The Federal Reserve’s year-plus long effort to quash inflation by raising short term rates has resulted in three-month CD yields jumping to levels that would have seemed unimaginable at the start of the decade.
Deciding which one to pick, though, can take work. That’s why we examined roughly 170 three-month CDs, taking into account more than 45 data points for each, to find the best three-month CDs for you.
Annual Percentage Yields (APYs) and account details are accurate as of June 27, 2024.
Best 3-month CD rates
- Fidelity certificates of deposit.
- Charles Schwab certificates of deposit.
- Alliant Credit Union share certificates.
- TotalDirect Bank certificates of deposit.
- EverBank certificates of deposit.
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 140 CDs from 84+ financial institutions reviewed.
- 4 levels of fact checking.
- 50+ data points analyzed.
USA TODAY Blueprint may earn a commission from this advertiser.
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Discover® Certificates of Deposit
APY
Rates as of 03/14/2024
2.00% to 4.70%
Minimum deposit
$2,500
Terms
3-month to 10-year terms
On Discover's Website
APY
Rates as of 03/14/2024
2.00% to 4.70%
Minimum deposit
$2,500
Terms
3-month to 10-year terms
Best 3-month CD rates of June 2024
Fidelity certificates of deposit
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 3 month
5.45%
Minimum deposit requirement
What should you know
Fidelity’s three-month CD scores so well because it offers a robust 5.45% APY. Your CD also comes with the standard $250,000 in FDIC deposit insurance.You’ll need to jump through some hoops to get that rate, though. As an investment company, Fidelity offers brokered CDs, which are CDs issued by banks but solely for Fidelity’s brokerage customers. That means you’ll need to sign up for a brokerage account with Fidelity.You can get a whole CD for a minimum of $1,000 or buy CD fractions in increments of $100. Moreover, unlike a bank-issued CD, you’ll only receive simple interest rather than compounding interest.There’s no fee for ending your CD early. However, you may get back less than you put in since you’d be selling your CD on the secondary market. However, the risk of needing the cash before your CD matures is smaller with such a short term-length.
Pros and cons
Pros
- High yield.
- No monthly service fee or early withdrawal charge.
- Deposit insurance up to $250,000.
Cons
- Trading fees may apply.
- It may lose value if you want to sell early.
Charles Schwab certificates of deposit
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 3 month
5.51%
up to the rate listed
Minimum deposit requirement
$1,000
What should you know
Like Fidelity, Charles Schwab offers brokerage CDs. The upside is that you can nab a three-month CD that currently pays up to 5.51% APY, which is dramatically higher than the average CD of that length. You could have bowled a banker over with a feather just a few years ago if you told them three-month CDs would pay that yield today. You’ll also enjoy FDIC deposit insurance up to $250,000 per account per holder.Still, you must be aware of the tradeoffs. You’ll have to open a Schwab account to purchase the CD, you can only buy in increments of $1,000 and you’ll earn simple, rather than compounding interest. (That stings less in such short-term CDs, though.)If you do decide to sell your CD early, you must do so on the secondary market. While you won’t pay an early withdrawal fee, you may end up with less than you initially put in.
Pros and cons
Pros
- High yields.
- Excellent digital customer experience.
- No typical CD fees.
Cons
- Brokerage fees may apply.
- May lose value if sold before its maturity date.
TotalDirect Bank certificates of deposit
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 3 month
5.51%
Minimum deposit requirement
$25,000
What should you know
TotalDirect Bank, the online-only subsidiary of the City National Bank of Florida, offers a sky-high interest rate of 5.51% APY on its three-month CD. While that’s not as high as Fidelity or Schwab, you don’t need to open a brokerage account to get it. And the interest compounds daily.Still, there are some hurdles to overcome. Ironically, you can’t open up an account if you reside in Florida, or a few other U.S. territories. Perhaps more importantly, there is a $25,000 minimum balance requirement, meaning this isn’t an option for either snowbirds or young savers.
Pros and cons
Pros
- Attractive yield.
- Low early withdrawal penalty of 30 days’ interest.
- Interest may be paid out monthly.
Cons
- $25,000 minimum balance requirement.
