Today’s top widely available three-month CDs pay 0.4 percent annual percentage yield (APY). A three-month CD could be a great place to invest for short-term financial obligations, like establishing a rainy day fund.
Savers have many places to park their cash, but choosing between a savings account and a certificate of deposit can be difficult. A CD allows you to tuck away your money at a bank and earn fixed interest on that money until the CD matures. But because three-month CDs are short-term investments, banks tend to offer lower interest rates compared with a high-yield savings account. If you withdraw your CD before the term ends, early withdrawal penalties could eat up your interest earnings.
The top savings account pays 0.8 percent annual percentage yield, but the average yield is much lower — 0.06 percent APY. If you’re hoping to earn a higher rate of return and don’t want to tie up your money for more than a few months, a three-month CD could be a good option.
The best three-month CD rates available from banks and credit unions pay nearly three times the national average, according to Bankrate’s most recent national survey of banks and thrifts.
The best 3-month CD rates for May 2022
- Bethpage Federal Credit Union: 0.40% APY; $50 minimum deposit
- Navy Federal Credit Union: 0.40% APY; $1,000 minimum deposit
- First Internet Bank of Indiana: 0.35% APY; $1,000 minimum deposit
- TIAA Bank: 0.35% APY; $1,000 minimum deposit
- Security Service Federal Credit Union: 0.35% APY; $25,000 to earn APY
- Ally Bank – 0.30% APY, $0 minimum opening deposit
- VyStar Credit Union: 0.30% APY; $500 minimum deposit
- Synchrony Bank: 0.25% APY; $0.01 minimum deposit
- America First Credit Union: 0.25% APY; $500 minimum deposit
- BrioDirect: 0.25% APY; $500 minimum deposit
- SchoolsFirst Federal Credit Union: 0.25% APY; $20,000 minimum deposit for APY
Note: Annual percentage yields (APYs) shown are as of April 29, 2022. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since the last update and may vary by region for some products.
Bankrate’s guide to choosing the right CD rate
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Methodology for Bankrate’s Best CD Rates
At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield (APY), the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. or the National Credit Union Share Insurance Fund.
When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.
Finding the best 3-month CD rates
Comparison shopping is key when you’re looking for the best three-month CD rates. There are multiple types of CDs, including bump-up CDs and liquid CDs. But the top three-month CD rates are usually found with traditional CDs.
Check out the best three-month CDs offered by banks and credit unions and weigh the pros and cons of going with a short-term certificate of deposit over an account that’s more liquid. Don’t forget to crunch the numbers and calculate how much interest you could earn by the end of your term.
Best 3-month CD details
Bethpage Federal Credit Union: 0.40% APY; $50 minimum deposit to open
Bethpage Federal Credit Union was founded in 1941 for people working at Grumman. It is located in Bethpage, New York.
Bethpage FCU has more than 400,000 members and offers nine terms of CDs. The three-month CD is the shortest term and the five-year CD is the longest term. Bethpage also offers a 39-month bump-up CD.
Besides CDs, Bethpage offers checking accounts, savings accounts, loans and other financial products.
Navy Federal Credit Union: 0.40% APY; $1,000 minimum deposit
Navy Federal Credit Union has more than 11 million members and is the world’s largest credit union. It has a global network of more than 300 branches. Navy Federal Credit Union has its headquarters in Vienna, Virginia.
Membership at Navy Federal Credit Union is open to all Department of Defense employees, all branches of the military, veterans and their families.
In addition to CDs, Navy Federal Credit Union offers checking and savings accounts, loans and credit cards.
First Internet Bank of Indiana: 0.35% APY; $1,000 minimum deposit to earn APY
First Internet Bank of Indiana was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. It opened in February 1999 and serves all 50 U.S. states.
First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.
TIAA Bank: 0.35% APY; $1,000 minimum deposit
TIAA Bank is a division of TIAA FSB and has 10 branches, all in Florida.
TIAA offers CD terms ranging from three months to five years. It also offers a Bump Rate CD, which allows a one-time rate bump should rates go higher. TIAA Bank offers IntraFi Network Deposits, formerly Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep, for customers with large deposits who need expanded FDIC insurance coverage beyond the $250,000 limit.
Security Service Federal Credit Union: 0.35% APY; $25,000 minimum deposit to earn the APY
Security Service Federal Credit Union was founded in 1956 to serve the needs of members of the U.S. Air Force Security Service Command and their families.
Based in San Antonio, it offers CD terms ranging from three months to seven years. It also offers checking and savings accounts, mortgages, auto loans and credit cards.
Ally Bank – 0.30% APY, $0 minimum opening deposit
Ally Bank is an online-only bank that was once known as GMAC Bank. Ally offers seven terms of CDs, a no-penalty CD and two terms of a Raise Your Rate CD.
The Sandy, Utah-based bank also offers a savings account, an interest-bearing checking account and a money market account. Ally has 2.5 million customers with deposit accounts.
VyStar Credit Union: 0.30% APY; $500 minimum deposit
VyStar Credit Union was founded in 1952 as Jax Navy Federal Credit Union and was chartered at Naval Air Station Jacksonville in Florida.
