Best 3M CD rates for September 2023

CDs offer a low-risk way to earn a return on cash you won’t need for a while. They’re available in various term lengths, typically ranging from three months to five years. A 3-month CD might make sense if you’ll need your money soon or think interest rates will rise. While 3-month CD rates are traditionally lower than those of longer-term CDs, some of the best 3-month CD rates are topping 4.50% APY. That means now might be a good time to put your money in a high-yield CD. Comparison shopping is key when searching for the best 3M CD rates, so here are our top picks to get you started. 

Minimum deposit: $10,000 

While the $10,000 minimum deposit is on the high side, the short term may make this CD doable for more people than it otherwise would be. If you deposit the minimum, you’d earn $116.69 over the course of three months.

• Interest compounds daily.
• Customer service is available 24/7 by phone.

• The minimum deposit is higher than most banks.
• The early withdrawal penalty is 89 days of interest.

Minimum deposit: $25,000 

Merrick Bank also requires a hefty minimum deposit. However, if you deposit that minimum, the return over three months would be $291.73.

• The minimum deposit may be prohibitively high for some savers.
• The early withdrawal penalty is 90 days of interest. 

Minimum deposit: $1,000 

Since Alliant is a credit union, its timed deposits are called share certificates, or just certificates, rather than CDs. The certificates are insured by the National Credit Union Administration.

• Unlike many credit unions, anyone can become a member. 
• Standard, jumbo, and IRA certificates are available.

• The minimum deposit is higher than some online banks.
• The early withdrawal penalty is 90 days of interest.

Minimum deposit: $1,000 

Back in the late 90s, First Internet Bank of Indiana was a pioneer of online-only banking. These days, its website is slick and easy to use, with clear rate and fee information about its products and services.

• The website has transparent product information. 
• Opening an account is quick and easy.

• The minimum deposit is higher than some online banks.
• The early withdrawal penalty is 90 days of interest.

Bank of America is one of the few big, traditional banks to offer CD interest rates substantially higher than the national average (on certain terms, at least). In this case, you can earn about four times the average 3M CD rate.

• In-person banking is available at about 4,000 branches across 37 states.
• The mobile app is highly rated.

• There’s a big selection of CD terms, but few offer competitive rates. 
• The early withdrawal penalty is 90 days of interest.

Ally Bank is one of the most well-known online banks. While its CD rates aren’t the highest, the $0 minimum required deposit makes it an accessible option for people who want a quick return on a small amount of cash.

• It’s easy to find transparent product information on the website. 
• The mobile app is user-friendly.
• The early withdrawal penalty is 60 days of interest, which is lower than most banks. 

Wells Fargo offers a modest APY with a substantial minimum deposit requirement. But banking in person is important to you, it could be a good option thanks to a wide network of branches across most states.

• In-person banking is available at more than 5,000 branches across 37 states. 
• Customer service is available 24/7 by phone.

• The minimum deposit is higher than some banks.
• The early withdrawal penalty is 90 days of interest.
• You can find higher rates elsewhere.

It’s relatively easy to qualify for membership at Bethpage Federal Credit Union: All you need to do is open a savings account with a $5 deposit. The 3M certificate rate isn’t the highest, but it requires just a $50 minimum deposit. And, once you’re a member, you can take advantage of Bethpage’s higher APYs on other deposit products, such as the 5% APY on its 12-month CD.

• Unlike many credit unions, anyone can become a member.
• The minimum deposit is lower than many online banks. 

• The early withdrawal penalty is 90 days of interest.
• You can find higher rates elsewhere.

Synchrony Bank offers a lower APY on its 3M CD than other banks, but the $0 minimum deposit makes it available to a broader range of income levels.

• Bump-up, no-penalty, and IRA CDs are available.
• The mobile app is highly rated. 

• The early withdrawal penalty is 90 days of interest.
• You can find higher rates elsewhere.

A 3-month CD is a certificate of deposit that pays a fixed interest rate for three months during which you can’t add money to the account beyond the initial deposit. If you need your cash before the CD matures, you can withdraw the entire balance and pay an early withdrawal penalty equal to 60 to 90 days of interest (an early withdrawal penalty may be worth it if you lock in a better APY with a new CD). In exchange for keeping your cash locked up, you usually receive a higher APY than you can earn in a savings or money market account. 

A 3-month CD works like other certificates of deposit. When the CD matures, you can withdraw your deposit and the accrued interest or renew the CD at the then-current interest rate (you generally have a seven to 10-day grace period to decide what to do). Unless your bank or credit union hears otherwise, it will renew your CD automatically for another term of the same length at an APY that could be higher or lower than the original CD. 

You may be able to withdraw your interest each month if you want the income, but keep in mind that doing so reduces the APY because you lose the benefit of compounding. 

A 3-month CD is a good option if you want to park cash for a short time while earning interest on a low-risk investment. CDs held at FDIC-member banks and “certificates” held at NCUA-member credit unions are insured up to $250,000 ($500,000 for joint accounts). It also makes sense if you think rates will increase and want to avoid getting locked into a lower APY (the best 3-month CD rates are topping 4.50% APY, so that’s less of a consideration now than during lower-rate environments). 

If you like the idea of a CD but want to invest for longer, you might be interested in a CD with a term of one, two, three, four, or five years. You might also consider a money market account or a high-yield savings account (the best high-yield savings accounts pay upwards of 5.00% APY). No matter where you decide to stash your cash, keep in mind that you can generally find the best rates at online banks and credit unions (you might have to switch banks to get the top APYs). 

TIP: If you’re looking for an investment that keeps up with inflation, consider a Series I savings bond, a type of US Treasury security offering a return that fluctuates with the inflation rate. 

A 3-month CD can be worth it when you want a guaranteed APY in a federally insured account for only a short time. This may be especially true if your cash is sitting at home or in a traditional savings account, earning next to nothing. A 3-month CD can also make sense if it’s part of a CD ladder, a strategy where you split your deposit into multiple CDs with different maturities. As with all CDs, a 3-month CD may not be a good option if you need access to your cash soon or prefer taking on more risk in exchange for higher potential returns. 

Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.

This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].