The Fed lowered interest rates at its September meeting and indicated that there may be more cuts in the future. This means we’ll likely start to see lower returns from our savings accounts.
However, if you open a certificate of deposit (CD), you can secure a fixed interest rate while rates are still high. A 3-year CD may especially be a great option since it guarantees an excellent return for the next few years.
So, what are the best 3-year CD rates right now? Here’s our list, along with how CDs work and how to know if one is right for you.
Our team of experts analyzed hundreds of data points and then used data-driven methodology and thorough fact-checking to determine the best 3-year CDs. We heavily emphasized annual percentage yield (APY) because maximizing earnings is the most important feature of CDs. You can read more about our methodology below.
With First Internet Bank, you can earn 3.77% APY when you open a 36-month CD with a minimum $1,000 deposit. Along with personal accounts, the online bank offers excellent business options, including its Money Market Savings. First Internet Bank has made our previous lists for best business money market accounts and best high-yield business savings accounts.
First Internet Bank’s 3-year CD may be ideal for business owners since it offers above-average interest rates on both its personal and business accounts.
Other banks typically require a certain amount of money to open a CD. However, there is no minimum deposit requirement with Synchrony, and you can still earn a fantastic 4.00% APY.
Although the bank doesn’t have any branches, you can call the automated phone service 24/7 or speak to a representative any day of the week. Synchrony’s mobile apps are also highly rated for both Apple and Android.
Synchrony is best if you don’t have much to deposit but still want to lock in a great APY for the next three years.
Credit Human offers 3.75% APY on its 36-month share certificate, which only requires a $500 deposit. Its mobile app has received excellent customer reviews, with a 4.8-star rating on Google Play and 4.9 stars on the App Store. With the app, you can transfer funds, track your balances and set a budget.
If you aren’t otherwise eligible, you may qualify for membership by allowing Credit Human to enroll you in the American Consumer Council (ACC).
The 36-month CD from Credit Human may be ideal if you want to bank with a credit union that provides easy-to-navigate mobile apps.
If you’re a school employee or pursuing a career in education, you may qualify for membership at SchoolsFirst Federal Credit Union. Its 37-month share certificate has an outstanding promotional APY of 4.60% and requires a $500 minimum deposit to open. SchoolsFirst provides extended customer service hours and highly rated Apple and Android mobile apps.
SchoolsFirst Credit Union is best for people in education who want a credit union with one of the best CD rates around.
You can find several CD terms at TAB Bank, ranging from 12 to 60 months (each requiring a $1,000 minimum deposit). While its 12-month CD offers the best rate of 4.25% APY, you can still earn a competitive 3.60% with its 36-month CD.
TAB Bank is entirely online, but you can call customer service Monday through Saturday or view your account through the Android or Apple mobile app.
If you want to build a CD ladder, TAB Bank may be ideal since it offers several terms with great APYs.
You can receive one of the best 3-year CD rates at CommunityWide Federal Credit Union, earning 4.00% APY with a $1,000 minimum deposit. However, if you find a better rate elsewhere, CommunityWide will try to match it.
The credit union provides highly-rated mobile apps along with extended customer service hours. As a member, you can access free financial counseling and education.
If you have at least $1,000 to deposit, you can earn a fantastic APY with a CW certificate. Anyone can qualify for membership by donating $5 to one of the credit union’s chosen charities.
The 3-year CD from Marcus by Goldman Sachs has a fantastic 4.15% APY. If you deposit the minimum $500 required within 10 days of opening the account, you’re guaranteed to receive the best-advertised rate during that time.
It’s an online-only bank, but you can call Marcus’ contact center 24/7 and access your accounts using its mobile apps that have excellent ratings for Android and Apple.
Marcus by Goldman Sachs is best if you don’t mind banking online and don’t need a checking account to pair with your CD.
You earn 3.25% APY when you open a 36-month CD at Quontic Bank with a $500 deposit. However, the bank doesn’t just shine because of its CD rates — it also offers high-interest checking, which we’ve ranked among the best online checking accounts.
Quontic Bank has earned a great rating on Trustpilot and has excellent mobile app reviews on both Google Play and the App Store.
If you want to open a CD and high-interest checking account, you can earn a competitive APY for both through Quontic Bank.
When you deposit $1,000 or more, you can open a 3-year certificate at Navy Federal Credit Union. Balances of $100,000 or less earn an excellent 4.00% APY, while balances above that amount receive 4.05%.
The credit union has 24/7 customer phone support and 350 branches across the globe. Its members have rated the institution highly on Trustpilot, with 4.5 out of 5 stars. However, credit union membership is only available to armed forces members and their relatives.
Navy Federal may be a great choice for armed service members and their families looking for outstanding 24/7 customer service.
My eBanc offers a standard and jumbo 3-year CD. Both pay 3.98% APY, but the standard CD requires a $5,000 minimum deposit, while the jumbo requires $50,000.
With the account, you receive a money management tool to help you create a budget and organize transactions. It can also break down your spending to help you manage your expenses.
My eBanc is only ideal for those who can afford to lock up at least $5,000 for the next three years.
