Use this free CD calculator to find out how much interest is earned on a CD.
Savers have tons of places to park their cash. But choosing between a savings account and a certificate of deposit (CD) 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 3-month CDs are pretty short investments, banks tend to offer lower interest rates on these when compared to a high-yield savings account.
The top savings accounts pay around 1.7 percent annual percentage yield (APY). But the average yield is much lower (0.10 percent APY). If you’re hoping to earn a higher rate of return and you want the money you invest to be accessible, consider buying a 3-month CD.
The best 3-month CD rates available from banks and credit unions pay more than five times the national average of 0.32 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.
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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 Federal Deposit Insurance Corp. (FDIC) banks or by the National Credit Union Share Insurance Fund (NCUA) at National Credit Union Administration (NCUA) credit unions.
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.
Note: The APYs (Annual Percentage Yield) shown are as of May 5, 2020. 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.
Today’s top widely available 3-month CD pays 1 percent APY. A 3-month CD could be a great place to invest for short-term financial obligations, like establishing a rainy day fund you can eventually transfer to a savings account.
Comparison shopping is a must when you’re looking for the best 3-month CD rates. There are multiple types of CDs, including bump-up CDs and liquid CDs. But the top 3-month CD rates are usually found in the form of a traditional CD.
Check out the best 3-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.
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 only offers CDs and a high-yield savings account. Both of these savings products offer a competitive yield.
BrioDirect gives customers a variety of CDs to choose from since it offers 13 different terms -- starting with 30 days and going out 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.
Bethpage Federal Credit Union was founded in 1941 for people working at Grumman.
Bethpage Federal Credit Union is located in Bethpage, New York. It 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.
First Internet Bank of Indiana was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. First Internet Bank of Indiana opened in 1999. It doesn’t have any branches and is available in all 50 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 is a division of TIAA, FSB. In August 2016, TIAA announced that it would be acquiring Everbank. TIAA Bank had 10 financial centers, all located in Florida, as of December 2018.
TIAA Bank offers a Yield Pledge Checking account, a Yield Pledge Money Market, Yield Pledge CDs and other products. TIAA Bank’s CDs require $5,000 to open one. TIAA Bank does offer IRA-eligible CDs.
SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934. The credit union, created by school employees, has 50 branches.
SchoolsFirst Federal Credit Union has low minimum balances and CD terms from as short as 30 days to as long as five years. CDs at this credit union have four balance tiers: $500, $20,000, $50,000 or $100,000.
Popular Direct offers a savings account and term CDs. Both the Popular Direct savings account and its CDs are for established savers, since the CDs have a $10,000 minimum deposit requirement and the Ultimate Savings account requires a $5,000 minimum deposit.
All Popular Direct deposit accounts are opened through Popular Bank.
Check out the 3-month CD rates offered by some of the country’s most popular big banks:
Ally Bank is an online-only bank that has been around for a little more than 10 years. Its CDs have competitive APYs and some require a minimum deposit to earn the top APY.
The bank offers several different types of CDs. In addition to its standard CDs, it has a raise your rate CD and a no-penalty CD.
Ally Bank also offers a savings account and a checking account.
Barclays Bank doesn’t have minimum balance requirements to open its CDs and savings account. That means it’s an option for savers of all levels. The bank offers nine CD terms. Barclays also offers a savings account, which has a competitive APY.
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 as short as three months to 10 years.
It also offers a checking account, money market account and a savings account.
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 3-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.
This type of CD isn't right for everyone. Check out these alternatives to 3-month CDs:
“Money market and high-yield savings accounts typically offer higher interest rates than standard savings accounts, but normally require higher balances and may have restrictions or conditions to accessing one’s money,” says Robert Drury, executive director of the Association of Christian Financial Advisors.
CDs give savers a little bit of a yield boost over savings accounts in exchange for a long-term deposit. The longer savers agree to leave their money in the bank, the higher the yield.
Investing in a 1-year CD, for example, would require you to tie up your funds for a full 12 months.
“Money market and high-yield savings accounts typically offer higher interest rates than standard savings accounts, but normally require higher balances and may have restrictions or conditions to accessing one’s money,” Drury says. “CDs normally offer higher interest than these but unconditionally obligate one’s money for a specified term.”
|Institution||APY||Minimum deposit for APY|
|Bethpage Federal Credit Union||0.90%||$50|
|First Internet Bank of Indiana||0.85%||$1,000|
|SchoolsFirst Federal Credit Union||0.60%||$20,000|
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