Top 3-Month CD Rates You Can’t Miss in January 2025!
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Thinking about a short-term investment? A 3-month CD might just be your ticket! While not as commonly offered as their 6-month or 1-year counterparts, these quick-turnaround certificates of deposit can pack a punch. For an in-depth look at how 3-month CDs stack up against longer options, explore our comprehensive guide on the best CD rates available.
The national average for bank interest rates on 3-month CDs hovers around 1.50% APY. However, we’ve rounded up some top contenders offering significantly better rates. Right now, the standout is a whopping 4.65% APY from Popular Direct and Bask Bank. You don’t want to miss out!
Here at our financial hub, we diligently track over 160 banks and credit unions to bring you the best 3-month CD options. Keep an eye out: with the Fed’s interest rate cuts in the pipeline, we might see a drop in CD rates. We update our insights daily to keep you informed about competitive choices!
Ponce Bank 3 Month CD
Annual Percentage Yield (APY)
4.52%
Minimum Opening Deposit
$1
- High interest rates
- No fees
- Exclusive accounts not accessible elsewhere
- Lower minimum deposit than many banks
- No checking or business accounts
- Deposits and withdrawals only through external accounts
- No compatibility with third-party budgeting apps
- Raisin is an online marketplace that connects you to competitive rates from banks.
- Offers high-yield savings, money market accounts, and a variety of CDs.
- Filter searches by institution type, including minority-led or family-owned.
- Daily compounded interest, paid monthly.
- Deposits insured by the FDIC or NCUA.
Best 3-Month CD Rates
3-Month CD Reviews
When seeking a 3-month CD, you’re looking for an enticing blend of solid interest rates and low minimum deposits. Ideally, these accounts should help you steer clear of pesky bank fees, with no monthly maintenance fees and reasonable early withdrawal penalties.
Rest assured, our top picks come with FDIC or NCUA insurance, protecting your funds. If you ever worry about bank failures, remember that your money is safe with federally insured institutions—up to $250,000 per depositor. Ready to explore the best 3-month CDs? Here are our top recommendations!
Popular Direct 3 Month CD
Popular Direct is a frontrunner in the CD game, offering competitive rates with daily compounding interest. As a proud Hispanic American-owned bank, Popular Bank plays a vital role in providing financial services to underserved communities.
To open a Popular Direct CD, you’ll need a minimum deposit of $10,000. Keep in mind, the early withdrawal penalty for this 3-month term packs a punch.
APY for 3-month CD: 4.65% APY
3-month CD early withdrawal penalty: 89 days of simple interest
Bask Bank 3 Month CD
Bask Bank offers a range of short-term CDs with appealing rates, making it an excellent choice if you’re considering multiple CDs through one bank.
However, if you’re eyeing a longer-term CD, you might want to look elsewhere since Bask Bank specializes in short-term options.
APY for 3-month CD: 4.65% APY
3-month CD early withdrawal penalty: 30 days simple interest
TotalBank 3 Month CD
With a high interest rate for a 3-month term and low early withdrawal penalties, the TotalBank CD stands out, though it does require a hefty $25,000 minimum deposit.
APY for a 3-month term: 4.61% APY
3-month early withdrawal penalty: 45 days of interest
Brilliant Bank 3 Month CD
Brilliant Bank, an online-only division of Equity Bank, offers attractive rates for its 3-month CD. However, users have reported concerns with the mobile app’s performance.
APY for a 3-month term: 4.60% APY
3-month early withdrawal penalty: half of the interest the CD has yet to earn
Signature Federal Credit Union 3 Month Certificate
Signature Federal Credit Union offers a $500 minimum deposit, making it one of the more accessible options. Keep in mind, credit unions require membership to open accounts.
APY for a 3-month term: 4.55% APY
3-month early withdrawal penalty: Up to 45 days of interest
Ponce Bank 3 Month CD, powered by Raisin
This CD boasts a strong rate, and Raisin provides a platform to explore various financial products from different institutions. With a minimum deposit of just $1, it’s a fantastic entry point.
APY for a 3-month term: 4.52% APY
3-month early withdrawal penalty: 30 days of simple interest
Dow Credit Union 3 Month Simple CD
Offering the highest rate available for a 3-month term, this Simple CD also requires a low minimum deposit. Joining Dow Credit Union typically involves a small donation, making it quite accessible.
