While only 5.7% of the 1,000 CD-holders we surveyed opened a three-month CD, the experts we interviewed said short-term CDs are a great way to keep yourself from spending savings you may need a few months from now. Even if rates drop, considering a CD at one of the following institutions can guarantee a respectable rate on your savings for the next three months.
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Learn more about the highest CD rates.
Best 3-Month CD Rates
- EverBank: 3.95% APY
- First Internet Bank: 3.72% APY
- Alliant Credit Union: 3.10%
- Charles Schwab: 4.63% APY
- Bank of America: 3.75% APY
To select the best three-month CDs, we reviewed more than 100 financial institutions. We considered the overall banking experience and coverage through the National Credit Union Administration (NCUA) or Federal Deposit Insurance Corp. (FDIC). We picked three-month CDs with competitive APYs and low minimum deposit requirements.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
EverBank
First Internet Bank (of Indiana)
Alliant Credit Union
Charles Schwab
Bank of America
Compare the Best 3-Month CDs
| Institution | Rate (APY) | Term | Minimum Deposit |
|---|---|---|---|
| EverBank | 3.95% | 3 months | $1,000 |
| First Internet Bank (of Indiana) | 3.72% | 3 months | $1,000 |
| Alliant Credit Union | 3.10% | 3 months | $1,000 |
| Charles Schwab | 4.58% | 3 months | $1,000 |
| Bank of America | 3.75% | 3 months | $1,000 |
How Does a 3-Month CD Work?
A three-month CD lets you save a set amount of money for a short-term goal, often giving you a competitive, fixed interest rate in return. The best three-month CD APYs are significantly better than the national average interest rate for the same term, which is 1.64%.
After funding your CD, you usually can’t make more deposits. Withdrawing principal before the 90-day maturity date can result in an early withdrawal penalty that could be as much as 90 days’ worth of interest on the amount you take out. However, banks typically don’t penalize you for withdrawing interest. When your three-month CD matures, you get a short period of time to decide what to do with the funds.
The economy and the Federal Reserve influence the three-month CD rates banks offer. Other factors include a bank’s need for deposits, as well as account balance tiers, customer promotions and competitors’ rates.
Three-month CDs are appealing for their safety against loss. Just like with other deposit accounts from credit unions and banks, the funds are usually insured for up to $250,000 per depositor, account ownership category and financial institution.
Highest 3-Month CD Rates Today
The table below includes the highest 3-month certificate of deposit (CD) rates as of December 23, 2024. This data is sourced daily by Curinos.
| Institution | Rate (APY) | Term |
|---|---|---|
| First Western Bank | 5.05% | 3 months |
| Northwest Bank | 5.00% | 3 months |
| Blue Sky Bank | 4.91% | 3 months |
| Home Federal Bank | 4.75% | 3 months |
| Bank of Colorado | 4.75% | 3 months |
| Classic Bank | 4.75% | 3 months |
| Claremont Savings Bank | 4.75% | 3 months |
| Sterling Bank | 4.75% | 3 months |
| Oakstar Bank | 4.68% | 3 months |
| Bask Bank | 4.65% | 3 months |
How To Choose the Best 3-Month CD
Here are important factors to think about when you look for a three-month CD:
- CD term: Although the very short commitment may appeal to you, research other short-term CDs to get a fixed interest rate for longer or no-penalty CDs for more flexibility.
- Minimum deposit requirement: Consider the amount you have available to deposit in a three-month CD. Also find out if there’s a deadline for funding your account.
- Interest rates: Pick a three-month CD with a higher interest rate than other deposit accounts. Note whether a CD’s rate depends on the balance tier you’re in.
- Early withdrawal penalties: Compare the early withdrawal penalties banks charge in case you take interest or principal out before your CD matures.
- CD flexibility: Find out if the three-month CD allows you to deposit more money during the term or withdraw interest with no fees.
- Financial institution: Only shop for three-month CDs from FDIC- or NCUA-insured institutions with good reputations and convenient customer support options.
