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Lafayette Federal Credit Union currently offers the highest CD rate for a 3-year CD, at 4.52% APY.
The best 3-year CD rates far outpace the average CD rate for three-year terms of 1.43% APY (Annual Percentage Yield). You'll be able to find these strong rates at online banks and credit unions.
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
- Lafayette Federal Credit Union 3 Year Certificate: 4.52% APY
- Synchrony 3 Year CD: 4.15% APY
- Marcus 3 Year CD: 4.15% APY
- Connexus Credit Union 3 Year Share Certificate: 4.11% APY
- Alliant 3 Year CD: 4.05% APY
- America First Credit Union 3 Year Certificate: 4.00% APY
- LendingClub 3 Year CD: 4.00% APY
- MYSB Direct 3 Year CD: 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 banksfor 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.
If you're also interested in other CD term lengths, check out our overall best CD rates guide.
Lafayette Federal Credit Union 3 Year Certificate
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On Lafayette Federal Credit Union's website
Insider’s Rating
3.75/5
Annual Percentage Yield (APY)
4.52%
Minimum Opening Deposit
$500
Pros
- High APY
- $500 minimum opening deposit
- Standard CD terms
Cons
- Standard-to-high early withdrawal penalties
- Interest compounded quarterly, not daily
Product Details
- 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
Synchrony 3 Year CD
On Synchrony's website
Annual Percentage Yield (APY)
4.15%
Minimum Opening Deposit
$0
Pros
- Competitive APY
- Variety of term lengths
- No minimum deposit
Cons
- No terms over 5 years
- Standard-to-high early withdrawal penalties
Synchrony 3 Year CD review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Terms ranging from 3 months to 5 years
- Early withdrawal penalty of 90 days simple interest for terms of 12 months or less; 180 days simple interest for terms over 12 months but under 48 months; 365 days interest for terms of 48+ months
- When you're ready to cash out your CD, you must call Synchrony
- Interest compounded daily, paid monthly
- FDIC insured
Marcus 3 Year CD
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Marcus, FDIC insured Account
Annual Percentage Yield (APY)
4.15%
Minimum Opening Deposit
$500
Bonus
None
Pros
- Competitive APY
- Variety of term lengths
- $500 initial deposit
- Easy-to-use mobile app
- Standard early withdrawal penalties
Cons
- No physical branch locations
Marcus by Goldman Sachs 3 Year High-Yield CD review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Terms ranging from 6 months to 6 years
- 90 days interest early withdrawal penalty for a CD term of under 12 months, 180 days interest penalty for a CD term of 12 months to 5 years, 270 days interest penalty for a CD term of more than 5 years
- Compounding interest to maximize your earnings
- No monthly maintenance fees
- FDIC insured
Alliant 3 Year CD
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Insider’s Rating
4/5
Annual Percentage Yield (APY)
4.05%
Minimum Opening Deposit
$1,000
Pros
- Competitive APY
- Low-to-standard early withdrawal penalties
Cons
- Interest compounded monthly, not daily
- $1,000 minimum deposit
- No terms over 5 years
Alliant 3 Year CD review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Several ways to become a member; the easiest is to join Foster Care to Success (Alliant will cover your $5 membership fee)
- Early withdrawal penalty is dividends for the number of days the certificate is open. Up to 180 days interest for terms of 24 months or more; 7 days dividends if you withdraw during the 7-day grace period, even though no interest has accumulated yet
- Interest compounded monthly
- Federally insured by the NCUA
America First Credit Union 3 Year Certificate
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America First Credit Union, NCUA insured.
Insider’s Rating
4/5
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$500
Pros
- Competitive APY
- $500 opening deposit
- Low early withdrawal penalties
Cons
- Interest compounded monthly, not daily
- Membership restricted to certain counties in the West
America First Credit Union 3 Year Certificate review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Membership restricted to certain parts of the West
- Early withdrawal penalty of 180 days interest for terms over 12 months
- Interest compounded monthly and paid monthly
- Federally insured by the NCUA
LendingClub 3 Year CD
Insider’s Rating
3.75/5
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$2,500
Pros
- High interest rate
- Standard CD terms
Cons
- $2,500 minimum opening deposit
- Interest compounds monthly, not daily
- Standard-to-high early withdrawal penalties
LendingClub 3 Year CD review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Online banking institution with 1 branch in Boston, Massachusetts
- $2,500 minimum opening deposit
- Early withdrawal penalty will depend on the amount deposited and term chosen
- Interest compounded and deposited monthly
- Member FDIC
MYSB Direct 3 Year CD
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M.Y. Safra Bank, FDIC Insured.
Insider’s Rating
3.25/5
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$500
Pros
- High interest rate
- $500 minimum opening deposit
Cons
- Interest compounded monthly, not daily
- High early withdrawal penalties
Product Details
- NY-based financial institution that serves customers nationwide
- Terms range from 6 months to 5 years
- Early withdrawal penalty for all terms is 90 days of interest or all the interest you've earned to that point, whichever is greater
- Interest compounded and deposited monthly
- FDIC insured
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.
