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Dow Credit Union currently offers the highest CD rate for a 3-year CD, at 4.00% APY.
The best 3-year CD rates far outpace the average CD rate for three-year terms of 1.37% 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
- Dow Credit Union 3 Year Simple CD: 4.00% APY
- America First Credit Union 3 Year Certificate: 4.65% APY
- Signature Federal Credit Union 3 Year Certificate: 4.05% APY
- Credit Human 3 Year Share Certificate: 4.00% APY
- Securityplus Federal Credit Union 3 Year Share Certificate: 4.00% APY
- USALLIANCE Financial 3 Year Certificate: 4.00% APY
- NASA Federal Credit Union 3 Year Share Certificate: 4.00% APY
- The Federal Savings Bank Promotional 3 Year CD: 3.95% 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 banks for 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.
4.00%
$500
- Low minimum opening deposit
- High interest rate
- Interest compounded monthly, not daily
- Standard-to-high early withdrawal penalties
- Based in Midland, Michigan
- To join Dow Credit Union, you must be an employee or retiree of Dow Inc., the former Dow Corning Corporation, or a Select Employer Group company; have a family member who is eligible to join; donate $10 to the Dow Credit Union Members Endowed Scholarship Fund; are a member of the Midland Center for the Art's Alden B. Dow Museum of Science & Art or Midland Historical Society; own stock at Dow Inc.; have a revocable trust in which the Grantor is a member of Dow Credit Union; or are a member of Midland Country Club of Great Lakes Loons Founders Club
- Simple CDs are not eligible for Member Saver Rewards
- Early withdrawal penalty for a 3-month term is 45 days and for a 6-month term is 90 months of interest
- Interest compounded monthly, not daily
- Federally insured by the NCUA
4.65%
$500
- Competitive APY
- $500 opening deposit
- Low early withdrawal penalties
- Interest compounded monthly, not daily
- Membership restricted to certain counties in the West
- 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
4.05%
$500
- Competitive APY
- $500 opening deposit
- High early withdrawal penalties
- Interest compounded monthly, not daily
- No terms over 5 years
- Become a Signature FCU member by depositing $5 in a Signature savings account
- Terms ranging from 3 months to 5 years
- 45 days to 900 days interest early withdrawal penalty
- Interest compounded monthly and paid monthly
4.00%
$500
- High interest rate
- Low minimum opening deposit
- High early withdrawal penalties
- Branches primarily in San Antonio, Texas
- To join Credit Human, you or a family member must be an employe of an employer or organization partner; live, work, worship or attend school in a San Antonio, TX or New Orleans, LA service area; study at a trade school, college or university partner; are a veteran, retiree, or active duty member of the US Armed Forces or National Guard; or become a member of the American Consumer Council
- Early withdrawal penalties: 90 days of interest for terms of 3 months; 180 days of interest for terms of 6 months; 270 days of interest for terms of 12 months; 365 days of interest for terms of 36 months; 730 days of interest for terms of 60 months; 1,095 days of interest for terms of 84 or 120 months
- Federally insured by the NCUA
no monthly service fee
4.00%
$1,000
- High APY
- Standard early withdrawal penalties
- $1,000 minimum opening deposit
- Can join the American Consumer Council to become a member
- Credit union offers CD terms ranging from 3 months to 5 years
- Early withdrawal penalty for CDs is equal to 90 days of interest at the rate paid or 90 days on the amount withdrawn before maturity
- Interest is compounded and deposited monthly
- Federally insured by the NCUA
4.00%
$500
- High interest rate
- Low minimum opening deposit
- Variety of CD terms available at the financial institution
- Standard-to-high early withdrawal penalties
- 9 branches in MA, CT, NY and NJ
- To join USALLIANCE Financial you must 1) live in a select area in MA, CT, NJ, or NY 2) work for a select employment group or 3) become a member of the American Consumer Council, Arco of Westchester, Tread Lightly! or the Council of Community Services
- Terms range from 3 months to 60 months
- Early withdrawal penalties: 180 days of interest on the amount withdrawn for CD terms of less than 18 months: 360 days of interest for terms of 18 months or longer
- Interest compounded daily and deposited monthly
- Federally insured by the NCUA
