A certificate of deposit typically pays a higher yield the longer its term, which can vary from weeks to months to years.
A five-year CD, for example, frequently pays a higher rate than a one-year CD. The trade-off, of course, is that you must leave your money untouched five times longer to earn the higher annual percentage yield (APY) or face a penalty.
Three-year CDs strike a balance between a higher yield and a shorter term, compared to a five-year CD. Three-year CDs also typically offer higher yields than the rates paid on money market accounts. But as with most CDs, a penalty applies for withdrawals from a three-year CD before the term ends.
Summary of best 3-year CD rates for January 2022
- Highest Rate: Quontic Bank – 1.10% APY, $500 minimum deposit
- High Rate: Pentagon Federal Credit Union – 1.00% APY, $1,000 minimum deposit
- High Rate: Comenity Direct – 1.00% APY, $1,500 minimum deposit
- High Rate: Security Service Federal Credit Union – 0.95% APY, $25,000 to earn APY
- High Rate: Live Oak Bank – 0.90% APY, $2,500 minimum deposit
- High Rate: Bank5 Connect – 0.85% APY, $500 minimum deposit
- High Rate: Limelight Bank – 0.85% APY, $1,000 minimum deposit
- High Rate: VyStar Credit Union – 0.80% APY, $500 minimum deposit
- High Rate: First Internet Bank of Indiana – 0.80% APY, $1,000 minimum deposit
- High Rate: TIAA Bank – 0.80% APY, $1,000 minimum deposit
- High Rate: Sallie Mae Bank – 0.80% APY, $2,500 minimum deposit
- High Rate: Capital One – 0.75% APY, $0.01 minimum deposit
- High Rate: Synchrony Bank – 0.75% APY, $0.01 minimum deposit
- High Rate: Marcus by Goldman Sachs – 0.75% APY, $500 minimum deposit
- High Rate: Delta Community Credit Union – 0.75% APY, $1,000 minimum deposit
- High Rate: TAB Bank – 0.75% APY, $1,000 minimum deposit
- High Rate: Discover Bank – 0.75% APY, $2,500 minimum deposit
- High Rate: Salem Five Direct – 0.75% APY, $10,000 minimum deposit
- High Rate: SchoolsFirst Federal Credit Union – 0.75% APY, $20,000 minimum deposit to earn APY
- High Rate: Barclays – 0.70% APY, $0.01 minimum deposit
- High Rate: Bethpage Federal Credit Union – 0.70% APY, $50 minimum deposit
- High Rate: Golden 1 Credit Union – 0.70% APY, $500 minimum deposit
- High Rate: Suncoast Credit Union – 0.70% APY, $500 minimum deposit
- High Rate: Navy Federal Credit Union – 0.70% APY, $1,000 minimum deposit
Note: Annual percentage yields (APYs) shown are as of Jan. 19, 2022. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products.
Today’s top widely available three-year CD pays 1.1 percent APY — higher than some of the best four-year CD rates. A CD that matures in three years could be a good investment for midterm financial obligations, like a down payment on a car.
Include online banks, credit unions and other banks in your search to find the best three-year CD rates.
Many savers tend to stick with the same bank that provides their checking account. 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.
Bankrate’s guide to choosing the right CD rate
Why you can trust Bankrate
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Methodology for Bankrate’s Best CD Rates
At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best CDs, our editorial team analyzes various factors, such as: APY, the minimum deposit needed to earn that APY (or to open the CD) and whether it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).
When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.
Compare: Best 3-year CD rates
Highest Rate: Quontic Bank – 1.10% APY, $500 minimum deposit
Quontic Bank was established in 2005 and has its headquarters in New York. It offers five terms of CDs, ranging from six months to three years, which can be opened with as little as $500.
In addition to its CDs, Quontic Bank also offers money market, high-yield savings and checking accounts.
High Rate: Pentagon Federal Credit Union – 1.00% APY, $1,000 minimum deposit
Pentagon Federal Credit Union was established in 1935 and is headquartered in McLean, Virginia. It has more than 2 million members.
