A liquid CD improves upon the concept of a certificate of deposit by adding in a no-penalty clause that allows you to withdraw the money when you need it. Not only will you be afforded a high liquid CD rate, you’ll have the freedom and flexibility to withdraw your money for emergencies or other expenses without worrying about early withdrawal penalty fees. Most banks usually give a lower amount of interest to liquid CDs than their traditional CD accounts, but they’ll still be higher than money market or savings account rates being offered. Liquid CD accounts may also require a slightly higher minimum deposit amount than traditional deposit accounts.
Liquid CD Review
We’ve rounded up a list of the best liquid CDs and no penalty CDs to make it easy for you to invest. Many people enjoy the flexibility offered by liquid accounts and you can also benefit from these solid investment tools. Here are some of the best liquid CD rates from some of the most popular banks around.
Ally Bank No Penalty CD
Ally Bank is offering a No Penalty CD at 1.35% for 11 months. The great part is there are zero fees and you can open an account with $0. The account is FDIC insured, compounds daily and automatically renews at maturity unless you withdraw the principal and interest.
Bank of America Risk Free CD
BofA is offering a Risk Free CD at 0.40% for a 9 month term. The minimum deposit required to open an account is $5,000 and limited to $1 million max per account. Additionally, they reserve the right to limit the amount you may invest in each account. Their CD is FDIC insured and you can withdraw from it without penalty after 6 days.
TD Bank No Catch CD
TD Bank is offering a No Catch CD that requires a $250 minimum deposit to open. There is a 6 month option at 0.45% and a 12 month option at 0.40%. There are no fees associated with the liquid CD and you may make one early withdrawal without penalty after 10 days.
Liquid CDs offer a strong rate of return with the flexibility to access your money when you need it. Make sure that you’ve thoroughly read all the fine print for every account before you start investing in liquid CDs.
Rates as of 7/12/2010
