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The national average APY (Annual Percentage Yield) on a 3-month CD is 1.42% APY. However, some of the best online banks offer higher rates for a 3-month CD right now.
The best CD rate for a 3-month CD is TotalDirectBank 3 Month CD – APY APY from TotalDirectBank. We check rates daily to find the best rates for 3-month terms. Here are our recommendations for the best 3-month CDs.
A 3-month CD is a short-term CD. It isn’t as common as 6-month or 1-year CD terms, though, so you might not find it at all banks or credit unions. If you’re also interested in other term lengths, check out our overall best CD rates guide.
Best 3-Month CD Rates
TotalDirectBank 3 Month CD – Product Name Only: TotalDirectBank 3 Month CD – APY APYDow Credit Union 3 Month Simple CD Special – Product Name Only: Dow Credit Union 3 Month Simple CD Special – APY APYSignature Federal Credit Union 3 Month Certificate – Product Name Only: Signature Federal Credit Union 3 Month Certificate – APY APYPonce Bank 3 Month CD – Editorial Name Only: Ponce Bank 3 Month CD – APY APYiGoBanking 3 Month High Yield CD – Product Name Only: iGoBanking 3 Month High Yield CD – APY APYPopular Direct 3 Month CD – Product Name Only: Popular Direct 3 Month CD – APY APYAmerica First Credit Union 3 Month Certificate – Product Name Only: America First Credit Union 3 Month Certificate – APY APYAlliant 3 Month Certificate – Product Name Only: Alliant 3 Month Certificate – APY APY
Compare the Best 3-Month CDs
3-Month CD FAQs
Who has the highest 3-month CD rate?
The highest 3-month CD rate is available at TotalDirectBank. The online financial institution is offering TotalDirectBank 3 Month CD – APY APY for a 3-month CD. TotalDirectBank is available everywhere in the US except Florida, Somoa, Guam, the Northern Mariana Islands, and the US Virgin Islands.
Is a 3-month CD worth it?
A 3-month CD may be worthwhile if you can keep money locked in a fixed-interest savings account without having to withdraw early. Choosing a CD will also depend on the timeline of your savings goal.
What is a 3-month CD?
A 3-month CD is a type of short-term CD. Generally, CDs offer a fixed interest rate. This means your rate will stay the same for the entire term.
How does a 3-month CD work?
Let’s say you have a 3-month CD that pays 4.50% APY. You’ll earn 4.50% for the entire three months. Usually, you’ll only be able to make a deposit when you open your account. You also won’t be able to access your money before the CD reaches maturity without paying a penalty.
3-Month CD Reviews
These are our picks for the best 3-month CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. If you’re worried about bank failures, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
TotalDirectBank 3 Month CD – Product Name Only
The TotalDirectBank 3 Month CD offers a high interest rate and low early withdrawal penalties. The bank also pays high rates on 6-month and 1-year terms.
TotalDirectBank CDs have a steep minimum opening deposit of TotalDirectBank 3 Month CD – Minimum Depositand a maximum deposit of $1 million. The online institution also doesn’t operate in Florida, Somoa, Guam, the Northern Mariana Islands, or the US Virgin Islands.
APY for a 3-month term: TotalDirectBank 3 Month CD – APY APY
3-month early withdrawal penalty: 45 days of interest
Dow Credit Union 3 Month Simple CD Special – Product Name Only
The Dow Credit Union Simple CD also has the highest rate available for a 3-month term. The Simple CDs also have a low minimum opening deposit.
The easiest way to become a member of Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current credit union member.
APY for a 3-month term: Dow Credit Union 3 Month Simple CD Special – APY APY
3-month early withdrawal penalty: 45 days of interest
Signature Federal Credit Union 3 Month Certificate – Product Name Only
The Signature Federal Credit Union Certificate – Product Name Only has a Signature Federal Credit Union Certificate – Minimum Deposit minimum opening deposit, which is less than what’s required at other financial institutions.
You may like Signature Federal Credit Union if you prefer banking with a credit union over a bank.
Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you’ll just need to open a savings account.
APY for a 3-month term: Signature Federal Credit Union 3 Month Certificate – APY APY
3-month early withdrawal penalty: Up to 45 days of interest
Signature Federal Credit Union Review
iGoBanking 3 Month High Yield CD – Product Name Only
The iGoBanking High Yield CD may be a good choice if you’re searching for 3-month and 3-year terms. iGoBanking is an online division of Flushing Bank.
