A three-month certificate of deposit allows you to lock in a high rate for a short period of time, but it’s still not as flexible as a high-yield savings account. The best three-month CDs offer annual percentage yields, or APYs, as high as 5.50%. But the top high-yield savings accounts earn APYs as high as 5.35%, making short-term CDs less appealing unless you can work them into a longer-term savings approach, like a CD ladder.
CNET’s picks for the best 3-month CD rates
A three-month CD can still work in your favor if you want to lock in your rate or eliminate the temptation to touch your funds for a few months. Since this short-term CD doesn’t offer the highest rate you can find, it’s best to compare rates and think about how this short-term CD fits into your goals before opening an account.
| Bank | APY | Min. deposit to open |
|---|---|---|
| America First Credit Union | 5.50% | $500 |
| Alliant Credit Union | 4.25% | $1,000 |
| First Internet Bank of Indiana | 4.18% | $1,000 |
| EverBank | 3.95% | $1,000 |
America First Credit Union
- APY APY = Annual Percentage Yield.
- 5.50%
- Min. deposit to open
- $500
America First has share certificates -- a credit union’s version of a certificate of deposit -- ranging from three months up to five years, with higher rates for promotional terms. It also offers bump-up share certificates and a one-year flexible share certificate that gives you access to your money for the first five calendar days of each quarter, penalty-free. You’ll have more terms to choose from if you go with a traditional, high-yielding share certificate, though.
The credit union requires a minimum $500 deposit. We like that you can open an account online or at a physical branch, as long as you meet eligibility requirements.
America First has share certificates -- a credit union’s version of a certificate of deposit -- ranging from three months up to five years, with higher rates for promotional terms. It also offers bump-up share certificates and a one-year flexible share certificate that gives you access to your money for the first five calendar days of each quarter, penalty-free. You’ll have more terms to choose from if you go with a traditional, high-yielding share certificate, though.
The credit union requires a minimum $500 deposit. We like that you can open an account online or at a physical branch, as long as you meet eligibility requirements.
Alliant Credit Union
- APY APY = Annual Percentage Yield.
- 4.25%
- Min. deposit to open
- $1,000
Alliant offers high-yield CD terms ranging from three months to five years, including jumbo CDs if you plan to deposit over $75,000. However, if you’re looking for other CD types, it’s best to consider other banks. Only traditional and jumbo CDs are available.
For traditional CDs, there’s a $1,000 minimum deposit. And if you withdraw from your CD early, you can pay up to six months of interest -- depending on your term. You can open an account online or by calling 800-328-1935. But since Alliant is a credit union, you’ll need to become a member, which is fairly simple.
Alliant offers high-yield CD terms ranging from three months to five years, including jumbo CDs if you plan to deposit over $75,000. However, if you’re looking for other CD types, it’s best to consider other banks. Only traditional and jumbo CDs are available.
For traditional CDs, there’s a $1,000 minimum deposit. And if you withdraw from your CD early, you can pay up to six months of interest -- depending on your term. You can open an account online or by calling 800-328-1935. But since Alliant is a credit union, you’ll need to become a member, which is fairly simple.
First Internet Bank of Indiana
- APY APY = Annual Percentage Yield.
- 4.18%
- Min. deposit to open
- $1,000
First Internet Bank of Indiana offers high-yield CD terms ranging from three months up to five years. The rates are competitive, but it has a minimum deposit requirement of $1,000. You can open an account online or via the mobile app, and interest compounds daily and credits monthly. First Internet Bank of Indiana doesn’t offer specialty CDs, however, and its early withdrawal penalty for high-yield CDs is up to 360 days of interest -- which is on par for long-term CDs.
First Internet Bank of Indiana offers high-yield CD terms ranging from three months up to five years. The rates are competitive, but it has a minimum deposit requirement of $1,000. You can open an account online or via the mobile app, and interest compounds daily and credits monthly. First Internet Bank of Indiana doesn’t offer specialty CDs, however, and its early withdrawal penalty for high-yield CDs is up to 360 days of interest -- which is on par for long-term CDs.
EverBank
- APY APY = Annual Percentage Yield.
- 3.95%
- Min. deposit to open
- $1,000
Everbank, formerly TIAA Bank is a solid choice for a good APY if you have a larger deposit. There aren’t any monthly maintenance fees, and it lists several CD types to choose from. EverBank offers a bump rate CD, but it has a $1,500 deposit. The IntraFi CD is also available if you have a deposit over $250,000, and you’ll need a minimum of $10,000 to get started. Keep in mind that these CDs also have specific terms and conditions.
There’s a $1,000 minimum deposit for traditional CDs and a withdrawal penalty that’s equal to one-fourth of the CD term’s total interest. You can open an account online or via the mobile app if a physical branch isn’t nearby.
Average 3-month CD rates
Typically, CDs with terms over one year -- also called long-term CDs -- have higher annual percentage yields, or APYs, than shorter-term CDs. But in today’s rate environment, shorter-term options like six- and nine-month CDs have higher rates than some longer terms, like three-year CDs.
