Most banks require you to have a checking account in order to open a CD account. However, if you're interested in opening a CD account without a checking account, we've put together a guide for you.
Here are 8 banks where you can open a CD account without having a checking account:
Ally Bank
APY Range
Minimum Deposit
Terms
Fees
Ally Bank offers a variety of CDs with different terms ranging from three months to five years, giving you flexibility based on your specific needs.
They have traditional CDs, but what makes them stand out is their no-penalty CD which offers a higher current interest rate compared to their shorter-term High Yield CDs. The unique feature of this CD is that you can withdraw your money before the maturity date without any penalties.
Another option is their “Raise Your Rate” CD, available in two-year or four-year terms. The initial interest rate is the same for both options, although slightly lower than their High Yield CD.
CD Term | APY |
|---|---|
3 Months | 3.00% |
6 Months | 4.90% |
9 Months | 4.80% |
12 Months | 4.50% |
11 Months – No Penalty | 4.50%
|
36 Months | 3.75% |
60 Months | 3.75% |
Even though Ally Bank is relatively young, established in 2009, it has become a well-known player in the industry. They provide a wide range of financial services including savings accounts, money market accounts, loans, mortgages, checking accounts, investments, and retirement services.
Marcus
APY Range
Minimum Deposit
Terms
Fees
Marcus, a financial institution owned by Goldman Sachs, offers a variety of products, including Certificates of Deposit (CDs) with different time frames. Among the many online banks, Marcus stands out for its highly competitive CD rates.
Even if you opt for their lower-rate no penalty CDs, you can still expect higher rates compared to traditional banks.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 Months | 4.75% | 90 days interest |
9 Months | 4.80% | 90 days interest |
12 Months | 4.70% | 180 days interest |
13 Months – No Penalty | 4.50% | / |
18 Months | 4.25% | 180 days interest |
24 Months | 4.00% | 180 days interest |
36 Months | 4.15% | 180 days interest |
48 Months | 4.00% | 180 days interest |
60 Months | 4.00% | 180 days interest |
72 Months | 3.90% | 270 days interest |
Since Marcus operates exclusively online, they don't have physical branches. However, you can easily reach their customer support team through online platforms, their dedicated app, or by phone.
Opening a CD with Marcus is a quick process that takes just a few minutes, and if you face any issues, their customer service team is available seven days a week to assist you.
TotalDirectBank
APY Range
Minimum Deposit
Terms
Fees
TotalDirectBank is well-known for offering competitive rates on CDs, especially for shorter durations. Their rates for 3-month and 6-month CDs are among the highest in the country. Currently, they offer an impressive 5.15% Annual Percentage Yield (APY) for 3-month CDs and 5.00% APY for 6-month CDs.
However, it's important to mention that their rates for longer-term CDs are not as attractive compared to other banks and credit unions, although they are still relatively high.
Term | APY |
|---|---|
3 Months | 5.15% |
6 Months | 5.00% |
12 Months | 4.50% |
24 Months | 4.34% |
36 Months | 3.56% |
60 Months | 3.05% |
One thing to consider is that TotalDirectBank requires a relatively high minimum deposit to open a CD account. You'll need to deposit at least $25,000, which might be too much for some people. It's important to keep this in mind before making a decision.
TIAA Bank
APY Range
Minimum Deposit
Terms
Fees
TIAA offers multiple CD terms and highly competitive rates across the board.
To open a CD account with TIAA Bank, you'll need to deposit at least [minimum deposit]. Just like other FDIC-insured banks, TIAA Bank ensures that your CDs are protected up to $250,000 per account owner, for each ownership category.
CD Term | APY |
|---|---|
3 Months | 4.00% |
6 Months | 4.00%
|
9 Months | 5.25%
|
12 Months | 5.00%
|
18 Months | 4.60% |
24 Months | 4.40% |
30 Months | 4.10% |
36 Months | 4.10%
|
48 Months | 4.05%
|
60 Months | 3.95%
|
TIAA Bank is a U.S. bank that provides banking and lending services to individuals and institutions. It's based in Jacksonville, Florida, and is part of TIAA, a financial services organization that focuses on helping people in academic, research, medical, and cultural fields.
American Express
APY Range
Minimum Deposit
Terms
Fees
American Express makes it really easy to set up a CD. You can open a new CD account in just a few minutes, and they'll verify your personal details by checking public records. You shouldn't be an existing Amex customer to open an account.
There's no minimum deposit requirement, so you can start your CD with any amount you want. However, they don't offer special benefits or higher rates for large deposits.
