Best 3-Year CD Rates of August 2024: Secure Higher Returns

• The Best 3-Year CD Rates
• Compare the Best 3-Year CDs
• 3-Year CD Reviews
• What Influences 3-Year CD Rates
• Should You Lock In a 3-Year CD?
• FAQs
• Why You Should Trust Us

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The average CD rate on a 3-year term is 1.44% APY (Annual Percentage Yield). However, the best 3-year CD rate is much higher. Crescent Bank currently offers the highest CD rate for a 3-year CD, at 4.65% APY.

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 

• Crescent Bank 3 Year CD: 4.65% APY
• Credit Human 3 Year Share Certificate: 4.65% APY
• First Internet Bank of Indiana 3 Year CD: 4.61% APY
• First National Bank of America 3 Year CD: 4.60% APY
• MYSB Direct 3 Year CD: 4.55% APY
• Lafayette Federal Credit Union 3 Year Certificate: 4.52% APY
• Department of Commerce Federal Credit Union 3 Year Share CD: 4.50% APY
• Newtek Bank 3 Year CD: 4.50% APY
• Popular Direct 3 Year CD: 4.50% APY
• Dow Credit Union 3 Year Simple CD: 4.35% 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 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. 

4.65%

$1,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard CD terms
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties

• con icon Two crossed lines that form an 'X'. $1,000 minimum opening deposit

• 3 branches in Louisiana
• Early withdrawal penalties: 180 days interest for CD terms other than 1 year
• Interest compounded and deposited monthly
• Member FDIC

4.65%

$500

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum opening deposit

• con icon Two crossed lines that form an 'X'. High early withdrawal penalties

• Branches primarily in San Antonio, Texas
• To join Credit Human, you or a family member must be an employe of an employer or organization partner; live, work, worship or attend school in a San Antonio, TX or New Orleans, LA service area; study at a trade school, college or university partner; are a veteran, retiree, or active duty member of the US Armed Forces or National Guard; or become a member of the American Consumer Council
• Early withdrawal penalties: 90 days of interest for terms of 3 months; 180 days of interest for terms of 6 months; 270 days of interest for terms of 12 months; 365 days of interest for terms of 36 months; 730 days of interest for terms of 60 months; 1,095 days of interest for terms of 84 or 120 months
• Federally insured by the NCUA

4.61%

$1,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties

• con icon Two crossed lines that form an 'X'. $1,000 opening deposit
• con icon Two crossed lines that form an 'X'. Interest is compounded monthly, not daily

• Terms ranging from 3 months to 5 years
• 90 days interest early withdrawal penalty for 3-month term; 180 days interest for 6-18 month term; 365 days interest for 24-60 month term
• Interest is compounded monthly and paid monthly
• Member FDIC

4.60%

$1,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Term lengths up to 84 months

• con icon Two crossed lines that form an 'X'. $1,000 opening deposit
• con icon Two crossed lines that form an 'X'. High early withdrawal penalties
• con icon Two crossed lines that form an 'X'. No term lengths under 12 months

• 3 branches in Michigan: East Lansing, Grand Rapids, and Traverse City
• You can open CDs in a branch; if you don't live in Michigan, you can open CDs online
• Term lengths ranging from 12 to 84 months
• 180 days interest for terms of 12-23 months, 360 days interest for terms of 24-47 months, 540 days interest for terms of 48 to 84 months
• Interest compounded daily, paid quarterly
• FDIC insured

4.55%

$500

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $500 minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low early withdrawal penalties

• con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily

• NY-based financial institution that serves customers nationwide
• Terms range from 6 months to 5 years
• Early withdrawal penalties 90 days of interest
• Interest compounded and deposited monthly
• FDIC insured

4.52%

$500

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $500 minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard CD terms

• con icon Two crossed lines that form an 'X'. Standard-to-high early withdrawal penalties
• con icon Two crossed lines that form an 'X'. Interest compounded quarterly, not daily