However, the average three-month CD APY is 3.52%, based on the banks we track at CNET. That’s much lower than the average high-yield savings rate of 4.88% APY for the online banks and credit unions we track at CNET.
| National average | Average 3-month CD APYs |
| FDIC-tracked | 1.67% |
| CNET-tracked | 3.52% |
Rates as of Feb. 13, 2024.
What’s a 3-month CD?
A three-month CD is an interest-earning deposit that requires you to lock up your money for a fixed period, or term, of three months. In exchange, you earn a fixed rate on your deposit. Unlike savings accounts, most CDs require you to fund them upfront and don’t allow additional deposits. And if you take out money before the term ends -- in this case, three months -- you’ll typically pay an early withdrawal penalty. This penalty varies by bank but generally costs a few weeks of interest.
After your CD term expires, you can access your money penalty-free. Most banks offer a grace period of 10 days to withdraw your money before it’s automatically rolled into a new CD.
As long as you open a CD at a bank or credit union insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration, your CD funds are protected for up to $250,000 per person, per institution.
How to build a CD ladder with a 3-month CD
Building a CD ladder adds flexibility to your CD investment plan while helping you take advantage of higher rates. Instead of putting your entire deposit into a single CD term, you spread your money across several CD terms with staggered maturity dates. That way, you’ll have access to your money sooner than choosing one long-term CD.
Depending on the current rates when each CD expires, you may roll the funds into a new CD with a different term or choose a new savings option. Some experts recommend a quarterly ladder strategy, starting with four accounts: three-month, six-month, nine-month and 12-month CDs.
Let’s say you start building a CD ladder with these terms, and you deposit $500 in each CD this month. Here’s how it can work with the average CD rates based on the banks we track here at CNET:
| CD term | Amount | APY | Balance available | Balance at maturity |
| 3-month | $500 | 3.52% | May 2024 | $504.34 |
| 6-month | $500 | 4.89% | Aug. 2024 | $512.08 |
| 9-month | $500 | 4.91% | Nov. 2024 | $518.30 |
| 12-month | $500 | 5.05% | Feb. 2025 | $525.25 |
By doing this, you have access to your money every three months, but you’re taking advantage of a 12-month interest rate, which tends to be in the higher range, according to Nia Gillett of Gen Y Planning, a financial planning firm.
When your three-month CD matures, you can roll that balance into a new 12-month CD. You’ll do the same when the other terms mature.
“Once you have this strategy going, every quarter you have a new CD maturing, so it creates at least a 90-day period of liquidity,” said Ayesha Selden, a certified financial planner and franchise owner of Ameriprise Financial Services in Philadelphia.
You can also implement a CD ladder with longer-term CDs.
Other savings options to consider
Other interest-earning savings options can offer more flexibility and better APYs than a three-month CD.
For instance, some of the best high-yield savings accounts earn over 5% APY. However, savings account rates are variable, meaning they fluctuate based on the prime rate. Additionally, these accounts typically don’t come with debit card access, and some HYSAs limit how many transfers or withdrawals you can make each month. If you need to access your money regularly, a high-yield savings account might not provide the accessibility you need.
If you need more checking account features, such as a debit card or ATM access, you may opt for a money market account. Most MMAs now offer over 4% APY, but many of these accounts require a higher deposit or minimum balance. You’ll still be able to make regular contributions to the account and withdraw without paying a penalty, but some banks limit how many debit card purchases, online transfers and check transactions are permitted per statement cycle. Like savings accounts, you don’t lock in a rate, so if rates start dropping, you could earn less than you might with a CD.
Factors to consider before opening a 3-month CD
Three-month CDs are the shortest term some banks offer, but many banks don’t offer them. And even though rates for this term are high, you’ll only earn a fraction of the APY. The APY is for the entire year, so since three-month terms are shorter, you’ll earn less. Unless you have a set goal for locking the money up for a quarter of the year, consider more flexible options with a higher APY.
It’s also worth noting that you’ll still have to pay an early withdrawal penalty if you take money out of the CD before the term ends.
FAQs
You may choose a three-month CD as part of a longer-term strategy, like a CD ladder. This short-term option is also a good way to practice discipline if you’re worried about spending the money since a CD requires you to lock funds away for a set period.
Before opening a CD, have a clear goal in mind so you can best divvy up your savings. You should also make sure you won’t need the money before the term expires to avoid paying an early withdrawal penalty.
When looking for a three-month CD, compare APYs across multiple banks to find the best interest rate. Other factors to keep in mind include early withdrawal fees, minimum deposit requirements and whether you prefer to manage an account online or have nearby physical branches for in-person assistance.
Typically, no. Unless you’re purchasing a CD offered by a brokerage firm, CDs are insured by FDIC-insured banks or NCUA-insured credit unions for up to $250,000 per person, per institution. Any interest compounded is also covered by the insurance, making CD’s a low-risk investment. And since CDs offer a fixed APY, you won’t have to worry about your rate changing over time.
However, if you have to withdraw your funds early, the early withdrawal fee can cut into the interest you’ve earned.
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Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from banks, credit unions and financial companies. We selected the CDs with the highest APY. We also considered minimum deposits and any eligibility requirements.
Banks we reviewed
America First Federal Credit Union, Bethpage, Discover, EverBank, First Internet Bank of Indiana, MYSB Direct, NexBank and Synchrony.