You’ll need a minimum of iGoBanking 3 Month High Yield CD – Minimum Deposit to get a CD. Other financial institutions on our list may allow you to open a CD with less money upfront.
APY for a 3-month term: iGoBanking 3 Month High Yield CD – APY APY
3-month early withdrawal penalty: 3 months of interest
Ponce Bank 3 Month CD – Editorial Name Only
The Ponce Bank 3 Month CD – Product Name Only is the highest yielding 3-month CD on Raisin.
Through Raisin, you can use one platform to find, fund, and manage multiple high-yield savings accounts and CDs from over 20 banks and credit unions. There are also other 3-month CDs on Raisin that pay more than the national average.
You might prefer one of our other top picks if you would rather open a CD directly with a bank. You also can’t get a checking account with Raisin, so it may not be the best option if you want to do all your banking with one company.
APY for a 3-month term: Ponce Bank 3 Month CD – APY APY
3-month early withdrawal penalty: 90 days of simple interest
Popular Direct 3 Month CD – Product Name Only
Popular Direct CDs pay competitive rates, and compound interest daily.
You’ll need at least Popular Direct CD – Minimum Deposit to open a Popular Direct CD. While the early withdrawal penalty for a 3-month term is pretty standard, the bank charges high penalties on certain terms.
APY for 3-month CD: Popular Direct 3 Month CD – APY APY
3-month CD early withdrawal penalty: 89 days of simple interest
America First Credit Union 3 Month Certificate – Product Name Only
The America First Credit Union Certificate may be worthwhile if you’re searching for a financial institution with branches in Arizona, Idaho, Nevada, and Utah. America First Credit Union has a variety of terms with high interest rates.
Credit unions require membership to open bank accounts. You may join America First Credit Union if you live, work, worship, or volunteer in an Arizona, Idaho, Nevada, or Utah county on this list. If you have a family member or spouse that’s a current member, you’re also eligible.
To become a member, you must also open an America First Credit Union Share Savings Account – Product Name Only.
APY for a 3-month term: America First Credit Union 3 Month Certificate – APY APY
3-month early withdrawal penalty: 60 days of interest
America First Credit Union Review
Alliant 3 Month Certificate – Product Name Only
An Alliant Certificate may be a good choice if you’re searching for a credit union that lets you open bank accounts from anywhere in the US. Alliant’s 3-month and 6-month terms, in particular, offer high interest rates.
Credit unions require you to become a member to open an account. The easiest way to become a member is to join Foster Care to Success. Alliant will cover the $5 joining fee.
APY for a 3-month term: Alliant 3 Month Certificate – APY APY
3-month early withdrawal penalty: Up to 90 days of interest
Other 3-Month CDs We Considered
We looked at other 3-month CDs, as well. Our top picks stood out because they had appealing features, like higher interest rates, lower minimum opening deposits, or lower early withdrawal penalties. While the accounts listed below weren’t among our picks, you still might consider one of these options.
Chicago Patrolmen’s Federal Credit Union 3 Month Share Certificate – Product Name Only: Chicago Patrolmen’s Federal Credit Union was previously a market leader for 3-month CD rates. You must qualify for membership to open a share certificate at Chicago Patrolmen’s Federal Credit Union. Membership is open to law enforcement officers (active and retired) and full-time employees of an eligible law enforcement department or association in the US. However, now there is nationwide option with an even higher interest rate.First Internet Bank of Indiana CD – Product Name Only: First Internet Bank of Indiana has a 3-month term paying First Internet Bank of Indiana 3 Month CD – APY APY, which is just short of the top rates on our list. EverBank CD – Product Name Only: EverBank has a 3-month term that pays above the national average, but our top picks pay even higher rates right now.Bank of America Fixed Term CD – Product Name Only: The Bank of America 3 Month Fixed Term CD – Product Name Only pays Bank of America 3 Month Fixed Term CD – APY APY, but our top picks have even higher rates right now. Chase 3 Month CD – Product Name Only: Chase pays a higher rate on its 3-month term than on most of its CDs, but it still can’t compete with our top picks.Citi Fixed Rate CD – Product Name Only: Citi’s 3-month CD pays a lower interest rate than our top picks.Bethpage Federal Credit Union Certificate Account – Product Name Only: Bethpage pays a lower interest rate on its 3-month term than our top picks.Synchrony CD – Product Name Only: Synchrony has a solid interest rate on its 3-month CD, but our top picks have even higher interest rates right now. Ally High Yield CD – Product Name Only: Ally has a variety of CDs and lets you open an account with Ally 3 Month High Yield CD – Minimum Deposit, but our top picks pay higher interest rates.Discover Bank: Discover CDs offer a variety of options and pay good interest rates on most terms, but you’ll need a minimum of Discover CD – Minimum Deposit.Quorum Federal Credit Union Term Savings – Product Name Only: Quorum Federal Credit Union’s 3-month term isn’t as competitive as some of its other accounts.Navy Federal Credit Union Standard Certificate – Product Name Only: Navy Federal Credit Union CDs pay solid interest rates, but our top picks have even higher rates right now. Consumers Credit Union CD – Product Name Only: Consumers Credit Union has a variety of CD terms, but its 3-month term isn’t as competitive as some of its other terms.Wells Fargo Fixed Rate CD – Product Name Only: Wells Fargo CDs require a minimum of Wells Fargo Fixed Rate CD – Minimum Deposit and pay lower interest rates than our top picks. BrioDirect High-Yield CD – Product Name Only: BrioDirect CDs have a low minimum opening deposit, but the 3-month CD pays a low interest rate. Nationwide CD – Product Name Only: Nationwide offers a solid interest rate on its 18-month CD, but its 3-month CD isn’t as strong.BMO Harris CD – Product Name Only: BMO CD – Brand Name pays a significantly lower interest rate on its 3-month CD than all of our top picks.
Bank Trustworthiness and BBB Ratings
We’ve compared each company’s Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. A strong BBB score doesn’t guarantee you’ll have a great relationship with a bank, though. You may still want to read online reviews and ask friends and family about their experiences with any bank you’re considering.
Signature Federal Credit Union does not have a profile with the Bureau yet, so there are no complaints or reviews to use for evaluating the company’s business practices.
Here is each company’s score:
InstitutionBBB ratingDow Credit UnionA+TotalDirectBankA+ (rating for its parent bank, City National Bank of Florida)iGoBankingA+ (rating for its parent bank, Flushing Bank)RaisinA-Alliant Credit Union A+America First Credit UnionA+Popular DirectA+ (Rating for its parent bank, Popular Bank)
Raisin has an A- rating because it has received 28 complaints on the BBB website.
None of our top picks have been involved in any recent public controversies.
Why You Should Trust Us: Expert Advice on Choosing the Best 3-Month CD
To learn more about what makes a good CD and how to choose the best fit, Insider consulted four experts:
Insider
Tania Brown, CFP at SaverLifeRoger Ma, CFP with lifelaidout® and author of “Work Your Money, Not Your Life”Sophia Acevedo, CEPF, banking reporter, Personal Finance InsiderMykail James, MBA, CFEI, BoujieBudgets.com
Here’s what they had to say about CDs. (Some text may be lightly edited for clarity.)
How do you choose a bank or credit union?
“You want to make sure it’s FDIC insured,” says Brown. For people using credit unions, the insurance comes from the NCUA. Next, she advises, consider the banking experience you want to have. “Do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you’re okay online. Do you write checks? Do you not write checks?” Think through how your experience with that institution would be before you make that decision.
Acevedo recommends factoring in account costs when you’re envisioning your experience with a bank or credit union. “For example,” she says, “some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month.” Or if she was searching for an interest-earning bank account, she would make sure it pays a higher interest rate than the average bank account.
How long should you leave money in a CD?
“I would think about when you need the money and then compare that with what the prevailing CD rates are,” says Ma. Then, he continues, consider what makes sense not only from a financial perspective, but from your own personal timing perspective. If the rates are highest on a 2-year CD but you need the money in six months, don’t sacrifice your plans for interest.
Your plans are important to the CD term you choose, says James. “I believe in having a plan for whatever the funds are,” she says. “If it’s supposed to be a house fund, and you want to wait for another two years to buy a house, that’s what you should be thinking of when you want to have this money.”
Methodology
At Personal Finance Insider, we strive to help smart people make the best decisions with their money. We understand that “best” is often subjective, however, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too.
We researched to find over 20 banks and credit unions that offered 3-month CDs. Then, we reviewed each institution to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also used our CD rates methodology, reviewing the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
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