Terry Turner, Financial writer for Annuity.org
  • Written By
    Terry Turner

    Terry Turner

    Senior Financial Writer and Financial Wellness Facilitator

    Terry Turner is a senior financial writer for Annuity.org. He holds a financial wellness facilitator certificate from the Foundation for Financial Wellness and the National Wellness Institute, and he is an active member of the Association for Financial Counseling & Planning Education (AFCPE®).

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  • Edited By
    Savannah Pittle
    Savannah Pittle, senior financial editor for Annuity.org

    Savannah Pittle

    Senior Financial Editor

    Savannah Pittle is an accomplished writer, editor and content marketer. She joined Annuity.org as a financial editor in 2021 and uses her passion for educating readers on complex topics to guide visitors toward the path of financial literacy.

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  • Financially Reviewed By
    Thomas J. Brock, CFA®, CPA
    headshot of Thomas J. Brock, CFA, CPA

    Thomas J. Brock, CFA®, CPA

    Investment, Corporate Finance and Accounting Expert

    Thomas Brock, CFA®, CPA, is a financial professional with over 20 years of experience in investments, corporate finance and accounting. He currently oversees the investment operation for a $4 billion super-regional insurance carrier.

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  • Updated: August 11, 2023
  • 7 min read time
  • This page features 10 Cited Research Articles
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How to Cite Annuity.org's Article

APA Turner, T. (2023, August 11). The Best 3-Month CD Rates of 2023. Annuity.org. Retrieved June 22, 2024, from https://dev.annuity.org/personal-finance/banking/certificate-of-deposit/3-month-cd-rates/

MLA Turner, Terry. "The Best 3-Month CD Rates of 2023." Annuity.org, 11 Aug 2023, https://dev.annuity.org/personal-finance/banking/certificate-of-deposit/3-month-cd-rates/.

Chicago Turner, Terry. "The Best 3-Month CD Rates of 2023." Annuity.org. Last modified August 11, 2023. https://dev.annuity.org/personal-finance/banking/certificate-of-deposit/3-month-cd-rates/.

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Our Criteria

We conducted an assessment of 3-month certificate of deposit options provided by the biggest banks and credit unions across the country to determine the best options, ultimately only featuring those that fit our strict criteria. To be eligible, a bank or credit union must:

  • Be ranked a top 30 bank or top 10 credit union based on 2022 consolidated assets.
  • Offer CDs in all 50 states.
  • Offer 3-month CDs at rates at or above 2.00% APY.
  • Be federally insured by either the FDIC or the NCUA.

Understanding Our Methodology

Annuity.org’s independent editorial staff evaluated 3-month CD options available from the country’s biggest banks and credit unions to determine the best 3-month CD rates available in 2023.

They used thorough and fact-based criteria to determine which companies qualified for their rankings. To be eligible, a bank or credit union must offer CDs in all 50 states and be supported by either the FDIC or the NCUA.

Of these institutions, only four offered rates at or above 2.00% APY. Other parameters they analyzed to narrow the field included the CD’s minimum deposit requirements, early withdrawal penalties and any bonuses or promotions the institutions offered.

Learn more about our broader Editorial Guidelines.

When a CD matures, unless you specify otherwise, most institutions will automatically roll your money into a comparable-term CD at the prevailing interest rate. Therefore, it is important to keep the CD maturity date on your radar. If you want to withdrawal the funds, you need to provide formal notice to the issuing institution within a certain number of days after maturity (typically, seven or 10).

Editor’s Choice: Best Overall

GREAT FOR: PEOPLE WITH LIMITED MONEY TO INVEST

Ally Bank

Ally Bank logo
APY: 2.50%
Ally Bank Details

General Motors founded GMAC as its dealer financing arm in 1919 and rebranded it in 2009 as Ally Bank. Ally Bank is an online-only bank that operates without any physical branches. According to the U.S. Federal Reserve, it reported $181.8 billion in assets and served 4 million retail customers in 2016.

