The best 3-year CD rates are far higher than the average CD rate, which is 1.32% annual percentage yield for three-year terms. The highest 3-year CD rates are generally offered by online banks and credit unions.
Credit Human Federal Credit Union currently offers the highest CD rate for a 3-year CD, at 4.31% APY.
We check rates daily to find the best rates for 3-year terms. Here are our top picks for 3-year CDs. If you're also interested in other CD term lengths, check out our overall best CD rates guide.
The Best 3-Year CD Rates
- Credit Human 3 Year Share Certificate: 4.31% APY
- America First Credit Union 3 Year Certificate: 4.15% APY
- Popular Direct 3 Year CD: 4.15% APY
- First National Bank of America 3 Year CD: 4.10% APY
- Signature Federal Credit Union 3 Year Certificate: 4.00% APY
- Securityplus Federal Credit Union 3 Year Share Certificate: 4.00% APY
- USALLIANCE Financial 3 Year Certificate: 4.00% APY
- Dow Credit Union 3 Year Simple CD: 4.00% APY
- NASA Federal Credit Union 3 Year Share Certificate: 4.00% 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 banking app.
Compare the Best 3-Year CDs
Our top 3-year CDs list the best banks for 3-year CDs, as well as the best credit unions. Most of our picks are online banks and credit unions because brick-and-mortar banks generally pay lower interest rates for CDs.
The best 3-year CDs may also have other standout features. For example, if you don't have much money to deposit upfront, we have CDs with low minimum opening deposit requirements. If you're worried about 3-year CD early withdrawal penalties, we have options with lenient penalties. Compare 3-year CD rates below.
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. 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.
Credit Human 3 Year Share Certificate
Credit Human Federal Credit Union has a high 3-year CD rate. It also has lots of CD term length options: from 3 months to 10 years.
You must become a credit union member before opening a share certificate. You may join Credit Human from anywhere in the U.S. if you become a member of the American Consumer Council. Credit Human also has other ways to become a member: You'll be eligible to join if you live in a service area in San Antonio, Texas, or New Orleans, Louisiana, or if you work for a partner employer or organization.
APY for 3-year CD: 4.31% APY
3-year CD early withdrawal penalty: $50 or 365 days of interest (whichever is greater)
America First Credit Union 3 Year Certificate
America First Credit Union has a variety of terms with high interest rates, including 3-year CDs, 4-year CDs, and 5-year CDs. If you're planning on opening multiple long-term CDs with the same financial institution, America First Credit Union might be a good choice for you.
Credit unions usually limit who can join them, and America First is no different. You can join America First Credit Union if you live, work, worship, or volunteer in specific Arizona, Idaho, Nevada, New Mexico, Oregon, or Utah counties. You can also join if you have a family member or spouse who's a current member.
APY for a 3-year term: 4.15% APY
3-year early withdrawal penalty: 180 days of interest, with a minimum penalty of $5
America First Credit Union Review
Popular Direct CDs pay competitive rates on both 3-month and 3-year CDs, so if you're planning on opening multiple CDs at the same bank, Popular Direct might be a good choice. This CD also compounds interest daily, which could add up depending on how much you put in the CD.
You'll need at least $10,000 to open a Popular Direct CD, though. The bank also charges high early withdrawal penalties.
APY for 3-year CD: 4.15% APY
3-year CD early withdrawal penalty: 365 days of simple interest
First National Bank of America 3 Year CD
First National Bank of America has good rates on its 3-year CD, as well as its 2-year CD. It also offers CDs with much longer term lengths than what many banks offer. If you're interested in a long-term CD, First National Bank of America might be a good choice.
First National Bank of America's early withdrawal penalties are high for most of its CDs. If you think there's a chance you'll need to withdraw money before the end of the term length, you might prefer another option.
APY for 3-year CD: 4.10% APY
3-year CD early withdrawal penalty: 360 days of interest
First National Bank of America Review
Signature Federal Credit Union 3 Year Certificate
Signature Federal Credit Union is an excellent choice if you're searching for a credit union with good 3-year certificates. It has a $500, which is less than what's required at other financial institutions. You may also like Signature Federal Credit Union if you prefer banking with a credit union over a bank.
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.
APY for a 3-year term: 4.00% APY
3-year early withdrawal penalty: 180 days of interest
Signature Federal Credit Union Review
Securityplus Federal Credit Union 3 Year Share Certificate
Securityplus Federal Credit Union has a good rate on its 3-year certificate. Securityplus Federal Credit Union is also a Black-led credit union. There is a history of racial prejudice in banking and lending that has significantly impacted Black Americans and contributed to a racial wealth gap in the U.S. Black-led financial institutions serve an integral role in providing services and products to Black communities.
Securityplus has a minimum opening deposit of $1,000, which is fairly standard; that being said, some of our other picks have lower minimum opening deposits. You'll also need to meet its membership eligibility requirements to open an account. You can become a member by joining the American Consumer Council, which is the easiest way to join. If you live in Baltimore City, work for a select employer group, or have a relative who's already a member of the credit union, you'll also be able to join.
APY for a 3-year term: 4.00% APY
3-year early withdrawal penalty: 90 days of interest
USALLIANCE Financial 3 Year Certificate
USALLIANCE Financial offers a strong rate on its 3-year and 5-year CDs with a low minimum opening deposit. It also offers a good no-penalty CD.
To open a bank account at the credit union, you must become a member. You may join USALLIANCE Financial if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services.
APY for a 3-year CD: 4.00% APY
3-year CD early withdrawal penalty: 360 days of interest
Dow Credit Union 3 Year Simple CD
The Dow Credit Union Simple CD pays a good interest rate on a 3-year term and also offers one of the best 3-month CD rates. The Simple CDs have low minimum opening deposits, too.
