Best 3-Month CD Rates

These are the highest paying 3-month CDs that are available nationwide

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For money you're willing to lock up for a while, certificates of deposit, or CDs, can be a useful financial tool because they can often earn you a higher interest rate. And if your time horizon is very short, you might consider three-month CDs.

Just be sure to do your homework on what you'll earn compared to the alternatives, such as a high-yield savings account that may pay even more. To make your research easy, we've rounded up the top three-month certificate of deposit rates available from our partners, as well as a ranking of today's best-paying CDs available nationwide.

By monitoring the rate data of roughly 200 banks and credit unions that offer certificate products nationwide, we're able to rank the highest-paying CDs in the country that have an approximately three-month term (including maturities of two to four months). To be included, the institution must be federally insured (by the Federal Deposit Insurance Corporation for banks and the National Credit Union Administration for credit unions), and the minimum required deposit cannot exceed $25,000.

If more than one institution pays the same top rate, we rank the CDs by the shortest term, then the smallest minimum deposit. Then, if there is still a tie, we will rank by which CD has the milder penalty for early withdrawal.

Best 3-month CD rates:

  • TotalDirectBank: 1.50% APY
  • Luana Savings Bank: 1.16% APY
  • Colorado Federal Savings Bank: 1.15% APY
  • TIAA Bank: 1.00% APY
  • Umbrella Bank: 1.00% APY
  • Chevron Federal Credit Union: 0.90% APY
  • Spectrum Federal Credit Union: 0.90% APY
  • INSBank Online: 0.80% APY
  • Teachers Federal Credit Union: 0.75% APY
  • NexBank: 0.65% APY
  • Synchrony Bank: 0.60% APY
  • American Heritage Credit Union: 0.60% APY
  • Quorum Federal Credit Union: 0.60% APY
  • MTC Federal Credit Union: 0.55% APY

Details on these top-paying nationally available three-month CDs are provided below, including their minimum required deposits and early-withdrawal penalties. For credit union CDs, information on how to easily join each credit union is also provided.

TotalDirectBank: 1.50% APY

  • Term (months): 3
  • Minimum deposit: $25,000
  • Early-withdrawal penalty: One month of interest
  • About: TotalDirectBank is an online-only operation of City National Bank of Florida, established in Miami in 1970.

Luana Savings Bank: 1.16% APY

  • Term (months): 3
  • Minimum deposit: $1,000
  • Early-withdrawal penalty: Three months of interest
  • About: Luana Savings Bank was founded in 1908 in northeastern Iowa, and in addition to operating six Iowa branches, it serves nationwide customers online.

Colorado Federal Savings Bank: 1.15% APY

  • Term (months): 3
  • Minimum deposit: $5,000
  • Early-withdrawal penalty: One month of interest
  • About: Colorado Federal was founded in 1990 and is headquartered in Greenwood Village, Colo. In addition to serving communities across the state, it serves customers nationwide with online banking.

TIAA Bank: 1.00% APY

  • Term (months): 3
  • Minimum deposit: $1,000
  • Early-withdrawal penalty: 22 days of interest
  • About: Fortune 500 employee retirement plan provider TIAA offers banking services online through TIAA Bank and via 11 brick-and-mortar branches in Florida.

Umbrella Bank - 1.00% APY

  • Term (months): 3
  • Minimum deposit: $1,000
  • Early withdrawal penalty: Complex formula, with minimum penalty of 1% of withdrawn amount
  • About: An internet-only arm of Beal Bank, which operates 11 physical branches in Texas, California, Ohio, Illinois, and Pennsylvania, Umbrella Bank serves customers nationwide.

Chevron Federal Credit Union: 0.90% APY

  • Term (months): 3
  • Minimum deposit: $500
  • Early-withdrawal penalty: Three months of interest
  • Membership: Anyone can join Chevron Federal by making a $15 donation to the Contra Costa County Historical Society and keeping $25 or more in a member savings account.

Spectrum Federal Credit Union: 0.90% APY

  • Term (months): 3
  • Minimum deposit: $500
  • Early-withdrawal penalty: 3 months of interest
  • Membership: Anyone can join Spectrum Federal by making a $15 donation to the Contra Costa County Historical Society and keeping $25 or more in a member savings account.

INSBANK Online: 0.80% APY

  • Term (months): 3
  • Minimum deposit: $2,500
  • Early withdrawal penalty: Three months of interest
  • About: INSBANK Online is the internet-only consumer banking arm of INSBANK, a Nashville-based business bank founded in 2000.

Teachers Federal Credit Union: 0.75% APY

  • Term (months): 3
  • Minimum deposit: $1,000
  • Early-withdrawal penalty: All of the interest
  • Membership: Anyone can join Teachers Federal Credit Union by simply keeping $1 in a member savings account.

NexBank: 0.65% APY

  • Term (months): 3
  • Minimum deposit: $25,000
  • Early-withdrawal penalty: One month of interest
  • About: Founded in 1934, NexBank operates three branches in Dallas and serves customers nationwide with online banking.

