The best three-month CD rates tend to be at online banks. Although the term is one of the shortest available, these CDs can be helpful in some savings strategies.
|Best 3-month CD interest rates | July 2019|
• 0.75% APY
• 2.05% APY
• 0.75% APY
• 2.00% APY
• 0.85% APY
» Want to see more options? Check out our list of the best CD rates overall
What is a CD?
A CD, or certificate of deposit, is a type of savings account which keeps money locked up for a set period or term, generally three months to five years. The longer the CD term, the higher the rate tends to be.
» Want slightly higher rates? Check out our list of best six-month CD rates
How do CD rates work?
CD rates are quoted as an annual percentage yield, or APY, which is how much the account earns in one year, including compound interest. Banks generally compound interest monthly or daily. Most CDs have fixed rates, so they won’t change as savings account rates tend to.
» See what CDs can earn with our CD calculator
When should you get a CD?
You should get a CD only if you know you won’t need those funds during its term. Pulling money out of a CD before its expiration date will likely result in an early withdrawal fee, which is typically a percentage of the interest earned. With a three-month CD, there’s less of a commitment so you have more opportunities to renew in a given year if you decide you don’t need the money yet.
What’s better: CDs or high-yield savings accounts?
It depends on what’s more important to you: rates or access to your money. The best CD rates tend to be higher than the best savings account rates, but you sacrifice access to money in CDs. If that doesn’t work for you, check out our list of best online savings accounts.
What’s better: CDs or investment accounts?
It depends on the level of risk you want to take. Investment, or brokerage, accounts can have higher returns than CDs, but CDs guarantee returns. They’re typically federally insured for up to $250,000 and offer fixed interest rates. Brokerage accounts can be riskier since you aren’t protected against losses.
Best 3-month CD rates, July 2019
|Financial institution||APY||Minimum deposit|
We featured easy-to-join financial institutions that NerdWallet has vetted and reviewed with the highest rates for three-month CDs. Higher rates might be available elsewhere.