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Best 3-year CD rates for July 2025

Written by
Karen Bennett
Edited by
Marc Wojno, MBA
Reviewed by
Robert R. Johnson
Verified Badge IconExpert verified

Rates updated between July 3 and July 9

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A certificate of deposit typically pays a higher yield the longer its term, which can vary from weeks to years. A three-year CD, for example, frequently pays a higher rate than a three-month CD, making it a good investment for mid-term financial obligations, such as a down payment on a car.

Current 3-year CD trends

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Bankrate Partner average
3.89% APY
National average
1.67% APY
Info Icon
CD rates remain high, but are projected to move lower.
The Fed is predicted to continue cutting rates in 2025. Read more from Bankrate's experts in our CD rates forecast.
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Table of contents

Bankrate's picks for best 3-year CD rates

Note: Annual percentage yields (APYs) shown were updated between July 3 and July 9. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Popular Direct_logo

Popular Direct

Rating: 4 stars out of 5
4.0 Bankrate CD score

  • Annual percentage yield

    4.25%

  • Min. deposit to open

    $10,000

Why Popular Direct?

Popular Direct CDs require a minimum $10,000 deposit, making them best suited to established savers. The bank offers eight CDs in terms ranging from three months to five years. All the CDs earn competitive rates. But the early withdrawal penalty here is on the steeper side for a three-year CD: 365 days' worth of simple interest. You can find banks that will charge half that, or less.

Synchrony Bank_logo

Synchrony Bank

Rating: 4.5 stars out of 5
4.5 Bankrate CD score

  • Annual percentage yield

    4.00%

  • Min. deposit to open

    $0

Why Synchrony Bank?

Synchrony Bank offers CDs across fourteen terms, from three months to five years, many of which are bunched up in the one- to two-year range. Some of these CDs, like the three-year CD, offer stellar rates. Others are decent but not the most competitive. The early withdrawal penalty on the three-year CD isn't too bad, in the grand scheme of penalties: 180 days' worth of simple interest. Synchrony also offers an 11-month no-penalty CD — though it earns very little interest — and a two-year bump-up CD that has a decent rate, though the standard two-year CD earns more.

Bread Savings_logo

Bread Savings

Rating: 3.8 stars out of 5
3.8 Bankrate CD score

  • Annual percentage yield

    4.00%

  • Min. deposit to open

    $1,500

Why Bread Savings?

Bread Savings, formerly Comenity Direct, is an online bank that offers a high-yield savings account and nine terms of CDs ranging from three months to five years, all with competitive APYs. Interest is compounded daily, which helps your savings grow faster. And the early withdrawal penalty on a three-year CD isn't as bad as it is at other banks: you'll pay 180 days' worth of simple interest for taking out your money early.

First Internet Bank of Indiana_logo

First Internet Bank of Indiana

Rating: 4.6 stars out of 5
4.6 Bankrate CD score

  • Annual percentage yield

    3.97%

  • Min. deposit to open

    $1,000

Why First Internet Bank of Indiana?

First Internet Bank of Indiana is an online bank offering eight terms of CDs ranging from three months to five years. Its three-year CD offers a competitive yield, as do all the other terms. Watch out for the penalties here though; you’ll lose 360 days’ worth of interest on a three-year CD if you withdraw your funds early. That's not an unheard-of number, but you can find lower penalties elsewhere.

The Federal Savings Bank_logo

The Federal Savings Bank

Rating: 3.7 stars out of 5
3.7 Bankrate CD score

  • Annual percentage yield

    3.95%

  • Min. deposit to open

    $5,000

Why The Federal Savings Bank?

The Federal Savings Bank offers six CD terms, ranging from one year to five years, all with competitive rates. You’ll need at least $5,000 to open a CD here and the money has to be new to the bank or be part of a CD renewal. Note that the early withdrawal penalty at this bank is steep. Withdrawing funds early from a three-year CD will cost you 365 days’ worth of interest. And when your CD reaches maturity, and you’re ready to withdraw, you’ll have to be OK with receiving a check in the mail. The bank doesn’t offer wires or ACH transfers for cashing out CDs.

M.Y. Safra Bank_logo

M.Y. Safra Bank

Rating: 4.4 stars out of 5
4.4 Bankrate CD score

  • Annual percentage yield

    3.91%

  • Min. deposit to open

    $500

Why M.Y. Safra Bank?

M.Y. Safra Bank offers CD savers flexibility, with CDs terms ranging from three months to five years. The minimum opening deposit is $500. You'll have to make sure you navigate over to the “MYSB online offers” part of the bank's website to find its highest-rate CDs. You need to be really sure you're ready to lock up your money in a three-year CD at this bank though: the penalty for early withdrawals at M.Y. Safra for CDs that are held longer than 90 days is all the interest earned.

Morgan Stanley Private Bank_logo

Morgan Stanley Private Bank

Rating: 4.3 stars out of 5
4.3 Bankrate CD score

  • Annual percentage yield

    3.90%

  • Min. deposit to open

    $0

Why Morgan Stanley Private Bank?

