When you’re trying to scrape out an extra percentage point of yield here and there, a savings account may not be enough. Thankfully, there are options.
Take 3-year CDs, for instance. They offer a substantially higher risk-free yield than what savers can get from money market accounts, under the condition the depositor leaves the funds with the bank for three years.
Check out the 3-year CD rates offered by some of the nation’s most popular banks:
- American Express National Bank: 2.80% APY; $0 minimum deposit
- Barclays Bank: 2.70% APY; $0 minimum deposit
- Capital One Bank: 2.70% APY; $0 minimum deposit
- Marcus by Goldman Sachs: 2.70% APY; $500 minimum deposit
The best 3-year CD rates available from banks and credit unions pay nearly 2.5 times the national average of 1.18 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.
Here are the top nationally available 3-year CD rates. Compare these offers, then calculate how much interest you would earn when your CD matures.
The best 3-year CD rates for June 2019
- Connexus Credit Union: 3.10% APY; $5,000 minimum deposit to open
- First National Bank of America: 3.00% APY; $1,000 minimum deposit to open
- MAC Federal Credit Union: 3.00% APY; $1,000 minimum deposit to open
- Comenity Direct: 3.00% APY; $1,500 minimum deposit to open
- CommunityWide FCU: 3.00% APY; $2,000 minimum deposit to open
Today’s top nationally available 3-year CDs pay 3.10 percent APY. That’s just as high as some of the best 4-year CD rates. A mid-term CD that matures in three years could be a great place to invest for midterm financial obligations, like a down payment on a future auto loan.
Finding the best 3-year CD rates comes down to considering a wide range of options, including online banks and credit unions. While many savers tend to stick with the same bank that provides their checking account, that can be a mistake, especially at a large national bank, where deposit rates tend to fall well short of what smaller institutions offer.
Best 3-year CD details
1. Connexus Credit Union, $5,000 minimum deposit
Details: Connexus Credit Union was founded in 1935 to serve current and former employees of a local insurance company and their family members. Membership is open to anyone who joins the Connexus Association and makes a $5 donation.
The credit union earned five out of five stars in the latest review of its financial health.
2. First National Bank of America, $1,000 minimum deposit
Details: Founded in 1955, First National Bank of America is a family-owned, community bank based in East Lansing, Michigan.
In Bankrate’s latest review of its financial health, First National Bank of America earned four out of five stars.
3. MAC Federal Credit Union, $1,000 minimum deposit
Details: The credit union was originally founded as Tanana Valley Federal Credit Union and chartered in 1952.
MAC Federal Credit Union is based in Fairbanks, Alaska. In the latest review of its financial health, it earned five out of five stars.
4. Comenity Direct, $1,500 minimum deposit
Details: Comenity Direct is an online division of Comenity Capital Bank, which is part of a brand that has been around for 30 years.
In addition to offering CDs with competitive rate, the bank has a high-yield savings account that’s available to customers nationwide.
5. CommunityWide Federal Credit Union, $2,000 minimum deposit
Details: CommunityWide Federal Credit Union was established in 1967 and is based in South Bend, Indiana.
Membership requires making a $5 donation to Goodwill or the Marine Corps League and a minimum $5 deposit to open a savings account. In the latest review of its financial health, the credit union earned five out of five stars.
Fine print is key
Of course, there’s more to a good CD than the rate. You’ll also want to make sure you can live with the early withdrawal penalty the bank will charge in the event you need to crack open the CD prior to maturity.
Withdrawal penalties vary widely — they may be expressed as a certain number of months’ worth of interest or as a percentage of the principal, and may be assessed on the entire principal or just the amount you’re cashing out.
Make sure to read the terms of your contract. Banks may try to slip adverse terms into the CD’s fine print that allows them to, among other things, change fees and penalties after the fact.
To recap, see below the best 3-year CD rates
| Institution | APY | Minimum deposit |
|---|---|---|
| Connexus Credit Union | 3.10% | $5,000 |
| First National Bank of America | 3.00% | $1,000 |
| MAC Federal Credit Union | 3.00% | $1,000 |
| Comenity Direct | 3.00% | $1,500 |
| CommunityWide FCU | 3.00% | $2,000 |