Anyone in the United States is eligible for membership at Dow Credit Union by making a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current credit union member.
APY for 3-year CD: 4.00% APY
3-year CD early withdrawal penalty: 365 days of interest
NASA Federal Credit Union 3 Year Share Certificate
NASA Federal Credit Union has a strong rate for its 3-year certificate. It also has good rates on its 6-month, 9-month, and 2-year certificates, which could make it a good choice if you want to open multiple CDs at the same financial institution.
NASA Federal Credit Union limits who can join it. That being said, it's easier to join than many credit unions. When you fill out an application, you'll receive a free one-year membership to the National Space Society which will let you join the credit union. You can also join by being an employee of NASA or another select employer group or by having a relative who's a member of the credit union.
APY for a 3-year term: 4.00% APY
3-year CD early withdrawal penalty: 365 days of interest
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 |
| Credit Human Federal Credit Union | A- |
| America First Credit Union | A+ |
| First National Bank of America | A+ |
| Popular Direct | A+ (rating for its parent bank, Popular) |
| Signature Federal Credit Union | B- |
| Securityplus Federal Credit Union | A+ |
| USALLIANCE Financial | D- |
| Dow Credit Union | NR |
| NASA Federal Credit Union | A |
Credit Human has an A- rating from the BBB because of unresolved customer complaints.
Signature Federal Credit Union has a B- rating from the BBB because it has failed to respond to two customer complaints.
USALLIANCE Financial has a D- rating from the BBB because it hasn't responded to several complaints filed against the business.
Dow Credit Union has an NR rating from the BBB because the BBB does not have enough information to rate the business.
NASA Federal Credit Union has an A rating because a few complaints filed against the business have not been resolved.
In 2023, the Federal Reserve Board fined Popular Direct's parent bank, Popular Bank, $2.3 million. The Federal Reserve Board said the fine was because Popular Bank processed six Paycheck Protection Program loans that had significant signs of potential fraud.
What Influences 3-Year CD Rates
Market Interest Rate Trends
Ultimately, banks and credit unions have to respond to market fluctuations when setting their rates. For example, if banks in general raise their CD rates, your financial institution will also have to raise its rates if it wants to stay competitive. And if banks lower their rates, then your financial institution doesn't have to keep rates as high to get customers.
Federal Reserve Outlook
If you're wondering what the Federal Reserve is, also known as the Fed, it's the central banking system of the U.S. It has a committee that meets at least eight times a year to decide whether rates will rise, lower, or stay the same. When it announces rate changes, banks and credit unions usually follow suit.
Differences Between Institutions
The rate you can get on 3-year CDs will change depending on the individual institution you go to. There are several possible reasons for this, such as branch locations, internal market predictions, and overall business costs. Sometimes banks will increase rates on a specific product to get more customers; for example, a bank with middle-of-the-road CD rates might offer a great rate on a 6-month CD to get more customers to open that specific product.
Should You Lock In a 3-Year CD?
Whether you decide to open a 3-year CD will depend on your individual needs. Short-term CD rates are higher than long-term CD rates right now, so getting a better rate might be more important to you. However, a 3-year CD might be interesting to you if you find a good rate that you want to lock in for several years.
Your savings goals might also help you pick what term CD to open; if you plan to buy a house in three years, for example, a 3-year CD might be the best choice for building a down payment.
If you're comparing 3-year CD rates versus treasury yields from treasury bonds, you'll want to consider what amount of risk you're willing to take on. Your CD rate isn't going to change until the end of the term, while treasury yields are subject to change based on market fluctuations.
When you're selecting a bank to open a 5-year CD, make sure to review various financial institutions in order to truly get the best CD rates. Factoring in your overall banking experience and whether you plan to open any bank accounts in the future may also help with your decision.
If you're worried you won't qualify for a CD because you don't meet the requirements at one bank, know that all banks aren't the same. Some banks let you open CDs with low minimum opening deposit requirements. You can also find banks that let you open bank accounts without a U.S. ID. The top banks for immigrants and non-U.S. Citizens allow you to provide a foreign passport or Matricula Consular to open a bank account.
3-Year CD FAQs
The highest 3-year CD rate is 4.31% APY from Credit Human Federal Credit Union.
If the Fed changes its rates, you should expect all CD rates to change in response. However, longer-term CDs like 3-year CDs are more sensitive to predictions of Fed behavior than short-term CDs are, since they're more likely to be around for those predicted changes.
Not necessarily. Unless you get a bump-up CD or a step-up CD, your interest rate is locked in once you open a CD; you won't be able to change it. But banks can still raise their rates for people who haven't opened a CD yet, and there's always a chance another bank will raise its rates.
If there's a chance you'll need your money before the end of a term length, you'll generally want to go with either a high-yield savings account or a no-penalty CD. If you need to open a standard CD, a short-term CD would be a better choice than a long-term CD like a 3-year CD, especially since they currently offer higher rates anyway.
CD laddering helps mitigate risk with a 3-year CD. To build a CD ladder, you'll stagger your money across different terms, including potentially 3-year terms.
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, Business Insider consulted four experts:
- Tania Brown, CFP® professional and vice president of coaching strategy at OfColor
- Sophia Acevedo, banking editor, Business Insider
- Roger Ma, CFP® professional 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: How We Chose the Best 3-Year CDs
Business Insider's personal finance team researched over 160 banks and credit unions to find out which banks offered the highest 3-year CD rates. For each account, we compared the minimum opening deposits, early withdrawal penalties, miscellaneous features, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, security and ethics.
See our bank account rating methodology to learn more about how we rate bank accounts.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
