Review
Updated
Fact Checked
Ashley Maready
Three-year CD rates are often similar, if not the same, as longer term CDs. They're great for people wanting higher rates than short CD terms but less commitment than a 5-year CD.
Here's a detailed look at 3-year CD rates, factors to consider when choosing a CD, and alternatives to a 3-year CD.
Rates as of April 23, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Member FDIC.
| APY: 3.75% | Term: 3 Year | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 3.50% | Term: 3 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.40% | Term: 3 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.30% | Term: 3 Year | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 4.20% | Term: 3 Year | Min. Deposit: $1,000 | |
Member FDIC.
| APY: 4.15% | Term: 3 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.15% | Term: 3 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.25% | Term: 3 Year | Min. Deposit: $1,500 | |
Member FDIC.
| APY: 4.00% | Term: 3 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.00% | Term: 3 Year | Min. Deposit: $0 |
Sorry, we didn't find any CDs that meet those criteria.
A closer look at the best 3-year CD rates
Discover® Bank CD
Bottom Line
Discover has a higher minimum balance requirement than some of its competitors, but its rates are competitive and you don't have to worry about getting hit with any fees unless you withdraw funds via wire transfer or choose to withdraw from your CD before it reaches its maturity date. It also offers some unique term lengths, including CDs as short as three months and as long as 10 years.
Minimum Deposit $2,500
| 3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 30 Mo. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 7 Yr. APY | 10 Yr. APY |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2.00% | 4.25% | 4.25% | 4.70% | 4.40% | 4.00% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
APY = Annual Percentage Yield
Barclays Online CD
Bottom Line
Barclays offers competitive rates on most common CD terms with no minimum balance requirements. There are no monthly fees, so you likely won't lose money unless you try to withdraw your funds early. The only common CD term missing is a six-month CD -- in fact, there's no CD term less than one year, but those interested in building longer-term CD ladders will find plenty to like here.
Minimum Deposit $0
| 6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 5.00% | 5.00% | 4.50% | 4.00% | 3.50% | 3.50% | 3.75% |
APY = Annual Percentage Yield
Quontic CDs
Bottom Line
Quontic Bank offers CDs with terms ranging from six months to five years. It offers most of the terms one would expect, though it is missing a four-year CD, so it may not be ideal for those hoping to build a CD ladder. Its rates are competitive, especially on its longer term CDs, and its minimum deposit is more affordable than what you see with some other top banks.
Minimum Deposit $500
| 6 Mo. APY | 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|
| 5.05% | 4.50% | 4.50% | 4.40% | 4.30% |
APY = Annual Percentage Yield
LendingClub CD
Bottom Line
LendingClub CDs don't skimp on interest, offering competitive APYs for all six of their CD terms, from six months to five years. They're also FDIC insured. One downside is that you'll need to commit at least $2,500 to open an account.
Minimum Deposit $2,500
| 6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|
| 5.00% | 5.15% | 5.00% | 4.50% | 4.30% | 4.00% |
APY = Annual Percentage Yield
Alliant CD
Bottom Line
Alliant offers CD rates across common terms that stack up well with other banks on this list. The credit union's rates hold up better than most though over the longer terms, so for savers interested in locking in rates for multiple years, Alliant could be a good home for your money. Note that the minimum of $1,000 is on the higher end for this list.
Minimum Deposit $1,000
| 6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 4.75% | 5.15% | 4.90% | 4.30% | 4.20% | 4.05% | 4.00% |
APY = Annual Percentage Yield
Marcus by Goldman Sachs High Yield CD
Bottom Line
Savers have the potential to create effective CD ladders through Marcus, as it provides competitive rates through the most common CD terms. The minimum deposit is $500 and withdrawal penalties are moderate compared with competitive banks.
Minimum Deposit $500
| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 6 Yr. APY |
|---|---|---|---|---|---|---|---|---|
| 4.80% | 4.90% | 4.90% | 4.60% | 4.20% | 4.15% | 4.05% | 4.00% | 3.90% |
APY = Annual Percentage Yield
Synchrony Online CD
Bottom Line
Perhaps one of the lesser-known names on the list, Synchrony is a full-line bank with a 90-year history. Synchrony's CDs are notable for competitive rates at most term lengths, plus low or no minimum deposits.
