For a short-term investment, a 3-month CD offers investors a way to earn higher returns than they might with a standard savings account. You’ll earn a fixed interest rate over a short period of time, making it attractive for those who are risk-averse but still want to avoid the fluctuations of the stock market. We’ve done the work to find the best CD rates for 3-month term lengths.
Best 3-month CD rates of June 15, 2024
*APYs are current as of June 15, 2024 and are subject to change. Read our complete methodology here.
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The best 3-month CD rates: editors' picks*
| Institution | APY | Minimum deposit |
|---|---|---|
| Alliant Credit Union | 4.25% | $1,000 |
| First Internet Bank | 4.14% | $1,000 |
| EverBank | 3.95% | $1,000 |
| Bank of America | 4.00% | $1,000 |
| Merrick Bank | 5.30% | $25,000 |
| The best 3-month CD rates | ||
|---|---|---|
| Alliant Credit Union | ||
| APY | 4.25% | |
| Minimum deposit | $1,000 | |
| First Internet Bank | ||
| APY | 4.14% | |
| Minimum deposit | $1,000 | |
| EverBank | ||
| APY | 3.95% | |
| Minimum deposit | $1,000 | |
| Bank of America | ||
| APY | 4.00% | |
| Minimum deposit | $1,000 | |
| Merrick Bank | ||
| APY | 5.30% | |
| Minimum deposit | $25,000 | |
Alliant Credit Union
| Key numbers | |
|---|---|
| 3-month APY | 4.25% |
| Minimum opening deposit | $1,000 |
| Early withdrawal penalty | Number of days the certificate is open, up to 90 days’ interest |
at Alliant
Founded in 1935, Alliant Credit Union is a not-for-profit credit union offering accounts—such as savings accounts and share certificates—and lending products like auto loans and mortgages.Membership eligibility is extended to current or former employees of Alliant’s partner organizations, or residents or workers in a Chicago-area community. You can also become a member by becoming an Alliant Credit Union Foundation digital inclusion advocate. Learn more: Read our Alliant Credit Union review
View offerat Alliant
Why we picked it
When looking into an Alliant Credit Union CD, you'll notice it lists a dividend rate next to its APY. This is because credit unions operate a little differently than banks as they're member-owned, rather than shareholder-controlled. What banks typically call interest, credit unions term as dividends. Alliant offers a competitive 4.25% APY for its 3-month CD, whether it's a standard or a jumbo CD.
While banks receive FDIC protection, deposit accounts with credit unions are federally insured by the NCUA for up to $250,000.
First Internet Bank
| Key numbers | |
|---|---|
| 3-month APY | 4.14% |
| Minimum opening deposit | $1,000 |
| Early withdrawal penalty | 180 days’ interest |
at Bankrate
First Internet Bank was established in 1999, operating online with headquarters in Indiana. The bank provides savings accounts, money market accounts, and CDs, among other products. Learn more: Read our First Internet Bank review
View offerat Bankrate
Why we picked it
We like First Internet Bank because of how quick it is to get started. To get a CD, you must open an account, which takes five minutes as it is done entirely online. This process includes verifying your identity, setting up your account, and making your opening deposit.
You can toggle a feature to send an electronic reminder once your CD is reaching maturity. If you choose to do nothing, it will renew automatically and you'll have 10 calendar days to take the funds out penalty-free. Otherwise, you can wait until it matures again if you don't need the funds yet.
EverBank
| Key numbers | |
|---|---|
| 3-month APY | 3.95% |
| Minimum opening deposit | $1,000 |
| Early withdrawal penalty | 180 days’ interest |
Read review
Founded in 1998, EverBank, formerly known as TIAA Bank, is a Jacksonville-based bank offering CDs, high-yield savings accounts, checking accounts, and more. Learn more: Read our EverBank review
Read reviewWhy we picked it
A 3-month CD with Everbank offers a 3.95% APY and requires a minimum opening deposit of $1,000. To fund your account, you can do an online transfer, mail in a check, or do a wire transfer. Account holders are notified 20 days prior to maturity, incur no maintenance fees, and have the option to withdraw interest upon opening. However, this interest withdrawal feature tends to offer limited benefits for shorter-term CDs like this one.
Bank of America
| 3-month APY | 4.00% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | The greater of all interest earned or seven days’ interest on the amount withdrawn |
Headquartered in Charlotte, North Carolina, Bank of America (NYSE: BAC) has 69 million clients in more than 35 countries. Its personal finance products include checking, savings, CDs, and individual retirement accounts (IRAs). Learn more: Read our Bank of America review
Why we picked it
While Bank of America’s 3-month CD with a 4.00% APY is an attractive rate, we’re most excited about the perks that come with investing larger amounts across all your accounts. With Preferred Rewards, unlocked once you reach a combined $20,000 3-month average daily balance, you gain access to better rates across its full suite of products, from banking to credit cards, mortgages, loans, and investments.
Merrick Bank
| 3-month APY | 5.30% |
| Minimum Deposit | $25,000 |
| Early withdrawal penalty | 90 days of interest |
Headquartered in South Jordan, Utah, Merrick Bank was founded in 1997. It offers credit cards, recreation loans, CDs, personal loans, and merchant acquisition services.
