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Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
The national average APY (Annual Percentage Yield) on a 3-month CD is 0.62% APY. However, some of the best online banks offer up to 5.15% APY for a 3-month CD right now. Here are our recommendations for the best 3-month CDs.
Annual Percentage Yield (APY)
5.15%
Minimum Deposit Amount
$1
Annual Percentage Yield (APY)
5.15%
Minimum Deposit Amount
$1
Ponce Bank 3 Month CD
Details
Annual Percentage Yield (APY)
5.15%
Minimum Deposit Amount
$1
The Best 3-month CD Rates
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 3-month CDs
Ponce Bank 3 Month CD
Annual Percentage Yield (APY)
5.15%
Minimum Deposit Amount
$1
Ponce Bank 3 Month CD
Annual Percentage Yield (APY)
5.15%
Minimum Deposit Amount
$1
Ponce Bank 3 Month CD
Details
Annual Percentage Yield (APY)
5.15%
Minimum Deposit Amount
$1
Newtek Bank 3 Month CD
Annual Percentage Yield (APY)
4.60%
Minimum Deposit Amount
$2,500
Newtek Bank 3 Month CD
Annual Percentage Yield (APY)
4.60%
Minimum Deposit Amount
$2,500
Newtek Bank 3 Month CD
Details
Annual Percentage Yield (APY)
4.60%
Minimum Deposit Amount
$2,500
Alliant 3 Month Certificate
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,000
Alliant 3 Month Certificate
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,000
Alliant 3 Month Certificate
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,000
America First Credit Union 3 Month Certificate
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$500
America First Credit Union 3 Month Certificate
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$500
America First Credit Union 3 Month Certificate
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$500
Popular Direct 3 Month CD
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$10,000
Popular Direct 3 Month CD
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$10,000
On Popular Direct’s website
Popular Direct 3 Month CD
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$10,000
Bank of America 3 Year Fixed Term CD
Annual Percentage Yield (APY)
0.03%
Minimum Deposit Amount
$1,000
Bank of America 3 Year Fixed Term CD
Annual Percentage Yield (APY)
0.03%
Minimum Deposit Amount
$1,000
Bank of America, Member FDIC
Bank of America 3 Year Fixed Term CD
Details
Annual Percentage Yield (APY)
0.03%
Minimum Deposit Amount
$1,000
TIAA Bank Basic 3 Month CD
Annual Percentage Yield (APY)
4.00%
Minimum Deposit Amount
$1,000
TIAA Bank Basic 3 Month CD
Annual Percentage Yield (APY)
4.00%
Minimum Deposit Amount
$1,000
TIAA Bank Basic 3 Month CD
Details
Annual Percentage Yield (APY)
4.00%
Minimum Deposit Amount
$1,000
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 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: 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 FAQs
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.
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.
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. You might consider CD laddering if you don’t want to deposit all your money in a particular CD.
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. Your decision may also depend 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.
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.
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. 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.
Compare our top picks for 3-month CDs
Highest rate, $1 minimum opening deposit
Low minimum opening deposit
Low early withdrawal penalties
Start saving
On Newtek Bank’s site. Newtek Bank, FDIC Insured.
Ponce Bank 3 Month CD, powered by SaveBetter
Why it stands out: Through SaveBetter, you can use one platform to find, fund, and manage multiple high-yield savings accounts and CDs from over 20 banks and credit unions. Currently, the Ponce Bank 3 Month CD is the highest yielding 3-month CD on SaveBetter. That said, there are also other 3-month CDs on SaveBetter that pay more than the national average.
APY for a 3-month term: 5.15% APY
3-month early withdrawal penalty: 90 days of simple interest
What to look out for: 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 SaveBetter, so it may not be the best option if you want to do all your banking with one company.
Newtek Bank 3 Month CD
Why it stands out: Anyone in the US can open a CD online with Newtek Bank. Its 3-month CD stands out for its competitive interest rate.
Newtek Bank also offers business checking and savings accounts, as well as a personal high-yield savings account. You’ll need to sign up for a waitlist for the personal high-yield savings account, though, because it isn’t currently available to new customers.
APY for a 3-month term: 4.60% APY
3-month early withdrawal penalty: 90 days of simple interest
What to look out for: Newtek Bank CDs have a steep minimum opening deposit of $2,500. If you’d like to open a CD with less money upfront, you may prefer one of the other institutions on our list.
Alliant 3 Month Certificate
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: 4.50% 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.
America First Credit Union 3 Month Certificate
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: 4.50% 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.
America First Credit Union Review
Popular Direct 3 Month CD
Why it stands out: Popular Direct pays a competitive rate, and it compounds interest daily.
APY for 5-year CD: 4.50% APY
3-month CD early withdrawal penalty: 89 days of simple interest
What to look out for: You’ll need at least $10,000 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.
Bank of America 3 Month Fixed Term CD
Why it stands out: If you’d like to be part of a large brick-and-mortar financial institution, Bank of America might be an appealing option. A Bank of America 3 Month Fixed Term CD offers a competitive interest rate right now.
APY for a 3-month term: 4.00% APY
3-month early withdrawal penalty: 90 days of interest
What to look out for: Bank of America Fixed Term CDs range from 28 days to 10 years, but not all pay competitive rates. Its 3-month, 4-month, and 5-month fixed-rate CD terms have high rates, but the rest pay 0.03% APY.
Bank of America also has Featured CDs which pay 0.05% to 4.50% APY. Featured CDs are available in 7-month, 10-month, 13-month, 25-month, and 27-month terms and will turn into a Fixed Term CD for the same term after maturity.
TIAA Bank Basic 3 Month CD
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: 4.00% 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.
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.
- Chase 3 Month CD: 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: Citi’s 3-month CD pays a lower interest rate than our top picks.
- First Internet Bank of Indiana CD: Our top picks offer more competitive interest rates right now.
- Bethpage Federal Credit Union Certificate Account: Bethpage pays a lower interest rate on its 3-month term than our top picks.
- Synchrony CD: 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: Ally has a variety of CDs and lets you open an account with $0, but our top picks pay higher interest rates.
- Discover CD: Discover has a variety of CDs and pays good interest rates on most terms, but you’ll need a minimum of $2,500.
- Quorum Federal Credit Union Term Savings: Quorum Federal Credit Union’s 3-month term isn’t as competitive as some of its other accounts.
- Signature Federal Credit Union Certificate: 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: Navy Federal Credit Union CDs pay solid interest rates, but our top picks have even higher rates right now.
- Consumers Credit Union CD: 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 Standard Fixed Rate CD: Wells Fargo CDs require a minimum of $2,500 and pay lower interest rates than our top picks.
- BrioDirect High-Yield CD: BrioDirect CDs have a low minimum opening deposit, but the 3-month CD pays a low interest rate.
- Nationwide CD: Nationwide offers a solid interest rate on its 18-month CD, but its 3-month CD isn’t as strong.
- BMO Harris CD: BMO Harris 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.
Here is each company’s score:
SaveBetter has an A rating because it has received 23 complaints on the BBB website. TIAA has a B rating because it has failed to respond to one customer complaint on the BBB website.
Bank of America and TIAA have been involved in recent public settlements.
In 2022, the Consumer Financial Protection Bureau charged Bank of America for freezing customers’ accounts because its automatic fraud filter incorrectly detected fraud on accounts. The CFPB claimed that the bank made it difficult for customers to un-freeze their accounts.
In 2020, the Department of Justice charged Bank of America when it accused the bank of unfairly denying home loans to adults with disabilities, even though they qualified for loans. Bank of America paid around $300,000 total to people who were refused loans.
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.
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