Synchrony Bank: 0.60% APY

  • Term (months): 3
  • Minimum deposit: Any amount
  • Early-withdrawal penalty: Three months of interest
  • About: In addition to being the largest U.S. provider of private label credit cards, Synchrony Bank is an online-only bank offering consumer deposit accounts.

American Heritage Credit Union: 0.60% APY

  • Term (months): 3
  • Minimum deposit: $1,000
  • Early-withdrawal penalty: Three months of interest
  • Membership: Anyone can join American Heritage by agreeing to a free membership in the Kids-N-Hope Foundation and keeping $15 or more in a member savings account.

Quorum Federal Credit Union - 0.60% APY

  • Term (months): 3
  • Minimum deposit: $1,000
  • Early withdrawal penalty: Three months of interest
  • Membership: Anyone can join Quorum by signing up for a free membership in the nonprofit American Consumer Council and keeping at least $5 in a savings account.

MTC Federal Credit Union: 0.55% APY

  • Term (months): 3
  • Minimum deposit: $10,000
  • Early-withdrawal penalty: 1% of amount withdrawn plus $25
  • Membership: Anyone can join MTC by making a $25 donation to the SC Koi & Water Garden Society and keeping at least $50 in a member savings account.

What Is a 3-Month CD?

A certificate of deposit is a type of bank account that involves an agreement between a financial institution and an individual. The individual agrees to deposit a sum of money and keep it at the institution for a predetermined number of months or years. In exchange, the bank or credit union agrees to pay the account holder a higher interest rate than if they put the funds into a simple savings account.


A three-month CD is simply a certificate for which the maturity period or term is roughly 90 days. At most banks and credit unions, a three-month term is the shortest duration certificate they offer, while some don't offer any CDs shorter than six months.

Key Takeaways

  • CDs typically offer a higher interest rate in exchange for you agreeing to keep the funds on deposit for a prearranged number of months or years.
  • The top-paying CDs pay many times the national average interest rate, so shopping around can dramatically boost your interest earnings.
  • Three-month CDs are so short that their interest rate premium is minor. As a result, some high-yield savings accounts have equal or higher interest rates without restricting your ability to withdraw and deposit at will.

What Are the Differences Between a CDs, Savings Accounts, and Money Market Accounts?

Savings accounts, money market accounts, and CDs are collectively called deposit accounts. All are intended as vehicles for holding cash savings at a bank or credit union. Savings accounts and money markets are more similar, while certificates of deposit are somewhat different.


A savings account allows you to deposit and withdraw funds at your convenience. Aside from a federal limit of only six withdrawals from a savings account in a month, the amount you withdraw (as well as how often you withdraw) is up to you. The same is true for deposits. You can deposit a lump sum all at once, automate savings deposits on a regular cycle, or sporadically add funds when you have them available.


An account that allows you to deposit and withdraw funds at will is called a liquid account. Money market accounts are another type of liquid account, with the main difference being that money market accounts traditionally include check-writing privileges.


Certificates of deposit are significantly different. Because you must deposit a lump sum of funds at the outset and then not touch it until the maturity term expires, they are the opposite of liquid accounts. But what you lose in access to the funds is traded off for a higher interest rate, meaning you are compensated for giving up your at-will access.

Who Benefits From a 3-Month CD Most?

Theoretically, certificates of deposit are a good vehicle for someone who wants to earn more interest by committing their funds for a set time. But in the case of three-month CDs, the time period is so short that the interest rate premium can be quite slight.


Still, some people may benefit from putting their savings into a CD instead of into a liquid account. That's because locking up the funds can be a benefit, not just a limitation. For someone determined to hold onto funds without spending them, a CD can remove the temptation they might otherwise have to dip into those savings.

What Are the Typical Rates for a 3-Month CD?

Across the thousands of banks and credit unions that offer three-month CDs, interest rates will vary widely. And rates across all kinds of deposit accounts will change based on the Federal Reserve's federal funds rate. So it pays to do your homework and shop around.


Currently, our list of the top-paying nationally available three-month CDs tops out at 0.70% APY. Compared to the national FDIC average of just 0.06% APY, the best three-month CDs are paying more than 10 times as much as the average three-month certificate.

Important

Be sure to consider the interest rates of three-month CDs in comparison to the best-paying high-yield savings accounts. Though traditional savings accounts generally pay minimal interest, high-yield savings accounts can pay rates higher than those of a three-month CD while not requiring you to give up access to your funds.

How Do I Join One of the Credit Unions on the List?

Credit unions differ from banks in that customers must be members of the credit union to open accounts there. Fortunately, joining a credit union is generally fairly easy to do, as well as inexpensive or even free.


For the purposes of our nationwide rankings, all included credit unions must offer an avenue for any adult U.S. citizen to become a member regardless of where they live or work. Joining often involves making a small donation to an affiliated nonprofit organization—sometimes donating as little as $5—and keeping a small minimum balance in a member savings account. Again, as little as $5 is often sufficient for this requirement.