The Best 3-Month CD Rates of February 2023
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The Best 3-Month CD Rates of February 2023
Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
As of February 2023, the national average APY (Annual Percentage Yield) on a 3-month CD is 0.57% APY. However, some of the best online banks offer up to 4.00% APY for a 3-month CD right now.
A 3-month CD is a short-term CD, and it isn't as common as other CD terms, so you only have a few strong banks to choose from. If you're also interested in other CD term lengths, check out our overall best CD rates guide. Here are our recommendations for the best 3-month CDs.
The Best 3-Month CD Rates
These are our picks for the best 3-month CD rates. Read more about our top picks below.
Compare the Best 3-Month CDs
Expert Advice on Choosing the Best 3-Month CD
To learn more about what makes a good CD and how to choose the best fit, Insider consulted four experts:
Insider
Here's what they had to say about CDs. (Some text may be lightly edited for clarity.)
How can someone determine whether a bank is the right fit for them?
Tania Brown, certified financial planner at SaverLife:
"Obviously, you want to make sure it's FDIC insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you're okay online. Do you write checks? Do you not write checks? So it's thinking through how your experience with it is going to be before you make that decision."
Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
"I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I'm searching for an interest-earning bank account I'll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account."
How should someone choose a CD term length?
Roger Ma, certified financial planner with lifelaidout® and author of "Work Your Money, Not Your Life":
"I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective."
Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:
"I believe in having a plan for whatever the funds are. If it's supposed to be a house fund, and you want to wait for another two years to buy a house, that's what you should be thinking of when you want to have this money."
How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?
Tania Brown, CFP:
"So I guess we'll start off with how much money you want to put in and ... the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you're stuck between the high-yield savings and the money market account."
Sophia Acevedo, Personal Finance Insider:
"Generally, I think a high-yield savings account or money market account could be good options for an emergency fund or short-term savings goals. A high-yield savings account offers a higher interest rate than traditional savings accounts at brick-and-mortar banks. Meanwhile, money market accounts might be worth considering if you want more account accessibility — several offer paper checks, ATM cards, or debit cards. CDs could be worthwhile if you don't need access to some of your money, since they have a fixed interest rate for a specific term."
Methodology: How Did We Select the Best 3-Month CDs?
First, we researched to find over 20 banks and credit unions that offered 3-month CDs. Then, we reviewed each institution to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
3-Month CD Frequently Asked Questions
A 3-month CD is a type of short-term CD. Generally, CDs offer a fixed interest rate. This means your rate will stay the same for the entire term.
Let's say you have a 3-month CD that pays 2.25% APY. You'll earn 2.25% for the entire three months. Usually, you'll only be able to make a deposit when you open your account. You also won't be able to access your money before the CD reaches maturity without paying a penalty.
Deciding between a 3-month, 1-year, or 5-year CD will likely depend on the timeline for your goals. If you'll need access to your money relatively soon, you may prefer a short-term CD over a long-term CD.
When you choose a CD, you'll also want to pay attention to the interest rate offered. You might consider CD laddering if you don't want to deposit all your money in a particular CD. With a CD ladder, you'll open multiple CDs of different terms. For example, you can open a 3-month, 1-year, and 5-year CD, and split your money between these three CDs.
Most financial institutions pay higher rates on high-yield savings accounts than on 3-month CDs. However, there may be exceptions, so you'll want to double-check rates at a particular bank just to be sure.
There are also a few differences between CDs and high-yield savings accounts that could sway your decision.
For example, CDs have a fixed interest rate, while high-yield savings accounts have a variable interest rate. If rates are dropping, you might prefer a CD over a high-yield savings account because your rate will stay the same for three months. If rates are increasing, a high-yield savings account could be a better fit because you could have the chance to earn a higher rate later.
It also depends on when you'll need to access your money. CDs have early withdrawal penalties, while savings accounts do not. You can also continuously add money to your savings account, whereas most CDs do not allow you to make additional deposits after opening an account.