• 8 Financial Service Centers in parts of Maryland, Virginia, and Washington, DC
• Access to 5,000 shared-credit union branches and 30,000 surcharge-free ATMs nationwide
• To become a member of Lafayette Federal Credit Union, you must meet one of the following requirements: live, work, or worship in Potomac, MD, or parts of Washington, DC; work at a Select Employer Group; become a member of the Home Ownership Financial Literacy Council regardless of where you live in the U.S.; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC; or have a family member with credit union membership
• Fixed-rate certificates ranged from 7 months to 5 years
• Interest compounded and paid quarterly
• Early withdrawal penalties: 90 days of interest for a 7-month term; 180 days of interest for a 1-year term; 270 days of interest for a 2-year term; 360 days of interest for a 3-year term; 480 days of interest for a 4-year term; 600 days of interest for a 5-year term
• Federally insured by the NCUA

4.50%

$500

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $500 minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard-to-low early withdrawal penalties

• con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily

• Locations in Washington, DC and Silver Spring, Maryland
• To join the Department of Commerce Federal Credit Union, you must meet one of the following requirements: live, work, worship, or go to school in Washington, DC; work at the US Department of Commerce, NOAA, the White House Management and Administration Office, Executive Office of the President; have a family member or household member that’s a DOCFCU member; or become a member of the American Consumer Council
• Early withdrawal penalties: 90 days of interest for terms between 6 months and 11 months; 180 days of interest for terms between 12 months and 84 months
• Earn additional interest if you qualify for Relationship Rewards
• Interest compounded and deposited monthly
• Federally insured by the NCUA

4.50%

$2,500

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Variety of CD terms
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties

• con icon Two crossed lines that form an 'X'. $2,500 minimum opening deposit

• Early withdrawal penalties: For terms between 30 days and less the 1 year, the penalty is 90 days of simple interest; for terms of 1 year or more, the penalty is 180 days of simple interest
• Interest is compounded daily and deposited monthly
• FDIC insured

4.50%

$10,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive rates for certain term lengths
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Compounds interest daily

• con icon Two crossed lines that form an 'X'. $10,000 minimum deposit
• con icon Two crossed lines that form an 'X'. Standard-to-high early withdrawal penalties

• Early withdrawal penalties: 365 days simple interest for terms of 36 months to less than 60 months
• Interest compounded daily, paid monthly
• FDIC insured

4.45%

$500

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate

• con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily
• con icon Two crossed lines that form an 'X'. Standard-to-high early withdrawal penalties

• Based in Midland, Michigan
• To join Dow Credit Union, you must be an employee or retiree of Dow Inc., the former Dow Corning Corporation, or a Select Employer Group company; have a family member who is eligible to join; donate $10 to the Dow Credit Union Members Endowed Scholarship Fund; are a member of the Midland Center for the Art's Alden B. Dow Museum of Science & Art or Midland Historical Society; own stock at Dow Inc.; have a revocable trust in which the Grantor is a member of Dow Credit Union; or are a member of Midland Country Club of Great Lakes Loons Founders Club
• Simple CDs are not eligible for Member Saver Rewards
• Early withdrawal penalty for a 3-month term is 45 days and for a 6-month term is 90 months of interest
• Interest compounded monthly, not daily
• Federally insured by the NCUA

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.

Crescent Bank 3 Year CD

Crescent Bank offers a strong rate on its 3-year CDs. Crescent Bank also has one of the best 2-year CD rates, so if you're interested in opening both a 2-year and 3-year CD, Crescent Bank might be a good choice for you.

Crescent Bank doesn't have any CDs with term lengths under 1 year. If you're interested in opening a short-term CD, you might want to go with another bank.

Interest for a 3-year CD: 4.65% APY

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

Crescent CD Review

Credit Human 3 Year Share Certificate

Credit Human Federal Credit Union has a high 3-year CD rate and one of the best 18-month CD rates.

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: 4.65% APY

3-year CD early withdrawal penalty:$50 or 365 days of interest (whichever is greater)

First Internet Bank of Indiana 3 Year CD

A 3-year First Internet Bank of Indiana CD pays a higher interest rate than most brick-and-mortar and online banks. First Internet Bank of Indiana also has one of the best money market accounts.