Why we picked it
In exchange for a much higher 3-month CD rate of 5.30% APY, you'll need to deposit at least $25,000 into your Merrick Bank CD. This is ideal for serious savers or investors who've got a large chunk of money to invest into a secure, short-term savings vehicle with a great yield. If you're looking for both growth and liquidity, Merrick allows for monthly interest disbursem*nt.
Pros & cons of a 3-month CD
Investing in a 3-month CD can be a sound choice in your portfolio, although it does have some disadvantages.
Pros
- Duration: If you need access to your money and don’t want to pay a penalty for withdrawing your money early, 90 days is a relatively short period of time compared to other CD options.
- Low risk: A CD is considered a low-risk investment as it’s insured by the FDIC or NCUA up to $250,000.
- Better rates than most savings accounts: Typically, a 3-month CD will offer a better rate than a standard savings account, although it’s usually on par or slightly less than a high-yield savings account rate.
Cons
- Lower yields compared to alternatives: In an environment where interest rates are low, short-term CDs often have lower APYs than long-term CDs.
- Modest earnings: Because of the short time your CD’s interest has to compound, you’re not accumulating much interest, especially if you’re only investing a lower principal amount. For example, 5% on $1,000 is just $12.27 earned by month three.
- Rollover inconvenience: A 3-month CD requires more active management because of such frequent maturity dates. While it has an element of "set it and forget it" in that once your CD matures, it'll roll over automatically, investors who want more control may find themselves reevaluating their investment strategy regularly to align with changing interest rates or personal financial goals.
How to choose the best 3-month CD
Consider the following when choosing where to invest in a 3-month CD:
- Minimum deposit requirements: Most minimum deposits, especially for 3-month CDs, are $1,000. However, some banks, such as Merrick Bank, require a minimum of $25,000.
- Early withdrawal penalties: For a 3-month CD, you’re likely to lose out on all the interest earned in three months if you withdraw your money early. While this is pretty standard, some banks charge less while others charge more.
- Automatic renewal policies: When a CD matures, it usually will roll over into another CD automatically with the same term length. Does the bank or credit union offer a grace period to withdraw funds after maturity without penalty?
- Understand your protection: If you’re investing money at a bank, you’re covered by FDIC. If you put that money into a CD at a credit union, your money is protected by NCUA. Both offer up to $250,000 in protection. If you have more than that to invest, what options do you have? You may need to spread your money across several institutions or consider an alternative as discussed below.
Alternatives to 3-month CDs
A 3-month CD is a safe, short-term investment. However, there are alternative options to consider with similar safety and better liquidity:
- Savings account: If there is any chance you might need your funds in the next three months, parking it in a savings account is a better option. Most allow you to take withdrawals at any time and are backed by FDIC or NCUA. However, you may have a lower interest rate than a CD, even a 3-month one.
- High-yield savings account: A high-yield savings account is like a supercharged savings account. It usually offers a much higher interest rate compared to a standard savings account and allows you to still have the flexibility to access your money when you need it.
- MMAs: An MMA is a mashup of a checking and savings account. It offers higher interest rates than a standard savings account, and often comes with check writing privileges and a debit card, although you may have a limit on the number of transactions per month.
Pro tip
Money market accounts (MMAs) are similar to savings accounts but often have added features, such as the ability to write checks. Not having to wait for an ACH transfer to process can be valuable when trying to cover an emergency expense or make a big purchase.
Stephanie Colestock, Fortune contributor
Best CD rates for more terms
Recognize that certain banks with higher rates may not be available nationwide. We prioritize easily accessible options. Although local or regional banks may offer better rates, their availability might be limited.
More CDs to consider:
- Best CD rates overall
- Best 1-year CD rates
- Best 3-year CD rates
- Best 5-year CD rates
Our methodology
Fortune Recommends has partnered with industry leader Curinos to track the top CD rates from around the country. Our editors' picks are curated by our team of personal finance experts after evaluating not only the APY of the products but also the minimum deposit requirement and ease of opening new accounts. Rates are updated frequently but are subject to change.
Learn more: read about our banking methodology.
Frequently asked questions
Is it worth doing a 3-month CD?
What are your financial goals? With a 3-month CD you get a fixed return in a short period, all with very little risk. However, it has much lower yields compared to a long-term investment, although the trade-off might mean higher risk.
How much would a 3-month CD pay?
The amount you'll earn on a 3-month CD depends on the initial deposit and the APY of the CD. However, if you were to invest $10,000 into a 3-month CD with 4.20% APY, you'll earn a total of $103.39 by month three.
What is the highest paying 3-month CD?
The highest-paying CD can vary by many factors, including minimum deposit amount and geographic location. Our list above is updated regularly with the current highest CD rates.
About the author
Katherine Haanis a freelance contributor toFortune Recommendsanda former financial advisor turned small business coach. An international bestselling author, Katherine holds an MBA and is a former staff writer for Fit Small Business. She has served as the president of the Waverly JAYCEES, and as chairperson of the board for two years. She is a regular contributor to Forbes and maintains a popular lifestyle and travel blog. Katherine has written eight novels and frequently shares her expertise in various publications.
