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Best 3-Month CD Rates of June 2024

  • The best three-month CD rates currently tend to be well above 5%.
  • Short-term certificates of deposit can be a quick way to add money to your savings without putting it at risk.
  • Some banks charge withdrawal fees or leverage other penalties if you withdraw your funds early, so plan accordingly. 
  • You can choose from other conservative savings methods, such as savings accounts, long-term CDs and money market accounts.
  • Featured CDs:

A three-month certificate of deposit is a short-term investment that lets you access high-yield savings opportunities. 

Find out more about short-term CDs in this guide, which covers:

  • The definition of a three-month CD and how three-month CD rates work
  • How to open a three-month CD account
  • Alternatives to three-month CDs for saving money

Our top picks for cd rates

What is a 3-month CD?

A certificate of deposit, or CD, is a type of savings account you can open at a bank. Once you put money into the CD account, the bank agrees to pay you a certain amount of interest. However, to earn the interest as agreed, you typically have to keep the money in the account for a set term, such as three, six, nine or 12 months. 

The best CDs often provide access to higher interest rates than traditional savings accounts, but they are a secure and safe investment. As such, they tend to appeal to risk-averse investors who would like to earn more than they can get in a savings account but don’t want to risk funds in the stock market or other investments. 

How do 3-month CD rates work?

A three-month CD requires a three-month term. That means that you put money into the deposit account and keep it there for three months. During those three months, you will earn the advertised three-month APY on the account. This means you have a guaranteed interest as long as you keep the money in the account.

Typically, the APY offered on these accounts is significantly higher than what you can get with a traditional savings account. However, if you withdraw money out of the account before the maturity date — three months or 90 days from the date you opened it — you could pay penalties or lose some of your interest earnings. 

Current short-term CD rates

The best three-month CD rates currently tend to be above 5%. According to the Organization for Economic Co-operation and Development (OECD), the rates for three-month CDs have increased since 2021. In May 2021, the average rate was around 0.10%. In December 2023, rates were above 5%. 

Pros and cons of 3-month CDs

As with any other banking product, short-term CDs come with advantages and disadvantages:

  • CDs are typically insured by the FDIC up to $250,000 per depositor per account
  • They guarantee a certain interest income
  • They are straightforward and easy to understand
  • Three-month CD terms ensure you have fairly quick access to your money
  • After three months, you’ll have to decide what to do with your funds again
  • You have to keep the funds in the account for three months to get the best benefits
  • While CDs offer high APY as deposit accounts, they are a conservative investment and don’t offer the potential returns you might find with other options

How to choose the best 3-month CD

When researching CD investment options, consider the following factors. 


APY refers to how much you will earn in interest on your deposit. Currently, the best three-month CD rates tend to be between 5% and 5.75%. 

Consider the table below to understand how much you can earn at various APY with a $10,000 CD deposit:

APY Interest Earned in 3 months
4% $98.53
4.5% $110.65
5% $122.72
5.5% $134.75

Early withdrawal penalty

Some banks charge an early withdrawal penalty if you take any funds out of your CD before the maturity date. In the case of a three-month CD, that means you might pay a penalty if you make a withdrawal in the first 90 days. If you want to ensure easy access to your funds without paying a penalty, look for CD accounts that don’t charge a fee or charge only a small fee.

Compounding schedule

Interest on CD accounts compounds monthly or daily. Daily compounding tends to result in slightly higher earnings, but it’s only noticeable if you have a large deposit balance. Even so, it’s a good idea to opt for an account that compounds daily whenever you can.


Choose a bank that you’re comfortable with when it comes to the security of your information and funds. Read reviews, check reports to the Better Business Bureau and select a bank that is FDIC-insured for ample peace of mind.

Minimum deposit requirement

Review the requirements for minimum deposit amounts. Some banks only offer high-yield CD accounts when you can deposit a certain amount, such as $5,000 or $10,000 or more. Other banks offer these accounts with no minimum requirements — the amount you have on hand to deposit will help decide which account is right for you.

CD term

Review the CD term before you deposit your funds. A three-month CD has a term either for three months or 90 days — this can make a difference of a few days in the actual maturity date for the CD. Ensure you know when your maturity date is so you don’t accidentally withdraw funds before then.

