Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
The average APY (Annual Percentage Yield) on a 3-year CD is 1.38% APY. However, the best 3-year CD rate is Valley Direct 3 Year Variable CD – APY APY from Valley Direct. This CD is a variable-rate CD, which means the rate may go up or down during the term depending on economic conditions.
If you’re also interested in other CD term lengths, check out our overall best CD rates guide.
We check rates daily to find the best rates for 3-year terms. Here are our top picks for 3-year CDs.
The Best 3-Year CD Rates
Valley Direct 3 Year Variable CD – Product Name Only: Valley Direct 3 Year Variable CD – APY APYUS Senate Federal Credit Union 3 Year Smart Share Certificate – Product Name Only: US Senate Federal Credit Union 3 Year Smart Share Certificate – APY APYNewtek Bank 3 Year CD – Product Name Only: Newtek Bank 3 Year CD – APY APYPopular Direct 3 Year CD – Product Name Only: Popular Direct 3 Year CD – APY APYDollarSavingsDirect 3 Year CD – Product Name Only: DollarSavingsDirect 3 Year CD – APY APYMySavingsDirect 3 Year CD – Product Name Only: MySavingsDirect 3 Year CD – APY APYMYSB Direct 3 Year CD – Product Name Only: MYSB Direct 3 Year CD – APY APYBread Savings 3 Year High-Yield CD – Product Name Only: Bread Savings 3 Year High-Yield CD – APY APYFirst National Bank of America 3 Year CD – Product Name Only: First National Bank of America 3 Year CD – APY APY Crescent Bank 3 Year CD – Product Name Only: Crescent Bank 3 Year CD – APY APY
The best 3-year CDs pay high interest rates — but you should also keep an eye out for minimum opening deposits, early withdrawal penalties, and a strong mobile app.
Compare the Best 3-Year CDs
3-Year CD Frequently Asked Questions
What is the highest 3-year CD rate?
The highest 3-year CD rate is Valley Direct 3 Year Variable CD – APY APY at Valley Direct. Anyone in the US may open Valley Direct accounts. This rate is for a 3-year variable CD, which means the rate on this account may change depending on economic conditions.
Is a 3-year CD worth it?
A 3-year CD could be a good choice if it’s suitable for your savings goals. The benefit of a CD is that it earns a fixed interest rate. You’ll want to avoid withdrawing early, though, because then you’ll lose some of the interest earned.
What is a 3-year CD?
A 3-year CD is a certificate of deposit that lasts 36 months. You’ll deposit your money into an account with a fixed interest rate, and iff 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.
How does a 3-year CD work?
A 3-year CD works by paying a fixed rate over 36 months. 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.
Which is better, a 3-year CD or a high-yield savings account?
The choice between a 3-year CD and high-yield savings account will depend on several factors. A CD 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. It also depends on when you’ll need to access your money, because it’s easier to take money out of a savings account.
3-Year CD Reviews
These are our picks for the best 3-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Valley Direct 3 Year Variable CD – Product Name Only
The Valley Direct 36-Month Variable CD pays the highest interest rate on a 3-year CD right now. Valley Direct’s CD has a variable interest rate, which means the rate can go up or down during the term. The interest stays 0.1% above the Federal Funds Target Rate Upper Limit. Any changes occur on the first business day of the month.
Valley Direct accounts are available nationwide. The Valley Direct 36-Month Variable CD has a $500 minimum opening deposit and a maximum deposit of $500,000. The CD is FDIC-insured, so up to $250,000 per depositor, per category is secure.
Valley Direct has steep early withdrawal penalties for some CD terms. You also can’t open a Valley Direct CD at a Valley National Bank branch. Accounts must be opened online.
APY for 3-year CD: Valley Direct 3 Year Variable CD – APY APY
3-year CD early withdrawal penalty: 365 days of interest
US Senate Federal Credit Union 3 Year Smart Share Certificate – Product Name Only
United States Senate Federal Credit Union has a high interest rate on a 3-year share certificate and one of the best 2-year CD rates.
It also has jumbo CDs ($100,000 minimum opening deposit) and plus jumbo CDs ($200,000 minimum opening deposit) with even higher rates.
To join United States Senate Federal Credit Union, you must work for a Select Employee Group, have a family member who is a current member, become a member of the U.S. Capital Historical Society or the American Consumer Council (you can join these organizations from anywhere in the US).
APY for 3-year CD: US Senate Federal Credit Union 3 Year Smart Share Certificate – APY APY
3-year CD early withdrawal penalty: 120 days of interest
Newtek Bank 3 Year CD – Product Name Only
The Newtek Bank 3 Year CD pays a high interest rate. The bank also notably offers high CD rates for 6-month, 18-month, and 2-year terms.
