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The average APY (Annual Percentage Yield) on a 3-year CD is 1.38% APY. However, the best 3-year CD rate is
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 APYBMO Alto 3 Year High Yield CD - Product Name Only :BMO Alto 3 Year High Yield CD - APY APYMYSB Direct 3 Year CD - Product Name Only :MYSB Direct 3 Year CD - 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 APY
Compare the Best 3-Year CDs
3-Year CD Frequently Asked Questions
What is the best 3-year CD right now?
The highest 3-year CD rate is
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:
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:
3-year CD early withdrawal penalty: 120 days of interest
BMO Alto 3 Year High Yield CD - Product Name Only
BMO Alto, the online division of BMO Bank, is featured in our best CD rates guide for 4-year and 5-year terms. It also pays great rates on other terms.
BMO Alto lets you open an account with
You might prefer another bank if you're also looking to open a checking or money market account. BMO Alto only offers a high-yield savings account and CDs.
APY for 3-year CD:
3-year CD early withdrawal penalty: 180 days of interest
BMO Alto Savings and CD Accounts
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:
3-year CD early withdrawal penalty: 90 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
APY for 3-year CD:
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
APY for 3-year CD:
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:
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
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:
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.
Bread Savings High-Yield CD - Product Name Only : Bread Savings has a 3-year CD payingBread Savings 3 Year High-Yield CD - APY APY, which is just short of the rates on our list.First National Bank of America CD - Product Name Only : First National Bank of America has good rates on long-term CDs, but our top picks have even higher rates available.Crescent Bank CD - Product Name Only : A 3-year Crescent Bank CD paysCrescent Bank 3 Year CD - APY APY. Our top picks have more competitive CD rates.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 payingFirst 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 paysQuorum 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 paysAlliant 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 paysSignature 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 leastLendingClub 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 ofConnexus 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 aAlly 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 withCapital 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 leastLive Oak Bank Certificate of Deposit for an initial deposit.Discover CD (Member FDIC): Discover pays solid interest rates, but you'll need a minimum ofDiscover 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 leastCitizens 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 betweenBMO 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:
| Institution | BBB rating |
| Valley Direct | A+ (Rating for its parent bank, Valley National Bank) |
| United States Senate Federal Credit Union | A- |
| BMO Alto | A+ |
| MYSB Direct | NR (rating of parent bank, M.Y. Safra Bank) |
| Newtek Bank | A+ |
| Popular Direct | A+ (rating for Popular Bank) |
| DollarSavingsDirect | NR (Also NR rating from its parent bank, Emigrant Bank) |
| MySavingsDirect | NR (Rating for its parent bank, Emigrant Bank) |
DollarSavingsDirect, MySavingsDirect, and MYSB Direct have NR ("No Rating") grades because the BBB doesn't have enough information to provide a business rating.
United States Senate Federal Credit Union received an A- rating from the BBB because it has received one customer complaint on the BBB website.
BMO Bank and Emigrant Bank have been involved in recent public settlements.
In 2022, a Minnesota jury ordered BMO Bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO Harris didn't buy M&I Bank until 2011.
In 2023, the U.S. Department of the Treasury's Office of Foreign Assets Control required Emigrant Bank to remit $31, 867 in a settlement that accused the bank of opening a CD for two Iranian residents and violating sanctions against Iran.
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 SaverLife
- Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider
- Roger 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.