Best 3-Month CD Rates for October 2023 (Up to 5.66%)

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The national average APY (Annual Percentage Yield) on a 3-month CD is 1.37% APY. However, some of the best online banks offer higher rates for a 3-month CD right now.

Featured Offer

Ponce Bank 3 Month CD

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On Raisin’s website

Perks

$1 minimum deposit and FDIC insured

Annual Percentage Yield (APY)

5.40%

Minimum Deposit Amount

$1

Pros

• Accounts pay high interest rates
• No fees
• Open accounts you might not be able access outside of Raisin
• Minimum opening requirements are often lower than if you opened an account directly with a bank

Cons

• No checking accounts or business accounts
• Only way to deposit or withdraw money is by connecting to an external account
• Can’t connect to third-party budgeting apps, like Mint

Insider’s Take

Raisin is a great option if your ultimate goal is to earn the best savings account, money market account, and CD rates out there. It’s a marketplace that connects you with accounts you might not be able to access otherwise, including ones at community-driven and minority-owned institutions.

Ponce Bank 3 Month CD, powered by Raisin
review

Product Details

• Raisin is an online marketplace that partners with banks to offer competitive rates
• Offers high-yield savings accounts, money market accounts, CDs, and no-penalty CDs
• Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
• Interest is compounded daily and paid monthly
• Deposits are federally insured by the FDIC or NCUA

Show Pros, Cons, and More

The best CD rate for a 3-month CD is 5.66% APY from TotalDirectBank. We check rates daily to find the best rates for 3-month terms. Here are our recommendations for the best 3-month CDs. 

Best 3-Month CD Rates

• TotalDirectBank 3 Month CD: 5.66% APY
• Dow Credit Union 3 Month Simple CD Special: 5.65% APY
• Signature Federal Credit Union 3 Month Certificate: 5.55% APY
• Ponce Bank 3 Month CD, powered by Raisin: 5.40% APY
• iGoBanking 3 Month High Yield CD: 5.35% APY
• Popular Direct 3 Month CD: 4.75% APY
• America First Credit Union 3 Month Certificate: 4.50% APY
• Alliant 3 Month Certificate: 4.50% APY

Compare the Best 3-Month CDs

3-Month CD FAQs

3-Month CD Reviews

These are our picks for the best 3-month CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution.  When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

TotalDirectBank 3 Month CD

The TotalDirectBank 3 Month CD offers a high interest rate and low early withdrawal penalties. The bank also pays high rates on 6-month and 1-year terms. 

TotalDirectBank CDs have a steep minimum opening deposit of  $25,000and a maximum deposit of $1 million. The online institution also doesn’t operate in Florida, Somoa, Guam, the Northern Mariana Islands, or the US Virgin Islands.

APY for a 3-month term: 5.66% APY

3-month early withdrawal penalty: 45 days of interest

Dow Credit Union 3 Month Simple CD Special

The Dow Credit Union Simple CD also has the highest rate available for a 3-month term. The Simple CDs also have a low minimum opening deposit.

The easiest way to become a member of Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current credit union member.

APY for a 3-month term: 5.65% APY

3-month early withdrawal penalty: 45 days of interest

Signature Federal Credit Union 3 Month Certificate

The Signature Federal Credit Union Certificate has a $500 minimum opening deposit, which is less than what’s required at other financial institutions.

You may like Signature Federal Credit Union if you prefer banking with a credit union over a bank.

Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you’ll just need to open a savings account.

APY for a 3-month term: 5.55% APY

3-month early withdrawal penalty: Up to 45 days of interest

Signature Federal Credit Union Review

iGoBanking 3 Month High Yield CD

The iGoBanking High Yield CD may be a good choice if you’re searching for 3-month and 3-year terms. iGoBanking is an online division of Flushing Bank.

You’ll need a minimum of $1,000 to get a CD. Other financial institutions on our list may allow you to open a CD with less money upfront. 

APY for a 3-month term: 5.35% APY

3-month early withdrawal penalty: 3 months of interest

Ponce Bank 3 Month CD, powered by Raisin

The Ponce Bank 3 Month CD is the highest yielding 3-month CD on Raisin. 

Through Raisin, you can use one platform to find, fund, and manage multiple high-yield savings accounts and CDs from over 20 banks and credit unions. There are also other 3-month CDs on Raisin that pay more than the national average.

You might prefer one of our other top picks if you would rather open a CD directly with a bank. You also can’t get a checking account with Raisin, so it may not be the best option if you want to do all your banking with one company.

APY for a 3-month term: 5.40% APY

3-month early withdrawal penalty: 90 days of simple interest

Raisin Review

Popular Direct 3 Month CD

Popular Direct CDs pay competitive rates, and compound interest daily.

