A certificate of deposit usually pays a higher yield for a longer term. The time period can range from weeks to months to years.
For example, a 3-year CD is often paid at a higher rate than a 3-month CD. The trade-off, of course, is that you either need to keep your money untouched for 5x the period to earn a higher Annual Yield (APY), or face penalties.
What is a 3-year CD?
A 3 year CD is a savings account where you agree to keep money in the account for 3 years. Yields on 3-year CDs are often higher than yields on money market and savings accounts.
Bankrate’s calculator allows you to calculate the interest you will earn when your CD matures. Your principal is protected so you don’t have to worry about fluctuations in value like you would when investing in the stock market.
Top 3 Year CD Rates by Bankrate
alliant credit union: 4.60% APY, minimum deposit $1,000
popular direct: 4.60% APY, minimum deposit $10,000
Randolph Brooks Federal Credit Union: 4.60% APY, minimum $20,000 to earn APY
BMO Harris: 4.50% APY, minimum deposit $1,000*
bread finance: 4.50% APY, minimum deposit $1,500
First Internet Bank of Indiana: 4.44% APY, minimum deposit $1,000
sally mae bank: 4.40% APY, minimum deposit $2,500
discovery bank: 4.35% APY, minimum deposit $2,500
barclays: 4.30% APY, $0 Minimum Deposit
capital one: 4.30% APY, $0 Minimum Deposit
Synchronous bank: 4.30% APY, $0 Minimum Deposit
quantitative bank: 4.30% APY, minimum deposit $500
Note: Annual Yield (APY) shown is as of February 1, 2023. Bankrate’s editorial team updates this information regularly, usually bi-weekly. APY may have changed since the last update and may vary by region for some products.
*Rates not available in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, Wisconsin.
The best widely available 3-year CD currently pays an APY of 4.60%, which is higher than the best 4-year CD rate. A CD that matures in three years could be a good investment for medium-term financial obligations, such as a down payment on a car.
Top 3 Year CD Rate Details
Alliant Credit Union: 4.60% APY, minimum deposit $1,000
Alliant Credit Union was founded in 1935 as the United Airlines Employees Credit Union. One of the largest credit unions in Illinois, he has 600,000 members nationwide.
Alliant offers 6-condition CDs with competitive APYs and reasonable minimum deposit requirements. We also offer IRA CDs, high-yield savings accounts, and high-yield checking accounts.
Popular Direct: 4.60% APY, minimum deposit $10,000
The popular Direct CD requires a minimum deposit of $10,000 and is perfect for established savers. CD terms vary from 30 days to 6 years.
Popular Direct’s High-Rise savings account offers competitive yields and a minimum deposit of $5,000.
Randolph Brooks Federal Credit Union: 4.60% APY; minimum $20,000 to earn APY
Randolph-Brooks Federal Credit Union is headquartered in Live Oak, Texas, and operates more than 60 branches serving four major markets: Austin, Corpus Christi, Dallas-Fort Worth and San Antonio. It has over 1 million members.
Randolph-Brooks Federal Credit Union has CDs with terms ranging from 6 months to 7 years. We also offer a truly free checking account with no minimum balance required and no monthly fees.
BMO Harris: 4.50% APY, minimum deposit $1,000
BMO Harris offers online accounts and operates over 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. The bank is based in Chicago.
BMO Harris offers 10 CD terms ranging from 3 months to 5 years and requires a minimum deposit of $1,000 to open. We also offer some CD specials at very competitive prices. Competitive rates offered on CDs of six months or longer are not available to residents of states where BMO has branches.
Bread Financial: 4.50% APY, minimum deposit $1,500
Bread Financial (formerly Comenity Direct) is an online bank that offers high-yield savings accounts and five term CDs ranging from 1 to 5 years.
Bread Financial is part of Community Capital Bank, a division of Bread Financial.
First Internet Bank of Indiana: 4.44% APY, $1,000 minimum deposit
First Internet Bank of Indiana is an FDIC-insured financial institution that operates online and has no branches. Opened in 1999, it offers products in all 50 states.
First Internet Bank offers eight term CDs, a competitive yield money market savings account, a savings account and two checking accounts.
Sallie Mae Bank: 4.40% APY, minimum deposit $2,500
Sallie Mae Bank offers 11-condition CDs as well as savings and money market accounts with no minimum balance requirements or monthly fees. All of these products offer competitive yields.
Sallie Mae Bank was founded in 2005 and is headquartered in Salt Lake City. In 2014, Sallie Mae became an independent consumer banking business.