You need at least Newtek Bank 3 Year CD – Minimum Deposit to open a CD at Newtek. Other financial institutions on our list may allow you to open a CD with a lower minimum opening deposit.
APY for 3-year CD: Newtek Bank 3 Year CD – APY APY
3-year CD early withdrawal penalty: 180 days of interest
Popular Direct 3 Year CD – Product Name Only
Popular Direct CDs pay competitive rates and compound interest daily.
You’ll need at least Popular Direct 3 Year CD – Minimum Deposit to open a Popular Direct CD, though. The bank also charges high early withdrawal penalties.
APY for 3-year CD: Popular Direct 3 Year CD – APY APY
3-year CD early withdrawal penalty: 365 days of simple interest
DollarSavingsDirect 3 Year CD – Product Name Only
DollarSavingsDirect, an online division of Emigrant Bank, offers a 3-year term with a competitive interest rate.
You must have a Dollar Savings Account to get a CD. If you are only looking for CDs, you may prefer one of the other institutions on our list.
APY for 3-year CD: DollarSavingsDirect 3 Year CD – APY APY
3-year CD early withdrawal penalty: 180 days of interest
MySavingsDirect 3 Year CD – Product Name Only
MySavingsDirect is another online division of Emigrant Bank. It also has a 3-year term that pays MySavingsDirect 3 Year CD – APY APY.
You have to open the MySavingsAccount first to get a CD. If you only want to open a CD, one of our other top picks will be a better fit.
APY for 3-year CD: MySavingsDirect 3 Year CD – APY APY.
3-year CD early withdrawal penalty: 180 days of interest
MYSB Direct 3 Year CD – Product Name Only
MYSB Direct, an online division of M.Y. Safra Bank, has a variety of CDs with high interest rates. You also might like this option if you’re looking for a CD with a low minimum opening deposit.
The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.
APY for 3-year CD: MYSB Direct 3 Year CD – APY APY
3-year CD early withdrawal penalty: 90 days of interest
Bread Savings 3 Year High-Yield CD – Product Name Only
Bread Savings High-Yield CD – Brand Name pays higher CD rates than what you would earn at many brick-and-mortar banks or online banks.
The minimum opening deposit for Bread Savings CDs is Bread Savings 3 Year High-Yield CD – Minimum Deposit, 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.
APY for 3-year CD: 3 Year – Bread Savings High-Yield CD APY
3-year CD early withdrawal penalty: 180 days of interest
First National Bank of America 3 Year CD – Product Name Only
First National Bank of America CDs are available online from anywhere in the US, and come in a variety of terms.
The bank offers a competitive 3-year CD rate, as well as one of the best 5-year CD rates.
First National Bank of America has steep early withdrawal penalties for most terms. You might prefer one of the other options on our list if you are worried about CD early withdrawal penalties.
APY for 3-year CD: First National Bank of America 3 Year CD – APY APY
3-year CD early withdrawal penalty: 360 days of interest
First National Bank of America Review
Crescent Bank 3 Year CD – Product Name Only
Crescent Bank has high interest rates on a variety of online CDs.
To open the Crescent Bank CD, you’ll need to deposit at least $1,000 in new money. New money means funds that haven’t already been deposited into a Crescent Bank account.
Crescent Bank CDs will automatically renew at the end of each term unless you call customer service to cash out your CD.
APY for 3-year CD: Crescent Bank 3 Year CD – APY APY
3-year CD early withdrawal penalty: 180 days of interest
3-Year 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.