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.

APY for 3-year CD: 4.61% APY

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

First Internet Bank of Indiana Review

First National Bank of America 3 Year CD

First National Bank of America offers online CDs nationwide for terms ranging from 12 months to 84 months. First National Bank of America has one of the best 5-year CD rates. The 3-year term also stands out for its high interest rate.

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.

First National Bank of America has steep CD early withdrawal penalties. You might prefer one of the other options on our list if you would prefer to open an account that has lower early withdrawal penalties.

APY for 3-year CD: 4.60% APY

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

First National Bank of America Review

MYSB Direct 3 Year CD

MYSB Direct pays a high interest rate on its 3-year CDs. It also has a minimum opening deposit of $500, which is low for CDs.

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 a 3-year term: 4.55% APY

3-year CD early withdrawal penalty: the greater of 90 days of interest or all of the interest you've earned to that point

Lafayette Federal Credit Union 3 Year Certificate

Lafayette Federal Credit Union offers a high 3-year certificate rate. It also pays competitive rates for other terms. You only need $500 to open an account. Many financial institutions require at least a $1,000 minimum deposit for CDs.

You may join Lafayette Federal Credit Union regardless of where you live in the United States by becoming a member of the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC, or have a family member with credit union membership.

APY for 3-year CD: 4.52% APY

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

Department of Commerce Federal Credit Union 3 Year Share CD

The Department of Commerce Federal Credit Union offers a strong rate on a 3-year CD with a low minimum opening deposit of $500. It's also a credit union anyone can join as long as you're a U.S. citizen or permanent resident.

The Department of Commerce Federal Credit Union has branches, but only in Washington, DC, and Maryland. If you don't live near either branch and want to bank in-person, you might want to bank elsewhere.

APY for 3-year CD: 4.50% APY

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

Newtek Bank 3 Year CD

Newtek Bank pays high CD rates overall, and it charges low-to-standard early withdrawal penalties. However, you'll need at least $2,500 to open a CD with Newtek.

APY for 3-year CD: 4.50% APY

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

Newtek Bank Savings Review

Popular Direct 3 Year CD

Popular Direct CDs pay competitive rates and compound interest daily.

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: 4.50% APY

3-year CD early withdrawal penalty: 365 days of simple 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: 4.45% 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:

Credit Human received an A rating from the BBB because it has a few customer complaints that haven't been resolved.

MYSB Direct's parent bank, M.Y.Safra Bank, currently has an NR rating from the BBB because the BBB does not have sufficient information about the bank to issue a rating.

The Department of Commerce Federal Credit Union has an NR rating from the BBB because it offers services that are out of the BBB's scope.

Several of the banks listed have been involved in recent public settlements or received a high volume of customer complaints on federal agency websites.

In 2023, the Federal Reserve Board required Popular Bank to pay a $2.3 million fine, claiming it processed Payment Protection Program loans even though potential instances of fraud were detected and not reporting the potential fraud in a timely manner.

In 2022, the U.S. Department of Treasury's Office of Foreign Assets Control also required Banco Popular de Puerto Rico — the Popular Bank's Puerto Rico locations — to pay over $255,000 in a settlement that accused the bank of violating Venezuela Sanctions Regulations when processing transactions with two Venezuelan government employees.

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.

3-Year CD FAQs

The higher 3-year CD rate is Crescent Bank 3 Year CD APY from Crescent Bank.

Right now, 3-year CD rates actually tend to be lower than shorter CD terms because people expect the Fed to lower its rates this year.

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.

A 3-year CD could be a good idea if you want to lock in a long-term CD before rates drop, or if you are working out how to budget for a savings goal you want to hit in 3 years. Just keep in mind that short-term CDs are currently offering better rates than long-term CDs right now.

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, vice president of coaching strategy at OfColor
• Sophia Acevedo, banking editor, Business 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: How We Chose the Best 3-Year CDs

At Business Insider, our goal 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.

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