Best 3-month CD rates for December 2024

Note: Annual percentage yields (APYs) shown were updated between Dec. 14, 2024 and Dec. 20, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Comparison shopping is key when you’re looking for the best three-month CD rates. There are multiple types of CDs, including bump-up, step-up and liquid CDs. But the top three-month CD rates are usually found with traditional CDs.

Check out the best three-month CDs offered by banks and credit unions and weigh the pros and cons of going with a short-term CD over an account that’s more liquid. Don’t forget to crunch the numbers and calculate how much interest you could earn by the end of your term.

Annual percentage yields (APYs) on CDs can vary greatly among banks, so it pays to shop around on a site such as Bankrate for a CD with the highest yield. Often, online-only banks and some credit unions pay considerably higher rates than large brick-and-mortar banks.

A benefit of a three-month CD is it only ties up your money for a relatively short period of time, yet a drawback is you’ll often find higher rates from longer-term CDs. Currently, some shorter-term CDs are earning higher APYs than longer-term CDs, although that hasn’t always been the case.

Other factors to consider when choosing a three-month CD include minimum deposit requirements as well as what the penalty is for early withdrawals.

Whether a three-month CD is right for you depends on your own financial situation and goals. Due to its short term, a three-month CD could be a good investment for those who want the money freed up soon for planned purchases or to invest elsewhere.

When looking at three-month CDs, be sure to compare their rates with those offered from top high-yield savings accounts. You may be able to find a savings account that earns a higher yield, and this way you won’t need to lock in your funds for any amount of time.

• Savings accounts: You may be able to score a higher APY from a savings account than from a three-month CD, and an added benefit of a savings account is it doesn’t tie up your money for any period of time.
• Money market accounts: Like savings accounts, money market accounts are liquid accounts, meaning you have access to your money at any time without an early withdrawal penalty. An added benefit of money market accounts is they sometimes come with a debit card and check-writing privileges, unlike CDs or standard savings accounts (although their minimum deposit requirements may be higher than those of other deposit accounts).
• Bonds: Like CDs, bonds can offer a higher degree of security than stocks, with both often providing a fixed interest rate. As for liquidity, CDs usually carry an early withdrawal penalty, while bonds have maturity dates — although it’s possible to sell most bonds sooner on secondary markets.

Research methodology

Bankrate has been around since 1976. It’s a leading publisher of rates and personal finance articles. It’s also often cited by some of the most respected and well-known publications and websites. The Bankrate promise is that we strive to help our readers make smarter financial decisions, adhering to strict principles of editorial integrity and transparency.

Bankrate’s editorial team is made up of five banking experts. These experts have researched many banks and at least twice a month go to bank websites to make sure readers stay up to date on the latest rates and bank products.

We select banks that have high APYs and that are popular and broadly available, and we include some of the largest banks.