- Not available to Florida residents.
EverBank certificates of deposit
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 3 month
3.95%
Minimum deposit requirement
$1,000
What should you know
TIAA Bank offers a hassle-free basic three-month CD option that pays a good yield of 3.95%, with a manageable $1,000 opening deposit requirement. No need to open a brokerage account, join a credit union or fork over a pile of cash (unless you want to). Meanwhile, the bank offers a 20-day advanced notice to remind you that your CD is soon to mature. If you do nothing, it’ll automatically renew.That could be a problem if you want the money sooner, since there is an early withdrawal fee (22 days of simple interest). More importantly, though, the bank’s yield, while solid, is not the highest on the market.
Pros and cons
Pros
- Solid yield.
- A+ grade from the Better Business Bureau (BBB).
- Highly-rated mobile app.
Cons
- Not the highest yield available.
- Branches are only in Florida.
Compare the best 3-month CDs
| INSTITUTION | STAR RATING | 3-MONTH APY | MIN. DEPOSIT |
|---|---|---|---|
Fidelity | 5 | 5.45% | $100 to $1,000 |
Charles Schwab | 4.93 | 5.51% | $1,000 |
Alliant Credit Union | 4.4 | 4.25% | $1,000 |
TotalDirect Bank | 4.33 | 5.51% | $25,000 |
EverBank (formerly TIAA Bank) | 4.15 | 3.95% | $1,000 |
Methodology
APY 60%
The main reason for opening a CD is to earn money without risking your money.
Thanks to coverage from the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA), CDs are considered as one of the safest investments you can make. Your deposits are insured for up to $250,000 per depositor, per insured institution, per account ownership type.
Just because your money is safe, however, doesn’t mean that you should pass up a great rate. We strongly considered APY in our calculations to determine the best three-month CDs.
Customer service 10%
If you have a question or if something goes awry with a large pot of your money, you want to be able to reach your CD provider. We valued more highly institutions that have customer service available by phone, email and chatting.
Digital experience 10%
We rewarded institutions that had high app ratings on the Google Play Store and the Apple App Store. You want an app that’s in charge of letting you interact with your money to work well.
Minimum deposit requirement 8%
If you want to get a CD to boost your savings, you shouldn’t have to break the bank.
We think deposit vehicles should be affordable and, to that point, considered deposit requirements are in our calculations. This is because saving money in a CD isn’t a priority for everyone. Buying things for your family and contributing to a 401(k) retirement plan likely take precedence. So if you do want a CD, the minimum amount required shouldn’t be astronomical.
Compound interest schedule 6%
The faster your CD compounds, the more interest you’ll earn.
For example, if you invest $10,000 into a five-year CD that earns a compounding 5% interest rate, you’ll earn $2,840. If that same CD compounded annually, you’d earn $77 less.
Since three-month CDs are short-term by nature, however, compounding interest mattered less; we’d prefer a much higher rate that only paid simple interest to a lower-yielding option with a daily compounding interest schedule.
Availability 3%
It doesn’t make sense to include a CD that has limited availability. For example, a bank that operates in only one state or a credit union that limits membership to individuals in one type of profession.
Institutions with national availability earned more points towards a higher rank on this list.
Available terms 3%
Options are always nice. Even if you know you want a three-month CD now, you may decide to switch it up and get a six-month term when it matures. Or you may want multiple CDs with different terms now.
Rather than opening another account with another intuition, it’d be simpler to stay at the same place, which is why we rewarded CD providers that had a range of CD terms.
Why some banks weren’t chosen
Some of the largest banks in the nation didn’t make this list. The first reason for this is that many of them don’t offer three-month CDs.
The most common CDs terms range from six to 60 months. Terms that are shorter or longer aren’t exceedingly rare, but may require you to do some searching.
The second reason is that because large banks are, in fact, big, they already have plenty of deposits and don’t need to offer the best rates. Smaller institutions that aren’t top of mind for most Americans tend to offer great rates in order to make a splash and attract depositors.
Choosing the best 3-month CD rate
You can open a CD at almost any bank, but it literally pays to find CDs with high interest rates. Shop around at credit unions, banks and other financial institutions. Rates will vary and your go-to bank may not offer the best APY.
