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The best rate on a 3-month certificate of deposit (CD) is 5.51% APY from TotalDirectBank. To find you the highest 3-month CD rates nationwide, we review CDs from hundreds of banks and credit unions every day. CD terms of 2–4 months are eligible for our 3-month rankings, with minimum deposit requirements of up to $25,000. A 3-month CD can be a useful financial tool if your time horizon is relatively short. Below are the top CD rates available from our partners, followed by the best CD rates that we've found from our research that are available to U.S. customers everywhere.
In the News
The Fed held rates steady for a seventh consecutive time at its June 12 meeting. The federal funds rate is at its highest level since 2001, but Fed officials are projecting one or possibly two rate cuts before the end of the year. CD yields closely follow the fed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years, but once the Fed starts cutting rates, CD rates will fall.
You can find our ranking of the highest CD rates with terms of 2–4 months below. In cases where more than one institution pays the same annual percentage yield, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum deposit, and if still a tie, alphabetically by institution name.
Best 3-Month CD Rates
- TotalDirectBank – 5.51% APY
- INOVA Federal Credit Union – 5.40% APY
- Bask Bank – 5.35% APY
- Dow Credit Union – 5.30% APY
- Merchants Bank of Indiana – 5.25% APY
- Banesco USA – 5.25% APY
- Popular Direct – 5.25% APY
- Merrick Bank – 5.25% APY
- Digital Federal Credit Union – 5.13% APY
- Brilliant Bank – 5.10% APY*
- Beal Bank – 5.05% APY
- Farmers Insurance Federal Credit Union – 5.00% APY
- Financial Partners Credit Union – 5.00% APY
- Financial Resources Federal Credit Union – 4.91% APY
- Princeton Federal Credit Union – 4.87% APY
Details on these top-paying nationally available three-month CDs are provided below, including their minimum required deposits and early withdrawal penalties. For credit union CDs, information on how to easily join each credit union is also provided.
TotalDirectBank – 5.51% APY
- Term (months): 3
- Minimum deposit: $25,000
- Early-withdrawal penalty: 1 month of interest
- Overview: TotalDirectBank is an online-only operation of City National Bank of Florida, established in Miami in 1946.
INOVA Federal Credit Union – 5.40% APY
- Term (months): 4
- Minimum deposit: $200
- Early withdrawal penalty: 3 months of interest
- Overview: Anyone can join INOVA with a $5 donation to the nonprofit Tru Direction or Elkhart River Restoration. INOVA was established in 1942 to serve employees of Miles Laboratory in Elkhart, Indiana.
Bask Bank – 5.35% APY
- Term (months): 3
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: Bask Bank is a division of FDIC-insured Texas Capital Bank, headquartered in Dallas. As an online-only bank, Bask has no physical branches.
Dow Credit Union – 5.30% APY
- Term (months): 3
- Minimum deposit: $500
- Early withdrawal penalty: 3 months of interest
- Overview: Anyone can join Dow Credit Union by making a $10 donation to the Midland Area Community Foundation scholarship fund during the membership application process. The credit union is based out of Midland, Michigan, and was chartered in 1937.
Merchants Bank of Indiana – 5.25% APY
- Term (months): 3
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: FDIC-insured since 1934, Merchants Bank of Indiana operates six branches in the greater Indianapolis area, while serving online customers across the country. It is headquartered in Carmel, Indiana.
Banesco USA – 5.25% APY
- Term (months): 3
- Minimum deposit: $1,500
- Early-withdrawal penalty: 3 months of interest
- Overview: Banesco USA was established in 2006 with offices in Florida and Puerto Rico. It serves customers nationwide through its online banking.
Popular Direct – 5.25% APY
- Term (months): 3
- Minimum deposit: $10,000
- Early-withdrawal penalty: 3 months of interest
- Overview: Popular Direct is the online-only arm of Popular Bank, the U.S. banking subsidiary of Popular Inc., which serves banking customers in the U.S., Puerto Rico, and the Caribbean.