Alternatives to 3-Month CDs
Look at your personal finance goals if you’re thinking about opening a three-month CD, as an alternative may be a better fit. Here are some options to consider:
3-Month CDs vs. Other CD Term Lengths
While many banks’ options start with three-month CDs, some have shorter terms of one or two months. These tend to have much lower rates, but banks sometimes have competitive promotions. If you can find a good APY, a one- or two-month CD term can make your cash more accessible.
If you’re looking for a higher rate or a longer guarantee, consider longer terms. For example, the national average one-year CD APY is 2.42%, and other long-term CDs can offer better rates for more time. These terms are more common for special types of CDs, including bump-up, IRA and no-penalty options. Just consider the downside of a longer commitment.
3-Month CDs vs. Savings Accounts
A savings account might be a better choice than a three-month CD if you’re concerned about early withdrawal fees. You can usually open a savings account with a low (or no) initial deposit, add funds regularly and withdraw cash multiple ways, potentially at ATMs. This makes a savings account useful for goals such as an emergency fund.
But unless you choose a high-yield savings account, you’ll likely get a much lower return than you would with a three-month CD. The rate on a savings account isn’t fixed, so there’s less predictability. Despite giving you more liquidity, savings accounts may limit the number of transactions you make during each statement cycle. Plus, you might have to pay a monthly service charge.
| Product Type | National Average |
|---|---|
| 3-Month CD | 1.64% APY |
| Savings Account | 0.47% APY |
| High-Yield Savings Account | 0.85% APY |
3-Month CDs vs. Money Market Accounts
If you like the benefits of a savings account over a three-month CD, a money market account includes even more features worth considering. Depending on the bank, these could include check-writing and debit card support for convenient spending. But like savings accounts, they may have monthly fees and transaction limits and minimum opening deposits.
Offering a variable APY, a money market account pays less on average than a three-month CD but typically more than a savings account. You can still find very competitive money market APYs through online banking institutions and some brick-and-mortar ones. Note that you may need a minimum balance to get a good APY.
Review our list of the best money market account rates.
| Product Type | National Average |
|---|---|
| 3-Month CD | 1.64% APY |
| Money Market Account | 0.70% APY |
How To Open a 3-Month CD
Follow these steps to open your three-month CD account:
- Pick your three-month CD: Compare options from several reputable and insured credit unions and banks. Once you find a CD with a high rate, read its terms carefully.
- Prepare for the application: Check the financial institution’s website to learn how to fund an account, whether there’s a minimum opening deposit and what documents you’ll need for verification, such as a photo ID. Also find out how to apply, such as online, in person or by phone.
- Submit your CD application: For bank CDs, you’ll likely fill out an application with your personal and financial information, choose CD renewal and interest options and possibly provide your identification. If you’re buying a brokered CD, you might log into your brokerage account, select the CD options and then confirm the order.
- Put money in your CD: You might provide the deposit for your CD during or after the application. This could include a brokerage or bank account transfer, check or in-person cash deposit.
The Bottom Line: Is a 3-Month CD Right for You?
Opening a three-month CD can be the right decision if your savings goal is to earn a competitive rate on cash you don’t need for a few months. But since you generally can’t withdraw your deposit before the CD term ends, you should also consider money market or savings accounts for short-term savings. These alternatives may offer comparable rates with more flexibility and no early withdrawal penalties.
FAQ: Best 3-Month CDs
The highest three-month CD rates tend to come from brokerages rather than banks, but some online and traditional banks offer three-month CDs around 4.00% APY or higher. First Western Bank offers the highest rate on a 3-month CD available today at 5.05%.
A three-month CD may be worth it if you don’t plan to withdraw funds early and you get a better APY than money market and savings accounts offer. It can also be worth it if you like a shorter commitment or want to create a CD ladder with multiple maturity dates.
Several online banks and credit unions offer CD rates at 5.00% APY or higher. Currently, you may get the best CD rates with a term of up to 18 months.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
For our list of the best one-year CD rates, we selected the highest-scoring financial institutions in our review of CDs. These banks and credit unions provide CD products available to customers throughout the U.S. and earn high scores for offering low or no minimum opening deposit and competitive yields on one-year terms.
The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
*Data accurate at time of publication
**Rates accurate as of November 14, 2024
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
