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As of January 2023, the national average APY (Annual Percentage Yield) on a 3-year CD is 1.02%, according to the FDIC. However, the best 3-year CD rates pay at least 4.50% APY right now.
Barclays 36 Month Online CD
Annual Percentage Yield (APY)
4.30%
Minimum Deposit Amount
$0
Barclays 36 Month Online CD
Annual Percentage Yield (APY)
4.30%
Minimum Deposit Amount
$0
On Barclays Bank’s secure site. Barclays Bank, Member FDIC.
Details
Annual Percentage Yield (APY)
4.30%
Minimum Deposit Amount
$0
Pros & Cons
Highlights
Additional Reading
Three-year terms provide a nice balance of a good rate and a relatively short length of time. You’ll likely earn a higher APY on a 3-year CD than with a shorter-term CD, and you won’t have to part with your money for as long as you would with a longer term. Here are our top picks for 3-year CDs.
3-year CD rates at the largest US banks
The biggest banks in America pay lower rates than our top picks. However, it may be important to you to bank with a company you’re familiar with. Here are the rates you’ll earn on a 3-year CD with some of the most popular institutions:
Annual Percentage Yield (APY)
4.50% to 4.85%
Minimum Deposit Amount
$500
Annual Percentage Yield (APY)
4.50% to 4.85%
Minimum Deposit Amount
$500
Details
Annual Percentage Yield (APY)
4.50% to 4.85%
Minimum Deposit Amount
$500
Pros & Cons
Highlights
Additional Reading
Why it stands out: CFG Bank has a high interest rate on its 3-year CD, and you’ll only need $500 upfront to open one.
APY for 3-year CD: 4.60% APY
3-year CD early withdrawal penalty: 180 days of interest
What to look out for: Limited term options. CFG Bank doesn’t have many CD terms to choose from — there are only 12-month, 13-month, 18-month, 36-month, or 60-month CDs.
Annual Percentage Yield (APY)
4.25% to 4.60%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
4.25% to 4.60%
Minimum Deposit Amount
$1,000
On Alliant Credit Union’s website
Details
Annual Percentage Yield (APY)
4.25% to 4.60%
Minimum Deposit Amount
$1,000
Pros & Cons
Highlights
Additional Reading
Why it stands out: Alliant pays high rates on CDs and has reasonable early withdrawal penalties.
APY for a 3-year CD: 4.60% APY
3-year CD early withdrawal penalty: 180 days simple interest
What to look out for: Credit unions require you to become a member to open an account. The easiest way to become a member is to join Foster Care to Success, and Alliant will cover your $5 joining fee.
Bread Savings High-Yield CD
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,500
Bread Savings High-Yield CD
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,500
On Bread Savings’s website
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,500
Pros & Cons
Highlights
Additional Reading
Why it stands out: Bread Savings pays higher CD rates than what you would earn at many brick-and-mortar banks or online banks.
APY for 3-year CD: 4.50% APY
3-year CD early withdrawal penalty: 180 days of interest
What to look out for: The minimum opening deposit for Bread Savings CDs is $1,500, which is a bit steep compared to other banks.
Bread Savings is also an online-only bank with a high-yield savings account and CDs. It doesn’t have a checking account or ATM network.
Signature Federal Credit Union Certificate
Annual Percentage Yield (APY)
1.75% to 5.00%
Minimum Deposit Amount
$500
Signature Federal Credit Union Certificate
Annual Percentage Yield (APY)
1.75% to 5.00%
Minimum Deposit Amount
$500
On Signature Federal Credit Union’s website
Details
Annual Percentage Yield (APY)
1.75% to 5.00%
Minimum Deposit Amount
$500
Pros & Cons
Highlights
Why it stands out: Signature Federal Credit Union has a limited-time offer where you can earn 4.50% APY on a 3-year term.
APY for 3-year CD: 4.50% APY
3-year CD early withdrawal penalty: 180 days of interest
What to look out for: Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you’ll just need to open a savings account.
