If you have some money to save but do not want your money locked away for a long period of time, a 3 month CD may be a great option. The benefit of a 3-month CD is that you can take advantage of multiple renewals in one year, while still having more access to your money in case you need it in the short term. In this post, we will provide you a list of the Best 3-Month CD Rates available today for 2021.

First, we will explain what CDs are about and how they work.

Next, we will explain the reasons why you may want to consider putting your money in a CD.

Also, we will discuss whether a 3 month CD is worth it.

Finally, we will review the Best 3-Month CD Rates and also provide you with alternatives to the 3-Month CD Rates.

"Is a 3 month CD worth it"

This post will cover:

  • What is a Certificate of Deposit?
  • Why Put Your Money in a CD?
  • Is a 3-Month CD worth it?
  • Best 3-Month CD Rates – 2021
  • Alternatives to a 3-Month CD
  • Best 3-Month CD Rates Summary

What is a Certificate of Deposit?

A Certificate of deposit (CD) is a type of deposit account that often pays a higher interest rate than a standard savings account in exchange for restricting access to your funds during the CD term.

CD terms often vary, depending on the financial institution but are between three months and five years. As long as you keep the money in CD during the entire term, you will earn the APY you were promised.

However, if you should take your money out before maturity or term, and you will most likely incur a penalty.

In addition, if you take your money out early, you also might have to forfeit a portion of the interest you earned, depending on the bank’s policy.

Why Put Your Money in a CD?

If you have some cash to save and want to earn more than you would with a standard savings account, certificates of deposit can be a good option.

Furthermore, many CDs with terms of at least 12 months offer rates that are higher than the best savings accounts.

For example, if you put $5,000 in a CD that earns 2.6% APY for a one-year term, your balance would increase by more than $130.

You should consider a CD if you are certain you won’t need to access your cash for several months or years, depending on the goal you have for that money.

Smaller, local banks or credit unions often offer better rates than the big national institutions.

Also, online-only banks can offer great CD rates because of their lower expenses.

Finally, putting your money in a CD is risk-free in the sense that you can put up to $250,000 in CDs and will never lose that money as long as your account is with an  FDIC bank insured NCUA insured credit union.

Is a 3-Month CD worth it?

In general, CDs are good for people who want to earn a better interest rate on their money (versus a regular savings account) but do not want their money locked away for a longer period.

The benefit of a 3-month CD is that you can take advantage of multiple renewals in one year.

Furthermore, you have more access to funds than other CDs while still taking advantage of a fixed rate.

Also, you could build a short-term CD ladder, which might look like this: Open a 3-month, 6-month, 9-month, and 1-year CD; when each one matures, open a new 1-year CD.

With this method, you can end up with four CDs maturing in the second year, or withdraw funds at any maturity if you need the money then.

Best 3-Month CD Rates – 2021

Here are the banks and credit unions with the best 3-Month CD rates today.

You can also find below in the summary section links to each bank’s CD page for your convenience.

Bank/Institution APY Minimum Deposit
Chevron Federal Credit Union 0.60% $500
Spectrum Federal Credit Union 0.60% $500
NexBank 0.50% $10,000
TotalDirectBank 0.50% $25,000
Hiway Federal Credit Union 0.45% $25,000
Bethpage Federal Credit Union 0.40% $50
Navy Federal Credit Union 0.40% $1,000
Pen Air Federal Credit Union 0.40% $1,500
Affinity Plus Federal Credit Union 0.40% $500
Evansville Teachers Federal Credit Union 0.40% $1,000
Freedom Northwest Credit Union 0.40% $1,000
Consumers Credit Union 0.35% $250
Greenwood Credit Union 0.30% $1,000
BrioDirect 0.25% $500
VyStar Credit Union 0.25% $500
Radius Bank 0.25% $1,000
First Internet Bank of Indiana 0.25% $1,000
SchoolsFirst Federal Credit Union 0.20% $500
Golden 1 Credit Union 0.20% $500
TIAA Bank 0.20% $1,000
Discover Bank 0.20% $2,500
Axos Bank 0.20% $1,000
Ally Bank 0.20% No minimum deposit
NBKC Bank 0.10% $1,000

Alternatives to a 3-Month CD

If you do not want to lock your money in a 3-Month CD but still want to get a better yield on your money than a regular savings account or leaving your money in a checking account, here are some alternatives to consider:

High Yield Savings Account

If you’re not sure about locking your money away, you can also always choose a high-yield savings account.

Many banks and credit unions offer high-yield savings accounts with higher rates than short-term CD lengths.

No-penalty CDs

As you may already know, when you withdraw your money from a CD before the term expires, you generally pay a penalty of at least several months’ of interest earned.

Some banks and financial institutions allow you to withdraw your money before the term expires, with no penalty.

However, the trade-off for this service is that the rates on these no-penalty CDs may be a little lower than the regular CDs.

The following three banks offer no-penalty CDs:

  • Marcus by Goldman Sachs Bank
  • CIT Bank
  • Ally Bank
  • CitiBank

Best 3-Month CD Rates Summary

Chevron Federal Credit Union
0.60% APY, $500 Minimum Deposit

Spectrum Federal Credit Union
0.60% APY, $500 Minimum Deposit

NexBank
0.50% APY, $10,000 Minimum Deposit

TotalDirectBank
0.50% APY, $25,000 Minimum Deposit

Hiway Federal Credit Union
0.45% APY, $25,000 Minimum Deposit

Bethpage Federal Credit Union
0.40% APY, $50 Minimum Deposit

Navy Federal Credit Union
0.40% APY, $1,000 Minimum Deposit

Pen Air Federal Credit Union
0.40% APY, $1,500 Minimum Deposit

Affinity Plus Federal Credit Union
0.40% APY, $500 Minimum Deposit

Evansville Teachers Federal Credit Union
0.40% APY, $1,000 Minimum Deposit

Freedom Northwest Credit Union
0.40% APY, $1,000 Minimum Deposit

Consumers Credit Union
0.35% APY, $250 Minimum Deposit

Greenwood Credit Union
0.30% APY, $1,000 Minimum Deposit

BrioDirect
0.25% APY, $500 Minimum Deposit

VyStar Credit Union
0.25% APY, $500 Minimum Deposit

Radius Bank
0.25% APY, $500 Minimum Deposit

First Internet Bank of Indiana
0.25% APY, $1,000 Minimum Deposit

SchoolsFirst Federal Credit Union
0.20% APY, $500 Minimum Deposit

Golden 1 Credit Union
0.20% APY, $500 Minimum Deposit

TIAA Bank
0.20% APY, $1,000 Minimum Deposit

Discover Bank
0.20% APY, $2,500 Minimum Deposit

Axos Bank
0.20% APY, $1,000 Minimum Deposit

Ally Bank
0.20% APY, No minimum deposit

NBKC Bank
0.10% APY, $1,000 Minimum Deposit

Questions?

We hope this post on Best 3-Month CD Rates was helpful.

If you have further questions about CDs, Banking, or personal finance in general, please let us know in the comments section below.

Be sure to check out our other popular articles, including:

The Best 6-Month CD Rates Today
Best 1-Year CD Rates Today
Citibank CD Rates Today
Walmart MoneyCard App for Android and iPhone:
Best CD Rates in Maryland
Navy Federal Credit Union Guide
Navy Federal Credit Union CD Rates

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