Banking » Compare Banks » Best 3-Month CD Rates: Comparison
Advertiser Disclosure This website is an independent, advertising-supported comparison service. The product offers that appear on this site are from companies from which this website receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This website does not include all card companies or all card offers available in the marketplace. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval. This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impacts any of the editorial content on The Smart Investor. While we work hard to provide accurate and up to date information that we think you will find relevant, The Smart Investor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Learn more about how we review products and read our advertiser disclosure for how we make money. All products are presented without warranty.

Best 3-Month CD Rates: Comparison

The top CDs for 3 years offer 4%-5% APY. Here's a 3 year rates comparison, how much you can earn and what are the early withdrawal penalty
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Table Of Content

CDs are a fixed term savings product. They are considered a safe investment as there is no risk that you will lose your initial investment and you can receive a specific rate of return or APY on the amount in your CD.

The three month in a three month CD refers to the term. This means that if you take out a three month CD, your CD will mature in three months. At this point, you can withdraw some or all of the account funds or renew the CD for another three month term.

Compare 3-Month CD Rates

 While every bank, credit union, and other banking services offers different rates, 3-month CD rates are signficantly lower compared to 12 and 24 months.

Also, many institutions don't offer three months' CDs, so the choices are quite limited.  So, if you’re looking for the highest three month CD rates, you may want to look at online banks and credit unions, who tend to offer the best three month CD rates.

Financial Institution
3 Months CD APY
Minimum Deposit
2.00% – 2.00%
$1,000
0.05%
$500
2.50% – 2.51%
$2,500
2.00%
$2,500
3.00%
$0
5.30%
$1,000
5.25%
$10,000
5.42%
$25,000
4.14%
$1,000
5.10%
$1,000
4.25%
$1,000
5.30%
$1,000
5.40%
$1,000
5.38%
$1,000
2.75% – 2.80%
$1,000
4.00%
$1,000
2.25%
$50
5.25%
$25,000

How Much You Can Earn With 3 Month CD?

A key factor in how much your CD pays is the type of financial institution. Generally speaking, traditional banks tend to offer lower rates, since they need to cover the overhead of maintaining their own branch and ATM networks, but there are some exceptions.

Here are your expected earnings (before tax) if you lock your money for 3 months:

Financial Institution
3 Months CD APY
Interest Earned
Chase Bank
2.00%
$867
CitiBank
0.05%
$742
Wells Fargo
2.50% – 2.51%
$123 – $252
Discover Bank
2.00%
$494
BMO Harris
0.05%
$12
Ally Bank
3.00%
$494
Charles Schwab
5.40%
$1,186
Vanguard
5.38%
$1,253
Fidelity
5.30%
$1,240

Sign Up for

Our Newsletter

Join our community for the latest attractive savings rate changes ,expert insights, and member-only perks

What Are the Main Limitations of a 3 Month CD?

No financial product is perfect and there are several potential drawbacks that you need to consider before opening one. These include:

  • Mediocre Rates: CDs are available in a variety of terms from one month to ten years, but most financial institutions tier their APYs with the highest rates being offered with the longer terms. This means that a three month CD may not offer the best CD rates.
  • Early Withdrawal Penalties: Although three months is a short time, if you need access to the cash in an emergency situation or there is a limited time offer to get a far better return, you’ll incur an early withdrawal penalty. Early withdrawal penalties apply if you take out some or all of the money in your CD before it matures. The penalty is usually calculated as a number of days of interest, so depending on how long you’ve held the CD you could end up losing any interest you’ve accrued.
Financial Institution
Early Withdrawal Penalties For 3 Months CD APY
Chase Bank
All interest earned
CitiBank
All interest earned
Wells Fargo
1 month of interest
Discover Bank
All interest earned
BMO Harris
All interest earned
Ally Bank
60 days of interest

When to Consider a Three Month CD?

