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 fromour researchthat are available to U.S. customers everywhere. Open a New Account × The offers that appear in this table are from partnerships from which we receive compensation. For more details, see our full advertiser disclosure. Institution Apy Min. To Earn Apy Highlights Open a New Account × The offers that appear in this table are from partnerships from which Dotdash receives compensation. The Fedheld rates steady for a seventh consecutive timeat its June 12meeting. 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 thefed 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 shortestterm, then the CD requiring a smallerminimum deposit, and if still a tie, alphabetically by institution name. 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 eachcredit union is also provided. 19 Best CD Rates for June 2024: Up to 6.00% APY *Online accounts from Brilliant Bank are not available to residents of Arkansas, Kansas, Missouri, and Oklahoma. 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 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 Cons 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 When asked in late April what they would invest in if they had an extra $10,000,12% of Investopedia readerssaid 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. 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. 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. 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. 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. 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. 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. 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. 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. 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, , 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 Best High-Yield Savings Accounts for June 2024—Up to 5.55% Best Banks for Savings Accounts 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. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Federal Reserve. "Federal Reserve Issues FOMC Statement." Federal Reserve. "Summary of Economic Projections." TotalDirectBank. "About Us." Merrick Bank. "About Merrick Bank." Bask Bank. "We're Bask Bank, and We Can Help You make the Most of Your Money." Dow Credit Union. "About." Merchants Bank of Indiana. "About Merchants Bancorp." Banesco USA. "About Us." Popular Direct. "Better Banking. Your Way." Digital Federal Credit Union. "Our Story." Brilliant Bank. "About Brilliant Bank." Beal Bank USA. "About Beal Bank USA." Beal Bank. "About Us." Farmers Insurance Federal Credit Union. "About Us." Financial Partners Credit Union. "Our Story." Financial Resources Federal Credit Union. "Get to Know Us." Princeton Federal Credit Union. "History and Mission." Princeton Federal Credit Union. "Location and Hours." Quontic Bank. "About." FDIC. "National Rates and Rate Caps." Related Terms What Is a Certificate of Deposit (CD)? Pros and Cons A certificate of deposit (CD) is a type of savings account offered by banks and credit unions. It pays a fixed interest rate for a set period of time. more Add-On CDs: Meaning, Pros and Cons, Example Add-on CDs are specialty CDs that allow you to add more funds to your CD after the initial deposit. Learn whether an add-on or standard CD is a better choice for you. more No-Penalty Certificate of Deposit (CD): What It Is, How It Works A no-penalty certificate of deposit, also known as a liquid CD, allows investors to make early withdrawals without paying a penalty. But it also pays lower interest rates. more What Is the American Consumer Council? Learn how membership in the American Consumer Council can provide access to the benefits of credit union membership. more Jumbo Certificate of Deposit (CD): What It Is, Pros and Cons A jumbo certificate of deposit (CD) is a type of savings account with higher balance requirements than a traditional CD. It generally pays a higher interest rate. more Types of Specialty Certificates of Deposit (CDs) Explained Specialty CDs offer features such as the ability to add to the principal or avoid early withdrawal fees. Some options offer more flexibility but may have lower rates than standard CDs. moreIn the News
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
Important
Pros and Cons of 3-Month CDs
Pros Explained
Cons Explained
Fast Fact
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 Merrick Bank 5.40% 3 months $25,000 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 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 Quontic Bank 4.85% 3 months $500 All earned interest Alternatives to 3-Month CDs
Savings or Money Market Accounts
Longer-Term CDs
Treasury Bills
Frequently Asked Questions
What Is a 3-Month CD?
What Are the Differences Between CD, Savings, and Money Market Accounts?
Who Benefits From a 3-Month CD the Most?
What Are the Typical Rates for a 3-Month CD?
How Do I Join One of the Credit Unions on the List?
Financial Institutions We Review
How We Find the Best 3-Month CD Rates
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See Also
How Does a CD Account Work?