PenFed has nine terms of CDs, ranging from six months to seven years.
High Rate: Comenity Direct – 1.00% APY, $1,500 minimum deposit
Comenity Direct launched in April 2019. It’s an online-only bank that offers high-yield savings products and five terms of CDs.
Comenity Direct is a brand of Comenity Capital Bank, the company behind many popular branded credit cards.
High Rate: Security Service Federal Credit Union – 0.95% APY, $25,000 minimum deposit to earn the APY
Security Service Federal Credit Union was founded in 1956 to serve the needs of members of the U.S. Air Force Security Service Command and their families.
Based in San Antonio, it offers CDs with terms ranging from three months to seven years, as well as a full slate of other consumer banking products, such as checking and savings accounts, mortgages, auto loans and credit cards.
High Rate: Live Oak Bank – 0.90% APY, $2,500 minimum deposit
Live Oak Bank was founded in 2008. It offers seven terms of CDs. The online bank also offers a competitive yield on its savings account. Like most online banks, Live Oak Bank’s savings account doesn’t charge a monthly service fee and has no minimum balance requirement.
Live Oak Bank is based in Wilmington, North Carolina.
High Rate: Bank5 Connect – 0.85% APY, $500 minimum deposit
Bank5 Connect is an online division of BankFive, which has a history dating to 1855. Bank5 Connect was established in 2013.
Bank5 Connect offers CDs, and savings and checking accounts. In addition, it is a member of the Depositors Insurance Fund, which allows savers with deposits in excess of $250,000 to insure all of their money.
High Rate: Limelight Bank – 0.85% APY, $1,000 minimum deposit
Limelight Bank is a division of Capital Community Bank, with headquarters in Provo, Utah. It is focused on funding eco-friendly initiatives, such as providing loans for solar projects, according to its website.
Limelight Bank only offers CDs on its website.
High Rate: VyStar Credit Union – 0.80% APY, $500 minimum deposit
VyStar Credit Union was founded in 1952 as Jax Navy Federal Credit Union and was chartered at Naval Air Station Jacksonville in Florida.
Membership at VyStar Credit Union is open to anyone who works or lives in the 49 Florida or 10 Georgia counties listed on its website.
VyStar Credit Union offers 10 CDs terms ranging from three months to five years. It also offers a one-year CD to its Kid’s, VyTeen, Bravo and Achieve members only.
High Rate: First Internet Bank of Indiana – 0.80% APY, $1,000 minimum deposit for this APY
First Internet Bank of Indiana opened in February 1999 and was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. Its products are available in all 50 U.S. states.
First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.
High Rate: TIAA Bank – 0.80% APY, $1,000 minimum deposit
TIAA Bank is a division of TIAA FSB and has 10 branches, all in Florida. TIAA offers CD terms ranging from three months to five years. It also offers a bump rate CD, which allows a one-time rate bump if rates go higher. For customers with large deposits who need FDIC coverage that exceeds the $250,000 limit, TIAA Bank offers a service that spreads money around to a network of banks to expand insurance coverage.
High Rate: Sallie Mae Bank – 0.80% APY, $2,500 minimum deposit
Sallie Mae Bank offers 11 terms of CDs, along with savings and money market accounts, credit cards and student loans.
Sallie Mae Bank offers a competitive yield on all of these deposit products.
Sallie Mae Bank was established in 2005 and has its headquarters in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.
High Rate: Capital One – 0.75% APY, $0.01 minimum deposit
Capital One is an online bank that also has a brick-and-mortar presence. It offers nine terms of regular CDs ranging from six months to 60 months. There is no minimum deposit to open a CD account.
Capital One is based in McLean, Virginia.
High Rate: Synchrony Bank – 0.75% APY, $0.01 minimum deposit
Synchrony Bank offers competitive yields across 12 CD terms. If Synchrony Bank receives your CD deposit within the 15-day period and its rate increases, you’ll receive the higher rate.
The bank also offers savings and money market accounts. The savings account offers a competitive APY and has no minimum balance requirement.
