When choosing the best certificate of deposit, look for:
A competitive fixed interest rate. In order to find the best rate for your short-term CD, you’ll need to shop around and compare your options.
Low penalties. There are typically no establishment or monthly fees with a three-month term CD, but you should check what the penalty is for an early withdrawal — especially if there’s a chance you’ll need your money early.
A minimum balance you can commit to. Keep in mind that banks may offer higher interest rates for a higher balance. If you’re investing $10,000, there’s a good chance that an account with a $500 minimum won’t have the highest interest rate.
Interest compounded daily. This will get you the highest earning on your CD.