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A 3-month CD may be ideal for those with short-term cash needs. It may also be suited for those who do not want to take on the risk that interest rates could rise in the near term.
Below you will find the best 3-month CDs and we’ve also included a couple that have 4-month terms. If you’re considering a CD ladder, using a few of the unusual term lengths will help your liquidity so they’re highly recommended.
No-penalty | 3-Month | 6-Month | 12-Month | 2-year | 3-year | 4-year | 5-year
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The Best 3-Month CD Rates
1. The State Exchange Bank
Certificate of Deposit
Member FDIC
APY
5.45%
Term
4 Months
Min. Deposit
$1
Our Rating: 4.8
2. Western Alliance Bank
Certificate of Deposit
Member FDIC
APY
5.51%
Term
3 Months
Min. Deposit
$1
Our Rating: 4.7
3. Signature Federal Credit Union
Certificate of Deposit
Member FDIC
APY
5.55%
Term
3 Months
Min. Deposit
$500
Our Rating: 4.7
4. Ponce Bank
Certificate of Deposit
Member FDIC
APY
5.40%
Term
3 Months
Min. Deposit
$1
Our Rating: 4.6
5. Mission Valley Bank (No Penalty)
Certificate of Deposit
Member FDIC
APY
5.35%
Term
3 Months
Min. Deposit
$1
Our Rating: 4.6
6. Dow Credit Union
Certificate of Deposit
Member FDIC
APY
5.65%
Term
3 Months
Min. Deposit
$500
Our Rating: 4.5
7. Ponce Bank (No Penalty)
Certificate of Deposit
Member FDIC
APY
5.30%
Term
4 Months
Min. Deposit
$1
Our Rating: 4.5
8. Teachers Federal Credit Union
Certificate of Deposit
Member FDIC
APY
4.50%
Term
3 Months
Min. Deposit
$1,000
Our Rating: 4.2
Highest 3-Month CD Rates by APY
After reviewing more than 100 short-term CD rates, these were the five best rates we could find.
| Bank | Minimum Deposit | Annual Percentage Yield |
| TotalDirectBank | $25,000 | 5.66% |
| Bayer Heritage FCU | $100 | 5.65% |
| Dow Credit Union | $500 | 5.65% |
| BECU | $500 | 5.60% |
| Signature FCU | $500 | 5.55% |
How We Chose the Best 3-Month CDs
When looking at banks and credit unions that offer 3-month CDs, there were two primary factors taken into account to determine which ones made our list, and which ones did not.
- Interest Rate (APY) – The biggest selling point of a short-term CD is the interest rate. You’ll find all of the rates on our list in the top 5% of all 3-month CDs nationwide including the absolute best rates we could find regardless of any other CD features.
- Minimum Deposit Requirement – When looking at the best interest rates, some banks require jumbo-size deposits in order to secure the best APY. We’ve avoided any bank that requires a large deposit barrier.
We would also normally consider the early withdrawal penalty when looking for the best CDs, however, because the term is so short, the penalty is nearly the same for every CD listed. Every bank above is also FDIC insured up to the $250,000 per depositor maximum.
Banks we included in our review are as follows: Affirm, Alaska USA Federal Credit Union, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Credit Human Federal Credit Union, Current, Delta Community Credit Union, Discover Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GO2bank, GreenState Credit Union, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, mph.Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Ponce Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, Signature Federal Credit Union, SoFi, State Employees’ Credit Union of North Carolina, State Exchange Bank, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Teachers Federal Credit Union, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo, Western Alliance Bank and Zynlo Bank.
When Should I Open A 3-Month CD?
The best three-month CD rates are usually a little bit higher than the best savings account interest rates you can find. The difference isn’t very large but it can mean hundreds of dollars in interest if you have a lot of cash to deposit into a CD.
When choosing between a short-term CD and a savings account, it really boils down to whether or not you know the CD will reach maturity. Two points to consider:
- Liquidity – It’s only a term of three months but your money will be locked up for the entire time. If you’re opening a three-month CD knowing there’s a chance you may have to close it early, a savings account would be a wiser option. The early withdrawal penalty on a short-term CD is almost always all of the interest making a savings account wiser.
- Interest Rates – The higher the rate, the greater the return, and the best three-month CDs on our list above have stronger APYs than savings accounts. 50-100 basis points, even in the short term can mean the difference in hundreds of dollars in interest earned.
Frequently Asked Questions (FAQ)
When is the best time to open a 3-month CD?
Short-term CDs are one of the most “risk-free” investments available. Always FDIC insured, the maturity date is fast approaching so in a high-rate or low-rate environment, it’s always a good idea to park cash into a short-term CD.
Can I build a CD ladder with a 3-month CD?
Absolutely. Just as you would with a group of annual CDs (one year through five years), you can build a shorter CD ladder with CDs ranging from three months to 12 months.
The idea behind a short-term CD ladder is that a portion of your funds will become accessible every three months if needed. First, open four CDs of an equal dollar amount in terms of 3,6,9, and 12 months. As each CD matures, roll each over into new 12-month CDs.
This strategy will mean that every three months, one of your CDs matures and you can choose to roll it over again into another 12-month CD or withdraw the funds.
Final Thought on the Best 3-Month CDs
When you’re looking at the interest rates available on a 3-month CD, you’ll notice their all pretty similar. If you’re looking to deposit $10,000 (for example), the difference between a 5.55% rate and a 5.35% rate is only $5 in interest over three months.
Don’t let the choices paralyze you for a difference of a couple of bucks. After you know a 3-month CD is right for you, all of the options on our list will suit you well.
Editor’s Note: Make sure to check your local banks for the best 3-month CD rates as well. Sometimes the national brands can’t match what your bank down the street can provide.