If you’re looking for other CD terms, you also might consider one of the other institutions on our list. Although Signature Federal Credit Union has a variety of CD options, its other CD rates aren’t as competitive.
Annual Percentage Yield (APY)
4.50% to 4.65%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
4.50% to 4.65%
Minimum Deposit Amount
$1,000
On Crescent Bank’s website
Details
Annual Percentage Yield (APY)
4.50% to 4.65%
Minimum Deposit Amount
$1,000
Pros & Cons
Highlights
Why it stands out: Crescent Bank pays competitive interest rates on a variety of online CDs. It also has standard early withdrawal penalties for a 3-year term.
APY for 3-year CD: 4.50% APY
3-year CD early withdrawal penalty: 180 days of interest
What to look out for: To deposit money into an online Crescent Bank CD, you may mail the bank a check or transfer money from a bank account at another financial institution.
Another thing to keep in mind is that other financial institutions may allow you to open a CD with less money upfront.
Compare our top picks for 3-year CDs
Low minimum opening deposit
Competitive interest rate
Competitive interest rate
Low minimum opening deposit
Competitive interest rate
Learn more
On Signature Federal Credit Union’s website
CDs we considered that didn’t make the cut
We looked at the following 3-year CDs as well. However, our winners have higher interest rates, lower minimum opening deposits, and lower early withdrawal penalties, which make them more compelling options.
- First Internet Bank of Indiana CD: First Internet Bank of Indiana has high interest rates, but our top picks pay even higher rates right now.
- Synchrony CD: Synchrony pays high interest rates on CDs, but our top picks offer even higher interest rates right now.
- First National Bank of America CD: First National Bank of America has high rates, but not as high as what you’d earn with our top choices.
- LendingClub CD: LendingClub pays high interest rates on CDs, but you’ll need at least $2,500 to get a CD. LendingClub CDs also have standard-to-high early withdrawal penalties.
- Popular Direct CD: Popular Direct has great interest rates on long-term CDs, but you’ll need at least $10,000 to open a CD.
- Connexus Credit Union Share Certificate: Connexus offers a competitive interest rate, but you’ll need a minimum of $5,000 to open a CD.
- Bethpage Federal Credit Union Certificate Account: Bethpage offers high interest rates, but our top picks offer even higher rates right now.
- Barclays Online CD: Barclays may be a good option if you’re looking for a CD with a low minimum opening deposit or low early withdrawal penalties. Our top picks pay higher interest rates on a 3-year CD, though.
- Ally High Yield CD: Ally has a $0 minimum opening deposit, but our top picks offer higher interest rates.
- Nationwide CD: Nationwide has a low minimum opening deposit, but our top picks pay better rates.
- Marcus High-Yield CD: Marcus has a low minimum opening deposit, but our top picks offer higher interest rates.
- Capital One 360 CD: Capital One lets you open a CD with $0. However, our top picks offer higher interest rates.
- Live Oak Bank CD: Live Oak pays good interest rates, but you’ll need at least $2,500 for an initial deposit.
- Discover CD (Member FDIC): Discover pays solid interest rates, but you’ll need a minimum of $2,500.
- NBKC CD: NBKC offers competitive interest rates on long-term CDs, but our top picks offer even higher rates.
- Citizens Online CD: Citizens has solid CD rates, but you’ll need at least $5,000 to open an account.
- Navy Federal Credit Union Standard Certificate: Navy Federal Credit Union has solid CD rates, but our top picks offer even higher rates.
- TAB Bank CD: TAB Bank has a solid interest rate, but our top picks offer even higher rates.
- Sallie Mae CD: Sallie Mae has a solid interest rate, but you’ll need a minimum opening deposit of $2,500.
- BrioDirect High-Yield CD: BrioDirect has a variety of CD terms, but its 3-year CD rate isn’t as strong as our top picks.
- American Express CD®: American Express has solid interest rates, but our top picks have higher rates.
