What's the interest rate on a 3-month CD?

Interest rates on 3-month CDs range widely, but as of Sept. 16, the national average rate for CDs with this term length is 1.55%.

Is it worth doing a 3-month CD?

A 3-month CD could be worth it if you're willing to commit to keeping your funds in the account for the full term and lock in an interest rate. However, there are savings accounts with higher rates than many 3-month CDs offer, so you might be able to find a better rate. Just keep in mind that savings account APYs generally are not guaranteed and might go down before those three months are up.

Where can I get 5% interest on my money?

With interest rates falling slightly, you might not find a 3-month CD with a 5% interest rate. But Bask Bank offers a 3-month CD with a [info-gbr-rate institution="bask-bank" product="3 Month CD"] APY. However, you'll need a minimum deposit of $1,000.

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Best 3-Month CD Rates for October 2024 I Up to 4.90% APY

October 7, 2024

8 min Read

Written by Karen Doyle

Edited by Elizabeth Constantineau

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As interest rates have risen over the past couple of years, CDs have become a more attractive investment. When you purchase a certificate of deposit, you get a guaranteed rate of interest for a specified period of time.

The advantage is that you know exactly how much your money will earn, and you can choose how long you want to keep the money in the CD. The downside is that if rates go up, you might pay a penalty if you want to take your money out and move it somewhere else.

Banks and Credit Unions With the Best 3-Month CD Rates

In times of interest rate volatility, a short-term CD may make the most sense. Here are some of the best 3-month CD rates available now:

Bask Bank: APY
Popular Direct: APY
SchoolsFirst Federal Credit Union: – APY
Ally Bank: APY
First Internet Bank of Indiana: APY
EverBank: APY
Alliant Credit Union: APY

Details on the Best 3-Month CD Rates

Here’s what you need to know about the best 3-month CD rates and the banks that offer them.

Bask Bank

APY:
Minimum deposits: $1,000

Bask Bank is an online-only bank that offers attractive rates for many savings products, including CDs. CD terms range from three to 24 months with APYs topping out at .

Popular Direct

APY:
Minimum deposit: $10,000

Popular Direct is an online-only bank. It offers CD terms up to 60 months. Popular Direct offers savings products only — no checking accounts — through Popular Bank.

SchoolsFirst Federal Credit Union

APY: –
Minimum deposit: $500

SchoolsFirst Federal Credit Union offers different APYs for different balance tiers, which is somewhat uncommon for a CD. Balances under $20,000 earn you the minimum APY, but a deposit of $250,000 earns you a rate of APY. You need to be a SchoolsFirst Federal Credit Union member in order to buy a CD. Terms are available up to 60 months.

Ally Bank

APY:
Minimum deposit: None

Ally Bank offers a 10-day best rate guarantee, so if the interest rate goes up within 10 days of when you open your CD account, Ally Bank will give you a higher rate if you deposit your money into your CD account during that period. CD terms with Ally are available up to 60 months.

First Internet Bank of Indiana

APY:
Minimum deposit: $1,000

Interest is compounded monthly on CDs with First Internet Bank of Indiana. It offers terms up to 60 months.

EverBank

APY:
Minimum deposit: $1,000

EverBank offers a range of terms up to five years and alerts you 20 days before your CD matures.

Alliant Credit Union

APY:
Minimum deposit: $1,000

Alliant Credit Union offers a range of share certificate terms, ranging from three to 60 months. You’ll need to join the credit union before you can take advantage of these rates.

How To Choose the Best 3-Month CD Rate

Choosing the right CD is more complicated than just picking the one with the highest interest rate — though that is a significant factor. You should also consider the minimum deposit, any early withdrawal penalties and whether the financial institution is FDIC insured.

There are a few things to be aware of before you open a new account. In most cases, you will pay a penalty if you take your money out before the CD matures. The penalty is usually at least three months’ worth of interest, so if you take money out of your 3-month CD before the end of three months, you’ll actually end up losing money — so make sure you can keep the money tucked away for the full three months.

Some of the institutions on this list are credit unions, which refer to their certificates of deposit as share certificates. To open a share certificate account at a credit union, you need to be a member of the credit union.

Typically, you cannot add money to a CD account. If you want to save additional funds, you need to open another account.

Other Ways To Save

Three-month CDs are a good compromise between interest earnings and accessibility to your money. However, there might be times when you don’t want to lock up your money for even that long. These alternatives give you instant access when you need it, and they could get you a higher rate.

High-Yield Savings Account

High-yield savings accounts pay higher interest than standard savings accounts, and the rates are often higher than short-term CD rates as well. TAB Bank, for example, pays APY, with no minimum opening balance and no monthly fees.

Money Market Account

A money market account is a savings account that usually comes with a debit card and allows you to write a limited number of checks each month. Money market accounts, like CDs, typically pay higher interest than standard savings accounts, and they often have a minimum opening deposit. But you don’t have to wait three months to withdraw your money or add funds to your account.

Takeaway

A CD is a good place to park your money if you know you won’t need it for a certain period of time and if you’re looking for a guaranteed rate with no risk. Financial institutions that offer CDs are typically insured — by the Federal Deposit Insurance Corp. in the case of banks, and by the National Credit Union Administration in the case of credit unions — so you can be sure that your money is safe.

If you’re going to put your money in the bank and commit to leaving it there for three months, it makes sense to find the bank or credit union that’s offering the best interest rate.

FAQ

What's the interest rate on a 3-month CD?
- Interest rates on 3-month CDs range widely, but as of Sept. 16, the national average rate for CDs with this term length is 1.55%.
Is it worth doing a 3-month CD?
- A 3-month CD could be worth it if you're willing to commit to keeping your funds in the account for the full term and lock in an interest rate. However, there are savings accounts with higher rates than many 3-month CDs offer, so you might be able to find a better rate.
- Just keep in mind that savings account APYs generally are not guaranteed and might go down before those three months are up.
Where can I get 5% interest on my money?
- With interest rates falling slightly, you might not find a 3-month CD with a 5% interest rate. But Bask Bank offers a 3-month CD with a 4.90% APY. However, you'll need a minimum deposit of $1,000.

Compare CD Rates

Amber Barkley, Sarah Sharkey, Daria Uhlig and Cynthia Measom contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 7, 2024.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

GOBankingRates is a personal finance and consumer interest rate website and an online marketing company serving top-tier banks, credit unions and other financial services organizations. Some companies mentioned in this article might be clients of GOBankingRates, which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account.

GOBankingRates bases its assessment of “best” and “top” products on the above-stated parameters to create a baseline for comparison. This assessment is an approximation of “best” and “top” designed to help consumers find products that might be appropriate for them. There could be other options available as well. Consumers should consider various options appropriate for their circumstances.

Best 3-Month CD Rates for October 2024 I Up to 4.90% APY

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Banks and Credit Unions With the Best 3-Month CD Rates