If you're looking for a very short-term CD, a 3-month CD might be the right choice for you. You won't find 3-month CDs as easily as 6-month or 1-year CDs, as not every financial institution carries them.
To see how 3-month CDs compare to CDs with other term lengths, check out our overall best CD rates.
The national average bank interest rate for 3-month CDs is 1.43% APY, but all of our top picks for the best 3-month CD rates offer significantly higher interest rates.
The best 3-month CD rate is 4.40% APY from Brilliant Bank. Popular Direct also offers 4.40% APY on a 3-month CD, but it has a higher minimum opening deposit.
At Business Insider, we monitor over 160 national banks and credit unions to find the best 3-month CDs. The Federal Reserve held interest rates steady at its March meeting. That said, the next Fed meeting in May could impact CD rates more significantly. We check CD rates daily to account for changes and update our guide with more competitive options if available.
4.30%
$1
- Accounts pay high interest rates
- No fees
- Open accounts you might not be able access outside of Raisin
- Minimum opening requirements are often lower than if you opened an account directly with a bank
- No checking accounts or business accounts
- Only way to deposit or withdraw money is by connecting to an external account
- Can’t connect to third-party budgeting apps
Raisin is a great option if your ultimate goal is to earn the best savings account, money market account, and CD rates out there. It's a marketplace that connects you with accounts you might not be able to access otherwise, including ones at community-driven and minority-owned institutions.
Western Alliance Bank 3 Month CD, powered by Raisin- Raisin is an online marketplace that partners with banks to offer competitive rates
- Offers high-yield savings accounts, money market accounts, CDs, and no-penalty CDs
- Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
- Interest is compounded daily and paid monthly
- Deposits are federally insured by the FDIC or NCUA
Best 3-Month CD Rates
- Brilliant Bank 3 Month CD: 4.40% APY
- Popular Direct 3 Month CD: 4.40% APY
- America First Credit Union 3 Month Certificate: 4.35% APY
- Bask Bank 3 Month CD: 4.50% APY
- Ivy Bank 3 Month CD: 4.35% APY
- Western Alliance Bank 3 Month CD, powered by Raisin: 4.30% APY
- Dow Credit Union 3 Month Simple CD: 4.30% APY
- American Bank 3 Month CD: 4.25% APY
- Securityplus Federal Credit Union 3 Month Share Certificate: 4.25% APY
3-Month CD Reviews
The best 3-month CDs offer strong interest rates with low minimum opening deposits. Ideally, the bank will also help you avoid bank fees by not charging monthly maintenance fees and having low early withdrawal penalties.
Our top picks for CDs are protected by FDIC or NCUA insurance. If you're worried about what happens if your bank fails, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Here are the best 3-month CDs as picked by Business Insider editors.
Brilliant Bank 3 Month CD
Brilliant Bank is an online-only division of Equity Bank. It offers good rates on its 3-month CD.
Brilliant Bank's mobile app has poor ratings. Since Brilliant Bank is an online-only bank, you'll probably be using its mobile app frequently, so this could be a problem. Additionally, Brilliant Bank doesn't offer many CDs. If you're planning on opening a CD ladder using CDs from the same bank, Brilliant Bank might not be a good choice for you.
APY for a 3-month term: 4.40% APY
3-month early withdrawal penalty: half of the interest the CD has yet to earn
Popular Direct 3 Month CD
Popular Direct, the online division of Popular Bank, pays high CD rates overall, with especially high CD rates for its 3-month CD. It also compounds interest daily, which helps grow your money more quickly than monthly or quarterly compounding.
You need at least $10,000 to open a CD with this online bank. It also charges relatively high early withdrawal penalties.
APY for a 3-month term: 4.40% APY
3-month CD early withdrawal penalty: 89 days of simple interest
America First Credit Union 3 Month Certificate
America First Credit Union offers a strong rate for a 3-month CD. The America First Credit Union Certificate may be worthwhile if you're searching for a financial institution with branches in Arizona, Idaho, Nevada, and Utah. America First Credit Union has a variety of terms with high interest rates.
Credit unions require membership to open bank accounts. You may join America First Credit Union if you live, work, worship, or volunteer in an Arizona, Idaho, Nevada, New Mexico or Utah county on this list. If you have a family member or spouse that's a current member, you're also eligible.
To become a member, you must also open an America First Credit Union Share Savings Account.
APY for a 3-month term: 4.35% APY
3-month early withdrawal penalty: 60 days of interest
America First Credit Union Review
Bask Bank 3 Month CD
Bask Bank offers multiple short-term CDs with good rates, so this bank might be appealing if you're interested in opening multiple CDs at the same bank.
If you're looking to open a CD with a term over two years, you might prefer another institution. Bask Bank doesn't offer long-term CDs.
