Why Choose a 3-Month CD?
A 3-month CD is the shortest standard term most banks offer — sometimes marketed as a 90-day CD. It suits money you'll need soon but want working in the meantime: an upcoming tax payment, a house closing, or cash between investments. You give up very little flexibility, and in exchange you usually earn more than a checking account, though often about the same as a good high-yield savings account.
What Can You Earn in 3 Months?
Interest on short terms is proportionally small because compounding barely gets started. A $10,000 deposit at 4.30% APY earns about $106 in three months. Doubling the deposit doubles the interest — the math scales linearly. Use the calculator above for your exact numbers.
3-Month CD vs the Alternatives
- vs high-yield savings: rates are often nearly identical. The CD locks the rate for 90 days; savings stays fully liquid. If the difference is small, liquidity usually wins for 3-month money.
- vs Treasury bills: 13-week T-bills often pay similar or better, and their interest is exempt from state income tax — compare with our Treasury Bill Calculator.
- vs longer CDs: if you won't actually need this money in 90 days, a 6 or 12-month term almost always pays a higher rate — try the 6-Month CD Calculator.
Watch Out For
Auto-renewal hits fastest on short CDs — a 3-month CD renews four times a year, and each renewal can land you on a worse rate. Set a reminder before maturity, and check the penalty terms too: even a 3-month interest penalty wipes out the entire gain on this term if you withdraw early.