Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.
The Federal Reserve kept the federal funds rate unchanged after its July 30 meeting, holding steady at 4.25% to 4.50% — the same level since December 2024. While the Fed doesn't set savings rates, it does influence them, so your high-yield savings account rate will likely stay the same unless your bank decides otherwise.
Here are the accounts you should take advantage of right now to maximize your funds.
Best 3-month CD rates
- Best for high APY: Bask Bank - 4.30% APY
- Best from an online bank: Bank5 Connect - 4.00% APY
- Best for low minimum deposit: Quontic Bank - 3.85% APY
- Best for a large deposit: Popular Direct - 3.90% APY
- Best from a credit union: Dow Credit Union - 4.40% APY
Best for high APY: Bask Bank
Bask Bank CDs
Annual Percentage Yield (APY)
From 3.65% to 3.85% APY
Terms
From 3 months to 24 months
Minimum balance
$1,000 minimum deposit
Monthly fee
None
Early withdrawal penalty fee
You may withdraw interest that has been credited to your account during the current term without penalty, but you will be subject to an early withdrawal penalty if any portion of your principal balance is withdrawn: CDs with terms of 6 months up to and including 1 year are subject to a fee of 90 days of simple interest based on the principal amount withdrawn; CDs with terms greater than 12 months are subject to a fee of 180 days of interest based on the principal amount withdrawn. If your accrued interest is less than the penalty's total amount, the difference will be deducted from your principal.
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Can withdraw interest early with no penalty
Cons
- $1,000 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fee applies to principal
- Doesn’t offer CD options beyond the traditional type
- No physical branch locations
Bask Bank offers a competitive 4.25% APY on its three-month CD for a minimum deposit of $1,000.
CD terms offered: 3 months, 6 months, 9 months, 12 months, 18 months and 24 months
Best from an online bank: Bank5 Connect
Bank5 Connect offers a solid 4.00% APY on its three-month CD, which is competitive with other online banks, with only a $500 minimum deposit.
CD terms offered: 3 months, 6 months, 12 months, 15 months, 18 months, 21 months, 24 months and 36 months.
Bank5 Connect CDs
Annual Percentage Yield (APY)
From 0.85% to 4.35% APY
Terms
From 6 months to 36 months
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
There's an early withdrawal penalty equal to 3 months of interest for CDs with terms less than one year, and an early withdrawal penalty equal to 6 months of interest for CDs with terms of one year or greater
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Offers "24 Month Investment CD" to add funds during CD term
Cons
- $500 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fees apply
- No physical branch locations
Best for low minimum deposit: Quontic Bank
Quontic Bank offers a solid 3.85% APY on its three-month CD with a $500 minimum deposit, the lowest we found. Quontic is an online-only bank and a Community Development Financial Institution (CDFI), which supports economically disadvantaged communities nationwide.
CD terms offered: 3 months, 6 months, 24 months, 36 months and 60 months
Quontic Bank CDs
Annual Percentage Yield (APY)
From 3.00% to 3.50% APY
Terms
From 3 months to 5 years
Minimum balance
$500 minimum deposit
Monthly fee
None
Early withdrawal penalty fee
Withdrawals before the maturity date are subject to penalties. For time deposits up to 12 months, the penalty will be equal to the interest for the full length of the stated term. For time deposits 12 months to under 24 months, the penalty equals one year interest. For time deposits 24 months and over, the penalty equals two years interest. If the accrued interest exceeds the penalty amount, the excess accrued interest over the penalty amount will be paid to you. If the accrued interest is less than the penalty amount, a reduction of the principal balance may result.
Terms apply.
Pros
- Above-average APYs on terms from 3 months to 5 years, covering a broad range of savings timelines.
- $500 minimum deposit to open, keeping the entry point accessible for most savers.
- No monthly fees, so every dollar you deposit stays working for you.
- As a Community Development Financial Institution, Quontic reinvests in economically disadvantaged communities, so your savings help support a broader mission.
Cons
- Only offers traditional CDs, with no no-penalty or bump-up options available.
