In recent months, more savers may be exploring 3-month CDs, likely due to banks and credit unions offering higher rates for shorter terms before the Federal Reserve possibly drops rates in the coming months. This may reflect a growing preference among savers to remain flexible and responsive to economic fluctuations, especially in a climate where interest rates might shift unexpectedly.
Short-term CDs, particularly those with high yields like 3-month CDs, offer an attractive option for individuals who prefer not to lock in their money for extended periods. Short-term CDs are ideal for savers looking to quickly capitalize on higher interest rates or set aside money for near-term expenses, enabling them to increase their savings quickly.
Check out our Ratewatcher 3-Month Rate Picks for the top CD rates:
Credit Unions Banks
| 5.50% APY* 3-Month $1,000 minimum deposit Atomic CU (OH) Insured by NCUA | 5.55% APY* 3-Month $500 minimum deposit Riverside Bank of Dublin (OH) Member FDIC |
| 5.38% APY* 3-Month $500 minimum deposit River Works CU (MA) Insured by NCUA | 5.36% APY* 3-Month $1,000 minimum deposit Community First Bank (MO) Member FDIC |
| 5.33% APY* 3-Month $100,000 minimum deposit Lincoln Maine FCU (ME) Insured by NCUA | 5.30% APY* 3-Month $500 minimum deposit Great Plains State Bank (NE) Member FDIC |
| 5.30% APY* 3-Month $500 minimum deposit Dow CU (MI) Insured by NCUA | 5.30% APY* 3-Month $500 minimum deposit Great Plains State Bank (NE) Member FDIC |
| 5.25% APY* 3-Month $500 minimum deposit Wasatch Peaks FCU Insured by NCUA | 5.25% APY* 3-Month $1,500 minimum deposit Banesco USA (FL) Member FDIC |
What is a 3-month CD?
Three-month CD rates provide a short-term savings option with a typically guaranteed return. By depositing a set amount into a 3-month CD, your money earns interest at a rate usually higher than regular savings accounts. After the term ends, you get back your initial deposit plus the earned interest. This makes 3-month CDs appealing for those wanting a quick return without the long commitment of traditional CDs, ideal for managing short-term financial plans or unforeseen expenses.
Where to Find the Best 3-Month CD Rates?
CD Valet is the largest marketplace to find the best 3-month CD rates. Offering a comprehensive comparison of rates from banks and credit unions across the nation, CD Valet simplifies the process of identifying the highest yields available.
Why Should I Consider a 3-Month CD?
A 3-month CD is an excellent choice for individuals seeking a safe way to store their funds while earning a quick return. Unlike longer-term savings options, 3-month CDs offer a brief commitment period, allowing you to access your funds and the accrued interest quickly. This makes them ideal for those who anticipate needing their funds relatively soon but wish to earn more interest than a standard savings account can provide.
FAQs
What are the benefits of choosing a 3-month CD?
Currently, a 3-month CD offers quicker access to your funds and higher interest rates compared to regular savings accounts, making it suitable for short-term financial goals or expenses that arise but are not immediate.
How often do CD rates change?
CD rates can change frequently based on economic conditions and central bank policies. It’s best to check platforms like CD Valet for the latest rates.
Can I renew my 3-month CD after it matures?
Yes, most banks allow you to renew your CD automatically, but it’s wise to review the current rates before the maturity date to ensure it’s still a competitive option. Many 3-month CDs are “promos” and they may renew at much lower rates. It’s important to be proactive and compare rates before your CD matures, so you don’t lose out getting better returns in the future.
What happens if I need to withdraw my money before the 3-month CD matures?
Early withdrawal from a CD typically triggers a penalty which could include losing some of the interest earned and can also include the principal that was initially deposited in the CD. It’s important to be sure you won’t need the funds during the term before investing in a CD. We recommend you confirm the early withdrawal penalties with the financial institution before opening the CD.
How does CD Valet help in choosing the best 3-month CD rates?
CD Valet publishes rates from nearly 4,000 financial institutions nationwide, providing a platform to easily find, compare and choose the highest-yielding 3-month CDs available.
