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The national average APY (Annual Percentage Yield) on a 3-month CD is 0.78% APY. However, some of the best online banks offer up to 4.50% APY for a 3-month CD right now.
A 3-month CD is a short-term CD, and it isn’t as common as other CD terms, so you only have a few strong banks to choose from. If you’re also interested in other CD term lengths, check out our overall best CD rates guide. Here are our recommendations for the best 3-month CDs.
The Best 3-month CD Rates
Alliant 3 Month Certificate – Product Name Only: Alliant 3 Month Certificate – APY APYChase 3 Month CD – Product Name Only: Chase 3 Month CD – APY APYTIAA Basic 3 Month CD – Product Name Only: TIAA Basic 3 Month CD – APY APYAmerica First Credit Union 3 Month Certificate – Product Name Only: America First Credit Union 3 Month Certificate – APY APY
These are our picks for the best 3-month CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, 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.
Compare the Best 3-month CDs
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
Here’s what they had to say about CDs. (Some text may be lightly edited for clarity.)
How can someone determine whether a bank is the right fit for them?
Tania Brown, certified financial planner at SaverLife:
“Obviously, you want to make sure it’s FDIC insured. Also, your banking experience — 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? So it’s thinking through how your experience with it is going to be before you make that decision.”
Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
“I would create a list of what I prioritize most in a bank account. For example, 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. If I’m searching for an interest-earning bank account I’ll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account.”
How should someone choose a CD term length?
Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”:
“I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective.”
Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:
“I believe in having a plan for whatever the funds are. 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.”
How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?
Tania Brown, CFP:
“So I guess we’ll start off with how much money you want to put in and … the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”
Sophia Acevedo, Personal Finance Insider:
“Generally, I think a high-yield savings account or money market account could be good options for an emergency fund or short-term savings goals. A high-yield savings account offers a higher interest rate than traditional savings accounts at brick-and-mortar banks. Meanwhile, money market accounts might be worth considering if you want more account accessibility — several offer paper checks, ATM cards, or debit cards. CDs could be worthwhile if you don’t need access to some of your money, since they have a fixed interest rate for a specific term.”
Methodology: How Did We Select the Best 3-month CDs?
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.
3-month CD Frequently Asked Questions
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 2.25% APY. You’ll earn 2.25% 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.
Which CD is the best option: a 3-month, 1-year, or 5-year CD?
Deciding between a 3-month, 1-year, or 5-year CD will likely depend on the timeline for your goals. If you’ll need access to your money relatively soon, you may prefer a short-term CD over a long-term CD.
When you choose a CD, you’ll also want to pay attention to the interest rate offered. You might consider CD laddering if you don’t want to deposit all your money in a particular CD. With a CD ladder, you’ll open multiple CDs of different terms. For example, you can open a 3-month, 1-year, and 5-year CD, and split your money between these three CDs.
Which is better, a 3-month CD or a high-yield savings account?
Most financial institutions pay higher rates on high-yield savings accounts than on 3-month CDs. However, there may be exceptions, so you’ll want to double-check rates at a particular bank just to be sure.
There are also a few differences between CDs and high-yield savings accounts that could sway your decision.
For example, CDs have a fixed interest rate, while high-yield savings accounts have a variable interest rate. If rates are dropping, you might prefer a CD over a high-yield savings account because your rate will stay the same for three months. If rates are increasing, a high-yield savings account could be a better fit because you could have the chance to earn a higher rate later.
It also depends on when you’ll need to access your money. CDs have early withdrawal penalties, while savings accounts do not. You can also continuously add money to your savings account, whereas most CDs do not allow you to make additional deposits after opening an account.
Which is better, a 3-month CD or a money market account?
Similar to a high-yield savings account, money market accounts have variable interest rates. You may prefer a money market account if rates are rising, but a CD if rates are dropping.
You might also have a money market account over a CD if you want quick access to your money. Money market accounts often come with paper checks, ATM cards, or debit cards. You can also add more money to a money market account over time, while a CD only permits an initial deposit.
Is a 3-month CD a good investment?
A CD is typically considered a type of savings account. It’s generally a low-risk place to keep your money because your potential for losses and gains is limited.
Experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up for your losses.
If you need to access your money in three months and want a guaranteed rate of return, a 3-month CD is a better choice than a different type of investment account. But if you want to take more risks with your money, you may want to invest in the stock market. You may open a tax-advantaged retirement account, like a 401(k) or IRA, which grows your money over decades. You can also choose brokerage accounts, which are useful tools to build long-term wealth. Brokerage accounts can’t guarantee a given return like a CD can, though.
Learn More About Our Top Picks for 3-month CDs
Alliant 3 Month Certificate – Product Name Only
Why it stands out: If you’re comfortable with banking online, Alliant Credit Union is a strong choice for CDs. It 3-month and 6-month terms, in particular, offer high interest rates.
APY for a 3-month term: Alliant 3 Month Certificate – APY APY
3-month early withdrawal penalty: Up to 90 days of interest
What to look out for: 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.
Chase 3 Month CD – Product Name Only
Why it stands out: Chase offers the second highest interest rate on our list. You can earn between 2.00% to 4.00% APY on a 3-month CD (depending on your balance) if you qualify for a relationship rate. To get a relationship rate, you must have a linked Chase personal checking account.
APY for a 3-month term: Chase 3 Month CD – APY APY
3-month early withdrawal penalty: 90 days of interest
What to look out for: If you don’t have a Chase checking account, you’ll likely prefer another financial institution. The standard rate for Chase CDs is 0.01% APY.
TIAA Basic 3 Month CD – Product Name Only
Why it stands out: TIAA Bank offers a competitive interest rate for a 3-month term. It also has low early withdrawal penalties.
APY for a 3-month term: TIAA Basic 3 Month CD – APY APY
3-month early withdrawal penalty: 22 days of interest
What to look out for: While the minimum opening deposit for TIAA Bank CDs is on par with other banks, there are other financial institutions on our list that have more lenient opening requirements.
America First Credit Union 3 Month Certificate – Product Name Only
Why it stands out: America First Credit Union is a financial institution with branches in Arizona, Idaho, Nevada, and Utah. America First Credit Union has a variety of terms with high interest rates.
APY for a 3-month term: America First Credit Union 3 Month Certificate – APY APY
3-month early withdrawal penalty: 60 days of interest
What to look out for: 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.
America First Credit Union review
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.
Citi Fixed Rate CD – Product Name Only: Citi’s 3-month CD pays a lower interest rate than our top picks.First Internet Bank of Indiana CD – Product Name Only: Our top picks offer more competitive interest rates right now.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 CD – Product Name Only: Discover has a variety of CDs and pays good interest rates on most terms, but you’ll need a minimum of Discover CD – Minimum Deposit.Popular Direct CD – Product Name Only: Popular Direct has great interest rates on CDs, but you’ll need at least Popular Direct CD – Minimum Deposit to open one. 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.Signature Federal Credit Union Certificate – Product Name Only: Signature Federal Credit Union has a strong 3-year share certificate, but its other terms aren’t as competitive.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.NBKC CD – Product Name Only: NBKC Bank’s 3-month CD pays a lower interest rate than the average 3-month CD.BMO Harris CD – Product Name Only: BMO Harris pays a significantly lower interest rate on its 3-month CD than all of our top picks. Bank of America Standard Term CD – Product Name Only: Bank of America offers a variety of CD terms but pays lower interest rates than the average CD.
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. Here is each company’s score:
InstitutionBBB ratingAlliant A+Chase A+America First Credit UnionA+TIAA B
TIAA has a B rating because it has failed to respond to one customer complaint on the BBB website.
Chase and TIAA have been involved in recent public settlements.
In 2020, JP Morgan Chase & Co. paid the Department of Justice $920 million in a settlement that said the bank was involved in wrongful trading.
In the same year, the US Department of Labor also required Chase to pay $800,000 in back wages in a settlement that accused the bank of underpaying women.
In 2021, TIAA was required to pay $97 million in a settlement with the Securities and Exchange Commission. According to the settlement, the SEC said the bank failed to disclose conflicts of interest to customers that were part of employer-sponsored retirement plans.