High Rate: Marcus by Goldman Sachs – 0.75% APY, $500 minimum deposit
Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. Marcus offers nine terms of regular CDs and three no-penalty CD terms. A minimum deposit of $500 is required to open any CD and earn the posted APY.
High Rate: Delta Community Credit Union – 0.75% APY, $1,000 minimum deposit
Delta Community Credit Union was started by eight Delta Air Lines employees in 1940 as the Delta Employees Credit Union. Delta Community Credit Union has more than 454,000 members and 30 branches, including 27 in metro Atlanta and three branches outside of Georgia.
Anyone living or working in metro Atlanta and employees of more than 140 businesses can become members. Chick-fil-A, RaceTrac and UPS are some of the eligible businesses.
High Rate: TAB Bank – 0.75% APY, $1,000 minimum deposit
TAB Bank was established in 1998 in Ogden, Utah, as a banking service inside truck stops. TAB serves businesses and individual customers.
It offers several checking accounts, a couple of savings account options, a money market account and CDs in eight terms, from six months to five years.
High Rate: Discover Bank – 0.75% APY, $2,500 minimum deposit
Discover Bank may be known for its credit cards, but it also offers a wide selection of other banking products, such as checking, savings and money market accounts. Discover also offers CDs ranging in terms from three months to 10 years.
High Rate: Salem Five Direct – 0.75% APY, $10,000 minimum opening deposit
Salem Five Direct is the online division of Salem Five, a mutually owned bank that was founded in Salem, Massachusetts, in 1855.
Salem Five Direct offers products to customers in all 50 states. Customers with an eOne Savings account earn a competitive yield on all balances up to $1 million.
Salem Five operates 34 branches, but Salem Five Direct customers must pay a $9.95 transaction fee for in-person transactions.
High Rate: SchoolsFirst Federal Credit Union – 0.75% APY, $20,000 minimum deposit for this APY
SchoolsFirst Federal Credit Union was formed by school employees in 1934, during the Great Depression, and today has 50 branches.
SchoolsFirst serves the education community in California. Active and retired school employees and immediate family members of existing SchoolsFirst Federal Credit Union are eligible to join.
The credit union has CD terms from as short as 30 days to as long as five years. CDs at SchoolsFirst have four balance tiers: $500, $20,000, $50,000 or $100,000.
High Rate: Barclays – 0.70% APY, $0.01 minimum opening deposit
Barclays is a global bank that was founded in London more than 300 years ago. It introduced the first ATM machine, according to its website. Its online banking business is based in Wilmington, Delaware.
Barclays has no minimum balance requirement to open an online CD. It offers nine CD terms ranging from three months to 60 months.
High Rate: Bethpage Federal Credit Union – 0.70% APY, $50 minimum opening deposit
Bethpage Federal Credit Union is located in Bethpage, New York. It has 414,044 members and offers nine terms of CDs. The three-month CD is the shortest term and the five-year CD is the longest term. Bethpage also offers a 39-month bump-up CD
High Rate: Golden 1 Credit Union – 0.70% APY, $500 minimum deposit
Golden 1 Credit Union has over 1 million members and operates 72 branches. Its main office is located in Sacramento, California, and membership is open to all Californians.
Non-Californians can join Golden 1 Credit Union if they are a registered domestic partner or family member of a credit union customer. They can also join if they’re a member of one of the select employee groups.
In addition to CDs, Golden 1 Credit Union offers money market, checking and savings accounts, as well as credit cards and loans.
High Rate: Suncoast Credit Union – 0.70% APY, $500 minimum deposit
Suncoast Credit Union was started in 1934 as Hillsborough County Teachers Credit Union. It has 76 branches and more than 974,000 members.
Suncoast Credit Union is the eighth-largest credit union in the U.S. based on membership. It is also the 10th-largest based on assets. People who attend school, live, work or worship in a Florida county served by Suncoast Credit Union are welcome to join.
High Rate: Navy Federal Credit Union – 0.70% APY, $1,000 minimum deposit
Navy Federal Credit Union has nearly 11 million members and is the world’s largest credit union. It has a global network of more than 340 branches. Navy Federal Credit Union has its headquarters in Vienna, Virginia.