Merrick Bank - 5.25% APY
- Term (months): 3
- Minimum deposit: $25,000
- Early-withdrawal penalty: 3 months of interest
- Overview: While primarily a credit card issuer and consumer finance provider, Merrick Bank also offers online-only certificates of deposit.
Digital Federal Credit Union – 5.13% APY
- Term (months): 3–5 months
- Minimum deposit: $25,000
- Early-withdrawal penalty: 2 months of interest
- Overview: Membership is available to anyone nationwide who joins Reach Out for Schools at a cost of $10 and maintains a $5 balance in a savings account. Digital Federal Credit Union (DCU) was chartered in 1979. Its headquarters are in Massachusetts.
Brilliant Bank – 5.10% APY*
- Term (months): 3
- Minimum deposit: $1,000
- Early withdrawal penalty: Half the interest that would have been earned if held to maturity
- Overview: Brilliant Bank is an online-only division of FDIC-insured Equity Bank, which operates branches in Arkansas, Kansas, Missouri, and Oklahoma.
*Online accounts from Brilliant Bank are not available to residents of Arkansas, Kansas, Missouri, and Oklahoma.
Beal Bank – 5.05% APY
- Term (months): 3
- Minimum deposit: $25,000
- Early withdrawal penalty: The greater of 1% of the amount withdrawn or 50% of the interest that would have been earned on the amount withdrawn
- Overview: Online account opening for both Beal Bank and Beal Bank USA is handled through Better by Beal, and the same rate and term can be obtained with either bank. Beal Bank was founded in 1988 and is headquartered in Plano, Texas. Beal Bank USA, formerly Beal Bank Nevada, dates back to 2004 and is headquartered in Las Vegas.
Farmers Insurance Federal Credit Union – 5.00% APY
- Term (months): 3
- Minimum deposit: $1,000
- Early-withdrawal penalty: Complex formula with a minimum penalty of 3 months' interest
- Overview: Anyone can join Farmers Insurance Federal Credit Union by agreeing to a free membership in the nonprofit American Consumer Council and keeping at least $5 in a savings account. The credit union is based out of Burbank, California, and dates back to 1936.
Financial Partners Credit Union – 5.00% APY
- Term (months): 4
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: Anyone can join Financial Partners if they're a member of the American Consumer Council and if they keep $25 or more in a FPCU savings account. Financial Partners Credit Union was formed in 1937 to serve employees of North American Aviation. It is headquartered in Downey, California.
Financial Resources Federal Credit Union – 4.91% APY
- Term (months): 4
- Minimum deposit: $500
- Early withdrawal penalty: 6 months of interest
- Overview: Anyone can join Financial Resources by signing up for a free membership in the American Consumer Council and holding $10 or more in an FRFCU savings account. Headquartered in Bridgewater, New Jersey, Financial Resources FCU dates back more than a century.
Princeton Federal Credit Union – 4.87% APY
- Term (months): 4
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: Anyone nationwide is eligible to join Princeton FCU by agreeing to a complimentary membership with CrossState Credit Union Association. Princeton FCU was chartered in 1972 by faculty and staff at Princeton University. It is headquartered in Princeton, New Jersey.
Important
The best-paying high-yield savings account today is 5.50% from Poppy Bank and guaranteed for 90 days from the date the account is opened. Be sure to consider the interest rates of 3-month CDs in comparison to high-yield savings accounts. Though traditional savings accounts generally pay minimal interest, high-yield savings accounts can pay rates higher than those of a 3-month CD while not requiring you to give up access to your funds.
Pros and Cons of 3-Month CDs
Extremely safe and predictable
Can help deter spending temptations
Gives you options after just a short commitment
May pay a higher APY than a standard savings account
Withdrawing early will trigger a penalty
May pay a lower APY than high-yield accounts that allow withdrawals
In a short time, you'll need to decide again about what to do with your funds
Pros Explained
- Extremely safe and predictable: CDs opened at FDIC banks and NCUA credit unions are federally insured, protecting up to $250,000 of your deposit in the unlikely event that the institution fails. In addition, since the CD's rate is fixed for the 3-month term, your earnings are completely predictable.