APY for 3-month CD: 4.50% APY
3-month CD early withdrawal penalty: 30 days simple interest
Ivy Bank 3 Month CD
The Ivy Bank 3 Month CD offers high interest rates. It also has a standard minimum opening deposit, at $1,000.
This CD has high early withdrawal penalties. If you withdraw money from the CD before the end of the term, you'll lose all the interest you've accrued on that balance. If you think there's a chance you'll need to withdraw money early, you might prefer one of our other picks.
APY for a 3-month term: 4.35%APY
3-month early withdrawal penalty: All of the interest accrued on the amount withdrawn
Western Alliance Bank 3 Month CD, powered by Raisin
The Western Alliance Bank 3 Month CD, powered by Raisin offers a strong rate. Raisin is a platform that lets you open high-yield savings accounts and CDs from multiple financial institutions. It also offers several strong no-penalty CDs, all offered by different banks and credit unions. Many of its CDs, including this one, have a low minimum opening deposit of $1.
Raisin is also offering a cash bonus to new customers. You can get a $250 savings account bonus if you open a new, eligible account with Raisin using the code GET250 and deposit money into the account for the first time between March 3 and March 31.
Raisin only offers savings accounts, money market accounts, and CDs. If you're interested in opening a checking account and a CD at the same bank, you might want to look elsewhere.
APY for a 3-month term: 4.30% APY
3-month early withdrawal penalty: 90 days of simple interest
Dow Credit Union 3 Month Simple CD
The Dow Credit Union Simple CD has a good rate for its 3-month term. The Simple CDs also have a low minimum opening deposit.
The easiest way to become a member of Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current credit union member.
APY for a 3-month term: 4.30% APY
3-month early withdrawal penalty: 45 days of interest
American Bank 3 Month CD
American Bank has a strong rate for its 3-month CD. It also has a low minimum opening deposit of $500, which might be useful if you're planning on opening a CD with a smaller amount of money.
American Bank is based in Pennsylvania, but it also serves people from throughout the U.S. with its online services. Keep in mind, though, that customer support hours are in Eastern time and typically only during traditional banking hours. That means you won't be able to call a representative on weekday nights, Saturday after noon, or any time on Sunday.
APY for a 3-month CD: 4.25% APY
3-month CD early withdrawal penalty: 30 days of interest
Securityplus Federal Credit Union 3 Month Share Certificate
Securityplus Federal Credit Union has a strong rate on several of its share certificates, including its 3-month share certificate. It's also a Black-led credit union, which is a type of minority depository institution.
You'll need to meet membership eligibility requirements to join Securityplus Federal Credit Union. Luckily, it's pretty easy to join Securityplus; all you need to do is join the American Consumer Council, which is free. You can also join by living in Baltimore City, working for a select employer group, or having a family member who's already a part of the credit union.
APY for a 3-month term: 4.25% APY
3-month early withdrawal penalty: 3 months of interest
Bank Trustworthiness and BBB Ratings
We've compared each company's Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices.
Here is each company's score:
| Institution | BBB rating |
| Brilliant Bank | B- (rating of parent bank, Equity Bank) |
| Popular Direct | A+ |
| America First Credit Union | A+ |
| Bask Bank | B |
| Ivy Bank | A- (rating of parent bank, Cambridge Savings Bank) |
| Raisin | A+ |
| Dow Credit Union | C+ |
| American Bank | A+ |
| Securityplus Federal Credit Union | A+ |
Brilliant Bank doesn't have a BBB rating. Its parent bank, Equity Bank, has a B- rating from the BBB because it hasn't responded to a few complaints.
Bask Bank has a B rating from the BBB due to the number of customer complaints against the company.
Ivy Bank's parent bank, Cambridge Savings Bank, has an A- rating from the BBB because it hasn't responded to a few complaints filed against the business.
Dow Credit Union has a C+ rating from the BBB because it hasn't responded to one complaint.
Popular has been involved in one recent controversy. In 2023, the Federal Reserve Board fined Popular Direct's parent bank, Popular Bank, $2.3 million. The Federal Reserve Board said the fine was because Popular Bank processed six Paycheck Protection Program loans that had significant signs of potential fraud.
What Influences 3-Month CD Rates
Market Fluctuations
If you choose to open or renew a CD, pay attention to market fluctuations, which could influence the competitiveness of CD rates.
CD rates and other savings account interest rates often fluctuate when the Federal Reserve adjusts the federal funds rate. When the Fed raises the federal funds rate, CD rates will often rise. Conversely, CD rates will often fall when the Fed cuts the federal funds rate.
Short-Term Economic Outlook
While 3-month CDs currently offer higher rates than long-term CDs, like 3-year or 5-year terms, this isn't usual behavior for these accounts.