- Early withdrawal penalties are on the heavier side, ranging from the full term’s interest for shorter CDs up to two years of interest for terms of 24 months or more.
- No physical branch locations, so all banking is done online or by phone.
Best for a large deposit: Popular Direct
Popular Direct offers 3.90% APY on its three-month CD with a $10,000 minimum deposit requirement. If you have a large savings that you want to keep safe for a short-term goal, Popular Direct's three-month CD is a good place to park it.
CD terms offered: 3 months, 6 months, 12 months, 18 months, 24 months, 36 months, 48 months and 60 months.
Popular Direct CDs
Annual Percentage Yield (APY)
From 3.30% to 4.20% APY
Terms
From 3 months to 60 months
Minimum deposit
$10,000
Monthly fee
None
Early withdrawal penalty fee
For terms less than 91 days: The fee is 89 days simple interest; For terms equal to or greater than 91 days but less than 12 months: The fee is 120 days simple interest; For terms equal to or greater than 12 months but less than 36 months: The fee is 270 days simple interest; For terms equal to or greater than 36 months but less than 60 months: The fee is 365 days simple interest; For terms equal to or greater than 60 months: The fee is 730 days simple interest
Terms apply.
Pros
- Above-average APYs on terms from 3 months to 60 months, with a solid range for both short and long-term savers.
- No monthly fees, so your earnings stay intact throughout your term.
- Has physical branch locations, a rare perk for an online-focused bank.
Cons
- $10,000 minimum deposit required to open, making it one of the higher barriers to entry among CD options.
- Your money is locked in for the duration of the term, so it’s important to feel confident about your timeline before opening.
- Early withdrawal penalties are among the steepest we’ve seen, ranging from 89 days of interest for very short terms all the way up to 730 days for terms of 60 months or more.
Best from a credit union: Dow Credit Union
Dow Credit Union offers a three-month CD at 4.40% APY, the highest rate we found from a credit union, with a minimum deposit of just $500. Membership is open to anyone by opening a Dow Credit Union Savings Account with a $5 deposit and a Dow Credit Union Checking Account.
CD terms offered: 3 months, 6 months, 12 months, 13 months, 18 months, 24 months, 36 months, 48 months and 60 months
Dow Credit Union CDs
Annual Percentage Yield (APY)
From 3.08% to 5.01% APY (includes potential Member Saver Reward bonus Giveback percentage)
Terms
From 3 months to 60 months
Minimum balance
$500 minimum deposit
Monthly fee
None
Early withdrawal penalty fee
An early withdrawal penalty may be applied when a withdrawal is made prior to maturity of the certificate and could result in loss of principal.
Terms apply.
Pros
- Above-average APYs
- Member Giveback rebates and rewards can increase savings APY
- Range of CD terms
- No monthly fee
- Offers different CD types, including bump-up CDs to increase APY during CD term, youth CDs for those under age 18 to make additional deposits during CD term and HSA CDs
- Membership is open to anyone by opening a Dow Credit Union Savings Account (with minimum $5 deposit) and a Dow Credit Union Checking Account
Cons
- $500 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fee may apply
- Only physical branch locations in Michigan
What is a CD and how do they work?
A CD, or certificate of deposit, is a deposit account that earns a fixed rate of interest for a predetermined set of time. What sets traditional CDs apart from savings accounts is that once you deposit the funds, you can't access them without paying a penalty (and possibly losing accrued interest).
Penalty fees vary depending on your bank, but are usually the interest you earned or the interest you would have earned over a certain number of days or months. (Generally, the longer the CD term length, the costlier the withdrawal penalty.)
When a CD matures, savers can take their money back (plus interest) or roll it into another CD. If you do nothing, CD terms usually auto-renew at the rate offered at maturity.
One reason to consider a CD over a high-yield savings account is that you lock in the rate the day you open the account. CDs typically don't come with monthly fees and are federally insured.
How to choose a CD
Decide how long you want to keep your money locked up, and pick a CD based on that time horizon.
