bank rates

Forget Short-Term CDs, Go For Savings

Goldwater Bank offers the top 3-month CD rates at 0.80% APY.If you’ve given up on 3-month CD rates, we don’t blame you.

Short-term CDs aren’t exactly saver-friendly right now.

The 3-month leader on our CD Rates Leaderboard continues to be Goldwater Bank (, even though it dropped its rate by a tenth of a percentage point last week.

Goldwater, which has a single location in Scottsdale, Ariz., and requires a $5,000 minimum deposit, is now paying 0.80% APY.

The second-best nationally available deal belongs to Hudson City Savings Bank ( at 0.75% APY. Hudson City has 130 branches in New Jersey, New York and Connecticut, and requires a $500 minimum deposit for anyone living in that tri-state area but a $5,000 minimum deposit for everyone else.

If you’re looking for a short-term investment, you can find better deals by opening a savings or money market account at one of the seven banks that offer nationally available rates of more than 1%.

The top-paying nationally available savings account belongs to UFB Direct (, which pays 1.30% APY with a $100 minimum deposit. This division of San Diego-based Bank of Internet USA also hands out airline rewards in addition to paying interest.

The top paying nationally available money market account belongs to Incrediblebank (, which pays 1.18% APY on deposits between $2,500 and $249,999. Incrediblebank is the online division of River Valley Bank of Rothschild, Wis.

While rates on savings and money market accounts can change at any time, you’re not getting much more protection by locking in rates for three months on a short-term CD.

Unless you can find a local deal that comes close to what these nationally available savings and money market accounts pay, there’s just one question to answer: Why bother?

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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Comments (2)
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2 Existing Comments
  1. Nick said:
    on November 11th at 06:53 pm

    Incredible Bank seems to have strange policies. If you close out your account and no longer have the same checking account used to fund the account, it’s tough to get your money back. This was according to a rep who was hazy about it, said it would be an ordeal and couldn’t clarify how the money would be returned. No thanks. Already went through one nightmare with a major bank (now out of business) that tried to pull a scam and not return funds. Also, it’s off putting when banks have “divisions” that don’t show up at FDIC.

  2. Kathy at Bankaholic said:
    on November 28th at 09:15 am

    These rates are all still available.