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5 Best 3-Month CD Rates January 2020
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Summary of Best 3-Month CD Rates January 2020
| Bank | APY | Minimum Deposit | Learn More |
|---|---|---|---|
 Ally Bank | 0.75% | $0 | |
 Popular Direct | 1.50% | $10,000 | |
 Synchrony Bank | 0.75% | $2,000 | |
 TIAA Bank | 1.45% | $5,000 | |
 Radius Bank at Radius Bank, Member, FDIC | 0.85% | $1,000 | at Radius Bank, Member, FDIC |
| Bank | APY | Minimum Deposit | Learn More |
|---|---|---|---|
Ally Bank | 0.75% | $0 | |
Popular Direct | 1.50% | $10,000 | |
Synchrony Bank | 0.75% | $2,000 | |
TIAA Bank | 1.45% | $5,000 | |
Radius Bank at Radius Bank, Member, FDIC | 0.85% | $1,000 | at Radius Bank, Member, FDIC |
Ally Bank
APY
With $0 minimum balance
Minimum Balance
Member, FDIC
Popular Direct
APY
With $10000 minimum balance
Minimum Balance
Member, FDIC
Synchrony Bank
APY
With $2000 minimum balance
Minimum Balance
Member, FDIC
TIAA Bank
APY
With $5000 minimum balance
Minimum Balance
Member, FDIC
at Radius Bank,
Member, FDIC
Radius Bank
APY
With $1000 minimum balance
Minimum Balance
Member, FDIC
at Radius Bank,
Member, FDIC
» 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
- Ally Bank: 0.75% APY
- Popular Direct: 1.50% APY
- Synchrony Bank: 0.75% APY
- TIAA Bank: 1.45% APY
- Radius Bank: 0.85% 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.
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.