APY for a 3-month term: 4.50% APY
3-month early withdrawal penalty: 45 days of interest
Quontic 3 Month CD
Quontic Bank offers an attractive rate for its short-term CDs. Only $500 is needed to open one, making it a low-barrier option for savers.
APY for 3-month CD: 4.50% APY
3-month CD early withdrawal penalty: All interest earned
America First Credit Union 3 Month Certificate
If you’re in the Southwest, America First Credit Union offers solid rates and a variety of terms. Membership is required, but joining can open up a wealth of financial options.
APY for a 3-month term: 4.50% APY
3-month early withdrawal penalty: 60 days of interest
Bank Trustworthiness and BBB Ratings
Trust is key when it comes to choosing a bank. We’ve compared each institution’s Better Business Bureau ratings based on factors like customer complaint responses and advertising honesty.
Bask Bank holds a B rating due to customer complaints.
TotalBank has earned an A- rating, as it has promptly addressed customer concerns.
Brilliant Bank lacks a BBB rating, but its parent organization, Equity Bank, has a B- rating due to unanswered complaints.
Signature Federal Credit Union holds a B- rating for similar reasons.
In a notable move, the Federal Reserve Board fined Popular Direct’s parent bank, Popular Bank, $2.3 million due to potential fraud in processed loans.
What Influences 3-Month CD Rates
Market Fluctuations
When deciding to open or renew a CD, it’s crucial to stay informed about market fluctuations that can impact CD rates.
Typically, CD rates adjust when the Federal Reserve alters the federal funds rate. Higher rates usually mean higher CD rates, while a decrease leads to lower rates.
Short-Term Economic Outlook
Interestingly, 3-month CDs currently boast higher rates than their long-term counterparts, a trend that is not as common.
Amid economic uncertainty, short-term CDs are more appealing than long-term options. However, following recent rate cuts by the Fed, expect this dynamic to shift in the near future.
Special Promotions
Banks are currently rolling out enticing promotional CDs with short terms. Keep an eye out for these offers, which may apply to new or existing customers.
Should You Open a 3-Month CD?
A 3-month CD can be a smart choice for short-term savings goals or as a building block for a CD ladder. However, be mindful of economic conditions, as these rates can fluctuate more than long-term options.
3-Month CD FAQs
The highest 3-month CD rate is currently offered at Popular Direct and Bask Bank, providing a competitive 4.65% APY.
Longer-term CDs typically feature higher interest rates because your funds are locked in for a longer period. However, due to current economic conditions, short-term CDs offer competitive rates that might surpass longer terms.
If you have short-term savings goals, a 3-month CD could be beneficial, but it depends on your specific financial needs.
3-month CD rates fluctuate frequently. Our top recommendations change multiple times a month as we review rates daily, and predictions suggest rates may decline in the future.
Banks commonly offer promotional 3-month CDs, especially for new customers or those with eligible accounts.
Why You Should Trust Us: Expert Advice on Choosing the Best 3-Month CD
Our personal finance team has consulted industry experts to help guide you in finding the best CD options.
Here’s what they had to say about selecting the right bank:
How do you choose a bank or credit union?
“Ensure your bank is FDIC insured,” advises an expert. “Then think about the experience: Do you prefer a local bank where you can walk in, or are you happy with online banking? Consider your personal banking habits before making a choice.”
Another recommendation is to assess account fees: “Look into monthly service fees and the requirements to waive them. If you’re seeking interest-bearing accounts, make sure the rates are competitive.”
How long should you leave money in a CD?
“Think about when you’ll need the money and how it aligns with current CD rates,” they suggest. “Don’t lock your money away longer than necessary just for a slightly higher rate.”
Your goals for the funds should also inform your decision: “If it’s a house fund you plan to access in two years, ensure your CD timeline matches your plans,” says another expert.
How We Selected the Best 3-Month CDs
Our editorial team is committed to delivering trustworthy product recommendations, thoroughly researching over 160 banks and credit unions for the best 3-month CD rates available. We assess each institution’s offerings, customer service, and overall banking experience to ensure you have access to quality options.
We evaluate features such as minimum deposits, withdrawal penalties, interest rates, and customer support, assigning ratings from one to five stars based on our thorough analysis.
