects and alerts us to information security events.
• Assessments. Our platform undergoes vigorous security assessments and testing throughout the lifecycle of application development, from architecture planning to production phases.
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A. Check out our savings marketplace and choose a product in which you would like to deposit money.
B. Create your username and password.
C. Complete an application and, after successful identity verification, link a bank account from which to fund your first savings product.
D. Start earning interest as soon as your money is received by the bank.
Any questions or concerns? Email us at firstname.lastname@example.org.
All deposits and withdrawals are completed within one to three (1-3) business days. After the initial deposit a withdrawals limitation for the first few business days may exist.
Business days are Monday through Friday excluding U.S. bank holidays.
No. All necessary registration is handled when you become a Raisin customer. One of the many benefits of our platform is that you can open a single account and earn competitive interest rates from banks in the Raisin network.
The current APY for your savings products can always be viewed on the Account Overview page when you are logged in to Raisin. This information also appears on monthly statements.
You cannot currently link your Raisin account to a third-party app, but we may offer this feature in the future. For now, you will not be able to link your selected savings product to a third-party app even if the bank offering that product does so outside of the Raisin platform.