Discover Bank: 4.35% APY; $2,500 minimum deposit
Few reputable banks offer 10 year CDs. One exception is Discover Bank, which offers CDs in all standard terms. The bank’s 5-, 7-, and 10-year CD yields are the same and higher than those of other accounts.
Discover is an online bank headquartered in Greenwood, Delaware. Until August 2000, it was known as Greenwood Trust Co., incorporated in 1911.
Barclays: 4.30% APY; $0 Minimum Deposit
Barclays was founded in London over 300 years ago. Barclays has no minimum balance requirements to open online CDs. We offer 6 CD terms ranging from 1 year to 5 years. Savings accounts are also available.
Capital One: 4.30% APY with $0 minimum deposit
Capital One is a brick-and-mortar online bank with approximately 300 branches and approximately 50 Capital One cafes.
Provides 9 race conditions for regular CDs. Capital One CD and its 360 Performance Savings accounts have no minimum balance requirements. Capital One is based in McLean, Virginia.
Synchrony Bank: 4.30% APY, $0 minimum deposit
Synchrony Bank offers competitive CD yields over 14 terms, including 10 terms of less than two years. An 11-month no-penalty CD and a 2-year bump-up CD are also available.
The bank also offers savings accounts and money market accounts. Savings accounts have competitive APYs and no minimum balance requirements.
Quontic Bank: 4.30% APY, minimum deposit $500
Quantic Bank was founded in 2005 and is based in New York. We offer 5 term CDs ranging from 6 months to 5 years and can be opened for as little as $500.
In addition to CDs, Quontic Bank also offers money market, high yield savings and checking accounts.
How to find the best 3-year CD rate
Include online banks, credit unions, and other banks in your search to find the best 3-year CD rates. Many savers tend to stick with the same bank that offers their checking account. But that could be a mistake, especially in large national banks where deposit rates tend to be much lower than those offered by some smaller institutions.
For those who don’t need access to their money for at least three years, opening a three-year CD might make sense. As a result, these accounts are ideal for medium-term goals, such as setting aside money for a car down payment. If you plan to build a CD ladder, I also recommend getting the 3 year CD.
Search online for the best 3 year CD rates and compare your options. If you’re looking for higher yields, consider some of the lesser-known institutions willing to offer good interest rates to attract depositors.
3 Year CD FAQ
Can I withdraw cash early?
It’s important to read the fine print when putting money into a CD. After all, CDs have limits that indicate when you can withdraw money.
In most cases, you will not receive cash before the CD expires. A 3 year CD allows him to keep money in the account for 3 years. Withdrawing money increases the likelihood that you will have to pay a penalty. Penalties vary by financial institution and can vary widely. Penalties may be expressed as interest for a specified number of months or as a percentage of principal. In some cases, the principal percentage is based on the full amount of the CD or applies only to the early withdrawn amount.
If you are unsure if you can keep your money in your account for 3 years, consider other options. There are CDs with no penalty for withdrawing money early and not being charged. However, penalty-free CDs often offer lower interest rates than traditional CDs.
Additionally, instead of getting the 3-year CD, you can choose the 6-month or 1-year CD. You will have access to the money sooner, but the yield will be lower.
Comparison of 3-year CD rates with other CD terms
A 3-year CD interest rate often comes with a higher interest rate than a shorter term CD.
Also, because CDs have liquidity restrictions, they offer higher yields than regular savings and money market accounts, which offer easier access to funds.
And while 3-year CDs may feature higher interest rates than short-term CDs or liquid savings accounts, they often yield lower returns than tying up money over the long term. For example, a 5-year CD may yield a higher yield than a 3-year CD.
Consider your needs carefully before putting money into a CD. Be realistic about when you need money based on your short- and medium-term financial goals. Knowing your needs will help you make better decisions about what kind of account is best for your money.
Bankrate Best CD Rate Methodology
At Bankrate, we strive to help our clients make smarter financial decisions. We follow strict guidelines to ensure our editorial content is unbiased and unaffected by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys approximately 70 widely available financial institutions, consisting of large banks, credit unions and many popular online banks.
To find the best CDs, our editorial team analyzes various factors, including: APY, its the minimum deposit required to win her APY (or open a CD), widely available or not. All accounts on this page are insured by the Federal Deposit Insurance Company (FDIC) or the National Credit Union Administration (NCUA).
When choosing the best CD for you, consider what your money is for and when you need access to these funds to help avoid early withdrawal penalties.
bank to monitor
These financial institutions are featured in our CD rate survey: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BB&T, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank , Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Suntrust Bank, Synchrony Bank, TD Bank, TIAA Bank, UFB Direct, Union Bank (California ), US Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo, Zions Bank.
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