Similar to a high-yield savings account, money market accounts have variable interest rates. You may prefer a money market account if rates are rising, but a CD if rates are dropping.
You might also have a money market account over a CD if you want quick access to your money. Money market accounts often come with paper checks, ATM cards, or debit cards. You can also add more money to a money market account over time, while a CD only permits an initial deposit.
A CD is typically considered a type of savings account. It's generally a low-risk place to keep your money because your potential for losses and gains is limited.
Experts generally don't advise investing money you'll need in the next five years. In the case of a stock market drop, you wouldn't have time to make up for your losses.
If you need to access your money in three months and want a guaranteed rate of return, a 3-month CD is a better choice than a different type of investment account. But if you want to take more risks with your money, you may want to invest in the stock market. You may open a tax-advantaged retirement account, like a 401(k) or IRA, which grows your money over decades. You can also choose brokerage accounts, which are useful tools to build long-term wealth. Brokerage accounts can't guarantee a given return like a CD can, though.
Learn More About Our Top Picks for 3-Month CDs
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Chase 3 Month CD
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Citi 3 Month Fixed Rate CD
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America First Credit Union 3 Month Certificate
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Bethpage Federal Credit Union 3 Month Certificate Account
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Synchrony 3 Month CD
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First Internet Bank of Indiana 3 Month CD
Chase 3 Month CD
Why it stands out: Chase offers the highest interest rate on our list. You can earn between 2.00% to 4.00% APY on a 3-month CD (depending on your balance) if you qualify for a relationship rate. To get a relationship rate, you must have a linked Chase personal checking account.
APY for a 3-month term: 0.01% to 4.00% (varies by location) APY
3-month early withdrawal penalty: 90 days of interest
What to look out for: If you don't have a Chase checking account, you'll likely prefer another financial institution. The standard rate for Chase CDs is 0.01% APY.
Citi 3 Month Fixed Rate CD
Why it stands out: Citi offers one of the highest CD rates available for a 3-month term. You also might find Citi worthwhile if you're searching for a variety of CD terms.
APY for a 3-month term: 3.00% APY
3-month early withdrawal penalty: 90 days of interest
What to look out for: Citi has branches in California, Connecticut, Florida, Illinois, Maryland, Nevada, New Jersey, New York, South Dakota, Virginia, Washington, DC, and Puerto Rico. Generally, the 3-month Citi CD has a competitive interest rate both if you live close to a branch or in a state that doesn't have a nearby branch.
However, your options for other accounts may depend on where you live. For example, if you would also like to open a high-yield savings account, Citi® Accelerate Savings is only available for residents of some areas. For the most part, it isn't available in states where there are physical Citi branch locations.
America First Credit Union 3 Month Certificate
Why it stands out: America First Credit Union is a financial institution with branches in Arizona, Idaho, Nevada, and Utah. America First Credit Union has a variety of terms with high interest rates.
APY for a 3-month term: 2.35% APY
3-month early withdrawal penalty: 60 days of interest
What to look out for: Credit unions require membership to open bank accounts. You may join America First Credit Union if you live, work, worship, or volunteer in an Arizona, Idaho, Nevada, or Utah county on this list. If you have a family member or spouse that's a current member, you're also eligible.
To become a member, you must also open an America First Credit Union Share Savings Account.
America First Credit Union review
Bethpage Federal Credit Union 3 Month Certificate Account
Why it stands out: Bethpage Federal Credit Union is a good choice if you prefer banking with a credit union over a bank. You'll need a minimum of $50 to open a CD. Generally, financial institutions require at least $1,000 to get a CD.
APY for a 3-month term: 2.25% APY
3-month early withdrawal penalty: 90 days of interest
What to look out for:To join Bethpage FCU, you just need to open a Bethpage Federal Credit Union Savings Account account with $5.
Bethpage Federal Credit Union review
Synchrony 3 Month CD
Why it stands out: Synchrony stands out from other banks because you can open an account with $0 upfront. Most banks usually require at least $1,000 to get a CD.