CD Term | APY |
|---|---|
12 Months | 4.10% |
18 Months | 3.60%
|
24 Months | 3.75% |
36 Months | 3.00% |
48 Months | 3.00% |
60 Months | 3.00% |
If you're interested in CD laddering, American Express may not be the best choice. The interest rates vary a lot between different terms, and you can find better rates on some terms at other banks.
First Internet Bank
APY Range
Minimum Deposit
Terms
Fees
First Internet Bank is a great choice if you're looking for competitive CD rates. They offer different terms ranging from three months to five years with fixed interest rates.
The minimum deposit requirement is reasonable, making it accessible for customers. Plus, after the maturity date, you have a 10-day grace period to withdraw your funds without any charges.
Term | APY |
|---|---|
3 Months | 4.14% |
6 Months | 4.87% |
12 Months | 4.94% |
18 Months | 4.67% |
24 Months | 4.45% |
36 Months | 4.29% |
48 Months | 4.14% |
60 Months | 4.19% |
First Internet Bank is a well-known online bank that operates entirely through digital platforms. They've been around since 1999 and were one of the first banks to focus solely on online banking services.
Along with CDs, they provide a wide range of financial products like checking accounts, savings accounts, loans, mortgages, and investment options.
Capital One
APY Range
Minimum Deposit
Terms
Fees
Capital One 360 offers a range of CDs that last from 6 to 60 months. Like other types of certificates of deposit, the interest rate you get from Capital One 360 goes up as the CD's duration gets longer.
You also get to choose how often you receive the interest earned on your CD—whether it's every month, once a year, or at the end of the term.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 Months | 4.25% | 3 months interest |
9 Months | 4.25% | 3 months interest |
12 Months | 4.50% | 3 months interest |
18 Months | 4.25%
| 6 months interest |
24 Months | 4.00% | 6 months interest |
30 Months | 4.00% | 6 months interest |
36 Months | 3.75% | 6 months interest |
48 Months | 3.75% | 6 months interest |
60 Months | 3.75% | 6 months interest |
Capital One is well-known for credit cards but also provides online banking and has Capital One Cafés.
If you need to withdraw money from your CD before it's supposed to mature, Capital One 360 has a relatively low penalty compared to other banks. So if you do decide to take out funds early, you won't be charged much.
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Popular Direct
Fees
Minimum Deposit
Current Promotion
APY Savings
Popular Direct offers CDs with different time periods, such as 12 months, 24 months, and 6 months. The 12-month CD has the highest interest rate, but the rates for the 24-month and 6-month CDs are also good.
To open a CD account, you need to deposit a minimum amount, which is specified by Popular Direct. The good thing is that the interest rate doesn't change based on how much you deposit. Whether you put in $10,000 or $100,000, you'll earn the same rate.
CD Term | APY |
|---|---|
3 Months | 5.05% |
6 Months | 4.90% |
12 Months | 4.80% |
18 Months | 4.30% |
24 Months | 4.20% |
36 Months | 4.05% |
48 Months | 4.00% |
60 Months | 3.95% |
With Popular Direct CDs, you can lock in the interest rate for the entire term of the CD. When the CD matures, which means it reaches the end of its term, you have 10 days to withdraw your money, add more money, or close the account without any penalties.
Popular Direct is an online bank that is part of Popular Bank, a financial services provider with a long history dating back to 1893.
What Else Should I Focus When Choosing A CD Account?
When choosing a CD account, there are several factors you should focus on:
Interest Rates: Look for competitive interest rates that offer the highest return on your investment. Compare rates offered by different banks to find the best option.
Term Length: Consider the duration of the CD term that suits your financial goals. Longer terms often yield higher interest rates, but make sure the length aligns with your needs and access to funds.
Minimum Deposit: Check the minimum deposit required to open a CD account. Ensure it fits within your budget and financial capabilities.
Penalties: Understand the penalties involved for early withdrawal or closing the CD account before the maturity date. Some banks may charge fees or deduct a portion of the interest earned.
FDIC Insurance: Confirm that the bank is FDIC-insured. This ensures your deposits, up to $250,000 per depositor, are protected in case of bank failure.
Account Access: Determine if you need online access, mobile banking, or in-person services to manage your CD account. Choose a bank that offers the desired level of convenience.
Customer Service: Research the bank's reputation for customer service and responsiveness. Read reviews or seek recommendations to ensure you can rely on their support if needed.
By considering these factors, you can make an informed decision and choose a CD account that suits your financial needs and goals.
