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
- Merrick Bank - 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
- 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
- Quontic Bank - 4.85% 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.
Merrick Bank - 5.40% 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.
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.
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.
Quontic Bank - 4.85% APY
- Term (months): 3
- Minimum deposit: $500
- Early withdrawal penalty: All earned interest
- Overview: Quontic is an online-only bank established in 2005 and based in New York.
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
Extremely safe and predictable
- Can help deter spending temptations
Can help deter spending temptations
- Gives you options after just a short commitment
Gives you options after just a short commitment
- May pay a higher APY than a standard savings account
May pay a higher APY than a standard savings account
- May pay a lower APY than high-yield accounts that allow withdrawals
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
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 late April what they would invest in if they had an extra $10,000, 12% of Googlawi readers said they would open a CD. Back in December and January, 11% and 9% of readers (respectively) said they’d invest extra funds in CDs, with that share dipping even further to 8% in March. While CDs sit below individual stocks as the top response (at 19%), CDs are always a good option for those looking for safer investments.