6 Best 3-Month CD Rates for January 2023
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ALSO CONSIDER: Best online savings accounts || Best checking accounts || Best high-interest accounts
Three-month CD rates aren't too common, but of those available, online banks tend to have the best. These CDs can be helpful in some savings strategies, such as CD ladders.
Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
» Want to see a wider pool of high rates? See our list of the best high-interest accounts
ALSO CONSIDER: Best online savings accounts || Best checking accounts || Best high-interest accounts
Three-month CD rates aren't too common, but of those available, online banks tend to have the best. These CDs can be helpful in some savings strategies, such as CD ladders.
Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
» Want to see a wider pool of high rates? See our list of the best high-interest accounts
The Federal Reserve raised rates seven times in 2022, which is good news for your bank account. Take advantage of rising rates with one of the accounts below.
Best 3-Month CD Rates
| Bank/institution | NerdWallet rating | Minimum deposit | APY | Learn more |
|---|---|---|---|---|
 TIAA Bank Basic CD | $1,000 Member FDIC | 2.00% | Read review | |
 Synchrony Bank CD | $0 Member FDIC | 2.25% | Read review | |
 Ally Bank High Yield CD | $0 Member FDIC | 2.00% | Read review | |
 Discover Bank CD Learn more at Discover Bank, Member FDIC | $2,500 Member FDIC | 1.50% | Learn more at Discover Bank, Member FDIC | |
 Popular Direct CD | $10,000 Member FDIC | 4.10% | Read review | |
 Citi® CD | $500 | 3.25% | Read review |
Minimum deposit
$1,000
Member FDIC
APY
2.00%
Why We Like It
TIAA Bank has a somewhat low minimum and its three-month rate is one of the best.
Minimum deposit
$0
Member FDIC
APY
2.25%
Why We Like It
Online bank Synchrony has a low opening requirement and a wide range of high CD rates, including for its three-month CD.
Minimum deposit
$0
Member FDIC
APY
2.00%
Why We Like It
Ally's wide range of CD terms starts at three months, and there's no minimum opening requirement.
Minimum deposit
$2,500
Member FDIC
APY
1.50%
Why We Like It
Discover Bank offers a competitive rate for a current three-month CD. Its minimum is relatively high.
Minimum deposit
$10,000
Member FDIC
APY
4.10%
Why We Like It
Popular Direct is an online bank with a decent three-month CD rate but a steep minimum opening deposit of $10,000.
Minimum deposit
$500
APY
3.25%
Why We Like It
Citibank is one of the biggest national banks and its three-month CD rate is competitive. The minimum opening requirement of $500 is low.
» Want to see more options? Check our list of the best CD rates overall
Best 3-month CD rates
Popular Direct: 4.10% APY, $10,000 minimum deposit.
Citibank: 3.25% APY, $500 minimum deposit.
Synchrony Bank: 2.25% APY, no minimum deposit.
TIAA Bank: 2.00% APY, $1,000 minimum deposit.
Ally Bank: 2.00% APY, no minimum deposit.
Discover Bank: 1.50% APY, $2,500 minimum deposit.
How do CDs work?
Learn more about the journey of choosing, opening and closing CDs.
For choosing CDs:
For understanding CD rates:
For opening CDs:
For closing CDs:
See CD rates by term and type
Compare the best rates on certificates of deposit for various CD terms and types:
See CD rates by bank
If you want to see CD rates at specific banks, here’s a quick list of both traditional and online banks’ CDs (and one brokerage’s offering):
Last updated on January 1, 2023
Methodology
On a monthly basis, we compare rates at over 30 financial institutions, pulled from our full list, that we’ve seen to be consistently competitive. On a quarterly basis, we analyzed our full list, excluding banks that offered brokered CDs, since those accounts work differently from standard bank CDs. Higher rates might be available elsewhere.
We took a close look at over 90 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.
Financial institutions and providers surveyed are: Affirm, Alaska USA Federal Credit Union, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, Bask Bank, BMO Harris, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Commerce Bank, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Delta Community Credit Union, Discover Bank, E*TRADE, Fifth Third Bank, First Foundation, First National Bank, First Republic Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GO2bank, Golden 1 Credit Union, Hope Credit Union, Huntington Bank, Industrial Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, Scarlet, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank.
To recap our selections...
NerdWallet's Best 3-Month CD Rates for January 2023
- TIAA Bank Basic CD: 2.00% APY
- Synchrony Bank CD: 2.25% APY
- Ally Bank High Yield CD: 2.00% APY
- Discover Bank CD: 1.50% APY
- Popular Direct CD: 4.10% APY
- Citi® CD: 3.25% APY
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.
Yes, in a big way. The Federal Reserve has raised its rate multiple times in 2022, which encourages banks and credit unions to raise their CD rates. Learn more about Fed rate increases or, if you want a broader financial picture, see our explainer on historical CD rates.
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. If you're thinking of a longer term for higher yields, check out our lists of best one-year and best three-year CD rates.
It depends on your savings goals and how sure you are that you won't need your funds before the CD term expires. Having to pay an early withdrawal penalty, generally up to one year's worth of interest, can be a blow to your savings. Common CD terms range from three months to five years; if you want to play it safe, go for a shorter CD term or a no-penalty CD.
A no-penalty CD is a type of CD that doesn’t charge a penalty for withdrawing money before the term ends. It can be appealing if you want the traditionally higher yield of a CD, compared to regular savings accounts, and think you might need the money sooner than planned. See the best no-penalty 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.
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.
No. CDs are meant for savings you can set aside and leave untouched. Consider a high-yield savings account for money you may need in a pinch.
A CD ladder can be a helpful strategy if you don’t want to go all in on one CD, especially if you want to catch higher CD rates down the road. It works like this: You open multiple CDs at different terms, such as three months, six months, and one year, which frees up part of your funds more regularly than having, say, just a three-year CD. Each time a CD matures, you can either reinvest in a new CD or withdraw your money. Learn more about CD ladders.