There are a number of circumstances when it is worth considering a three month CD. These include:

  • You are concerned about rising interest rates: If interest rates are continually rising, you may worry about tying your money up for a long time. With a three month CD, you can earn more than you would with a typical savings account, but you’ll have the money back to reinvest in a higher paying product.
  • You’re building a CD ladder: If you’re considering building a CD ladder, three month CDs can be a great vehicle towards longer term products. You can purchase various three month CDs over a few months and then reinvest the funds when each one matures to eventually end up with a CD maturing every month or year, depending on your strategy.
  • You have a need for the funds in three months: If you’re planning a project, but will not need the funds for several months, a three month CD can be a great way to maximize your return. However, you’ll need to check the rates on savings products carefully to ensure that you’re getting the best 3 month CD rates.

When You May Want to Skip a Three Month CD?

Of course, there are circumstances when a three month CD may not be the best choice for you.

  • You don’t need the money in the short term: If the rates are fairly stable in the marketplace and you are certain that you won’t need the funds in the short term, you may be better with a longer term CD. While this may tie up your money for longer, you are likely to be able to access higher rates.
  • The rates aren’t as high as savings accounts: Another reason to skip a three month CD is if you can find a savings account offering the same or higher APYs. In this scenario, you won’t have the tie in restrictions, but can still get a decent return on your savings fund.

3 Month CD vs Savings Account

We’ve touched on savings accounts as an alternative to a three month CD, but there are some crucial differences between these products. Generally, savings accounts have no withdrawal restrictions, so if you find you need the money, you can simply withdraw it from your account.

However, whether a savings account is a better option than a three month CD will depend on the specific product. For example, if a savings account is offering a lower than average rate and there is a monthly maintenance fee on the account, then it is a no brainer about whether you should open a three month CD.

On the other hand, if you’re looking at a high yield savings account, you may be able to get a better rate than a three month CD, particularly if you’re using a traditional bank. This means that you can earn more on your balance and you’re not tied into a specific term, you can withdraw your money as and when you like.

Financial Institution
3 Months CD APY
Savings Account APY
Chase Bank
2.00%
0.01%
CitiBank
0.05%
4.45%
Wells Fargo
2.50% – 2.51%
0.26% – 2.51%
Discover Bank
2.00%
4.25%
BMO Harris
0.05%
0.01%
Ally Bank
3.00%
4.25%

FAQs

You can get about 2-3% when you lock your money for three months.  The interest earned on a 3-month CD can vary depending on the bank or financial institution and the current interest rate environment.

Typically, the interest rate on a 3-month CD is lower than the rate on a longer-term CD, such as a 5-year CD. It is best to check with your bank or financial institution for the current interest rate on a 3-month CD.

A 3 month CD, or certificate of deposit, is a type of savings account offered by banks and credit unions. It is a fixed-term investment, meaning that the money deposited into the account cannot be withdrawn for a specific period of time, in this case, 3 months.

When the 3-month term is up, the depositor has the option to withdraw the money, including the interest earned, or to renew the CD for another term. If the depositor chooses to withdraw the money before the term is up, they will typically be subject to a penalty fee.

 

It is difficult to predict exactly how high 3 month CD rates will go. As of May 2024, the rates suppose to increase even more in the future due to FED rate increase, but predicting future interest rates is always uncertain.

 

It depends on your investment goals and risk tolerance. A 3-month CD typically offers a lower interest rate than longer-term CDs, but it also has a shorter term and less risk.

Also, some savings account offer a higher rates than 3 months CDs, so it worth to check it before locking your money.

How We Picked The Best 3-Month CD Rates: Methodology

The Smart Investor team conducted an extensive review of banks and credit unions to identify the best 3-month CD (Certificate of Deposit) rates available. We considered key factors essential for CDs, focusing on four main categories:

  1. Interest Rates and Terms (50%): We evaluated the interest rates offered on 3-month CDs, as well as any terms and conditions associated with the account. Banks offering higher interest rates and favorable terms, such as low minimum deposit requirements and penalties for early withdrawal, received higher ratings in this category.

  2. Account Features (20%): This category assessed the features and benefits offered by each 3-month CD, such as the ability to automatically renew the CD at maturity, options for interest payouts (e.g., monthly, quarterly, or at maturity), and whether the CD is eligible for promotional rates. CDs with additional features or flexibility earned higher scores.