Pros

  • No minimum deposit requirement
  • Competitive with most other 3-month APY offerings on our list
  • Other banking options available with a large network of fee-free ATMs

Cons

  • Average rate for 3-month CDs
  • No physical branches
  • Does not take cash deposits
Our Take

Ally Bank’s 2.50% APY on 3-month high-yield CDs was in the mid-range for rates among the banks and credit unions we reviewed. But it was the only institution offering no minimum deposit, making it a more attractive option to anyone with less than $500 to put into a CD. In addition, it had the lowest early withdrawal fee — 60 days’ worth of interest — for the rate, which could be an added attraction for small depositors.

Best for Large Depositors

GREAT FOR: PEOPLE WITH $100,000 OR MORE TO DEPOSIT

JPMorgan Chase

Chase Bank logo

APY: 3.00%
JPMorgan Chase Bank Details

JPMorgan Chase is the largest bank in the United States, based on combined assets — $3.2 trillion in 2022, according to the U.S. Federal Reserve. With a history dating back to 1799, it bills itself as a leader in investment banking, commercial banking and consumer financial services.

Pros

  • Low early withdrawal fee — $25 + 1.00%
  • Large deposits earn higher APY
  • Extensive selection of CD terms

Cons

  • Very high minimum deposit ($100,000) required to earn the best rates
  • The typical CD rates are not as competitive as those from online banks
Our Take

JPMorgan Chase offered higher than median rates — 3.50% APY — for anyone making a $10,000 deposit in a 3-month CD. The rate rose to 4.00% for a minimum deposit of $100,000, but the rate fell to 2.00% for deposits below $10,000.

These rates are competitive with Ally Bank for small depositors and with Citibank for larger depositors. The early withdrawal fee of $25 plus 1.00% of the withdrawal could be a deciding factor for an investor deciding which is best for their needs.

Best for Mid-Range Investors in 2023

GREAT FOR: MOST SERIOUS DEPOSITORS

Discover Bank

Discover Bank logo

APY: 2.00%
Discover Bank Details

Founded as Greenwood Trust Company in 1911 and eventually rebranded as Discover Bank in 2000, the institution is the parent company of the third largest credit card brand in the United States — the Discover Card. It had consolidated assets in excess of $129 billion in 2022, according to the U.S. Federal Reserve.

Minimum Deposit: $2,500

Pros

  • Competitive APY
  • Low early withdrawal penalties
  • Online access, mobile banking and 24-hour customer service
  • Access to network of 60,000 no-fee ATMs

Cons

  • High minimum deposit
  • No brick-and-mortar branches

Our Take

Discover Bank had a competitive APY beating out the few remaining 3-month CDs that met our criteria. It requires a higher minimum deposit of $2,500 and early withdrawal fees, but these may not be deciding factors to people committed to letting the CD reach maturity.

Others We Considered

Below, we’ve ranked the other banks and credit unions on our list in descending order based on — in order of priority — APY, minimum deposit and early withdrawal penalties.

Other 3-Month CDs We Considered

Institution Minimum Deposit Early Withdrawal Penalty
Navy Federal Up to $10,000
$100,000 and up
90 days’ dividends or the amount withdrawn, whichever is less
Wells Fargo Up to $10,000
$100,000 and up
90 days’ interest
U.S. Bank $500 Disclosed upon opening account
BMO $1,000 90 days’ interest

Comparing 3-Month CDs vs. Other CD Terms

Typically, the shorter the term, the lower the rate. While this is not always the case, the rates for the 3-month CDs we reviewed were lower than those we found for longer-term CDs.

The reason is that depositors tend to take less risk with short-term CDs, such as 3-month certificates of deposit. The CD is likely to reach maturity before there are drastic changes in the economy that affect CD rates, so the bank can afford to offer lower rates without driving off depositors.