Membership at VyStar Credit Union is open to anyone who works or lives in the 49 Florida or 10 Georgia counties listed on its website.
VyStar Credit Union offers 10 CDs terms ranging from three months to five years. It also offers a one-year CD to its Kid’s, VyTeen, Bravo and Achieve members only.
Synchrony Bank: 0.25% APY; $0.01 minimum deposit
Synchrony Bank offers competitive yields on CDs across 12 terms. The bank also offers a savings account and a money market account.
Synchrony Bank is an online-only financial institution that’s a division of Synchrony Financial, a publicly traded provider of consumer financial services, including credit cards.
America First Federal Credit Union: 0.25% APY; $500 minimum deposit
America First Credit Union was founded in 1939 in Salt Lake City. It has CDs with terms ranging from three months to five years. The minimum opening deposit for CDs is $500. It also offers a variety of checking and savings accounts.
BrioDirect: 0.25% APY; $500 minimum deposit
BrioDirect is Sterling National Bank’s online brand. All BrioDirect savings deposit products are provided by Sterling National Bank, which was founded in 1888.
BrioDirect offers only CDs and a high-yield savings account. Both of these savings products offer a competitive yield.
BrioDirect offers 11 terms of CDs, ranging from 30 days to five years. Even with this range of terms, the one-year CD is the best deal and has the highest APY for a CD at BrioDirect.
SchoolsFirst Federal Credit Union: 0.25% APY; $20,000 minimum deposit to earn APY
SchoolsFirst Federal Credit Union was formed by school employees in 1934, during the Great Depression in 1934, and today has 50 branches.
SchoolsFirst Federal Credit Union has CD terms ranging from 30 days to five years. CDs at this credit union have four balance tiers: $500, $20,000, $50,000 and $100,000.
Note: The annual percentage yields (APYs) shown are as of April 29, 2022. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated. The rates for some products may vary by region.
3-month CD rates offered by popular banks
Check out the three-month CD rates offered by some of the country’s most popular banks:
- Discover Bank: 0.20% APY; $2,500 minimum deposit
- Barclays: 0.10% APY; $0 minimum deposit
- BMO Harris: 0.05% APY; $1,000 minimum deposit
- Citibank: 0.05% APY; $500 minimum deposit
Discover Bank: 0.20% APY; $2,500 minimum deposit
Discover Bank may be known for its credit cards, but it also offers a wide selection of banking products. It has been offering deposit products online since 2007.
Discover Bank offers CDs ranging in terms from three months to 10 years. It also offers checking, money market and savings accounts.
Barclays Bank: 0.10% APY; $0 minimum opening deposit
Barclays Bank doesn’t have minimum balance requirements to open its CDs or savings account. That makes it a good option for savers just starting out.
The bank offers nine CD terms. It has competitive yields and also offers a savings account with a competitive APY. Banks tend to have a 10-day grace period after a CD matures to withdraw the money without a penalty. Barclays has a 14-day grace period.
BMO Harris: 0.10% APY; $1,000 minimum opening deposit
BMO Harris offers 15 terms of CDs ranging from three months to five years, with minimum opening deposits of $1,000. BMO Harris also offers five terms of CD Specials that feature higher rates than standard CDs, as well as Add-on CDs, Bump-Rate CDs and Step-Rate CDs.
Based in Chicago, the bank operates more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.
Citibank: 0.05% APY; $500 minimum deposit (varies by market)
Citibank is one of the largest banks in the U.S. It offers fixed-rate CD terms ranging from three months to five years, a step-up CD and a no-penalty CD.
Citibank CD rates and minimum deposits may vary by market.
Citibank also has several savings accounts with competitive yields, but they are for Premium account holders and must be opened with a checking account.
How to use a 3-month CD in a CD ladder
With a CD ladder, you’ll open several short- and long-term CDs with staggered maturity dates. The long-term CDs should allow you to take advantage of higher CD interest rates, while the shorter-term CDs let you either access the money sooner or reinvest into a new CD if you can find higher interest rates.
A three-month CD may fit into your ladder as the shortest rung. Once it matures, you can either use the funds or reinvest into a longer-term CD with a higher interest rate.
Alternatives to 3-month CDs
A three-month CD isn’t right for everyone. Check out these alternatives:
Savings account or money market account
Money market and high-yield savings accounts typically offer higher interest rates than standard savings accounts, but they normally require higher balances and may have restrictions on accessing the money.
Consider a CD with a longer term
CDs give savers a bit of a yield boost over savings accounts in exchange for a longer-term deposit. The longer savers agree to leave their money in the bank, the higher the yield.
Investing in a one-year CD, for example, would require you to tie up your funds for 12 months.
To recap, here are the best three-month CD rates:
|Institution||APY||Minimum deposit for APY|
|Bethpage Federal Credit Union||0.40%||$50|
|Navy Federal Credit Union||0.40%||$1,000|
|First Internet Bank of Indiana||0.35%||$1,000|
|Security Service Federal Credit Union||0.35%||$25,000|
|VyStar Credit Union||0.30%||$500|
|America First Credit Union||0.25%||$500|
|SchoolsFirst Federal Credit Union||0.25%||$20,000|