Often, the highest CD rates come from smaller, regional banks or credit unions, which aren’t available in all states or have strict membership requirements. To compile our list, we at the MarketWatch Guides team analyzed 154 financial institutions and reviewed 129 CDs. Our top five picks for best three-month CDs feature competitive annual percentage yields (APYs) and standard minimum deposit requirements.
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.
Featured CDs
Our Picks for the Top 3-Month CD Rates
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.
- EverBank – 3-Month CD APY: 3.95%
- First Internet Bank – 3-Month CD APY: 4.14%
- Alliant Credit Union – 3-Month CD APY: 4.25%
- Charles Schwab – 3-Month CD APY: 5.04%
- Bank of America – 3-Month CD APY: 4.00%
EverBank
4.4
3-Month APY3.95%Minimum Deposit Requirement$1,000Interest Compounding ScheduleDaily
Why We Like It
The three-month EverBank CD pays a 3.95% APY, outearning many traditional savings accounts and helping the bank get a 4.4-star rating for its CDs in our industry review. The CD requires a $1,000 minimum deposit.
EverBank allows you to withdraw the CD interest you’ve earned without any penalties. While withdrawing principal early could cost you all of your earned interest with other banks, EverBank only charges 22 days’ worth.
Customer Support and Account Access
EverBank is mainly online and provides support by phone. However, it also has nine Florida branches for in-person support. You can manage your three-month CD through EverBank’s website and the TIAA mobile app.
Who It’s Best For
Since EverBank’s three-month CD has a lower early withdrawal penalty than many others, it could be a good option if you aren’t sure you can keep your money invested that long. The account could also suit you if you live near the bank’s Florida branches or want additional deposit insurance for large sums.
Pros & Cons
Pros Lets you withdraw CD interest with no penalty Low early withdrawal penalty for taking principal out Option for deposit coverage above FDIC limits Nine branch locations in Florida Cons Lowest three-month CD APY among our picks Has a $1,000 minimum opening deposit for its standard CD while many competitors require $500 or less
Other Terms and Specialty CDs
Other notable short-term options include EverBank’s six-month CD (4.00% APY), nine-month CD (4.70% APY) and one-year CD (4.50% APY).
First Internet Bank (of Indiana)
4.4
3-Month APY4.14%Minimum Deposit Requirement$1,000Interest Compounding ScheduleMonthly
Why We Like It
First Internet Bank offers 4.14% APY on its three-month CD with a minimum deposit of $1,000. It comes with the flexibility to make interest-only withdrawals without a fee. Withdrawing principal early will cost you 90 days’ worth of interest. We give this online bank 4.4 stars for its CDs because it offers a range of terms, plus high APYs on some options that last less than two years.
Although First Internet Bank has no physical locations, it provides customer service by online chat, email and phone. You can conveniently manage your CD account through text messages, the online portal and the mobile app.
Who It’s Best For
This digital bank is ideal for those who can afford to invest larger sums and want multiple ways to manage their accounts and get help from customer service.
Pros & Cons
Pros Competitive three-month CD APY No penalty for withdrawing interest early Customer service options via phone, email and online chat Cons $1,000 minimum opening deposit Early withdrawal penalty of 90 days’ interest (for taking principal out) No bank branches or in-person support
Other Terms and Specialty CDs
Short-term savers can earn higher APYs of 4.87% with a six-month CD and 4.94% with a one-year CD. First Internet Bank doesn’t have specialty CDs.
Alliant Credit Union
4.2
3-Month APY4.25%Minimum Deposit Requirement$1,000Interest Compounding ScheduleMonthly
Why We Like It
The online-only Alliant Credit Union pays 4.25%APY on its three-month standard and jumbo CDs, including IRA options. While Alliant offers a variety of CDs (also known as share certificates), lower yields on its longer-term options put it at a 4.2-star rating for this review category.
Three-month CDs from Alliant require a $1,000 minimum deposit for standard CDs and $75,000 for jumbo CDs. The early withdrawal penalty for taking principal out is up to 90 days’ interest, but Alliant doesn’t charge account holders for withdrawing interest from their CDs.
