The Best 3-year CD Rates of May 2023

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The average APY (Annual Percentage Yield) on a 3-year CD is 1.34% APY. However, the best 3-year CD rates pay up to 4.95% APY right now. Three-year terms provide a nice balance of a good rate and a relatively short length of time. 

CIT Bank No Penalty 11-Month CD

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CIT Bank, Member FDIC

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Details

Annual Percentage Yield (APY)

4.90%

Minimum Deposit Amount

$1,000

Pros & Cons

Pros

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Competitive APY

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Interest is compounded daily

Cons

$1,000 minimum deposit

Only term option is 11 months

Highlights

More Information

• 11-month CD term
• Interest compounded daily, paid monthly
• FDIC insured

Additional Reading

Read our review

You’ll likely earn a higher APY on a 3-year CD than with a shorter-term CD, and you won’t have to part with your money for as long as you would with a longer term. If you’re also interested in other CD term lengths, check out our overall best CD rates guide. Here are our top picks for 3-year CDs.

The Best 3-year CDs

• QFCU 3 Year Term Savings: 4.85% (on balances $1,000 – $99,999) or 4.95% (on balances of $100,000 or more) APY
• CFG Bank 3 Year CD: 4.60% APY
• First Internet Bank of Indiana 3 Year CD: 4.54% APY
• Bread Savings 3 Year High-Yield CD: 4.50% APY
• Signature Federal Credit Union 3 Year Certificate: 4.50% APY
• Alliant 3 Year Certificate: 4.45% APY
• First National Bank of America 3 Year CD: 4.40% APY

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.

Compare the Best 3-year CDs

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:

• 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?

Methodology: How did we choose the best 3-year CDs? 

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.

Frequently Asked Questions

QFCU 3 Year Term Savings

Why it stands out: Quorum Federal Credit Union is an online financial institution with one branch in New York. It has term accounts, which are similar to high-yield CDs — you’ll earn a fixed interest rate for a specific term. You also earn an additional 0.10% APY on account balances of $100,000 or more. 

APY for 3-year CD: 4.85% (on balances $1,000 – $99,999) or 4.95% (on balances of $100,000 or more) APY

3-year CD early withdrawal penalty: 3% of the amount withdrawn

What to look out for: Credit unions require membership to open accounts. At Quorum, you or a family member have to work for a Select Employee Group on this list, or you must join the American Consumer Council or Select Savers Club.

CFG Bank 3 Year CD

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: 4.60% APY

3-year CD early withdrawal penalty: 180 days of interest

What to look out for: 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.

CFG Bank Review

First Internet Bank of Indiana 3 Year CD

Why it stands out: First Internet Bank of Indiana might be appealing if you’re searching for a bank that offers a variety of CD terms. The bank is also featured in our best money market account guide.

APY for 3-year CD: 4.54% APY

3-year CD early withdrawal penalty: 360 days of interest

What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 3-year CD.

First Internet Bank of Indiana

Bread Savings 3 Year High-Yield CD

Why it stands out: Bread Savings pays higher CD rates than what you would earn at many brick-and-mortar banks or online banks. 

APY for 3-year CD: 4.50% APY

3-year CD early withdrawal penalty: 180 days of interest

What to look out for: The minimum opening deposit for Bread Savings CDs is $1,500, 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.

Bread Savings Review

Signature Federal Credit Union 3 Year Certificate

Why it stands out: Signature Federal Credit Union has a limited-time offer where you can earn 4.50% APY on a 3-year term.

APY for 3-year CD: 4.50% APY

3-year CD early withdrawal penalty: 180 days of interest

What to look out for: Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you’ll just need to open a savings account.

If you’re looking for other CD terms, you also might consider one of the other institutions on our list. Although Signature Federal Credit Union has a variety of CD options, its other CD rates aren’t as competitive. 

Alliant 3 Year Certificate

Why it stands out: Alliant pays high rates on CDs and has reasonable early withdrawal penalties. 

APY for a 3-year CD: 4.45% APY

3-year CD early withdrawal penalty: 180 days simple interest

What to look out for: Credit unions require you to become a member to open an account. The easiest way to become a member is to join Foster Care to Success, and Alliant will cover your $5 joining fee.

Alliant Credit Union Review

First National Bank of America 3 Year CD

Why it stands out: First National Bank of America lets you open CDs online from anywhere in the US, and it offers a variety of terms.

You also might like First National Bank of America if you live in Lansing, Grand Rapids, or Traverse City, Michigan. It has branches in these cities.

APY for 3-year CD: 4.40% APY

3-year CD early withdrawal penalty: 360 days of interest

What to look out for: 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.

First National Bank of America Review

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.

• Crescent Bank CD: Crescent Bank’s 3-year certificate pays a lower interest rate than our top picks.
• Synchrony CD: Synchrony pays high interest rates on CDs, but our top picks offer even higher interest rates right now.
• LendingClub CD: LendingClub pays high interest rates on CDs, but you’ll need at least $2,500 to get a CD. LendingClub CDs also have standard-to-high early withdrawal penalties. 
• Popular Direct CD: Popular Direct has great interest rates on long-term CDs, but you’ll need at least $10,000 to open a CD.
• Connexus Credit Union Share Certificate: Connexus offers a competitive interest rate, but you’ll need a minimum of $5,000 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 CD: 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 CD: Ally has a $0 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: Marcus has a low minimum opening deposit, but our top picks offer higher interest rates.
• Capital One 360 CD: 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 (Member FDIC): Discover pays solid interest rates, but you’ll need a minimum of $2,500.
• NBKC CD: NBKC offers competitive interest rates on long-term CDs, but our top picks offer even higher rates.
• Citizens Online CD: Citizens has solid CD rates, but you’ll need at least $5,000 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 Bank CD: 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 Term 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 $100,000 to open a CD. 
• Sallie Mae 3 Year CD: 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.

3-year CD rates at the largest US banks

The biggest banks in America pay lower rates than our top picks. However, it may be important to you to bank with a company you’re familiar with. Here are the rates you’ll earn on a 3-year CD with some of the most popular institutions:

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. All of our top picks have BBB ratings with the exceptions of Signature Federal Credit Union and CFG.

Here is each company’s score:

CFG Bank does not have a rating because it hasn’t responded to three customer complaints on the BBB website.

Comenity Bank, the partner bank of Bread Savings, also currently has an NR (“No Rating”) because it is in the process of responding to previously closed complaints.

According to a note on the BBB website about Comenity (Bread Savings’ partner bank), there has been a pattern of complaints and reviews received by the BBB between October 15, 2022, and November 14, 2022. The complaints allege that customers have experienced billing inaccuracies, customer service deficiencies, and inaccurate reporting to credit bureaus. The BBB has written to the company about these issues twice in the last two months and hasn’t received a response, yet. The BBB will provide updates as needed.

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.