- Can help deter spending temptations: Putting money in a 3-month CD instead of just keeping it in a savings account can be a useful tool for blocking the temptation to spend your savings on an unplanned purchase.
- Gives you options after just a short commitment: You only have to wait three months before you can access your funds again and make a new choice with your money. Perhaps rates have climbed and now you can open another CD with a higher APY. Or maybe you want to use the cash now or keep it in a liquid savings account for a near-term expense.
- May pay a higher APY than a standard savings account: You'll be able to earn more with a 3-month CD than by keeping money in your checking account, and you may be able to outearn your bank's savings account rate as well.
Cons Explained
- Withdrawing early will trigger a penalty: Anytime you cash in a CD before maturity, you'll be hit with an early withdrawal penalty. Each bank and credit union has a stated policy on how they calculate their penalty, with the most typical practice being a number of months of forfeited interest.
- May pay a lower APY than high-yield accounts that allow withdrawals: Though longer-term CDs usually pay more than high-yield savings accounts, short 3-month CDs often do not. So if you can earn as much or more with a savings account, that may be a better option, as it keeps your money accessible.
- In a short time, you'll need to decide again about what to do with your funds: With a 3-month CD, you go through the process of opening the CD and then, in just three months, have to decide all over again where to put your money.
Fast Fact
When asked in June what they would invest in if they had an extra $10,000, 9% of Investopedia readers said they would open a CD, behind individual stocks, ETFs, and stock index funds. That’s a slight dip from April, when 12% said they’d invest extra funds in CDs. While CDs sit below individual stocks as the top response (at 23%), CDs are always a good option for those looking for safer investments.
Compare the Best 3-Month CDs
| Institution | Rate (APY) | Term | Minimum Deposit | Early Withdrawal Penalty |
|---|---|---|---|---|
| TotalDirectBank | 5.51% | 3 months | $25,000 | 1 month of interest |
| INOVA Federal Credit Union | 5.40% | 4 months | $200 | 3 months of interest |
| Bask Bank | 5.35% | 3 months | $1,000 | 3 months of interest |
| Dow Credit Union | 5.30% | 3 months | $500 | 3 months of interest |
| Merchants Bank of Indiana | 5.25% | 3 months | $1,000 | 3 months of interest |
| Banesco USA | 5.25% | 3 months | $1,500 | 3 months of interest |
| Popular Direct | 5.25% | 3 months | $10,000 | 3 months of interest |
| Merrick Bank | 5.25% | 3 months | $25,000 | 3 months of interest |
| Digital Federal Credit Union | 5.13% | 3–5 months | $25,000 | 2 months of interest |
| Brilliant Bank | 5.10% | 3 months | $1,000 | Half the interest that would have been earned if held to maturity |
| Beal Bank | 5.05% | 3 months | $25,000 | The greater of 1% of the amount withdrawn or 50% of the interest that would have been earned on the amount withdrawn |
| Farmers Insurance Federal Credit Union | 5.00% | 3 months | $1,000 | Complex formula with a minimum penalty of 3 months' interest |
| Financial Partners Credit Union | 5.00% | 4 months | $1,000 | 3 months of interest |
| Financial Resources Federal Credit Union | 4.91% | 4 months | $500 | 6 months of interest |
| Princeton Federal Credit Union | 4.87% | 4 months | $1,000 | 3 months of interest |
Alternatives to 3-Month CDs
Savings or Money Market Accounts
Instead of locking up your funds in a 3-month CD, you could just hold them in a liquid savings or money market account. That way you can access the funds if you need them. Just be sure to shop around for a great high-yield rate that matches or beats what you can earn with a 3-month CD.
Also, be aware that the rates paid on savings and money market accounts are variable, meaning the bank can lower them anytime they want. A CD's rate, in contrast, is fixed for the full term, though in the case of a 3-month certificate, your return is not secured for very long.