Gulf Coast Federal Credit Union Share Certificate – Product Name Only: Gulf Coast Federal Credit Union has a 3-year share certificate paying a high interest rate. It didn’t make our list because it local financial institution that serves only certain communities. Other banks also offer more competitive rates so it isn’t a market leader for a 3-year term. You still might consider this option if you live in select counties in Texas.First Internet Bank of Indiana CD – Product Name Only: First Internet Bank of Indiana has a 3-year term paying First Internet Bank of Indiana 3 Year CD – APY APY, but other financial institutions listed in our guide offer even more competitive rates for 3-year terms.Fidelity CD – Product Name Only: Fidelity has brokered CDs, meaning Fidelity doesn’t actually own the CD. Instead, the company buys CDs from other financial institutions and resells them to brokerage customers. While Fidelity offers CDs with high rates, it didn’t make our list because you’ll need to open a brokerage account retirement account with the account first. Brokered CDs are also different from traditional CDs in that you may lose money to sell a CD before maturity, and some CDs have a callable feature to be mindful of.iGoBanking 3 Year High Yield CD – Product Name Only: iGoBanking has good CD rates, but its 3-year term is just short of the rates on our list.Quorum Federal Credit Union Term Savings – Product Name Only: Quorum Federal Credit Union 3-year term pays Quorum Federal Credit Union 3 Year Term Savings – APY. There are financial institutions with higher CD rates on 3-year terms.Alliant Certificate – Product Name Only: Alliant Credit Union has a 3-year term that pays Alliant 3 Year Certificate – APY APY, but our top picks have more competitive rates right now. CFG Bank CD – Product Name Only: CFG pays good rates on its CDs, just not as high as those on our list.Signature Federal Credit Union Certificate – Product Name Only: Signature Federal Credit Union pays Signature Federal Credit Union 3 Year Certificate – APY APY on a 3-year CD, but our top picks have more competitive 3-year terms.Synchrony CD: Synchrony pays high interest rates on CDs, but our top picks offer even higher interest rates right now.LendingClub Certificate of Deposit: LendingClub pays high interest rates on CDs, but you’ll need at least LendingClub Certificate of Deposit to get a CD. LendingClub CDs also have standard-to-high early withdrawal penalties. Connexus Credit Union Share Certificate: Connexus offers a competitive interest rate, but you’ll need a minimum of Connexus Credit Union Share Certificate 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 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.Ally High Yield Certificate of Deposit: Ally has a Ally High Yield Certificate of Deposit 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 Capital One 360 Certificate of Deposit®. However, our top picks offer higher interest rates.Live Oak Bank CD: Live Oak pays good interest rates, but you’ll need at least Live Oak Bank Certificate of Deposit for an initial deposit.Discover CD (Member FDIC): Discover pays solid interest rates, but you’ll need a minimum of Discover CD.NBKC CD: NBKC offers competitive interest rates on long-term CDs, but our top picks offer even higher rates.Citizens Access Online CD: Citizens has solid CD rates, but you’ll need at least Citizens Online Certificate of Deposit 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 Certificate of Deposit: TAB Bank has a solid interest rate, but our top picks offer even higher rates.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 CD – Brand Name requires a minimum opening deposit between BMO Harris Certificate of Deposit to open a CD. Sallie Mae 3 Year CD – Product Name Only: Sallie Mae pays a strong rate on its 3-year CD — just not quite as strong as what you’ll earn with our top picks.
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.
Here is each company’s score:
InstitutionBBB ratingValley Direct A+ (Rating for its parent bank, Valley National Bank)US Senate Federal Credit Union A-Newtek BankA+Popular DirectA+ (rating for Popular Bank)DollarSavingsDirectNR (Also NR rating from its parent bank, Emigrant Bank)MySavingsDirect NR (Rating for its parent bank, Emigrant Bank)MYSB DirectNR (rating of parent bank, M.Y. Safra Bank)Crescent BankA+First National Bank of AmericaA+Bread SavingsB+ (Rating from Comenity Capital Bank, the partner bank of Bread Savings)
DollarSavingsDirect, MySavingsDirect, and MYSB Direct have NR (“No Rating”) grades because the BBB doesn’t have enough information to provide a business rating.
US Senate Federal Credit Union received an A- rating from the BBB because it has received one customer complaint on the BBB website.
Comenity Bank, the partner bank of Bread Savings, also currently has a B+ rating because the business hasn’t resolved the underlying cause behind a pattern of complaints. According to a note on the BBB website, the BBB may publish one out of every four complaints it receives as of April 23, 2023, because it has received a high volume of customer complaints.
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 You Should Trust Us: Expert Advice on Choosing the Best 3-Year CD
To learn more about what makes a good CD and how to choose the best fit, Insider consulted four experts:
Insider
Tania Brown, certified financial planner at SaverLifeSophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance InsiderRoger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”Mykail James, MBA, certified financial education instructor, BoujieBudgets.com
In choosing a CD, ask yourself the following questions, informed by our experts’ advice:
Is the bank FDIC-insured, or is the credit union NCUA-insured?What is important to me in a bank account? In-person customer service? A mobile app? Checks? Interest rate? Monthly maintenance fees?When do I need the money (and what do I plan to use it for)?How much access do I need to this money, and when?
Our Methodology
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.
First, we researched to find over 20 banks and credit unions that offered 3-year CDs. Then, we reviewed each institution using our CD rates methodology to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
