The Best 3-Year CD Rates of February 2023
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The Best 3-Year CD Rates of February 2023
Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
As of January 2023, the average APY (Annual Percentage Yield) on a 3-year CD is 1.16% APY. However, the best 3-year CD rates pay up to 4.60% APY right now.
Three-year terms provide a nice balance of a good rate and a relatively short length of time. 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. Here are our top picks for 3-year CDs.
The Best 3-Year CDs
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:
Insider
Here's what they had to say about CDs. (Some text may be lightly edited for clarity.)
How can someone determine whether a bank is the right fit for them?
Tania Brown, certified financial planner at SaverLife:
"Obviously, you want to make sure it's FDIC insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you're okay online. Do you write checks? Do you not write checks? So it's thinking through how your experience with it is going to be before you make that decision."
Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
"I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I'm searching for an interest-earning bank account I'll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account."
How should someone choose a CD term length?
Roger Ma, certified financial planner with lifelaidout® and author of "Work Your Money, Not Your Life":
"I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective."
Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:
"I believe in having a plan for whatever the funds are. If it's supposed to be a house fund, and you want to wait for another two years to buy a house, that's what you should be thinking of when you want to have this money."
How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?
Tania Brown, CFP:
"So I guess we'll start off with how much money you want to put in and ... the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you're stuck between the high-yield savings and the money market account."
Sophia Acevedo, Personal Finance Insider:
"Generally, I think a high-yield savings account or money market account could be good options for an emergency fund or short-term savings goals. A high-yield savings account offers a higher interest rate than traditional savings accounts at brick-and-mortar banks. Meanwhile, money market accounts might be worth considering if you want more account accessibility — several offer paper checks, ATM cards, or debit cards. CDs could be worthwhile if you don't need access to some of your money, since they have a fixed interest rate for a specific term."
Frequently Asked Questions
With a 3-year CD, you'll deposit your money into an account with a fixed interest rate for 36 months. If 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.
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.
For the most part, longer terms pay higher rates than lower-term CDs. However, short-term CD offer the opportunity to snag a better interest if rates increase throughout the year.
Choosing a CD will likely depend on how soon you need access to your money. Many experts recommend CD laddering. With this strategy, you open multiple CDs with different term lengths so you can take advantage of higher rates with longer terms, but also access some of your money earlier.
The choice between a 3-year CD and high-yield savings account will depend on several factors.
Financial institutions usually pay a higher rate for a 3-year CD than for a savings account.
However, be aware that a CD also 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. Either way, there's a good chance rates will fluctuate over a 3-year period.
It also depends on when you'll need to access your money. You should be able to access funds from your savings account regularly. If you take out money from a CD before the end of its term, you may have to pay an early withdrawal penalty. You can also continuously add money to your savings account, whereas most CDs block you from making additional deposits after opening the account.
Money market accounts usually have paper checks or debit cards, so you'll have quick access to your money. Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping. Still, remember that rates will likely go up and down over a 3-year term.
Many banks require higher deposits for money market accounts than CDs, which could affect your decision. It's also good to remember that you can add more funds to your money market account over time, while a CD only allows an opening deposit.
CDs aren't generally considered investments. A CD is typically viewed as a type of savings account, and your potential for losses and gains — your risk — is much more limited.
Because the stock market is risky, experts generally don't advise investing money you'll need in the next five years. In the case of a stock market drop, you wouldn't have time to make up your losses.
If you need to access your money in three years and want a guaranteed rate of return, a 3-year CD is a better choice than a different type of investment account.
If you're comfortable taking more risk with your money to earn a higher return, then you may want to invest in the stock market. For example, tax-advantaged retirement accounts, like a 401(k) or IRA, grow your money over decades. Another is through brokerage accounts, which are useful tools to build long-term wealth, but can't guarantee a given return like a CD can.
There is such a thing as an IRA CD, which is a sort of combo savings/investment account. It's a safe investment tool that may be a worthwhile option for people who are close to retirement age.
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CFG Bank 3 Year CD
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Alliant 3 Year Certificate
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Bread Savings 3 Year High-Yield CD
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Signature Federal Credit Union 3 Year Certificate
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Crescent Bank 3 Year CD
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First Internet Bank of Indiana 3 Year CD
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Sallie Mae 3 Year CD
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First National Bank of America 3 Year CD
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.
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: 4.60% 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.
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.
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.
Crescent Bank 3 Year CD
Why it stands out: Crescent Bank pays competitive interest rates on a variety of online CDs. It also has standard early withdrawal penalties for 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: To deposit money into an online Crescent Bank CD, you may mail the bank a check or transfer money from a bank account at another financial institution.
Another thing to keep in mind is that other financial institutions may allow you to open a CD with less money upfront.
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: 4.44% 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.
Sallie Mae 3 Year CD
Why it stands out: Sallie Mae pays higher CD rates than most brick-and-mortar and online banks. Sallie Mae has a variety of short-term CDs and is also featured in our guide to the best money market accounts.
APY for 3-year CD: 4.40% APY
3-year CD early withdrawal penalty: 180 days of interest
What to look out for: At Sallie Mae, an initial deposit of $2,500 is required to open a CD. Other banks on our list let you open a CD with $1,000 or less.
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.
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.
- 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 High-Yield CD: 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 CD (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 5,000 to open a CD.
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 | APY (Annual Percentage Yield) | Next steps |
| Citi | 2.00% | Learn more |
| Capital One | 4.30% | Learn more |
| PNC Bank | 0.01% to 3.60% (vary by location) | Learn more |
| TD Bank | 0.05% | Learn more |
| Bank of America | 0.03% | Learn more |
| Chase Bank | 0.01% to 2.00% (vary by location) | Learn more |
| US Bank | 0.10% (vary by location) | Learn more |
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 exception of Signature Federal Credit Union.
Here is each company's score:
| Institution | BBB rating |
| Alliant | A+ |
| Bread Savings | NR from Comenity Bank, its partner bank |
| CFG Bank | NR |
| Crescent Bank | A+ |
| First Internet Bank of Indiana | A+ |
| Sallie Mae | A+ |
| First National Bank of America | A+ |
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, currently has an NR ("No Rating") 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.
Why Trust Our Recommendations?
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.
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