Certificates of deposit can be an effective way to save money while you earn interest safely. The problem is that a lot of banks require a minimum amount to open a CD. Sometimes the minimum requirement is $500 or $1,000, but depending on the bank and the type of CD, it could be $10,000 or more.
But not everyone has that much cash lying around, so here is a selection of CD accounts that have no minimum balance required — and the best CD interest rates in this category. You can deposit as much or as little as you like and still earn some of the best annual percentage yields (APY) possible.
CDs With No Minimum Deposit
- Ally Bank
- Barclays Bank
- Capital One
- American Express National Bank, Member FDIC
Ally Bank doesn’t require a minimum deposit for CD accounts. It offers high-yield CDs with fixed rates for terms of three to 60 months. A one-year high-yield CD from Ally pays APY.
Ally’s Raise Your Rate CD lets you increase the interest rate on your two-year or four-year CD if Ally’s rate goes up. You can raise your rate once if you have a two-year CD or twice if you have a four-year CD. You can increase your rate to the current rate at the time you make the change.
Ally also offers a no-penalty CD that lets you withdraw all your money at any time — except within the first seven days of opening the account — with no early withdrawal penalty. You get to keep the interest, too. The term of this CD is 11 months, and the interest rate is APY.
Interest compounds daily and no monthly fees are charged. Plus, it’s easy to transfer funds with Barclays.
Capital One offers a variety of online CDs with no minimum deposit required. The terms range from a 6-month CD, which pays APY, to a 60-month CD, which pays APY.
You can choose to have your interest paid to you on a monthly basis or credited to another Capital One 360 account. You can also have it credited back to the CD account.
American Express National Bank
American Express, Member FDIC, offers CDs with no minimum deposit through its online bank. Terms range from 12 to 60 months. The Annual Percentage Yield for a 12-month CD is APY and the 60-month rate is APY.
Interest on these CDs compounds daily and is credited monthly. Upon maturity, the CD will automatically renew for the same term unless you withdraw the money.
Why Some CDs Require a Minimum Deposit
When a bank determines CD interest rates, it considers the term of the CD, which is how long you’ll leave the money in the account. A bank also looks at how much it can make on your money during that time and considers the current interest rate environment.
Part of what determines how much a bank can earn with your money is the amount of money you deposit — the more you deposit, the more the bank can earn. Some banks don’t want to bother with small amounts of money, so they set a minimum requirement for a CD deposit.
You’ve probably noticed that all of these banks offering no-minimum CDs are online banks. Online banks have lower overhead costs, so they can offer CDs with no minimum deposit.
So, which is the best CD for you? The answer depends on your unique situation, but it’s helpful to know you can still get good CD rates if your initial deposit is modest.
Compare CD Rates
- Best 3-Month CD Rates
- Best 6-Month CD Rates
- Best 1-Year CD Rates
- Best 5-Year CD Rates
- Best No-Penalty CD Rates
- Best Jumbo CD Rates
- Best No-Penalty CD Rates
- Best CDs With No Minimum Deposit Requirement
- Best CD Accounts
Cynthia Measom contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of March 6, 2023.
GOBankingRates is a personal finance and consumer interest rate website and an online marketing company serving top-tier banks, credit unions and other financial services organizations. Some companies mentioned in this article might be clients of GOBankingRates, which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account.
GOBankingRates bases its assessment of “best” and “top” products on the above-stated parameters to create a baseline for comparison. This assessment is an approximation of “best” and “top” designed to help consumers find products that might be appropriate for them. There could be other options available as well. Consumers should consider various options appropriate for their circumstances.
All information about American Express CDs has been collected independently by GOBankingRates. American Express CDs are not available through GOBankingRates.
Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by American Express. American Express credit card products are not available through GOBankingRates.com.