For example, here’s what you would earn by investing $10,000 into three-month CDs with different interest rates (all of which compound monthly).
| APY | INTEREST EARNED AT MATURITY |
|---|---|
5% | $126 |
4% | $100 |
3% | $75 |
Ideally, you should be comfortable locking up your money for three months, but if there’s a reason you may need to access the money earlier, make sure you consider early withdrawal penalties, which vary by account and term.
If you’re feeling tentative about using a traditional CD, which typically doesn’t allow you to change the principal or the interest rate, check out the different types of CDs:
- Bump-up CDs. You can request that the bank increase your CD APY once during the term of an add-on CD. The original interest rate is typically lower than traditional CD rates, so, once rates rise overall and you request the increase, you’ll be catching up.
- Step-up CDs. Like bump-up CDs, the rate on this deposit can rise. But step-up CD rates increase automatically. As such, they’re rather rare.
- No-penalty CDs. Also called liquid CDs, these allow you to withdraw part or all of your CD principal without an early withdrawal fee. In exchange for the flexibility, they also typically have a lower yield than traditional CDs.
- Add-on CDs. In an add-on CD, you can increase your principal CD amount without needing to close the CD and open another (potentially losing a high interest rate). You can’t make withdrawals without penalty and you can’t change the rate, but their yields are generally on par with traditional CDs.
Here are the CD rates from some of the most well-known banks:
- Bank of America CD rates.
- Capital One 360 CD rates.
- Chase Bank CD rates.
- Citibank CD rates.
How to open a 3-month CD
The first step in opening a three-month CD is choosing a CD provider.
Depending on the institution, you may be able to do so online, through the mobile app, over the phone or in person at a branch.If you’re not already a current customer, you’ll need to apply. In most cases, you’ll need to provide the following:
- Government-issued identification. This can be a driver’s license, passport, birth certificate or Social Security card.
- Personal information. This includes your Social Security number, birth date, address and contact information.
- A signature. You’ll need to agree to the terms and conditions of the account, which outlines the relationship between you and the bank. If you’re not applying in person, you’ll likely give an electronic signature or, after confirming your identity on the phone, give official verbal agreement.
Once you have an account, you’ll confirm which CD term you desire and choose how and when you want to receive your interest payments.
Generally, you can opt to receive interest as regular disbursem*nts throughout the term or all at once when your CD matures. Note that short-term CDs (including three-month CDs) don’t always offer this type of option, sometimes only allowing you to receive interest at maturity.
However long your CD term is, opting to wait will increase your earnings since the interest will compound.
Next, you’ll fund your CD. If you’re not planning to hand over cash or a check, you’ll need to link to another account for a transfer. This could be an internal account (one at the same bank as the CD) or an external one.
For external account linking, you’ll need the routing and account number of the account you want to link.
However you fund the CD, you’ll need to deposit all the cash in one swoop. Traditional CDs only allow one initial deposit. After that, you can’t add any more money; although you could open another CD. Keep in mind though that you’ll have to meet any required minimum deposit for each CD.
Are short-term CD rates rising?
Short-term CD rates are rising. In fact, the national average rate for a three-month CD has risen more than a thousand percent (0.72 percentage points) in one year and we’re still in a rising-rate environment.
The huge jump is partially because, prior to 2020, there was an extended period of low rates.
Your yield is influenced by market conditions including the actions of the Federal Reserve, the nation’s central bank, who cuts and raises short-term borrowing costs in an effort to keep the economy stable, buffering hard times and preventing bubbles.
The Fed kept the national rates depressed after the Great Recession to encourage borrowing and enliven the economy.
When the pandemic hit in early 2020, inflation soared. Prices increased dramatically and the Fed jumped in, pumping up interest rates. It’s hiked rates ten times since March 2022 to deflate the situation.
Higher interest rates make almost everything more expensive, decreasing the demand for products and services; puncturing inflation. And while higher interest rates are bad news for borrowers, they’re great for savers.
