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The national average APY of a 3-year CD as of October 2022 is 0.66% according to the FDIC. If you want to increase your money and keep the same interest rates on an account, A certificate of deposit (CD), could be a good option..
At least 3.60% is the current best 3-year CD rate. Three-year terms offer a balance between a good rate, and a relatively short term. A 3-year CD is likely to earn you a higher annual percentage yield than a shorter-term CD. Additionally, you won’t be required to keep your money in the bank for as long as a longer term.
Check out our top choices for 3-year CDs
Competitive interest rate
Editor’s rating
Competitive interest rate
Editor’s rating
Competitive interest rate
Editor’s rating
Low minimum opening deposit
Editor’s rating
Learn more
The website of Pentagon Federal Credit Union
Three-year CD rates at the biggest US banks
The rates charged by the largest banks in America are lower than those of our top picks. You may want to bank with someone you know. These are some rates that you can expect to earn on a 3-year CD from some of the most well-known institutions.
Bread Savings CD with High Yield and Great Price
Annual Percentage Yield
3.60% – 4.25% APY
Minimum Deposit Amount
$1,500
Bread Savings CD with High Yield and Great Price
Annual Percentage Yield
3.60% – 4.25% APY
Minimum Deposit Amount
$1,500
Bread Savings’s Website
Deposit Details
Annual Percentage Yield
3.60% to 4.255% APY
Minimum Deposit Amount
$1,500
Pros & Cons
Highlights
Additional Reading
Why it is so special:Bread Savings offers high-interest CDs at a reasonable rate and has no early withdrawal penalties.
APY for a 3 year CD: 4.00% APY
3-year CD early withdrawal penaltySimple interest for 180 Days
You need to be aware of these things: Minimum deposit. Bread Savings requires a minimum deposit of $1,500 in order to open a CD.
Pentagon Federal Credit Union Money Market Certificate
Annual Percentage Yield
1.70% – 3.60% APY
Minimum Deposit Amount
$1,000
Pentagon Federal Credit Union Money Market Certificate
Annual Percentage Yield
APY: 1.70% to 3.00%
Minimum Deposit Amount
$1,000
Website of the Pentagon Federal Credit Union
Deposit Details
Annual Percentage Yield
1.70% – 3.60% APY
Minimum Deposit Amount
$1,000
Pros & Cons
Highlights
Additional Reading
Why it is so special:PenFed offers some of the best long-term CD rates right now.
A 3-year CD with interest: 3.60% APR
3-year CD early withdrawal penaltyYou earn all interest or 30% of gross dividends if your certificate matures.
You need to be aware of these things: The Pentagon Federal Credit Union Money Market CertificateThere are high penalties for early withdrawals, especially when you withdraw money in the first year.
Annual Percentage Yield
0.50% to 4.2% APY
Minimum Deposit Amount
$1,000
Annual Percentage Yield
APY: 0.50% to 4.2%
Minimum Deposit Amount
$1,000
Crescent Bank’s Website
Deposit Details
Annual Percentage Yield
APY: 0.50% to 4.2%
Minimum Deposit Amount
$1,000
Pros & Cons
Highlights
Why it is so special: Online CDs from Crescent Bank offer competitive interest rates. Online Crescent CDs can be opened anywhere in the US provided that you are over 18 and a US citizen.
APY on 3-year CD: 4.00% APR
Early withdrawal penalty for CDs of 3-years: 180 days of interest
What to look out for: Crescent Bank has a $1,000 minimum opening deposit. Some of our other top picks let you open an a CD with less money upfront.
CFG Bank Certificate of Deposit
Annual Percentage Yield (APY)
3.56% to 3.70% APY
Minimum Deposit Amount
$500
CFG Bank Certificate of Deposit
Annual Percentage Yield (APY)
3.56% to 3.70% APY
Minimum Deposit Amount
$500
Deposit Details
Annual Percentage Yield (APY)
3.56% to 3.70% APY
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: 3.65% APY
3-year CD early withdrawal penalty: 180 days of interest
You need to be aware of these things: Only 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.
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
- Bethpage Federal Credit Union Certificate Account: Bethpage offers high interest rates, but our top picks offer even higher rates right now.
- Synchrony CD: Synchrony lets you open an account with $0, but our top picks offer higher interest rates right now.
- Barclays Online Certificate of Deposit: 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.
- First Internet Bank of Indiana Certificate of Deposit: First Internet Bank of Indiana pays solid interest rates, but our top picks offer even higher interest rates.
