bank rates

Fall’s Top 3-Month CD Rates Hold At 0.65%

When it comes to 3-month CD rates, savers don’t have a whole lot to be thankful for.

The average return on these short investments is a pathetic 0.13% APY, according to our most recent survey of major banks.

The top rate on our CD Rates Leaderboard remains the longtime offering of 0.65% APY from E-Loan (www.eloan.com).

This online subsidiary of Banco Popular, a financial services conglomerate that’s been operating in Puerto Rico for almost 115 years, requires a $10,000 minimum deposit.

Here’s where I have to stop and ask what’s the point of buying one of these investments?

You know how much that $10,000 is going to earn over three months?

A little over $16, and there is virtually no chance that interest rates will be higher when a 3-month CD bought now matures in late February.

You’d probably be better off putting your short-term savings in one of the top nationally available money market accounts that are paying up to 1.25%.

But maybe you have your reasons for sticking with 3-month CDs.

EverBank (www.everbank.com), which is a predominantly online bank based in Jacksonville, Fla., offers the second-highest rate of 0.57% APY with a $1,500 minimum deposit.

Only two banks now pay the third-highest rate of 0.50% APY:

NexBank (www.nexbank.com), which is a division of NexBank Capital Inc. and has two branches in Texas, requires a $10,000 minimum deposit.

Virtual Bank (www.virtualbank.com), which is the online division of Sabadell United Bank, based in Miami, requires a $10,000 minimum deposit.

Three banks are paying 0.45% APY:

AloStar Bank of Commerce (www.alostarbank.com), which is an online bank based in Birmingham, Ala., requires a $1,000 minimum deposit.

MetLife (www.metlifebank.com), which is the insurance giant’s online bank, requires a $25,000 minimum deposit.

OneWest Bank (www.owb.com), which has 82 branches in southern California, requires a $1,000 minimum deposit.

The average annual yield offered by large banks and thrifts for 3-month CDs remains 0.13% for the 15th week.

Banks qualify for our rankings by imposing no restrictions on who can buy their certificates of deposit, either online or through the mail.

Compare these returns with the best CD rates from scores of banks in our extensive database.

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