Longer-Term CDs
Instead of a 3-month CD, you could stretch to a 6-month or 1-year certificate, or an even longer term, depending on how long you feel you can live without your funds. The advantage is that you can almost always find a better rate on slightly longer CDs, since the 3-month term is typically the worst-paying CD duration.
Treasury Bills
Another short-term option you can consider instead of a 3-month CD is a U.S. Treasury bill. T-bills allow you to lend money to the U.S. government for a short, fixed amount of time. Considered one of the safest investments in the world, T-bills offer durations ranging from four weeks to one year.
Frequently Asked Questions
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What Is a 3-Month CD?
A certificate of deposit is a type of bank account that involves an agreement between a financial institution and an individual. The individual agrees to deposit a sum of money and keep it at the institution for a predetermined number of months or years. In exchange, the bank or credit union agrees to pay the account holder a higher interest rate than if they put the funds into a simple savings account.
A 3-month CD is therefore a certificate for which the maturity period or term is roughly 90 days. At most banks and credit unions, a 3-month term is the shortest certificate duration they offer, while some institutions don't offer any CDs shorter than six months.
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What Are the Differences Between CD, Savings, and Money Market Accounts?
Savings accounts, money market accounts, and CDs are collectively called deposit accounts. All are intended as vehicles for holding cash savings at a bank or credit union. Savings accounts and money markets are more similar, while certificates of deposit are somewhat different.
A savings account allows you to withdraw funds at your convenience. The same is true for deposits: You can deposit a lump sum all at once, automate savings deposits on a regular cycle, or sporadically add funds when you have them available.
An account that allows you to deposit and withdraw funds at will is called a liquid account. Money market accounts are another type of liquid account, with the main difference being that money market accounts traditionally include check-writing privileges.
Certificates of deposit are quite a bit different. Because you must deposit a lump sum of funds at the outset and then not touch it until the term expires, they are the opposite of liquid accounts. But what you lose in access to the funds is traded for a higher interest rate, meaning you are compensated for giving up your at-will access.
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Who Benefits From a 3-Month CD the Most?
Theoretically, certificates of deposit are a good vehicle for someone who wants to earn more interest by committing their funds for a short time. But in the case of 3-month CDs, the time period is so brief that the interest rate premium can be quite slight, or even nonexistent. In fact, you can often earn more with a high-yield savings account, which doesn't require you to tie up your funds.
Still, some people may benefit from committing their savings to a CD instead of putting it in a liquid account. That's because making the funds inaccessible can be a benefit for savers who might otherwise be tempted to dip into their savings for an unplanned purchase.
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What Are the Typical Rates for a 3-Month CD?
Interest rates vary widely across the thousands of banks and credit unions that offer 3-month CDs. And rates across all deposit accounts change based on the Federal Reserve's federal funds rate. So it pays to do your homework and shop around.
The FDIC national rate average for 3-month certificates is 1.53% APY. As you can see, our current ranking of the top-paying 3-month CDs far outperforms that average. It's not uncommon to earn three to five times as much—and sometimes more—than the national average when you shop for the best rates and are open to institutions with whom you may not already have a banking relationship.
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How Do I Join One of the Credit Unions on the List?
Credit unions differ from banks in that customers must be members of the credit union to open accounts there. Fortunately, joining a credit union is generally fairly easy to do, and it's often inexpensive or even free.
For the purposes of our nationwide rankings, all included credit unions must offer an avenue for any adult U.S. citizen to become a member regardless of where they live or work. Joining often involves making a small donation to an affiliated nonprofit organization—sometimes donating as little as $5—and keeping a small minimum balance in a member savings account (most typically $5). For some credit unions, joining incurs no fee or donation at all.
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Financial Institutions We Review
We researched and reviewed more than 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision:
1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, Third Federal Savings & Loan, EverBank, TotalDirectBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank
How We Find the Best 3-Month CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD's minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
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Investopedia / Alice Morgan