3 months to more: Get the best CD rates

The best 3-month CD rates: Our 5 top picks*

*APYs are current as of April 11, 2024, and are subject to change. Read our complete methodology here.

The best 3-month CDs of April 2024

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.

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. 

Why 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. 

Why we picked it

While Bank of America’s 3-month CD with a 4.50% 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. 

Why we picked it

In exchange for a much higher 3-month CD rate of 5.25% 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 disbursement.

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.

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:

Frequently asked questions