Best 3-Month CD Rates of June 2024: Smart Savings, Quick Access (2024)

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The national average bank interest rate for 3-month CDs is 1.53% APY. However, some of the best online banks offer higher rates for a 3-month CD right now.

The best CD rate for a 3-month CD is 5.51% APY from TotalDirectBank. We check rates daily to find the best rates for 3-month terms. Here are our recommendations for the best 3-month CDs.

Best 3-Month CD Rates

• TotalDirectBank 3 Month CD: 5.51% APY
• Bask Bank 3 Month CD: 5.35% APY
• Banc of California 3 Month CD, powered by Raisin: 5.34% APY
• Dow Credit Union 3 Month Simple CD: 5.30% APY
• Popular Direct 3 Month CD: 5.25% APY
• America First Credit Union 3 Month Certificate: 5.25% APY
• Alliant 3 Month CD: 4.25% APY
• First Internet Bank of Indiana 3 Month CD: 4.14% APY
• Bank of America 3 Month Fixed Term CD: 4.00% APY

Compare the Best 3-Month CDs

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 in 2024.

TotalDirectBank 3 Month CD

The TotalDirectBank 3 Month CD offers a high interest rate and low early withdrawal penalties. The bank also pays high rates on 6-month and 1-year terms.

TotalDirectBank CDs have a steep minimum opening deposit of $25,000and a maximum deposit of $1 million. The online institution also doesn't operate in Florida, Somoa, Guam, the Northern Mariana Islands, or the US Virgin Islands.

APY for a 3-month term: 5.51% APY

3-month early withdrawal penalty:45 days of interest

Bask Bank 3 Month CD

Bask Bank offers several 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: 5.35% APY

3-month CD early withdrawal penalty: 30 days simple interest

Bask Bank Review

Banc of California 3 Month CD, powered by Raisin

The Banc of California 3 Month CD is the highest yielding 3-month CD on Raisin.

Through Raisin, you can use one platform to find, fund, and manage multiple CDs and high-yield savings accounts from over 20 banks and credit unions. There are also other 3-month CDs on Raisin that pay more than the national average.

You might prefer one of our other top picks if you would rather open a CD directly with a bank. You also can't get a checking account with Raisin, so it may not be the best option if you want to do all your banking with one company.

APY for a 3-month term:5.34% APY

3-month early withdrawal penalty:90 days of simple interest

Raisin Review

Dow Credit Union 3 Month Simple CD

The Dow Credit Union Simple CD also has the highest rate available for a 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: 5.30% APY

3-month early withdrawal penalty:45 days of interest

Popular Direct 3 Month CD

Popular Direct CDs pay competitive rates, and compound interest daily.

You'll need at least $10,000 to open a Popular Direct CD. While the early withdrawal penalty for a 3-month term is pretty standard, the bank charges high penalties on certain terms.

APY for 3-month CD: 5.25% APY

3-month CD early withdrawal penalty: 89 days of simple interest

Popular Direct Review

America First Credit Union 3 Month Certificate

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: 5.25% APY

3-month early withdrawal penalty:60 days of interest

America First Credit Union Review

Alliant 3 Month CD

An Alliant Certificate may be a good choice if you're searching for a credit unionthat lets you open bank accounts from anywhere in the US.Alliant's 3-month and 6-month terms, in particular, offer high interest rates.

Credit unions require you to become a member to open an account. The easiest way to become a member is to joinFoster Care to Success. Alliant will cover the $5 joining fee.

APY for a 3-month term: 4.25% APY

3-month early withdrawal penalty:Up to 90 days of interest

Alliant Credit Union Review

First Internet Bank of Indiana 3 Month CD

First Internet Bank of Indiana pays high interest rates on several short-term CDs. First Internet Bank of Indiana also has a savings account, a money market account, and two types of checking accounts.

First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference.

APY for 3-month CD:4.14% APY

3-month CD early withdrawal penalty: 90 days of interest

First Internet Bank of Indiana Review

Bank of America 3 Month Fixed Term CD

Bank of America offers a strong rate on its 3-month CD. Since Bank of America is a national bank, it's very easily accessible to most people who live in the United States. It has branches throughout the United States, as well as in many other countries. It also offers online banking services.

Bank of America CDs compound interest monthly, not weekly or daily. This could make a significant difference, depending on how much money you have in your account.

APY for 3-month CD: 4.00% APY

3-month CD early withdrawal penalty: 90 days of interest

Bank of America Review

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. It's expected that the Fed will cut rates in the future, but the exact time when CD rates will drop is speculative. Once the Fed provides a clearer indication of future rate cuts, national 3-month CD rates will likely decline more significantly.

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.

Bank Trustworthiness and BBB Ratings

We've compared each company'sBetter 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:

TotalDirectBank's parent bank, City National Bank of Florida, has a B- rating from the BBB because it hasn't responded to two complaints.

Bask Bank has a B rating from the BBB due to the number of customer complaints against the company.

Raisin has a B+ rating because it has received various complaints on the BBB website.

Bank of America has an A- rating from the BBB because of government action against the business.

Popular Bank and Bank of America have been involved in recent controversies.

Popular Bank has been involved in two recent public controversies. In 2023, the Federal Reserve Board required Popular Bank topay a $2.3 million fine, claiming it processed Payment Protection Program loans even though potential instances of fraud were detected and not reporting the potential fraud in a timely manner.

In 2022, the US Department of Treasury's Office of Foreign Assets Control requiredBanco Popular de Puerto Rico— the bank's Puerto Rico locations — to payover $255,000 in a settlementthat accused the bank of violating Venezuela Sanctions Regulations when processing transactions with two Venezuelan government employees.

Bank of America has three recent controversies. In 2023, the Consumer Financial Protection Bureau required Bank of America to pay over $100 million to consumers. The CFPB said that Bank of America charged insufficient fund fees repeatedly from the same transaction, withheld credit card reward bonuses, and opened bank accounts under customers' names without their consent.

In 2022, the CFPB ordered Bank of America to pay $10 million, claiming it illegally garnished customers' bank accounts. Also in 2022, Bank of America was fined $225 million by the CFPB, saying it did not properly give out state unemployment benefits during the pandemic.

3-Month CD FAQs

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, vice president of coaching strategy atOfColor
• Roger Ma, CFP with lifelaidout®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."

Methodology

At Business Insider, we strive to help smart people make the best decisions with their money. We understand that "best" is often subjective, however, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too.

We researched to find over 20 banks and credit unions that offered 3-month CDs. Then, we reviewed each institution to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also used our CD rates methodology, reviewing the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.