- Ally High Yield Certificate of Deposit: Ally has a low 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 Certificate of Deposit®: 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 (FDIC member): Discover pays solid interest rates, but you’ll need a minimum of Explore CD.
- NBKC CDNBKC offers competitive interest rate on long-term CDs. Our top picks however offer even higher rates.
- Citizens Online CDCitizens offers solid CD rates. However, you will need at least $5,000 in order to open an account.
- Standard Certificate from Navy Federal Credit Union: Navy Federal Credit Union has solid CD rates, but our top picks offer even higher rates.
- TAB Certificate Of DepositTAB Bank offers a solid interest rate. However, our top picks offer higher rates.
- Sallie Mae CDSallie Mae offers a solid interest rate but requires a minimum deposit of $2,500.
- Popular Direct CDPopular Direct offers excellent interest rates on long-term CDs. However, you will need at least 10,000 to open a CD.
- 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 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.
BBB ratings and bank trustworthiness
We have compared the offerings of each company. Better Business Bureau score. BBB rates businesses on customer complaints, honesty in advertising and transparency about business practices. Here’s each company’s score
All of our top picks received an “A+” rating from the BBB. A BBB rating doesn’t mean that the bank is perfect. Talk to customers about your experiences with the bank or look online for customer reviews.
Bread Savings is the only bank on our list to have been in a public scandal.
BBB opened an investigation into Bread Financial on July 20, 2022. It received complaints from customers stating that they couldn’t access Comenity credit-card accounts.
Bread Financial stated that customers couldn’t access their accounts due to a rebranding of the software system. According to the BBB website Bread Savings An FAQ has been posted on their website to explain the situation. The BBB reached out to Comenity Bank again to find out how they will resolve customer problems. Once they have more information, Comenity Bank will update its profile.
Our recommendations for 3-year CDs are sound.
Personal Finance Insider is dedicated to helping smart people make the right financial decisions. 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 between different products so that you don’t have to.
Questions frequently asked
You can deposit your money in a CD for 3 years with a fixed-interest rate for 36 month. An early withdrawal penalty may apply if you take money out before the term ends.
You can either renew your CD within the 3-year period or close the account to pocket the money.
You’ll earn 3.55% per year if you open a 3-year CD with a 3.55% annual percentage rate. After your CD matures, you will be able to renew it at the latest rate for three years.
Some institutions offer variable-rate CDs. These CDs allow your rate to fluctuate after a set period of time.
Your choice will likely depend on two things — how soon you need access to your money and which term pays the highest rate.
Longer term CDs generally have higher rates than those with shorter terms. If rates rise throughout the year, however, short-term CDs offer better interest rates.
CD laddering is a popular strategy that many experts recommend. This strategy allows you to open multiple CDs with different terms so that you can access your money sooner and take advantage of higher rates.
There are two options: a 3-year CD or high-yield savings accounts will depend on several factors.
A 3-year CD is usually charged at a higher interest rate than a savings account by financial institutions.
Be aware, however, that a CD locks in your rate for the entire term. A CD might be a better option when rates are falling. This is because your savings account interest may drop over the next few months. A savings account could be a better choice if rates go up over the course of the year. You might see a rise in your rate. There’s a good chance that rates will fluctuate for a period of 3 years.
It also depends upon when you will need access to your money. It is important that you can access your savings account funds regularly. A penalty may apply if you withdraw funds from a CD after the term ends. While you can add money to your savings account continuously, most CDs prohibit you from making additional deposits once the account is opened.
You’ll be able to access your money quickly with paper checks and debit cards in money market accounts. You may choose a money market account for rising rates, or a CD for falling rates. However, rates are likely to rise and fall over a 3-year time period.
You might be forced to make higher deposits by banks for money market accounts. A good reminder is that money market accounts can be expanded over time while CDs only allow for an opening deposit.
CDs are not 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.
Experts don’t recommend investing in money that you won’t need within the next five years because the stock market can be risky. You wouldn’t be able to make up the losses if the stock market drops.
A 3-year CD is better than any other type of investment account if you need to access your money within three years and require a guaranteed rate return.
You may consider investing in the stock market if you are comfortable taking on more risk to increase your return. Tax-advantaged retirement accounts like a 401k or IRA can help you grow your money over many decades. Another option is through Brokerage accountsThese are great tools for long-term wealth building, but they can’t guarantee a return like a CD.
An IRA CD is one such thing.It is a type of combination savings/investment accounts. It is a safe investment option that could be worthwhile for people nearing retirement.