Although interest rate increases have slowed this year, they haven’t stopped. Jerome Powell, chair of the Federal Reserve, stated that there’s still work to be done to curb inflation. That means that CD rates will likely continue to rise, at least for the time being.
As of June 26th, the current national high for a 3-month CD is 5.39% according to Curinos data.
Learn more with our CD rates forecast.
How does a 3-month CD fit into your financial plan?
The value of a three-month CD depends on your personal circ*mstances. In general, a three-month CD can be beneficial when it has an interest rate higher than what you’re currently earning in savings.
“Short-term CDs are a good place to park cash that you won’t need to access for a few months,”said Rachael Burns, CFP at True Worth in Folsom, Calif. “They generally earn more interest than a checking or savings account, and don’t put your principal at risk like other investments do.”
To determine if a three-month term is long enough for you, you’ll need to weigh different factors, including:
- Current CD rates.
- Savings goals and timelines.
- Minimum deposit requirements.
- Early withdrawal penalties.
- Liquidity needs.
“For example, if you have a specific goal in mind, like putting a down payment on a home, a short-term CD is a good place to keep the money while you’re waiting,” said Burns.
On the other hand, it may not make sense to invest in a 3-month CD with a rate that’s on par with your savings account. If you end up needing to make a withdrawal from your CD, any earnings as a result of a higher interest rate could be eaten up by early withdrawal penalties. The added flexibility of the savings account likely makes it a more attractive option in this case.
Other CD terms to consider
Usually defined by a maturity date less than 12 months, short-term CDs make sense in certain situations, such as when you want to invest for a short-term goal: Maybe an upcoming vacation, a wedding or another big purchase.
But if you have a savings goal that’s further in the future or you know you won’t need to access your deposit within the next couple of years, consider a medium- or long-term CD.
Medium-term CDs have terms running from 13 to 23 months. Long-term CDs have terms 24 months and over.
Here are the best rates on some of the most popular CD terms:
- Best 6-month CD rates.
- Best 1-year CD rates.
- Best 5-year CD rates.
If you’re undecided on which terms to invest in, consider CD laddering.
This investment strategy involves staggering CD maturity dates — by investing in CDs with staggered terms all at once — and reinvesting them as they mature. With this strategy, you can take advantage of higher long-term CD rates without locking up your full deposit for several years at a time.
Frequently asked questions (FAQs)
CD laddering is a way to benefit from the typically higher interest rates associated with longer-term CDs without losing access to all of your deposits for several years.
Rather than putting all of your money into one long-term CD, you can split it up and invest in several CDs with varying terms. When each CD matures, you reinvest your deposit and earnings using the longest-term CD in your ladder. As a result, a portion of your CD portfolio matures on a consistent basis.
For example, you could set up a CD ladder with $15,000 by doing the following:
- Initial deposits: Invest $5,000 each into a one-, two-, and three-year CD.
- Year one: When the one-year CD matures, reinvest it in a three-year CD.
- Year two: When the two-year CD matures, reinvest it in a three-year CD.
- Year three: When the three-year CD matures, reinvest it in a three-year CD.
An equal portion of your $15,000 initial investment matures every year and all of your investment is earning a relatively high-yield in an insured account.
Short-term CDs are best for people who want to earn more interest than they are with their savings without taking on extra risk. More specifically, short-term CDs are best for those who are saving money toward a specific goal that will occur within the next year.
For example, if you have savings set aside for a car down payment that you’re going to take in six months, a short-term CD may be a smart place to put that cash.
Neither a short-term nor long-term CD is better in every situation. Instead, the best option depends on your unique situation.
If you’re saving for a specific purpose, want to earn decent interest and you know you’ll need the money soon, a short-term CD is the better choice. On the other hand, a long-term CD may earn more interest; you just have to lock up your money for a longer period of time.
It depends. Short-term CD terms are worth it if you can earn a favorable interest rate (something higher than what your savings account is earning) and you can afford to lose access to your money for the length of the term.
For example, if you already have money earmarked in your savings account for an expense that’s coming up in a few months and you can earn a higher interest rate, a short-term CD is probably worth it.
If you’re not sure when you’ll need to access the money, a slightly higher interest rate on a short-term CD may not be worth it.