You’ll need at least $10,000 to open a Popular Direct CD. While the early withdrawal penalty for a 3-month term is pretty standard, the bank charges high penalties on certain terms.

APY for 3-month CD: 4.75% APY

3-month CD early withdrawal penalty: 89 days of simple interest

Popular Direct Review

America First Credit Union 3 Month Certificate

The America First Credit Union Certificate may be worthwhile if you’re searching for a financial institution with branches in Arizona, Idaho, Nevada, and Utah. America First Credit Union has a variety of terms with high interest rates.

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. 

APY for a 3-month term: 4.50% APY

3-month early withdrawal penalty: 60 days of interest

America First Credit Union Review

Alliant 3 Month Certificate

An Alliant Certificate may be a good choice if you’re searching for a credit union that lets you open bank accounts from anywhere in the US. Alliant’s 3-month and 6-month terms, in particular, offer high interest rates.

Credit unions require you to become a member to open an account. The easiest way to become a member is to join Foster Care to Success. Alliant will cover the $5 joining fee.

APY for a 3-month term: 4.50% APY

3-month early withdrawal penalty: Up to 90 days of interest

Alliant Credit Union 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.

• Chicago Patrolmen’s Federal Credit Union 3 Month Share Certificate: Chicago Patrolmen’s Federal Credit Union was previously a market leader for 3-month CD rates. You must qualify for membership to open a share certificate at Chicago Patrolmen’s Federal Credit Union. Membership is open to law enforcement officers (active and retired) and full-time employees of an eligible law enforcement department or association in the US. However, now there is nationwide option with an even higher interest rate.
• First Internet Bank of Indiana CD: First Internet Bank of Indiana has a 3-month term paying 4.18% APY, which is just short of the top rates on our list. 
• TIAA Bank Basic CD: TIAA Bank has a 3-month term that pays 4.00% APY, but our top picks pay even higher rates right now.
• Bank of America Fixed Term CD: The Bank of America 3 Month Fixed Term CD pays 4.00% APY, but our top picks have even higher rates right now.  
• Chase 3 Month CD: Chase pays a higher rate on its 3-month term than on most of its CDs, but it still can’t compete with our top picks.
• Citi Fixed Rate CD: Citi’s 3-month CD pays a lower interest rate than our top picks.
• Bethpage Federal Credit Union Certificate Account: Bethpage pays a lower interest rate on its 3-month term than our top picks.
• Synchrony Bank CD: Synchrony has a solid interest rate on its 3-month CD, but our top picks have even higher interest rates right now. 
• 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.
• Discover Bank: Discover CDs offer a variety of options and pay good interest rates on most terms, but you’ll need a minimum of $2,500.
• Quorum Federal Credit Union Term Savings: Quorum Federal Credit Union’s 3-month term isn’t as competitive as some of its other accounts.
• 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 Standard 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.
• BMO CD: BMO pays a significantly lower interest rate on its 3-month CD than all of our top picks. 

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. A strong BBB score doesn’t guarantee you’ll have a great relationship with a bank, though. You may still want to read online reviews and ask friends and family about their experiences with any bank you’re considering.

Signature Federal Credit Union does not have a profile with the Bureau yet, so there are no complaints or reviews to use for evaluating the company’s business practices.

Here is each company’s score:

Raisin has an A- rating because it has received 28 complaints on the BBB website.

None of our top picks have been involved in any recent public controversies.

Why You Should Trust Us: 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:

• Tania Brown, CFP at SaverLife
• Roger Ma, CFP with lifelaidout® and author of “Work Your Money, Not Your Life”
• Sophia Acevedo, CEPF, banking reporter, Personal Finance Insider
• Mykail James, MBA, CFEI, BoujieBudgets.com

Here’s what they had to say about CDs. (Some text may be lightly edited for clarity.)

How do you choose a bank or credit union?

“You want to make sure it’s FDIC insured,” says Brown. For people using credit unions, the insurance comes from the NCUA. Next, she advises, consider the banking experience you want to have. “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?” Think through how your experience with that institution would be before you make that decision.

Acevedo recommends factoring in account costs when you’re envisioning your experience with a bank or credit union. “For example,” she says, “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.” Or if she was searching for an interest-earning bank account, she would make sure it pays a higher interest rate than the average bank account.

How long should you leave money in a CD?

“I would think about when you need the money and then compare that with what the prevailing CD rates are,” says Ma. Then, he continues, consider what makes sense not only from a financial perspective, but from your own personal timing perspective. If the rates are highest on a 2-year CD but you need the money in six months, don’t sacrifice your plans for interest.

Your plans are important to the CD term you choose, says James. “I believe in having a plan for whatever the funds are,” she says. “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.”

Methodology

At Personal Finance Insider, we strive to help smart people make the best decisions with their money. 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.

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 used our CD rates methodology, reviewing the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.