Credit Union Membership and Customer Support
To open a three-month CD, you must join the online credit union. This requires you or a family member to become a member of its foundation for free or be affiliated with one of its partner organizations. You’ll be able to get help over email and the 24/7 phone line. Alliant offers online, mobile and phone banking options for managing your CD.
Who It’s Best For
Alliant’s three-month CDs are best for savers who also want to invest in a variety of CD types, such as retirement options.
Pros & Cons
Pros Competitive APYs on standard, IRA and jumbo CDs No penalty for withdrawing interest before the CD term ends Accessible options for credit union membership $75,000 minimum deposit for jumbo CDs while competitors generally require at least $100,000 Cons $1,000 minimum opening deposit and balance for standard CDs Early withdrawal penalty of up to 90 days’ interest (for taking principal out) No in-person support
Other Terms and Specialty CDs
Alliant’s other short-term options include six-month CDs with a 4.75% APY and one-year CDs with APYs of 4.75% (standard) or 4.80% (jumbo). IRA versions are available.
Charles Schwab
3.9
3-Month APY5.04%Minimum Deposit Requirement$1,000Interest Compounding ScheduleN/A
Why We Like It
Charles Schwab’s three-month brokered CDs require a minimum $1,000 investment and pay 5.04% APY. They’re available through various banks on Schwab’s OneSource platform. These differ from bank CDs since they don’t have compounding interest and the interest they earn goes to your Schwab brokerage account.
There’s no early withdrawal penalty. Instead, getting your funds early requires selling the CD on the market, which could lead to losing or earning money. Some three-month CDs may be callable, allowing the issuer to buy them back early. This risk is the reason brokered CDs often have higher APYs than bank CDs.
While Charles Schwab’s short-term CDs have great APYs, we rate the firm’s CDs 3.9 stars overall because the minimum investment is high and there are only four term options.
Customer Support Options
Charles Schwab has over 300 branches for investment advice, as well as phone and online chat. It also offers online and mobile banking tools for managing your three-month brokered CD.
Who It’s Best For
This high-yield three-month brokered CD is best for investors who already work with Charles Schwab. It can also be a good option if you want a more predictable investment for a large sum since the CDs’ issuing banks are FDIC insured.
Pros & Cons
Pros Best three-month CD rate among our picks Deposits interest in your brokerage account monthly No early withdrawal penalty, but selling early can result in losses Over 300 branches for investment advice Cons Interest isn’t compounded, so gains don’t grow as fast $1,000 minimum investment, with the total only allowed in increments of $1,000 Must sell CDs on the market to redeem them early, which could result in losses
Other Terms and Specialty CDs
While rates and terms depend on which bank issues the CD, Charles Schwab advertises you could earn 4.71% APY on a six-month CD, 4.63% APY on a nine-month CD or 4.50% APY on an 18-month CD.
Bank of America
3.8
3-Month APY4.00%Minimum Deposit Requirement$1,000Interest Compounding ScheduleMonthly
Why We Like It
Bank of America’s three-month fixed-term CD makes our list of the top rates with a 4.00% APY. However, the bank’s below-average rates on longer-term CDs land it at 3.8 stars in this review category.
The three-month CD has a $1,000 minimum opening deposit. You can take your interest payments monthly, but the bank charges 90 days’ worth of interest on any principal you withdraw before your CD’s maturity date.
In-Person and Online Banking
Bank of America offers customer support at more than 3,900 branches in 38 states and Washington, D.C., along with online chat, email and phone options. Plus, its website and mobile app offer several money-management tools.
Who It’s Best For
Bank of America’s three-month CD could be a great fit for someone who prefers working with a traditional bank that has branches in most states.
Pros & Cons
Pros Competitive three-month CD rate Allows you to withdraw interest early with no penalty Around 3,900 physical branches across most of the U.S. Cons $1,000 minimum opening deposit makes it less accessible for some savers Early withdrawal penalty of 90 days’ interest
Other Terms and Specialty CDs
You can get 4.00% APY on Bank of America fixed CDs with terms of 90 to 179 days but only 0.03% on the other terms. There are featured CDs paying 4.60% APY with a seven-month term or 4.00% with a 13-month term. IRA CDs are also available.