Minimum Deposit $0
| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|---|
| 5.15% | 4.90% | 4.80% | 4.50% | 4.20% | 4.15% | 4.00% | 4.00% |
APY = Annual Percentage Yield
Bread Savings CD
Bottom Line
Comenity Direct CDs (the bank behind Bread Savings) are available in many of the most popular terms, making it a flexible high-yield CD to consider for differing needs. There's also no monthly maintenance fee. But its $1,500 minimum deposit is a little steeper than what some of its competitors charge.
Minimum Deposit $1,500
| 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|
| 5.25% | 4.65% | 4.25% | 4.15% | 4.15% |
APY = Annual Percentage Yield
Ally High Yield CD
Bottom Line
Ally High Yield CDs are notable for saver-friendly features like no minimum deposits and lower-than-average withdrawal penalties (though you're still better off holding through your CD term!). The rates are generally not at the very top of the market, but they tend to not be far off.
Minimum Deposit $0
| 3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 3.00% | 4.40% | 4.45% | 4.65% | 4.45% | 4.00% | 3.90% |
APY = Annual Percentage Yield
Capital One 360 CD
Bottom Line
Backed by Capital One's well-known brand, the Capital One 360 CDs offer competitive rates across many common terms, though they're stronger in durations of a year or longer. There's no minimum deposit, so savers can benefit even if they don't have a large sum to deposit. Check Capital One's web site for the most up-to-date rates.
Minimum Deposit $0
| 6 Mo. APY | 9 Mo. APY | 10 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|---|---|
| 4.25% | 4.25% | 5.10% | 4.80% | 4.45% | 4.00% | 4.00% | 3.95% | 3.90% |
APY = Annual Percentage Yield
What is a 3-year CD?
A 3-year CD is a certificate of deposit account, which is also known as a "time deposit" account, that requires the depositor to keep their money in the account for a period of three years. In exchange for depositing money and agreeing to leave it in the account for the entire term, you'll get a fixed interest rate (APY) that will stay constant for the entire three-year period.
How to compare the best 3-year CD rates
Three-year CDs can earn higher APYs than short-term CDs can. However, APY is not the only feature to consider when shopping for a CD. Here are some other factors to consider when comparing 3-year CDs:
- Minimum deposit: Some of the best 3-year CD rates are attached to CDs that require a minimum deposit. Check the account details to ensure the amount you plan to deposit meets these requirements.
- Fees: Make sure your CD account does not charge monthly maintenance fees. These can eat away at your interest earnings.
- Withdrawal penalties: Most banks charge an early-withdrawal penalty if you pull money from your CD before it reaches maturity. Don't use 3-year CDs for any funds you'll need in the short term.
- Compounding interest: Interest on CDs normally compounds daily, weekly, or monthly. Note you'll earn slightly more if your CD interest compounds every day.
- Interest payouts: Many banks give you the option to receive interest payouts monthly, quarterly, or annually. You'll earn more interest if you leave your interest in the account to compound, but you may prefer to receive payouts as you go along.
- CD maturity: Most 3-year CDs will automatically enroll you in a new CD when yours reaches maturity. Typically, you'll receive notice from your bank that your CD is maturing soon, and you must contact it directly or withdraw funds during the grace period to opt out.
Who is a 3-year CD right for?
A 3-year CD is right for individuals who don't need access to their money for three years. It's a good investment for mid-range savings goals like future home improvements or a down payment on a house or car.
Will 3-year CD rates increase in 2024?
To be perfectly clear, nobody knows exactly what CD interest rates will do, and when. Banks can determine their own CD rates. While CD rates aren't directly tied to any benchmark interest rate, such as the federal funds rate, they tend to move in the same direction over time.
With that last sentence in mind, it's important to mention that while the timing is uncertain and there are no guarantees, the Federal Reserve is widely expected to start lowering interest rates in 2024, which would likely mean that 3-year CD rates would fall. Of course, there are many economic factors involved, but the most likely direction for 3-year CD rates throughout 2024 is downward.
Pros and cons of a 3-year CD
Opening a 3-year CD account can be a great investment, but it also has its drawbacks. Here are some pros and cons to 3-year CDs.