  3. Customer Experience (20%): We closely examined the ease of opening a 3-month CD, communication with customer service representatives, the usability of online banking platforms (tested by our team), and the availability of support channels. Banks with streamlined processes, responsive customer service, and user-friendly online interfaces received higher ratings.

  4. Financial Stability and Reputation (10%): Our team analyzed each bank's financial stability and reputation, considering factors such as customer satisfaction ratings, JD Power scores, TrustPilot reviews, and the bank's Better Business Bureau (BBB) profile. Banks with strong financial standings and positive reputations received higher ratings.

In each of these categories, we assigned weights to various features and qualities to ensure a comprehensive evaluation of each 3-month CD

Compare CD Rates

Picture of Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Search
Best CD Rates
Top Offers From Our Partners

UpgradeLogo

Savings Rate: 5.21% APY
Minimum Deposit:
$0
 
CIT-Bank-Logo
Savings Rate: 5.00% APY
Minimum Deposit:
$5,000
Quontic bank logo
Savings Rate: 4.50% APY
Minimum Deposit:
$100
 
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
Top Offers From Our Partners

PNC bank logo

Promotion:
Up to $400 Open a new, select Virtual Wallet product and receive $500/$2,000/$5,000 or more in qualifying monthly direct deposits within 60 days to earn a $100/$200/$400 bonus.
Subject to state availability
PNC Virtual Wallet ® is available in AL, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KY, MD, MI, NC, NJ, NY, NM, OH, PA, SC, TX, VA, WI, and WV. Virtual Wallet ® is offered in the state of MO with the exception of the Greater Kansas City area. Product availability may vary based on where you open your account and the Zip code of your primary address.

Chase_logo

Promotion:
$300 New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account and make direct deposits totaling $500 or more within 90 days of coupon enrollment.. Expired on 7/24/2024
Chase Overdraft Assist
With Chase Overdraft AssistSM, you won’t be charged an Overdraft Fee if you’re overdrawn by $50 or less at the end of the business day OR if you’re overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day

UpgradeLogo

Fees:
No monthly fees No monthly fees and no overdraft fees. Plus get reimbursed for ATM fees with an active account 
Rewards:
Up to 2% cash back Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases 

Promotion:
$300 Use Promo Code “AXOS300” for a $300 bonus when you apply for a Rewards Checking account
Up to 3.30% APY
to get the maximum rate (up to $50,000) you’ll need monthly direct deposits of $1,500 (0.40% APY), 10 transaction on your debit card (+0.30% APY), average daily balance of $2,500 on Axos Invest Managed Portfolio (+1.00% APY), average daily balance of $2,500 on Axos Invest Self Directed Trading Account(+1.00% APY) and make full monthly payment on loans (mortgage, personal and auto) with Axos account (+0.60% APY).

penfed personal loan

APY on Daily Balances
0.15% APY on daily balances of less than $20,000 or 0.35% APY on daily balances of $20,000 up to $50,000
Get paid up to 2 days early
Set up direct deposits and get your paycheck up to 2 days early

Promotion:
Up to $4,000 New customers may earn up to $4,000 when they open an eligible HSBC Premier checking account from January 8, 2024 through March 27, 2024 and complete qualifying activities:

• Receive a cash bonus of $1,500 when you deposit or invest $100,000 – $199,999.99

• Receive a cash bonus of $2,000 when you deposit or invest $200,000 – $299,999.99

• Receive a cash bonus of $2,500 when you deposit or invest $300,000 – 499,999.99

• Receive a cash bonus of $3,500 when you deposit or invest $500,000+

• Earn an extra $500 when you set up recurring monthly Direct Deposits totaling at least $5,000 for 3 months
Wealth Products & Advice
Get access to wealth products, insights and advice from an HSBC Financial Professional through HSBC Securities (USA) Inc
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.

#1 In Banking

Our Newsletter

Get expert advice, insider tips, fresh banking promotions and rate changes on savings accounts and CDs

Banking Promotions & Latest Rate Updates

Our Banking Newsletter

Sign up for our newsletter and gain access to expert advice,
insider knowledge, and exclusive updates