Banking » Compare Banks » 8 Banks Where Checking Isn’t Mandatory for Opening A CD Account
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8 Banks Where Checking Isn’t Mandatory for Opening A CD Account

If you're interested in opening a CD account without a checking account, we've gathered 8 excellent choices for standalone CD accounts
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

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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

ally bank
ally bank

Ally Bank

APY Range

3.00% – 4.50%

Minimum Deposit

$0

Terms

3 – 60 months

Fees

$0

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
4.40%
9 Months
4.45%
12 Months
4.50%
11 Months – No Penalty
4.00%
36 Months
4.00%
60 Months
3.90%

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

4.00% – 5.05%

Minimum Deposit

$500

Terms

6 – 72 months

Fees

$0

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
4.80%
90 days interest
9 Months
4.90%
90 days interest
12 Months
4.90%
180 days interest
13 Months – No Penalty
4.15%
/
18 Months
4.60%
180 days interest
24 Months
4.90%
180 days interest
36 Months
4.15%
180 days interest
48 Months
4.05%
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

TotalDirectBank review
TotalDirectBank review

TotalDirectBank

APY Range

3.05% – 5.45%

Minimum Deposit

$25,000

Terms

3 months – 5 years

Fees

$0

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 5.42% Annual Percentage Yield (APY) for 3-month CDs and 5.45% 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
5.42%
6 Months
5.45%
12 Months
5.35%
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

TIAA_Bank_logo
TIAA_Bank_logo

TIAA Bank

APY Range

3.95% – 5.15%

Minimum Deposit

$1,000

Terms

3 months – 5 years

Fees

$0

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

American Express
American Express

American Express

APY Range

Up to 4.75%

Minimum Deposit

$0

Terms

12 – 60 months

Fees

$0

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
4.00%
18 Months
3.25%
24 Months
4.00%
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

First Internet Bank

APY Range

4.14% – 5.31%

Minimum Deposit

4.14% – 5.31%

Terms

3 months – 5 years

Fees

$0

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
5.18%
12 Months
5.31%
18 Months
5.04%
24 Months
4.82%
36 Months
4.66%
48 Months
4.50%
60 Months
4.55%

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

Capital One
Capital One

Capital One

APY Range

4.00% – 5.10%

Minimum Deposit

$0

Terms

6 – 60 months

Fees

$0

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
4.35%
3 months interest
9 Months
4.35%
3 months interest
12 Months
4.90%
3 months interest
18 Months
4.50%
6 months interest
24 Months
4.20%
6 months interest
30 Months
4.10%
6 months interest
36 Months
4.10%
6 months interest
48 Months
4.05%
6 months interest
60 Months
4.00%
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

Popular Direct review
Popular Direct review

Popular Direct

Fees

$0

Minimum Deposit

$5,000

Current Promotion

None

APY Savings

5.15%

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
5.25%
6 Months
5.30%
12 Months
5.15%
18 Months
4.90%
24 Months
4.70%
36 Months
4.55%
48 Months
4.35%
60 Months
4.30%

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.

Compare CD Rates

Picture of Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
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