Bread Financial is part of Comenity Capital Bank, which is a unit of Bread Financial.
Best available rates across different account types for Sunday, October 01, 2023
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A certificate of deposit typically pays a higher yield the longer its term, which can vary from weeks to months to years.
A three-year CD, for example, frequently pays a higher rate than a three-month 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.
Note: Annual percentage yields (APYs) shown are as of Sept. 22, 2023. 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 4.75 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 mid-term financial obligations, like a down payment on a car.
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A three-year CD is a deposit account in which you agree to keep the money in the account for three years. Yields on three-year CDs are often higher than money market account and savings account yields.
Bankrate’s 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.
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.
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.
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.
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 up your money 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 make a better decision about the type of account that’s best for your money.
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.
These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, Truist Bank, UFB Direct, U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.