The Best 3-Month CD Rates of 2023

Annuity.org’s independent editorial staff evaluated 3-month CD options available from the country’s biggest banks and credit unions to determine the best 3-month CD rates available in 2023.

They used thorough and fact-based criteria to determine which companies qualified for their rankings. To be eligible, a bank or credit union must offer CDs in all 50 states and be supported by either the FDIC or the NCUA.

Of these institutions, only four offered rates at or above 2.00% APY. Other parameters they analyzed to narrow the field included the CD’s minimum deposit requirements, early withdrawal penalties and any bonuses or promotions the institutions offered.

Learn more about our broader Editorial Guidelines.

Below, we’ve ranked the other banks and credit unions on our list in descending order based on — in order of priority — APY, minimum deposit and early withdrawal penalties.

Typically, the shorter the term, the lower the rate. While this is not always the case, the rates for the 3-month CDs we reviewed were lower than those we found for longer-term CDs.

The reason is that depositors tend to take less risk with short-term CDs, such as 3-month certificates of deposit. The CD is likely to reach maturity before there are drastic changes in the economy that affect CD rates, so the bank can afford to offer lower rates without driving off depositors.

With longer CD terms, the depositor takes on more risk. There’s more time for rates to be affected by market forces and a depositor is more prone to losing value if inflation suddenly rises after they buy a long-term CD. So banks and credit unions typically offer higher rates to offset that risk and make those CDs more attractive to depositors.

People usually purchase CDs to take advantage of building interest over time. But there’s not much time to do that with a 3-month CD.

But there are personal finance strategies in which a 3-month CD makes sense. For instance, 3-month CDs are an option to save money and earn interest while still being able to access your money relatively quickly if you need it. If you don’t need it, you can make multiple renewals every year. And if rates are rising, you can take advantage of moving to a higher rate CD every three months.