Morgan Stanley Private Bank offers seven CD terms ranging from six months to five years and there are no minimum deposit requirements, so you can open a CD with as little or as much as you want. A unique perk here is that Morgan Stanley gives you a 10-day rate guarantee: When you fund the CD within the first 10 days, you're automatically guaranteed the higher rate between either the date you open your CD or the date you fund the account, if the rate has changed. The early withdrawal penalty is high (though not the highest on this list): 270 days' simple interest for the three-year CD.

Marcus by Goldman Sachs_logo

Marcus by Goldman Sachs

Rating: 4.9 stars out of 5
4.9 Bankrate CD score

  • Annual percentage yield

    3.90%

  • Min. deposit to open

    $500

Why Marcus by Goldman Sachs?

Marcus by Goldman Sachs is an online bank known for offering CDs and a savings account. Not many banks can match the number of CDs that Marcus offers. It has 10 terms of regular CDs — ranging from six months to six years — three no-penalty CDs and a rate bump CD. All of these CDs range from having strong to competitive rates, and all have a $500 minimum deposit requirement. You'll pay a fairly reasonable early withdrawal fee if you take all your money out early of the three-year CD — 180 days' worth of interest.

First National Bank of America_logo

First National Bank of America

Rating: 4.6 stars out of 5
4.6 Bankrate CD score

  • Annual percentage yield

    3.90%

  • Min. deposit to open

    $1,000

Why First National Bank of America?

First National Bank of America offers competitive CD rates on terms ranging from three months to 10 years. A minimum deposit amount of $1,000 is required. Be aware that the early withdrawal penalty for CDs between 24 and 47 months is 360 days of interest, which is on the steeper side. If you're worried you'll need your money earlier for some reason, you can find a bank with less severe penalties.

TAB Bank_logo

TAB Bank

Rating: 4.1 stars out of 5
4.1 Bankrate CD score

  • Annual percentage yield

    3.80%

  • Min. deposit to open

    $1,000

Why TAB Bank?

TAB (Transportation Alliance Bank) offers CDs in six terms, from 12 months to five years, and all the CDs have competitive rates. Plus, the early withdrawal penalty on a three-year CD isn't as high as it is at other banks: you'll pay 180 days' worth of interest for taking out your money early. The bank doesn’t offer any specialty CDs, such as no-penalty CDs, but it does offer a strong checking account with a high APY and a high-yield savings account as well.

What is a 3-year CD?

A three-year CD is a type of savings account in which you agree to keep your money for three years in exchange for earning a fixed APY. Withdrawing your funds early will likely result in an early withdrawal penalty.

Opening a three-year CD might make sense for people who don’t need access to their money for at least three years. As a result, these accounts are ideal for midterm goals, like setting aside money for a car down payment. Getting a three-year CD could also be a good idea if you’re planning to build a CD ladder.

Bankrate’s CD calculator can help you determine how much interest you could earn when your CD matures. Your principal is protected, so you won’t have to worry about fluctuations in value like you might when investing in the stock market. Plus, with a CD, your interest rate is locked in, so you also don’t have to worry about your yield decreasing for the duration of your CD, like you would with a regular savings account.

If you have a cash flow need three years in the future, the current top-yielding three-year CDs are a compelling option as returns are ahead of inflation and by a wide enough margin that you can feel comfortable that the purchasing power of your investment will not be materially weakened in three years.
Bankrate logo Greg McBride, CFA, Bankrate Chief Financial Analyst

How to find the best 3-year CD rates

Search for the best three-year CD rates online, and compare your options at online banks and credit unions. If you’re looking for a higher yield, consider some of the lesser-known institutions willing to offer good interest rates to attract depositors. Many savers may stick with the same bank that provides their checking account when looking for a CD but that can be a mistake, especially at large national banks, where deposit rates tend to fall well short of what some smaller institutions offer.

In addition to comparing APYs when considering a CD, it’s important to make sure you’re okay with locking in the funds, says Louise Eisenach, Vice President of Savings and Deposits at Capital One. “It's crucial to ensure that you’re comfortable with the term length and understand that you’ll incur a penalty if you withdraw the money before the full length of the term. If you do invest in a three-year CD, consider how you’d like to structure your finances outside of the money in this account."

“For example, you may take part of your savings and put it into the CD, while holding your emergency funds in an easily accessible savings account, should you need to pull from it during the CD term.”

Diversifying your savings among accounts in such a way can help you avoid needing access to the money in a CD before it matures, which could incur an early withdrawal penalty, Eisenach says.

Learn more: When is an early withdrawal penalty worth it?

3-year CD FAQs

Research methodology

Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.

To find the best three-year CD rates, we regularly survey three-year CD offerings from the banks and credit unions that continually offer the most competitive rates.

The banks and credit unions on this page are selected based on their current APY for a three-year CD and their minimum deposit requirements. Only banks and credit unions with broadly available CDs made the list. Learn more about how we choose the best banking products and our methodology for reviewing banks.