Top 3 Month CD Rate Drops To 0.76% APY

The leader of the 3 month CD rate, AloStar Bank of Commerce just lowered their rate to 0.76% APY from 0.81% APY.

The online bank has been offering the best 3 month CD for some time now and is a rate available to anyone nationwide. AloStar Bank of Commerce is based out of Birmingham, Alabama.

The next best 3 month CDs go to Virtual Bank and Hudson City Savings at a rate of 0.75% APY. The difference between the two banks is the minimum deposit required. Hudson City requires a minimum deposit of $500 for local residences or $5,000 for everyone else, while Virtual Bank requires a minimum of $10,000 to achieve this rate.

Hudson City Savings has 130 locations throughout New Jersey, New York and Connecticut.

Virtual Bank is based out of Palm Beach, Florida and is the online division of Lydian Private Bank.

The next best 3 month CD drops down to 0.70% APY from OneWest Bank with a minimum deposit of $1,000. Other than these banks, the next best CD rate starts at 0.50% from Discover Bank.

All of these banks allow savers from anywhere in the United States to obtain their rates as long as you meet their minimum required deposits.

Be sure to compare the best CD rates around the nation from our CD rates database.

iGoBanking has a Great Small Term CD (3 months)

iGoBanking is offering a very good 3 month cd rate (in comparison to the national average).

Right now it is difficult to find a good short term certificate of deposit.  Rates across the board are low but short term are the worst.

iGoBanking has a 3 month CD Rate at 1.35% APY with only a $1000 minimum deposit.  This rate is better then a lot of 6 month cd rates we have seen out there.

Check out all our cd rates.

This offer is for “new money” only, which means you have to open a new account to get this rate.  There may be an early withdraw penalty as well.

iGoBanking is FDIC insured and you can visit their website here.

Are short term certificates worth it?

The answer is not just a simple yes or no.  Right now CD Rates are so low and this means the return on investment will be low as well.  3 Months at 1.35% apy is not going to produce very much profit.  Now, in comparison to other investments CD accounts are very secure, and when you can find a certificate with a low minimum balance like the offer above it is a safe way to produce small amounts of interest.

I would not suggest putting money in a CD like this if you do not have much money.  Putting money in a CD can lock it away for the term of the CD, that is if they have an early withdraw penalty.  If you are forced to withdraw the money you may forfeit any profits you had.

Highest 3 Month CD Rates Pay 1.22% APY – November 2009

Today the highest 3 month CD rates are sitting around 1.22% APY, which is almost half of what they where back in January. Throughout this year and over the last few months the 3 month CD rates have taken a huge slide downward.

As for a national bank that offers the highest interest rates on CD, Imperial Capital Bank from Beverly Hills, California offers the 1.22% APY with a minimum deposit of $2,000. This CD can be opened from anyone nationwide, online and takes about 15 minutes for the application process. It is easy to open this account as all you need is standard personal information such as your social security number, your address, employment information and your bank information from where you will be depositing the funds from.

Excel National Bank has the second best rate available nationally at 1.20% APY. They also have a similar application process as with Imperial Capital Bank. Excel National Bank has a much higher minimum deposit of $10,000 and also has a number of business CDs with similar yields to their personal account. They are also located in Beverly Hills, California and are open to customer nationwide.

The third best CD rate we could find for a 3 month CD is 0.75% APY and is from Danvers Bank. This bank has been around since 1850 and they specialize in online banking. With online banks, most of their customers are scattered throughout the nation. Danvers Bank controls roughly $1.70 billion in assets. They used to hold the number one spot for the 3 month CD, but since have dropped. The minimum deposit required to open this 3 month CD is $500. Danvers Bank also offers an exceptional high interest checking account with is currently paying 4.01% APY.

Each of these institutions are federally insured by the FDIC. If you know of a better 3 month CD rate that we have not covered then please let us know as we are always trying to find the best rates available. Please keep in mind that CD rates are always changing, so you will want to refer to the date of this article for accuracy. You can always find the most up to date CD rates from our CD Rates page.