When you open a certificate of deposit, or CD, you’re agreeing to leave your money invested for a specified period, called the term. During the term, you earn compound interest, meaning you get a return on both the principal and any interest you accumulate.
You can’t withdraw the money until the maturity date, which for a 3-year CD would typically be 36 months from the day you opened it. If you need to take your money out early, you’ll likely have to pay a penalty.
After the CD matures, most institutions have a 10-day grace period so you can decide what to do with the funds. You can withdraw the money, transfer it to another account or roll it into a new CD. If you don’t let your bank know what to do within the grace period, it may renew the CD automatically for the same term at its current rate.
One of the best things about a CD is that it earns a fixed interest rate. With a 3-year CD, you can lock in a set APY for the entire 36-month term, even if the bank lowers its rates.
“If you open a 3-year CD today, you are guaranteeing yourself a certain rate for the next three years,” said Chikako Tyler, executive vice president and chief financial officer at California Bank & Trust.
“If you believe that interest rates are going to be declining over that three-year period, then you’re really buying yourself a pretty high rate of return at the expense of … other investment vehicles that could potentially yield a higher return but come with volatility and risk.”
CDs are an incredibly secure investment. Although you might earn a higher yield from stocks, which have historically seen 10% in annual returns, that rate is not guaranteed like it is for CDs. The FDIC or NCUA also protects your CD funds up to $250,000 if the institution is federally insured.
When looking for a 3-year CD, you can go online to find the best 3-year CD rates offered by different banks and credit unions. According to Tyler, you can also speak to someone at your current financial institution:
“I think one of the benefits of having an established relationship with a financial institution is that you would be assigned a trusted financial partner that you can discuss rates with, but then you can also discuss the trade-offs and the pros and cons of the CD.”
So, how do you know what are the best 3-year CD rates? When you find a CD with a high APY, you should consider more than just the rate before making your final decision.
- Minimum deposit: Banks often require an initial deposit to open a CD. Make sure you can meet this requirement without dipping into your emergency fund.
- Penalties: Even if you don’t think you’ll break your CD early, you should still check how much the penalty would be if you withdraw early (just in case).
- Customer service: Reviews on sites like Trustpilot or Reddit may indicate other customers’ experiences with the institution. You can also visit the bank’s website to find its customer service hours.
- Other offerings: If you think you’ll need additional products and services from the bank, such as a checking account, financing or business accounts, check if the institution offers what you need.
Pros
- Fixed rate: Unlike other savings products, CDs earn a fixed interest rate, so you don’t need to worry about the APY dropping during the term.
- Competitive APY: CDs tend to earn higher interest rates than other savings products because you can’t access the money until maturity.
- Security: The funds in a CD are safe up to $250,000 when held at a federally insured bank or credit union.
Cons
- Limited flexibility: You generally can’t access your money during the term, so moving to a better investment isn’t easy if rates increase.
- Penalties: The financial institution may charge an early withdrawal penalty If you take the money out of your CD before it reaches maturity.
- Lower returns: Although CDs tend to earn a competitive rate, you may earn higher returns from other types of investments like stocks.
- High-yield savings account (HYSA): Some of the best high-yield savings accounts earn rates similar to CDs; however, you can still access your money when you need it.
- Shorter-term CD: Three years is a long time to lock up your money. A CD with a shorter term may offer more flexibility.
- Money market account (MMA): A money market account earns a similar rate to a HYSA, but you can usually use a checkbook or debit card to spend the funds.
- Bonds: There may be less risk with CDs vs. bonds, but bonds let you earn regular fixed-interest payments. Bonds are also more liquid because you can sell them on the secondary market.
- Stocks: Stocks have earned a higher return than the average CD rate in the past. However, it is possible to lose some or all of your original investment.
Methodology
CNN Underscored Money analyzed accounts from more than 35 financial institutions to develop the rankings for the best 3-year CDs. This included accounts from a mix of traditional banks, online banks and credit unions available nationally. We ranked each account on eight data points across six categories.
Here are the categories we analyzed and how we weighted each:
APY is a critical factor for CD accounts because this determines how quickly your deposit will grow. Accounts with higher APYs scored better.
Minimum opening deposits determine how accessible a CD is and how easily you can employ strategies like CD laddering that require multiple CDs. Accounts that have low or no minimum opening deposits scored better.
It’s important to have a bank that’s trustworthy and easy to reach when you need help. We considered customer service availability and Trustpilot ratings in this category.
You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere. We analyzed app reviews and the ability to bank online.
This is an important factor to consider because the more frequently your interest compounds, the faster your deposit grows and the more frequently you will potentially have access to your interest earnings.
Financial institutions may have membership requirements you must meet to join and get accounts. For example, some credit unions have eligibility based on a list of employers, counties of residence or membership in certain charitable organizations. We rewarded financial institutions that allow anyone to sign up.
We also considered other factors like renewal and early withdrawal policies.
Frequently asked questions (FAQs)
Online banks like My eBanc, Marcus by Goldman Sachs and Synchrony tend to offer the best 3-year CD rates. However, you can also find excellent rates at credit unions like SchoolsFirst.