Membership at Navy Federal Credit Union is open to active duty members of all branches of the armed forces, veterans and their families, as well as Department of Defense civilian and contract employees.
What is a 3-year CD?
A three-year CD is a deposit account in which you agree to keep the money in the account for three years. Yields can be higher than the national average earned from money market accounts and savings accounts.
Bankrate’s calculator can help you determine how much interest you could earn when your CD matures. Your principal is protected, so you don’t have to worry about stock market ups and downs. Plus, with a CD, your interest rate is locked in, so you also don’t have to worry about your yield decreasing.
Who should open a 3-year CD?
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.
Search for the best three-year CD rates online and compare your options. If you’re looking for a higher yield, consider some of the lesser-known institutions willing to offer good interest rates to attract depositors.
Can you withdraw cash early?
When putting money into CDs, it’s important to read the fine print. After all, CDs come with restrictions dictating when you can withdraw your money.
In most cases, you’re not allowed to get your cash before the CD matures. With a three-year CD, that means keeping your money in the account for three years. If you do withdraw the money, there’s a good chance you’ll have to pay a penalty.
The penalty depends on the financial institution, and can vary widely. A penalty might be expressed as a certain number of months’ worth of interest or as a percentage of the principal. In some cases, that percentage of principal might be based on the entire amount in the CD, or it might only apply to the amount you withdraw early.
If you’re unsure that you can keep your money in the account for three years, consider other options. There are no-penalty CDs that won’t charge you for taking the money out early. However, no-penalty CDs often come with lower interest rates than those on conventional CDs.
Additionally, you can choose a six-month or one-year CD, instead of getting a three-year CD. You’ll be able to access your money earlier, but you’ll earn a lower yield.
3-year CD rate vs. other CD terms
A three-year CD rate often comes with a higher interest rate than CDs with shorter terms. Also, because there are liquidity restrictions on a CD, you’ll often see a higher yield on a CD than what you’d get with a traditional savings account or money market account, though savings and money market accounts provide easier access to your money.
Also, while a three-year CD can feature a higher interest rate than shorter-term CDs and liquid savings accounts, it often has a lower yield than what you’d see if you were willing to tie your money up for a longer term. For example, you might get a higher yield on a five-year CD than what’s available for a three-year CD.
Carefully consider your needs before putting your money in a CD. Be realistic about when you might need the money, based on your short- and medium-term financial goals. Knowing your needs will help you to make a better decision about the type of account that’s best for your money.
Here are the best 3-year CD rates for January 2022
| Financial Institution | APY | Minimum Deposit |
|---|---|---|
| Quontic Bank | 1.10% | $500 |
| Pentagon Federal Credit Union | 1.00% | $1,000 |
| Comenity Direct | 1.00% | $1,500 |
| Security Service Federal Credit Union | 0.95% | $1,500 |
| Live Oak Bank | 0.90% | $2,500 |
| Bank5 Connect | 0.85% | $500 |
| Limelight Bank | 0.85% | $1,000 |
| VyStar Credit Union | 0.80% | $500 |
| First Internet Bank of Indiana | 0.80% | $1,000 |
| TIAA Bank | 0.80% | $1,000 |
| Sallie Mae Bank | 0.80% | $2,500 |
| Capital One | 0.75% | $0.01 |
| Synchrony Bank | 0.75% | $0.01 |
| Marcus by Goldman Sachs | 0.75% | $500 |
| Delta Community Credit Union | 0.75% | $1,000 |
| TAB Bank | 0.75% | $1,000 |
| Discover Bank | 0.75% | $2,500 |
| Salem Five Direct | 0.75% | $10,000 |
| SchoolsFirst Credit Union | 0.75% | $20,000 minimum to earn APY |
| Barclays | 0.70% | $0.01 |
| Bethpage Federal Credit Union | 0.70% | $50 |
| Golden 1 Credit Union | 0.70% | $500 |
| Suncoast Credit Union | 0.70% | $500 |
| Navy Federal Credit Union | 0.70% | $1,000 |
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