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
Synchrony 3 Year CD
Synchrony Bank CD rates are competitive for 3-year terms. You also might like Synchrony if you want to open a CD with easy opening requirements. The account has a $0 minimum opening deposit. Typically, banks require a minimum of $1,000 to open a CD.
You'll want to consider whether you have a preference on how you'll withdraw money from a CD. When you're ready to cash out your CD, you must call Synchrony. Some other banks will let you cash out your CD through online banking.
APY for a 3-year term:4.15% APY
APY for a 3-year term:180 days of simple interest
Synchrony Bank Review
Marcus 3 Year CD
Marcus CD rates are competitive for a variety of terms, especially 3-year terms. You can open an account with $500. Most banks have higher minimum opening requirements.
Marcus doesn't have a checking account, though. If you want to do all of your banking at one place, you'll want to consider a different financial institution.
APY for a 3-year CD: 4.15% APY
3-year CD early withdrawal penalty: 180days of interest
Marcus Bank Review
Connexus Credit Union 3 Year Share Certificate
Connexus Credit Union offers a good rate on several CD terms, including its 3-year term. And while credit unions limit who can join, Connexus makes it easier than most. Anyone in the U.S. can become eligible for membership by joining the Connexus Association, which requires a one-time $5 donation.
Connexus requires a steep minimum opening deposit of $5,000. If you're not looking to put that much money into a CD, one of our other picks might be a better choice for you.
APY for 3-year CD: 4.11% APY
3-year CD early withdrawal penalty:180 days of interest
Connexus Credit Union Review
Alliant 3 Year CD
Alliant offers a good rate for its 3-year CD. You also might like this credit union if you're interested in a jumbo CD. Of you put at least $75,000 in your CD, you'll earn an extra 0.10% APY on your funds, increasing your rate to 4.15% APY.
Credit unions require you to become a member to open an account. You have to meet eligibility requirements in order to become a member, but Alliant's eligibility requirements are easier to meet than most. The easiest way to become a member is to join Foster Care to Success during your application to Alliant. If you do it through your application,Alliant will cover your $5 joining fee.
APY for a 3-year CD: 4.05% APY
3-year CD early withdrawal penalty: 180 days simple interest
Alliant Credit Union Review
America First Credit Union 3 Year Certificate
America First Credit Union has a variety of terms with high interest rates, including 3-month and 3-year CDs. If you're planning on opening both long-term and short-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: 4.00% APY
3-year early withdrawal penalty: 180 days of interest, with a minimum penalty of $5
America First Credit Union Review
LendingClub 3 Year CD
LendingClub has good rates on multiple CD terms, including 3-year term lengths. If you're planning on opening multiple CDs at the same bank, LendingClub might be a good choice for you.
LendingClub has a higher-than-average minimum opening deposit of $2,500. If you're planning on opening a CD with less money upfront, you might want to go with one of our other picks.
APY for a 3-year term: 4.00% APY
3-year early withdrawal penalty: 180 days of simple interest
LendingClub Bank 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: 4.00% 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
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 |
Lafayette Federal Credit Union | A+ |
MYSB Direct | NR (rating for parent bank, M.Y. Safra Bank) |
Synchrony | NR |
Marcus | A+ |
Connexus Credit Union | A+ |
America First Credit Union | A+ |
Alliant Credit Union | A+ |
LendingClub | A+ |
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 Better Business Bureau gives Synchrony anNR (No Rating) gradebecause it is in the process of responding to previously closed complaints.
Synchrony does have some recent controversies. In 2023, the bank was ordered topay a settlement of $2.6 million; the lawsuit claimed that Synchrony called people about bank accounts they did not own. In 2021, Synchrony paid$3.5 million in a settlementwhen California residents said the bank was making an unreasonable number of phone calls to people who owed debt.
In 2024,Alliant settled a class-action lawsuit, agreeing to pay $86,750 to the lawsuit's members. The lawsuit says that Alliant denied services to DACA recipients and other immigrants because of their citizenship status rather than their creditworthiness. By settling, Alliant does not admit wrongdoing.
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 goalsmight 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
What is the highest CD rate for 3-year terms?
The highest 3-year CD rate is 4.52% APY from Lafayette Federal Credit Union.
Do 3-year CD rates offer a significant increase over shorter terms?
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.
Are 3-year CD rates more sensitive to Fed actions than shorter terms?
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.
Do the best 3-year CD rates always stay the best throughout the term?
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.
Are 3-year CDs too risky if I might need the money?
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 accountor 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.
Is there a way to mitigate risk with a 3-year CD?
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 60 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, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
See ourbank account rating methodologyto learn more about how we rate bank accounts.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE Accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
Banking reporter
Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years.ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.Their work has been featured in Business Insider and MSN. They were part of the My Financial Lifeseries with Business Insider.ExpertiseTheir expertise includes:
- Certificates of deposit
- Savings accounts
- Checking accounts
- CD rates
- Bank reviews
EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.
Compliance and Operations Associate
Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
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