What is the minimum deposit for a 3-month CD?

Typically the minimum is $500, but there are instances when the minimum deposit could range from $0 to $10,000. Traditional banks usually require a minimum of $1,000. Minimum deposits vary from one financial institution to another.

Are promotional rates worth it?

Promotional rates can be worth it, but understand they come with limitations. Promotional interest rates are good for the short term, but after a specified time period the rate will drop significantly. Also, promotional rates have restrictions -- eligibility may require you to be a new customer.

How often can you reinvest in a 3-month CD?

You can reinvest in a 3-month CD as often as you like. Typically reinvestments occur at the end of the three-month term.

What happens if you withdraw early from a 3-month CD?

If you withdraw early from a 3-month CD, you will likely face an early withdrawal penalty, which varies by bank or credit union.

How do online banks compare to traditional banks for short-term CDs?

Online banks generally require a lower minimum deposit and have a higher APY. Traditional banks require higher deposits and have lower APYs, but also have the option for customers to visit in-person.

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Best 3-Month CD Rates and Offers for 2025

October 28, 2025

8 min Read

Written by Rudri Patel

Edited by Melanie Grafil

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As interest rates have risen over the past couple of years, CDs have become a more attractive investment. When you purchase a certificate of deposit, you get a guaranteed rate of interest for a specified period of time.

The advantage is that you know exactly how much your money will earn, and you can choose how long you want to keep money in the CD. The downside is that if rates go up, you may pay a penalty if you take your money out and move it somewhere else.

Current Best 3-Month CD Rates for 2025

Bank/Credit Union	APY
Ivy Bank	4.35%
Blue Foundry Bank	4.20%
HAB Bank	4.15%
OceanFirst Bank	4.11%

How To Choose the Right 3-Month CD

Choosing the right CD is more complicated than just picking the one with the highest interest rate — though that is a significant factor. You should also consider the minimum deposit, any early withdrawal penalties and whether the financial institution is FDIC-insured.

Balancing Interest Rates with Deposit Requirements

It’s tempting to capitalize on a higher interest rate, but you also have to pay attention to the minimum deposit. CDs with higher APYs may require a $500 or $1,000 minimum deposit. Decide whether you have enough cash on hand to afford the minimum deposit to be able to capitalize on the higher interest rate.

Are There Early Withdrawal Penalties for Short-Term CDs?

In most cases, you’ll pay a penalty if you take your money out before the CD matures. The penalty is usually at least three months’ worth of interest, so if you take money out of your three-month CD before the end of three months, you’ll actually end up losing money — so make sure you can keep the money tucked away for the full three months.

Customer Service and Account Accessibility

Whether you choose a traditional or online bank for your three-month CD, check out the financial institution’s reputation. You can check online reviews or the rating on the Better Business Bureau’s website to determine whether the bank will be a good fit for you.

In terms of accessibility, you want to easily track and monitor the progress of your CD. Check out the respective bank’s app score in the Apple Store or on Google Play.

Benefits of Investing in a 3-Month CD

A three-month CD can be a safe and beneficial investment choice for the short term. Here are some benefits of investing in a three-month CD:

Short-Term Commitment and Liquidity

Unlike a long-term CD, a three-month CD is a short amount of time to invest. It is a great option if you will need access to cash soon.

Predictable Guaranteed Returns

During your three-month CD term, there are no surprises regarding the interest rate. Since your rate is fixed you can predict what you will earn at maturity. The rate will be protected from market fluctuations.

Higher Interest Rates than Savings Accounts

Short-term CDs typically have higher interest rates than traditional savings accounts. If you need access to your funds, but still want to have the benefit of a high interest rate, investing in a three-month CD is ideal.

Easy To Manage and Reinvest

You don’t have to wait too long to reinvest your funds with a three-month CD. After the term is over, you can easily collect funds at maturity or roll them over to a new CD.

Alternatives to 3-Month CDs

Three-month CDs are a good way to maximize interest earnings and accessibility to your money. There may be times when you don’t want to lock up your money for even that long. The following alternatives give you instant access when you need it, and they could get you a higher rate.

High-Yield Savings Accounts

High-yield savings accounts pay higher interest than standard savings accounts, and the rates are often higher than short-term CD rates as well. TAB Bank, for example, pays APY, with no minimum opening balance and no monthly fees.

Treasury Bills

Treasury bills often have higher returns than CDs. This low-risk investment is backed by the U.S. government, and T-Bills are generally more liquid than CDs. You can sell a T-Bill before maturity and not incur a penalty.

Money Market Accounts

A money market account is a savings account that usually comes with a debit card and allows you to write a limited number of checks each month. Money market accounts, like CDs, typically pay higher interest than standard savings accounts, and they often have a minimum opening deposit. But you don’t have to wait three months to withdraw your money or add funds to your account.

Pros and Cons of 3-Month CDs

If you’re considering investing in a three-month CD, it’s helpful to know the advantages and disadvantages of your investment. Let’s take a look at some of the pros and cons:

Pros

Guaranteed returns: CD rates are fixed so you will know exactly how much you will earn at the end of three months.
Short-term commitment: Since you are investing in a three-month CD, your funds aren’t locked up for a long period of time.
Safety and low risk: CDs are FDIC-insured, and because the term is only three months, you might not be impacted too much by the ups and downs of the market.
Competitive APYs: Generally three-month CDs have higher APYs than traditional savings accounts.

Cons

Lower interest rate: The three-month CD typically has lower interest rates than a longer-term CD.
Limited liquidity: Your funds are locked in for three months, and withdrawing early may result in penalties.
Opportunity costs: If interest rates rise, you may miss out on better returns elsewhere.

Finding the Best 3-Month CD Rates

A CD is a good place to park your money if you know you won’t need it for a certain period of time and if you’re looking for a guaranteed rate with no risk. Several banks and credit unions offer competitive APYs. Bask Bank is offering an APY of on its three-month CD offering. Other banks, like EverBank and Bread Financial, also have similarly high APYs.

If you want to make the best of your short-term savings strategy with a three-month CD, make certain you shop around for the best APYs. Use your CDs for short-term, specific savings goals and avoid taking early withdrawals. One way to avoid early withdrawal penalties is to reevaluate your financial strategy and liquidity.

3-Month CD Rate FAQ

Here are answers to some of your frequently asked questions about 3-month CDs.

What is the minimum deposit for a 3-month CD?
- Typically the minimum is $500, but there are instances when the minimum deposit could range from $0 to $10,000. Traditional banks usually require a minimum of $1,000. Minimum deposits vary from one financial institution to another.
Are promotional rates worth it?
- Promotional rates can be worth it, but understand they come with limitations. Promotional interest rates are good for the short term, but after a specified time period the rate will drop significantly. Also, promotional rates have restrictions -- eligibility may require you to be a new customer.
How often can you reinvest in a 3-month CD?
- You can reinvest in a 3-month CD as often as you like. Typically reinvestments occur at the end of the three-month term.
What happens if you withdraw early from a 3-month CD?
- If you withdraw early from a 3-month CD, you will likely face an early withdrawal penalty, which varies by bank or credit union.
How do online banks compare to traditional banks for short-term CDs?
- Online banks generally require a lower minimum deposit and have a higher APY. Traditional banks require higher deposits and have lower APYs, but also have the option for customers to visit in-person.

Karen Doyle, Amber Barkley, Sarah Sharkey, Daria Uhlig and Cynthia Measom contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 28, 2025.

All information about Discover® Money Market Account has been collected independently by GOBankingRates. Discover® Money Market is no longer available through GoBankingRates.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.