How to open a 3-month CD

To open an account with the best three-month CD rates:


Research your options.

Select an account and bank that’s right for you and fits your needs.

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Complete an account application.

Online banks tend to offer the best rates, and you can complete these forms online.

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Provide the necessary documents.

To open your account, you’ll need proof of identity such as a state-issued photo ID. You’ll also typically need to provide a residential address and some other contact information.

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Fund your account.

Depending on the bank you choose, you can fund your account with cash, a money order or a check, an electronic funds transfer, or a debit or credit card.

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Are 3-month CDs worth it?

Because three-month CD rates are much higher than the national average for traditional savings accounts, they can be a good option for putting your money to work when you know you won’t need it right away. Short-term CDs can be an easy way to earn interest on savings that you will need later in the year, as they don’t tie your money up for many months.

For example, a high-school student who has graduation gift money could invest it in a short-term CD and have access to the principal and interest earnings before the end of their first college semester. Or, someone looking to buy a home in a few months could dock their savings in a CD to hold it safe and steady while earning a bit more money to add to their down payment fund.

Alternatives to a 3-month CD

Many other savings options exist. Consider some alternatives to three-month CDs below. 

Other CD terms

If you can keep your money in a CD longer without needing it, you might consider other CD terms. Average 90-day CD rates tend to be similar to three-month CD rates, but you can also research options for six-month CDs and CDs with terms of several years to see how much you might save.

Typically, long-term CDs, like one-year CDs, outperform the rates available with short-term CDs. However, in some markets, short-term rates are often higher on average. 

Savings accounts

Traditional savings accounts allow you to earn interest on your deposits while offering more access to your money. Some savings accounts even allow you to make withdrawals at ATMs. 

The average savings account APY is under 1% — and some banks only offer a fraction of a percentage point in APY. However, you can find high-yield savings accounts that offer 3% to 5% APY, even without a minimum deposit amount. 

Money market accounts

Money market accounts are like a cross between savings and checking. The best money markets typically offer interest rates that are higher than most checking accounts and provide some check-writing capabilities. Average high-yield money market interest rates currently tend to run between 2% and 5%.

FAQ: Best 3-month CD rates

What is the highest paying 3-month CD?

The best short-term CD rates fluctuate, so you will need to research rates when you’re ready to invest. However, some of the best rates are offered by online banks and credit unions.

Are 3-month CDs safe?

Yes, certificates of deposit are secure, safe and conservative investments. They don’t come with a lot of risk, as the bank guarantees the published APY for the term of your CD. You can enhance safety by choosing a bank that is FDIC-insured.

Is a 3-month CD worth it?

A short-term CD may be worth it for you if you have savings on hand that you know you won’t need for the next 90 days. If you are stuck between a short-term CD or a savings account, a CD could be a better option because they typically offer a higher interest rate.

What bank offers 5% APY on CDs?

Many banks currently offer a 5% APY on short-term CDs. Online banks and credit unions tend to offer the highest three-month CD rates, as they do not have overhead related to branch locations and can pass those savings on to account holders in the form of higher interest rates.

What are short-term CDs paying currently?

Currently, the highest three-month CD rates are around 5.5%. You can find rates ranging from 3% to 5.75% — and you may be able to find CDs with rates of 6% or more with specialty online banks. However, rates constantly change, so always read the fine print with a bank to find out what the rates are when you’re ready to make a deposit.

About the Author

Sarah Stasik
Sarah Stasik Personal Finance

Sarah Stasik is well versed in personal finance thanks to her previous role as a Revenue Cycle Manager for a Fortune 500 healthcare company. Using her inside knowledge and expertise, Sarah often covers topics ranging from insurance and the economics of private healthcare to personal finance and small business management.

With more than a dozen years of writing experience, Sarah has tackled niches that range from technical advances in fintech to personal budgeting challenges. She has covered topics such as insurance and the economics of private healthcare, small business management and accounting, and credit and savings. Her writing focuses on making complex or seemingly daunting financial topics more accessible and providing helpful and relevant resources for readers.