Summary: The Best 3-Month CD Rates
Filters
Our CD Star Rating (Out of 5)
At Least
| Financial Institution | Our CD Star Rating (Out of 5) | 3-Month CD APY* | See Rates |
|---|---|---|---|
EverBankLearn More | 4.4 | 3.95% | Learn More |
4.4 | 4.14% | Learn More | |
4.2 | 4.25% | Learn More | |
3.9 | 5.04% | Learn More | |
Bank of AmericaLearn More | 3.8 | 4.00% | Learn More |
| Financial Institution | Our CD Star Rating (Out of 5) | 3-Month CD APY* | See Rates |
|---|---|---|---|
EverBankLearn More | 4.4 | 3.95% | Learn More |
4.4 | 4.14% | Learn More | |
4.2 | 4.25% | Learn More | |
3.9 | 5.04% | Learn More | |
Bank of AmericaLearn More | 3.8 | 4.00% | Learn More |
No results were found.
*APYs valid as of September 4, 2024. Rates may vary by location. Bank of America’s rate is for Charlotte, N.C.
Highest 3-Month CD Rates Today
The table below includes the highest 3-month certificate of deposit (CD) rates as of September 15, 2024. This data is sourced daily by Curinos.
| Financial Providers | CD Term | APY |
|---|---|---|
| Shoreham Bank | 3 months | 5.50% |
| HomeTown Bank | 3 months | 5.43% |
| First Bank | 3 months | 5.25% |
| Piedmont Bank | 3 months | 5.25% |
| Merchants Bank of Indiana | 3 months | 5.25% |
| Liberty Bank | 3 months | 5.20% |
| Ciera Bank | 3 months | 5.15% |
| First Western Bank | 3 months | 5.15% |
| Goldwater Bank | 3 months | 5.15% |
| American Metro Bank | 3 months | 5.10% |
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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 1.65%.
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.
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 2.57%, 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.
| Term | National Average |
|---|---|
| 3 Months | 1.65% APY |
| 6 Months | 2.53% APY |
| 1 Year | 2.57% APY |
| 18 Months | 2.17% APY |
| 2 Years | 2.57% APY |
| 3 Years | 2.57% APY |
| 5 Years | 2.57% APY |
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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 | 1.65% APY |
| Savings Account | 0.50% APY |
| High-Yield Savings Account | 0.91% APY |
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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 | 1.65% APY |
| Money Market Account | 0.77% APY |
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CD CALCULATOR
Certificates of deposit generally have higher interest rates, but less flexibility, than savings accounts. Enter your deposit, CD term and annual percentage yield (APY) to see what you would earn on a certificate of deposit.
CD INFORMATION
YOUR ENDING BALANCE $1,025
Total Interest Earned
$25
Initial Balance
$1,000
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. Shoreham Bank offers the highest rate on a 3-month CD available today at 5.50%.
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.
- Savings and money market accounts (35% of total score): The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
- Checking accounts (30% of total score): High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
- Certificates of deposit (20% of total score): Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
- Banking experience and access (15% of total score): 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.
All America Bank,Alliant Credit Union,Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank,Bank of America, Bank of Hope, Bank Purely, Bank5 Connect,Barclays,Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union,BMO,BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect,Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial,Chase Bank, Chime, CIBC USA, CIT Bank,Citibank, Citizens,Citizens Bank, Colorado Federal Savings Bank, Comerica Bank,Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union,Discover Bank, East West Bank, Emigrant Direct,EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC,Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union,LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank,Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union,Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal),PNC Bank, Popular Direct, Presidential Bank, Provident Bank,Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union,SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank,Synchrony Bank, Synovus Bank,TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank),Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade,USAA Bank, USAlliance Financial, Valley National Bank,Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank,Wells Fargo, Western State Bank, Zions Bank,Zynlo Bank
*Data accurate at time of publication
**Rates accurate as of September 4, 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.
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
