Best 3-Month CD Rates in July 2025

Written by Tara Mastroeni

Edited by Ali Cybulski

Consider 3-month certificates of deposit (CDs) to help you strike a balance between achieving a guaranteed return on your investment and keeping your funds fairly flexible. If you want to see how much interest you can earn, here are the best 3-month CD rates on the market today.

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What is a 3-month CD?

A certificate of deposit (CD) is a type of savings account that earns a fixed amount of interest for a specific period, or term. You agree to deposit your money for the term, and in return, the bank pays you a set interest rate that is typically higher than a traditional savings account.

A 3-month CD must be held with a financial institution for about 90 days. It's often the shortest CD term banks and credit unions offer.

Keep in mind that if you need to access your money before the 90-day period ends, you'll likely face an early withdrawal penalty. Typically, this penalty is charged as a set number of days’ worth of earned interest.

How to choose a 3-month CD

Every 3-month CD has a 90-day term length, but that’s where the similarities usually end. Here are a few factors to consider when choosing the best 3-month CD for you:

• Annual percentage yield (APY): Expressed as a percentage, the APY shows the amount of interest that will accrue in one year if the CD is held with the bank or credit union to its full term. Generally, the highest 3-month CD rates will earn the most interest, so look for a high APY to maximize returns.
• Minimum opening deposit: This figure represents the least amount of money required to open the CD. Aim to choose a CD with a minimum deposit amount you can afford.
• Early withdrawal penalty: This figure represents the amount of interest you will forfeit if you take your money out of the CD before its maturity date. Each financial institution has different policies on early withdrawal penalties. So protect your investment by choosing a CD with minimal penalties, if any.
• Maximum deposit amount: Some financial institutions restrict the amount you can deposit in a single CD. If you’re thinking of investing a sizable amount, look for a CD with no stated cap.

Remember, both the Federal Deposit Insurance Corp. (FDIC) and the National Credit Union Administration limit insurance coverage to $250,000 per depositor.

Pros and cons of 3-month CDs

Should I get a 3-month CD?

Whether a 3-month CD is worth opening depends on your financial situation.

When a 3-month CD could make sense

As a rule of thumb, opening a 3-month CD makes sense if you hope to strike a balance between earning guaranteed returns and having some flexibility with your money.

Whether used alone or part of a CD ladder strategy, a 3-month CD won’t tie up your money for too long. That means you’ll likely be able to earn the full amount of interest.

When a 3-month CD may not be worth it

You may want to pass on a 3-month CD if you can find a similar rate on another investment vehicle, such as a high-yield savings account (HYSA). Savings accounts don’t have early withdrawal penalties, which may allow you to achieve similar returns without the worry of limiting access to your money when you need it.

Make sure to shop around to see what rates are available.

How to get a 3-month CD

If you decide that a 3-month CD is the way to go, here’s an overview of how to open a new account:

1. Choose the right CD: Each financial institution offers CDs with slightly different terms. Be sure to research your options and choose the CD that works best for you.
2. Apply for the CD: Some financial institutions let you apply online, while others may require you to call or visit a branch in person. The application will likely require personal information, such as your name and address, and some may also require your employment information.
3. Provide supporting documentation: Most financial institutions will ask you to provide a government-issued ID to verify your identity.
4. Review the appropriate disclosures: Your financial institution will provide you with a disclosure agreement, which will outline the terms and conditions of the CD account. Read it carefully to understand your obligations. If you accept the terms, then the financial institution will likely open the account.
5. Fund your CD: Once the account is open, the next step is to fund your 3-month CD with at least the minimum deposit amount. You’ll likely be given a set number of days to deposit the money into your account.

Alternatives to 3-month CDs

If a 3-month CD is not right for you, these are some alternatives:

• No-penalty CDs: As the name suggests, a no-penalty CD does not come with an early withdrawal penalty. However, in exchange for the flexibility, these CDs typically earn lower rates than traditional CDs.
• High-yield savings accounts: HYSAs allow you to access your money when you need it, without a penalty. Plus, they can offer yields similar to 3-month CDs. However, they may have higher minimum opening deposits than CDs and come with monthly maintenance fees.
• Money market accounts (MMAs): These accounts often offer APYs similar to HYSAs. Some MMAs may come with added benefits, such as a debit card or check-writing capability. However, these accounts tend to have higher minimum balance requirements than CDs, and some may limit transactions.