APY for a 3-month term: 2.25% APY
3-month early withdrawal penalty: 90 days of interest
What to look out for: You'll want to consider whether you have a preference on how you'll withdraw money from a CD. At Synchrony, you must call customer service to cash out your CD.
First Internet Bank of Indiana 3 Month CD
Why it stands out: First Internet Bank of Indiana has a competitive interest on several online CDs. You also might like First Internet Bank of Indiana if you want to open multiple types of bank accounts. It has savings, checking, and money market accounts.
APY for a 3-month term: 2.02% APY
3-month early withdrawal penalty: 90 days of interest
What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this might or might not make a significant difference.
First Internet Bank of Indiana Review
Other 3-Month CDs We Considered
We looked at other 3-month CDs, as well. Our top picks stood out because they had appealing features, like higher interest rates, lower minimum opening deposits, or lower early withdrawal penalties. While the accounts listed below weren't among our picks, you still might consider one of these options.
- Ally High Yield CD: Ally has a variety of CDs and lets you open an account with $0, but our top picks pay higher interest rates.
- TIAA Basic CD: TIAA has a solid interest rate on its 3-month CD, but our top picks have even higher interest rates right now.
- Discover CD: Discover has a variety of CDs and pays good interest rates on most terms, but you'll need a minimum of $2,500.
- Popular Direct CD: Popular Direct has great interest rates on CDs, but you'll need at least $10,000 to open one.
- Quorum Federal Credit Union Term Savings: Quorum Federal Credit Union's 3-month term isn't as competitive as some of its other accounts.
- Signature Federal Credit Union Certificate: Signature Federal Credit Union has a strong 3-year share certificate, but its other terms aren't as competitive.
- Navy Federal Credit Union Standard Certificate: Navy Federal Credit Union CDs pay solid interest rates, but our top picks have even higher rates right now.
- Consumers Credit Union CD: Consumers Credit Union has a variety of CD terms, but its 3-month term isn't as competitive as some of its other terms.
- Wells Fargo Fixed Rate CD: Wells Fargo CDs require a minimum of $2,500 and pay lower interest rates than our top picks.
- BrioDirect High-Yield CD: BrioDirect CDs have a low minimum opening deposit, but the 3-month CD pays a low interest rate.
- Nationwide CD: Nationwide offers a solid interest rate on its 18-month CD, but its 3-month CD isn't as strong.
- NBKC CD: NBKC Bank's 3-month CD pays a lower interest rate than the average 3-month CD.
- BMO Harris CD: BMO Harris pays a significantly lower interest rate on its 3-month CD than all of our top picks.
- Bank of America Standard Term CD: Bank of America offers a variety of CD terms but pays lower interest rates than the average CD.
Bank Trustworthiness and BBB Ratings
We've compared each company's Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
| Institution | BBB rating |
| Chase | A |
| Citi | F |
| America First Credit Union | A+ |
| Bethpage Federal Credit Union | A+ |
| Synchrony | A+ |
| First Internet Bank of Indiana | A+ |
Chase has an A rating from the BBB because of government action taken against the bank. Citi has an F rating from the BBB because it has a high volume of unresolved complaints and it failed to respond to five complaints on the BBB website.
Chase and Citi have been involved in recent public settlements.
In 2020, JP Morgan Chase & Co. paid the Department of Justice $920 million in a settlement that said the bank was involved in wrongful trading.
In the same year, the US Department of Labor also required Chase to pay $800,000 in back wages in a settlement that accused the bank of underpaying women.
In 2020, Citi was required to pay $400 million in a settlement with the Comptroller of the Currency. The OCC said the bank had inefficient banking practices.
Why Trust Our Recommendations?
At Personal Finance Insider, we strive to help smart people make the best decisions with their money. We spent hours comparing and contrasting the features and fine print of these savings accounts so you don't have to.
We understand that "best" is often subjective, however, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too.
Top Offers From Our Partners
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