Best available rates across different account types for Monday, May 13, 2024
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A three-month certificate of deposit (CD) allows you to earn a fixed rate on your money for the short term. When considering a three-month CD, it can pay to compare the rate with those offered from high-yield savings accounts.
Only commit money to a three-month CD that you won’t need before the term ends, or else an early withdrawal penalty could eat up your interest earnings.
Note: Annual percentage yields (APYs) shown were updated between May 6, 2024 and May 12, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Note: Annual percentage yields (APYs) shown were updated between May 6, 2024 and May 12, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
After 11 consecutive rate hikes, the Federal Reserve didn’t raise rates again during its January 2024 meeting. 94 percent of economists polled by Bankrate believe the Fed may start cutting rates in 2024.
With uncertainties about further rate increases and the possibility of rate cuts in the coming year, it might be an opportune time to think about an investment strategy that includes CDs of various term lengths to maximize your savings.
Comparison shopping is key when you’re looking for the best three-month CD rates. There are multiple types of CDs, including bump-up, step-up and liquid CDs. But the top three-month CD rates are usually found with traditional CDs.
Check out the best three-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.
Annual percentage yields (APYs) on CDs can vary greatly among banks, so it pays to shop around on a site such as Bankrate for a CD with the highest yield. Often, online-only banks and some credit unions pay considerably higher rates than large brick-and-mortar banks.
A benefit of a three-month CD is it only ties up your money for a relatively short period of time, yet a drawback is you’ll often find higher rates from longer-term CDs. For instance, it’s easy to find one-year CDs that pay better yields than many three-month CDs.
Other factors to consider when choosing a three-month CD include minimum deposit requirements as well as what the penalty is for early withdrawals.
Whether a three-month CD is right for you depends on your own financial situation and goals. Due to its short term, a three-month CD could be a good investment for those who want the money freed up soon for planned purchases or to invest elsewhere.
When looking at three-month CDs, be sure to compare their rates with those offered from top high-yield savings accounts. You may be able to find a savings account that earns a higher yield, and this way you won’t need to lock in your funds for any amount of time.
Bankrate has been around since 1976. It’s a leading publisher of rates and personal finance articles. It’s also often cited by some of the most respected and well-known publications and websites. The Bankrate promise is that we strive to help our readers make smarter financial decisions, adhering to strict principles of editorial integrity and transparency.
Bankrate’s editorial team is made up of five banking experts. These experts have researched many banks and at least twice a month go to bank websites to make sure readers stay up to date on the latest rates and bank products.
We select banks that have high APYs and that are popular and broadly available, and we include some of the largest banks.
