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5 Best 3-Month CD Rates January 2020

Spencer TierneyJanuary 2, 2020

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Summary of Best 3-Month CD Rates January 2020

BankAPYMinimum DepositLearn More
Ally Bank

Ally Bank

0.75%

$0

Popular Direct

Popular Direct

1.50%

$10,000

Synchrony Bank

Synchrony Bank

0.75%

$2,000

TIAA Bank

TIAA Bank

1.45%

$5,000

Radius Bank

Radius Bank

at Radius Bank,

Member, FDIC

0.85%

$1,000

at Radius Bank,

Member, FDIC

BankAPYMinimum DepositLearn More
Ally Bank

Ally Bank

0.75%

$0

Popular Direct

Popular Direct

1.50%

$10,000

Synchrony Bank

Synchrony Bank

0.75%

$2,000

TIAA Bank

TIAA Bank

1.45%

$5,000

Radius Bank

Radius Bank

at Radius Bank,

Member, FDIC

0.85%

$1,000

at Radius Bank,

Member, FDIC

Ally Bank

Ally Bank

APY

0.75%

With $0 minimum balance

Minimum Balance

$0

Member, FDIC


Why we like it

Ally's wide range of CD terms starts at three months, and there's no minimum opening requirement.

Read Full Review

Popular Direct

Popular Direct

APY

1.50%

With $10000 minimum balance

Minimum Balance

$10,000

Member, FDIC


Why we like it

Popular Direct has a steep opening minimum, but its high three-month rate makes it worth considering.

Read Full Review

Synchrony Bank

Synchrony Bank

APY

0.75%

With $2000 minimum balance

Minimum Balance

$2,000

Member, FDIC


Why we like it

Online bank Synchrony doesn’t have a low opening requirement, but it has a wide range of high CD rates, including its three-month.

Read Full Review

TIAA Bank

TIAA Bank

APY

1.45%

With $5000 minimum balance

Minimum Balance

$5,000

Member, FDIC


Why we like it

TIAA Bank has a hefty minimum, but its three-month rate is one of the best.

Read Full Review
Radius Bank

at Radius Bank,

Member, FDIC

Radius Bank

Radius Bank

APY

0.85%

With $1000 minimum balance

Minimum Balance

$1,000

Member, FDIC

at Radius Bank,

Member, FDIC


Why we like it

Radius Bank offers a solid three-month CD rate and a low opening minimum.

Read Full Review

» Want to see more options? Check out our list of the best CD rates overall

Here's our list of the best 3-month CD rates from banks:

  • TIAA Bank: 1.45% APY, $5,000 minimum deposit.
  • Popular Direct: 1.50% APY, $10,000 minimum deposit.
  • Radius Bank: 0.85% APY, $1,000 minimum deposit.
  • Ally Bank: 0.75% APY, no minimum deposit.
  • Synchrony Bank: 0.75% APY, $2,000 minimum deposit.

Last updated on January 2, 2020

Methodology

We featured easy-to-join financial institutions that NerdWallet has vetted and reviewed with the highest rates for three-month CDs. Higher rates might be available elsewhere.

To recap our selections...

NerdWallet's Best 3-Month CD Rates January 2020

Frequently asked questions

The benefit of a 3-month CD is that you can take advantage of multiple renewals in one year. You have more access to funds than other CDs while still taking advantage of a fixed rate.

You could also build a short-term CD ladder, which might look like this: Open a 3-month, 6-month, 9-month and 1-year CD; when each one matures, open a new 1-year CD. You can end up with four CDs maturing in the second year, or withdraw funds at any maturity if you need them.

You should get a CD only if you know you won’t need those funds during its term. Pulling money out of a CD before its expiration date will likely result in an early withdrawal fee, which is typically a percentage of the interest earned. With a three-month CD, there’s less of a commitment, so you have more opportunities to renew in a given year if you decide you don’t need the money yet.

» Thinking of a longer term for higher yields? Check out our lists of best one-year and best three-year CD rates

CD rates are quoted as an annual percentage yield, or APY, which is how much the account earns in one year, including compound interest. Banks generally compound interest monthly or daily. Most CDs have fixed rates, so they won't change as savings account rates tend to.

» See what CDs can earn with our CD calculator

It depends on what's more important to you: rates or access to your money. The best CD rates tend to be higher than the best savings account rates, but you sacrifice access to money in CDs. If that doesn't work for you, check out our list of best online savings accounts.

A CD, or certificate of deposit, is a type of savings account that keeps money locked up for a set period, or term, generally three months to five years. The longer the CD term, the higher the rate tends to be. See this month’s top three-month CD rates.

It depends on the level of risk you want to take. Investment, or brokerage, accounts can have higher returns than CDs, but CDs guarantee returns. They're typically federally insured for up to $250,000 and offer fixed interest rates. Brokerage accounts can be riskier since you aren’t protected against losses. See this month’s top three-month CD rates.