Pros
Higher rates: The best 3-year CD rates earn a higher rate than most savings accounts and shorter CD terms do. Banks pay the higher rate because you can't touch your funds without paying a penalty.
Protection against interest rate drops: 3-year CDs come with fixed rates, which means you'll earn a guaranteed rate for the next three years regardless of market rate drops.
Predictable returns: Having a fixed rate means you can quickly calculate precisely how much interest you'll earn over the next three years. Plus, your money has the added safety of being FDIC insured up to $250,000.
Cons
No benefit from interest rate increases: The market can change drastically over your CD term. Having a fixed rate also means you lose out if market rates increase.
Penalties: Tying your money up in a 3-year CD is not without risk. If you need access before your CD matures, you'll end up paying hefty early-withdrawal penalties that could decrease your CD earnings dramatically.
Inflation risk: There's also a risk that your 3-year CD rate won't keep up with inflation. You can protect yourself against this by building a CD ladder. CD laddering allows you to increase your financial flexibility while possibly taking advantage of higher APYs instead of being locked into one rate.
Alternatives to a 3-year CD
Three-year CDs are a great way to earn a high interest rate over time. However, they are not right for everyone. Here are some other options for both shorter- and longer-term investments.
High-yield savings account
Many online banks offer high-yield savings accounts with competitive rates. With these accounts, you'll also have access to your money whenever you need it without paying any penalties.
Money market account
Another great account with competitive interest rates is a money market account. This is a hybrid that combines the best of both savings and checking accounts. With a money market account, you get a high interest rate but don't get locked into the time commitment of a CD.
Long-term CDs
Three-year CDs are considered a mid-range CD. Opting for a 4-year or 5-year CD isn't too much more of a time commitment, and you could score an even higher interest rate, depending on market conditions.
Investments
Stock market investments and retirement accounts can typically earn better long-term returns than even the best 3-year CD rates. However, you'll likely need to leave your money in a brokerage account for longer than three years to take advantage of its higher returns. Also remember that the stock market is always a riskier investment. Stocks are not FDIC insured and can plummet in value with little notice.
To recap, the best 3-year CD rates
| Offer | APY | Min. Deposit |
|---|---|---|
| 3.75% - 3 Yr. | $2,500 | |
| 3.50% - 3 Yr. | $0 | |
| 4.40% - 3 Yr. | $500 | |
| 4.30% - 3 Yr. | $2,500 | |
| 4.20% - 3 Yr. | $1,000 | |
| 4.15% - 3 Yr. | $500 | |
| 4.15% - 3 Yr. | $0 | |
| 4.25% - 3 Yr. | $1,500 | |
| 4.00% - 3 Yr. | $0 | |
| 4.00% - 3 Yr. | $0 |
APY = Annual Percentage Yield
Other CD term lengths to consider
Our CDs methodology
At The Motley Fool Ascent, certificates of deposit (CDs) are rated on a scale of one to five stars, primarily focusing on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
The Ascent tracks just standard CDs, not IRA, bump up, callable, and other less popular CD accounts. CD rates displayed on this Best 3-Year CD Rates pages are comprised of both the highest CD rates in The Ascent’s universe of tracked rates and featured placements from advertisers. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list.
See our full Ratings Methodology here.
Banks we monitor
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Here are the 100+ financial institutions we've evaluated in our research:
Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens Bank, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.
FAQs
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Three-year CDs offer solid interest rates, but with a shorter time commitment than longer CD terms. You can often find 3-year CDs with rates that are similar to or the same as a 5-year CD.
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A 3-year CD is worth it if you know that you won't need to access your money for three years. You'll earn a considerably higher APY than the national savings average.
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A 3-year CD is a type of bank account that requires the depositor to keep their money in the account for a period of three years. In exchange for agreeing to leave the money untouched, a 3-year CD has an interest rate (APY) that is guaranteed not to change for the entire three-year term.
Our Banking Experts
Kevin Payne is a freelance writer and family travel and budget enthusiast behind FamilyMoneyAdventure.com. His work has been featured in Forbes Advisor, Credible, CreditCards.com, Bankrate, SlickDeals, Finance Buzz, Student Loan Planner, and more. Kevin lives in Cleveland, Ohio with his wife and four teenagers.
Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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