- CIT Bank Term CD: Other banks on our list offer high interest rates right now.
- Amerant CD: Amerant has solid interest rates, but our top picks offer more competitive rates right now.
- BMO Harris CD: BMO Harris requires a minimum opening deposit between $1,000 to 5,000 to open a CD.
Bank trustworthiness and BBB ratings
We’ve compared each company’s Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. All of our top picks have BBB ratings with the exception of Signature Federal Credit Union.
Here is each company’s score:
CFG Bank has an F rating because it hasn’t responded to three customer complaints on the BBB website.
Comenity Bank, the partner bank of Bread Savings, currently has an NR (“No Rating”) rating because it is in the process of responding to previously closed complaints.
According to a note on the BBB website about Comenity (Bread Savings’ partner bank), there has been a pattern of complaints and reviews received by the BBB between October 15, 2022, and November 14, 2022. The complaints allege that customers have experienced billing inaccuracies, customer service deficiencies, and inaccurate reporting to credit bureaus. The BBB has written to the company about these issues twice in the last two months and hasn’t received a response, yet. The BBB will provide updates as needed.
Keep in mind that a BBB rating isn’t necessarily the be-all and end-all. To see if a bank is a good fit, talk to current customers about their experiences or read online customer reviews.
Why trust our recommendations?
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
Frequently asked questions
With a 3-year CD, you’ll deposit your money into an account with a fixed interest rate for 36 months. If you need to take out money before the term ends, you may have to pay an early withdrawal penalty.
You have the option to renew your CD at the end of the 3-year period, or close the account and pocket the money.
If you open a 3-year CD at a 4.50% APY, you’ll earn 4.50% for three years. If you renew your CD after it matures, you’ll earn the new rate available in three years.
Some institutions offer variable-rate CDs or CDs that allow your rate to change after a predetermined amount of time.
For the most part, longer terms pay higher rates than lower-term CDs. However, short-term CD offer the opportunity to snag a better interest if rates increase throughout the year.
Choosing a CD will likely depend on how soon you need access to your money. Many experts recommend CD laddering. With this strategy, you open multiple CDs with different term lengths so you can take advantage of higher rates with longer terms, but also access some of your money earlier.
The choice between a 3-year CD and high-yield savings account will depend on several factors.
Financial institutions usually pay a higher rate for a 3-year CD than for a savings account.
However, be aware that a CD also locks in your rate for the entire term. If rates are dropping, this could make the CD a better choice, because your savings account interest could decrease over the next few months. If rates are going up throughout the year, the savings account might be a better fit, because your rate could rise. Either way, there’s a good chance rates will fluctuate over a 3-year period.
It also depends on when you’ll need to access your money. You should be able to access funds from your savings account regularly. If you take out money from a CD before the end of its term, you may have to pay an early withdrawal penalty. You can also continuously add money to your savings account, whereas most CDs block you from making additional deposits after opening the account.
Money market accounts usually have paper checks or debit cards, so you’ll have quick access to your money. Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping. Still, remember that rates will likely go up and down over a 3-year term.
Many banks require higher deposits for money market accounts than CDs, which could affect your decision. It’s also good to remember that you can add more funds to your money market account over time, while a CD only allows an opening deposit.
CDs aren’t generally considered investments. A CD is typically viewed as a type of savings account, and your potential for losses and gains — your risk — is much more limited.
Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.
If you need to access your money in three years and want a guaranteed rate of return, a 3-year CD is a better choice than a different type of investment account.
If you’re comfortable taking more risk with your money to earn a higher return, then you may want to invest in the stock market. For example, tax-advantaged retirement accounts, like a 401(k) or IRA, grow your money over decades. Another is through brokerage accounts, which are useful tools to build long-term wealth, but can’t guarantee a given return like a CD can.
There is such a thing as an IRA CD, which is a sort of combo savings/investment account. It’s a safe investment tool that may be a worthwhile option for people who are close to retirement age.
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