bank rates

Top 3-Month CD Rates Fall To 1.00% APY

We never expected CD rates would fall so far that even the best 3-month certificates of deposit would pay just 1.00% APY.

But that’s what happened over the past month or so.

Since late March the top nationally available rate has dropped from 1.25% APY to 1.14% APY to 1.09% APY and now to just 1.00% APY.

That’s all you can earn from the two banks that have taken the lead in our rankings — Hudson City Savings Bank and Earthstar Bank.

Hudson City requires a $5,000 from online applicants, but only $500 for in-person applications at any of their New York, New Jersey or Connecticut branches.

Earthstar, which has four branches in the Philadelphia area, requires a $1,000 minimum deposit.

These banks took over the top spot when Nexity Bank, which had led the ranking for only five days, lowered its rate to 0.95% APY from 1.09% APY.

The average return on 3-month CDs has fallen to just 0.31% APY.

The average rate of return on 3-month CDs has already reached a truly terrible 0.31% APY (see chart).

Now it looks like even the best of these short-term deposits will be paying less than 1% in a matter of weeks — maybe even days.

Use our database of CD rates to compare these rates with the best deals from scores of other banks.

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