If you want to save up for a down payment on a home in a few years, consider a longer-term CD, like a three- or five-year option, and see who offers the best rate for that timeframe.
Shorter CD terms, such as three- and six-month CDs, are good for a short-term goal, such as a vacation.
How to compare CDs
When comparing CDs, make sure you're looking at CDs with the same term across different banks; this way, you're comparing "apples-to-apples."
Once you know the CD term you want, you can compare interest rates, minimum deposit requirements, and the early withdrawal penalties.
Types of CDs
When shopping for a CD, there are many variables to consider, including the APY, term and minimum deposit. Beyond that, there are different types of CDs, though not all institutions offer all of them.
Traditional CDs: A standard certificate of deposit with a fixed interest rate and a set term. Savers agree to leave the funds untouched until maturity or face early-withdrawal penalties.
High-yield CDs: These CDs earn above-average interest rates, often more than double the national average. Typically, high-yield CDs are offered by online-only institutions.
Jumbo CDs: In return for a higher rate, these CDs require a large minimum deposit, often at least $50,000 or $100,000.
Bump-up CDs: If a bank's CD rates increase, savers with a bump-up CD can request a higher rate before maturity.
Add-on CD: Unlike most CDs, savers can deposit more money after opening their account.
No-penalty CD: Money can be withdrawn before the term ends without penalty, usually after a brief lock-in period.
Brokered CD: Because these are purchased through a brokerage firm, you can access CDs from many banks (with potentially higher rates) and trade them on a secondary market before maturity. That means they have a greater risk, however.
IRA CD: An individual retirement account in which all the funds are invested in certificates of deposit (CDs). It's a low-risk option that combines the stability of a CD with the tax advantages of an IRA.
Pros and cons of CDs
Some of the pros and cons of CDs are quite the same, and whether you see something as good or bad depends on other factors. We list what we think below.
Pros of CDs
- Fixed interest rates
- Can't touch funds until the term is up (good for people tempted to spend)
- Funds are federally insured up to $250,000
Cons of CDs
- Fixed rate can cost you if rates go up before your CD matures
- Early withdrawal penalty fees may apply
- Can generally only deposit money iat the beginning of the term
- Minimum deposit requirement, typically at least $500
FAQs
Is it worth doing a three-month CD?
A three-month CD can be worthwhile if you only want to keep your cash locked up for a short amount of time, especially in a high-rate environment. You can grow substantial savings in just a few months, and the bigger the deposit, the better the growth.
What is the current three-month CD rate?
As of February 2025, the current three-month CD national savings rate is 1.45% APY.
How much can you make off a three-month CD?
How much you can make off a three-month CD depends on the interest rate you have when you open the account, as well as your deposit. The higher the interest rate and the higher your deposit, the more you'll earn in interest.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every CD review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of savings and banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Our methodology
To determine the best three-month CDs, CNBC Select compared dozens of options offered by online and brick-and-mortar banks, including credit unions. We found that the APYs offered by online banks and credit unions far outpaced those of most national brick-and-mortar banks.
When ranking the top three-month CDs, we prioritized the ones offering the highest APYs. We then compared three-month CDs by examining their minimum deposit requirements, penalties for early withdrawals, ease of use, and industry rankings. We ranked our top picks by best for high APY, best from an online bank, best for low minimum deposit, best for a large deposit and best from a credit union.
All CDs on this list are FDIC- or NCUA-insured up to $250,000 per person. The rates and fee structures banks advertise for their CD accounts are not guaranteed forever. They are subject to change without notice and they often fluctuate in accordance with the Fed rate. If you open a CD account, however, you're often locked into the APY offered at account opening for the entire term.
Your earnings depend on the CD term length, the amount you deposit, the APY offered when you opened the account and any associated fees. Generally, a larger deposit and a higher interest rate will earn you the most money. Any early withdrawals may result in penalty fees that lower your principal balance/earnings.
To open a CD account for the first time at a bank, most banks and institutions require a deposit of new money, meaning you can't transfer money you already had in an account at that bank.
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