Short-term CDs are more competitive than long-term CDs because of economic uncertainty. That said, the Fed cut interest rates for the first time in four years in September 2024 and has cut rates two more times since in 2024. More rate cuts are anticipated in 2025, which will cause national CD rates to decline overall and for short-term CDs to eventually get less competitive than long-term CDs.
Special Promotions
Banks are currently offering more promotional CDs with short terms. These offers may be specifically for new customers or for existing customers who have eligible bank accounts.
One requirement that's often listed for these promotions is a "new money" specification. Each bank has its own definition for what qualifies as "new money," but generally, this means you must deposit funds from an external bank account.
Should You Open a 3-Month CD?
A 3-month CD is a strong option for short-term savings goals. It could also be beneficial for building a CD ladder because you'll be able to take advantage of high short-term CD rates.
The main disadvantage to opening a 3-month CD is that you need to be more mindful of existing economic conditions. Since short-term CD rates fluctuate more often than long-term ones, you'll have to assess renewal options more frequently and see if your bank's offerings are still among the top rates.
3-Month CD FAQs
What is the highest-paying 3-month CD rate?
The highest 3-month CD rate is available at Brilliant Bank. It offers 4.40% APY for a 3-month CD. Popular Direct also offers 4.40% APY on a 3-month CD.
Why are 3-month CD rates often lower than longer terms?
Banks usually have higher interest rates on longer-term term CDs because you're keeping money at a bank for longer. However, because of economic uncertainty, short-term CDs actually have higher rates than long-term CDs right now. It's anticipated that the Federal Reserve will cut rates soon, but in the meantime, banks have maintained high rates on short-term CDs to still have competitive offerings.
Are 3-month CDs a good "starter" CD?
If it's your first time opening a CD, a 3-month term could be a good choice if it suits your financial goals. However, if you can save a little longer, the best 6-month CD rates are a little higher right now.
Do the best 3-month CD rates change very frequently?
The best 3-month CD rates change frequently. Our top picks often change several times per month because we review CD rates daily. The CD forecast for 2025 also indicates that CD rates are expected to drop more in 2025, so you should expect the top rates to also change in the future.
When is a 3-month CD a smart choice?
Experts recommend choosing a CD term that fits your savings goals. Hence, a 3-month CD could be a smart choice if you want to receive a fixed interest rate for only three months. It could also be a good option if you want to build a CD ladder.
Why You Should Trust Us: Expert Advice on Choosing the Best 3-Month CD
To learn more about what makes a good CD and how to choose the best fit, Business Insider consulted four experts:
- Tania Brown, CFP® professional, vice president of coaching strategy at OfColor
- Roger Ma, CFP® professional and author of "Work Your Money, Not Your Life"
- Sophia Acevedo, banking editor, Business Insider
- Mykail James, MBA, CFEI, BoujieBudgets.com
Here's what they had to say about CDs. (Some text may be lightly edited for clarity.)
How do you choose a bank or credit union?
"You want to make sure it's FDIC insured," says Brown. For people using credit unions, the insurance comes from the NCUA. Next, she advises, consider the banking experience you want to have. "Do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you're okay online. Do you write checks? Do you not write checks?" Think through how your experience with that institution would be before you make that decision.
Acevedo recommends factoring in account costs when you're envisioning your experience with a bank or credit union. "For example," she says, "some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month." Or if she was searching for an interest-earning bank account, she would make sure it pays a higher interest rate than the average bank account.
How long should you leave money in a CD?
"I would think about when you need the money and then compare that with what the prevailing CD rates are," says Ma. Then, he continues, consider what makes sense not only from a financial perspective, but from your own personal timing perspective. If the rates are highest on a 2-year CD but you need the money in six months, don't sacrifice your plans for interest.
Your plans are important to the CD term you choose, says James. "I believe in having a plan for whatever the funds are," she says. "If it's supposed to be a house fund, and you want to wait for another two years to buy a house, that's what you should be thinking of when you want to have this money."
Why You Should Trust Us: How We Selected the Best 3-Month CDs
Business Insider's personal finance team is editorially independent, which means our business team does not decide how we cover products and what we write about. Our editorial standards page covers how we review and choose products in greater detail.
For our best 3-month CD rates guide, we researched over 160 banks and credit unions to find the best 3-month CD rates. We reviewed each institution to find the most well-rounded banking options.
We use our bank account rating methodology to assess every bank account. We rate bank products on a scale of one to five stars. A one-star rating indicates that a bank account requires significant improvement, while an account with a five-star rating is seen as a superior choice.
We analyze specific features for different types of bank accounts. For CDs, we compare the minimum opening deposits, early withdrawal penalties, interest rates, and miscellaneous features. We also evaluate each bank's overall banking experience by assessing customer support availability, mobile app ratings, ethics, and security. Each feature is scored from 0 to 5, although some features have a larger weight percentage than others. We add up these scores and calculate the weighted average to determine the account's total rating.