With longer CD terms, the depositor takes on more risk. There’s more time for rates to be affected by market forces and a depositor is more prone to losing value if inflation suddenly rises after they buy a long-term CD. So banks and credit unions typically offer higher rates to offset that risk and make those CDs more attractive to depositors.

Who Should Get a 3-Month CD?

People usually purchase CDs to take advantage of building interest over time. But there’s not much time to do that with a 3-month CD.

But there are personal finance strategies in which a 3-month CD makes sense. For instance, 3-month CDs are an option to save money and earn interest while still being able to access your money relatively quickly if you need it. If you don’t need it, you can make multiple renewals every year. And if rates are rising, you can take advantage of moving to a higher rate CD every three months.

Frequently Asked Questions About 3-Month CDs

Is a 3-month CD worth it?

A 3-month CD typically earns less interest than longer-term CDs but may still be worth considering depending on your goals. They can be used to create short-term CD ladders and can put your savings out of reach to keep you from spending it.

What alternatives to 3-month CDs exist?

High-yield savings accounts and money market accounts are competitive alternatives to 3-month CDs. All three earn more than regular savings accounts. You also have greater access to your cash in high-yield or money market accounts. Paying down your debt can also be a competitive alternative to short-term CDs if eliminating debt saves you more than you earn in interest on the CD.

Can 3-month CDs be used in a CD ladder?

A 3-month CD can play a role in creating a short-term CD ladder for your savings. Split the money you have to invest into four equal parts. Buy a 3-month, 6-month, 9-month and 12-month CD. In the first year, every three months when a CD matures, use it to purchase a 1-year CD. This means every year after, you’ll have access to your money for an emergency fund or other need while you earn interest.

Please seek the advice of a qualified professional before making financial decisions.
Last Modified: August 11, 2023

10 Cited Research Articles

Annuity.org writers adhere to strict sourcing guidelines and use only credible sources of information, including authoritative financial publications, academic organizations, peer-reviewed journals, highly regarded nonprofit organizations, government reports, court records and interviews with qualified experts. You can read more about our commitment to accuracy, fairness and transparency in our editorial guidelines.

  1. Ally. (2023, April 27). Compare CDs. Retrieved from https://www.ally.com/bank/cd-rates/
  2. BMO Harris. (2023, April 27). Certificate of Deposit (CDs). Retrieved from https://www.bmo.com/en-us/main/personal/savings-and-cds/certificates-of-deposit/
  3. Chase. (2023, April 27). Lock in a CD Relationship Rate Today. Retrieved from https://www.chase.com/personal/savings/bank-cd
  4. Citibank. (2023, April 27). Certificate of Deposit Account Rates. Retrieved from https://online.citi.com/US/ag/current-interest-rates/cd/fixed-rate-cd
  5. Discover. (2023, April 27). Certificate of Deposit. Retrieved from https://www.discover.com/online-banking/cd/
  6. Navy Federal Credit Union. (2023, April 27). Certificate Rates. Retrieved from https://www.navyfederal.org/checking-savings/savings/savings-resources/certificate-rates.html
  7. U.S. Bank. (2023, April 27). The Standard CD. Retrieved from https://www.usbank.com/bank-accounts/savings-accounts/certificate-of-deposit/standard-cd.html
  8. U.S. Bank. (2023, April 27). Your Deposit Account Agreement. Retrieved from https://www.usbank.com/content/dam/usbank/documents/pdf/Deposit-Account-Agreement.pdf
  9. Wells Fargo. (2023, April 27). Wells Fargo CDs (Certificates of Deposit). Retrieved from https://www.wellsfargo.com/savings-cds/certificate-of-deposit/
  10. Navy Federal Credit Union. (2022, March). Combined Certificate Disclosures. Retrieved from https://www.navyfederal.org/content/dam/nfculibs/pdfs/certificates-ira-trust/nfcu_602ed.pdf