Secure Your Savings with the Best 3-Month CD Rates of 2023

CDs are a great way to save money, providing a safe and secure place to store your funds while earning higher-than-average interest rates. Now is a great time to consider locking in the best CD rates, as the federal funds rate may peak during the summer.[0] Here’s what you need to know about 3-month CDs and the rates you can expect.[1]

What Are 3-Month CDs?

A 3-month CD is a certificate of deposit that pays a fixed rate of interest over a three-month term. This type of CD typically requires a minimum deposit of $1,000 and is FDIC insured up to $250,000. The interest rate on a 3-month CD is usually higher than that of a traditional savings account, as you’re agreeing to leave your money in the account for a fixed period of time.

Which CD Is the Best Option?

Which CD is the best option for you depends on a few factors. If you need cash at a specific time in the future, you’re looking to generate income in retirement, or you need a way to diversify a broader investment portfolio, a CD might be the right move.[2] However, if rates are dropping, you might prefer a CD over a high-yield savings account because your rate will stay the same for three months. A high-yield savings account may be a better option if rates are rising, as you may be able to earn a higher rate later on.

What Are the Current Rates?

The current 3-month CD rates range from 0.01% to 4.00% APY, varying by location. The best CD rates of 2023 include: 4.10% APY, 4.25% APY, 4.60% APY, 5.00% APY, 4.86% APY, 4.84% APY, 4.70% APY, 4.80% APY, 5.00% APY, 5.25% APY, and 4.50% APY.

What Is the Early Withdrawal Penalty?

The early withdrawal penalty on a 3-month CD varies between 90 and 545 days of interest.[3] For example, if you take your money out of a 3-month CD before the term is over, you will be penalized.[1] Typically, a fixed amount of the interest earned on the CD is used as the penalty.[1]

0. “CD Rate Trends, Week of February 13: Rates again mixed” Investopedia, 14 Feb. 2023,

1. “Best 3-Year CD Rates for February 2023” GOBankingRates, 8 Feb. 2023,

2. “‘You may want to think about a CD.’ Some CDs pay 4.5% or more right now. Should you get one?” MarketWatch, 10 Feb. 2023,

3. “State Farm CD Rates February 2023 – Forbes Advisor” Forbes, 14 Feb. 2023,