4.00%
$1,000
- High interest rate
- High early withdrawal penalty
- Interest compounds monthly, not daily
- Anyone can join NASA FCU; the credit union will provide a complimentary 1-year membership to the National Space Society, which makes you eligible to join
- You’re also eligible to join NASA FCU if you are a current employee or retiree of NASA Headquarters, National Academy of Science, or any NASA Center or Facility; you are an employee/member of a partner organization; or a relative or household member is already a NASA FCU member
- Early withdrawal penalty is 182 days of dividends
- Interest is compounded and paid monthly
- Federally insured by the NCUA
3.95%
$5,000
- High APY
- $5,000 minimum opening deposit
- Deposit must be new money
- High early withdrawal penalty
- Nationwide mortgage lender founded by veterans that also offers online CDs and other banking products
- 2 branches in Illinois
- Early withdrawal penalty for a 1-year and 18-month term is 180 days of interest; Penalty for terms of 2 years or more is 365 days of interest
- May deposit funds through wire transfer, ACH transfer, or sending a mailed check
- Do not need to have another Federal Savings Bank account to open
- Interest is 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.
Dow Credit Union 3 Year Simple CD
The Dow Credit Union Simple CD pays a good interest rate on a 3-year term and also offers one of the best 3-month CD rates. The Simple CDs have low minimum opening deposits, too.
Anyone in the United States is eligible for membership at Dow Credit Union by making a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current credit union member.
APY for 3-year CD: 4.00% APY
3-year CD early withdrawal penalty: 365 days of interest
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: 4.65% APY
3-year early withdrawal penalty: 180 days of interest, with a minimum penalty of $5
America First Credit Union Review
Signature Federal Credit Union 3 Year Certificate
Signature Federal Credit Union is an excellent choice if you're searching for the best credit union for 1-year certificates. It offers the highest APY for a 3-year term and has a $500, which is less than what's required at other financial institutions. You may also like Signature Federal Credit Union if you prefer banking with a credit union over a bank.
Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then, you'll just need to open a savings account.
APY for a 3-year term: 4.05% APY
3-year early withdrawal penalty: 180 days of interest
Signature Federal Credit Union Review
Credit Human 3 Year Share Certificate
Credit Human Federal Credit Union has a high 3-year CD rate. It also has lots of CD term length options: from 3 months to 10 years.
You must become a credit union member before opening a share certificate. You may join Credit Human from anywhere in the U.S. if you become a member of the American Consumer Council. Credit Human also has other ways to become a member: You'll be eligible to join if you live in a service area in San Antonio, Texas, or New Orleans, Louisiana, or if you work for a partner employer or organization.
APY for 3-year CD: 4.00% APY
3-year CD early withdrawal penalty: $50 or 365 days of interest (whichever is greater)
Securityplus Federal Credit Union 3 Year Share Certificate
Securityplus Federal Credit Union has a good rate on its 3-year certificate. Securityplus Federal Credit Union is also a Black-led credit union. There is a history of racial prejudice in banking and lending that has significantly impacted Black Americans and contributed to a racial wealth gap in the U.S. Black-led financial institutions serve an integral role in providing services and products to Black communities.
Securityplus has a minimum opening deposit of $1,000, which is fairly standard; that being said, some of our other picks have lower minimum opening deposits. You'll also need to meet its membership eligibility requirements to open an account. You can become a member by joining the American Consumer Council, which is the easiest way to join. If you live in Baltimore City, work for a select employer group, or have a relative who's already a member of the credit union, you'll also be able to join.
APY for a 3-year term: 4.00% APY
3-year early withdrawal penalty: 90 days of interest
USALLIANCE Financial 3 Year Certificate
USALLIANCE Financial offers a strong rate on its 3-year and 5-year CDs with a low minimum opening deposit. It also offers a good no-penalty CD.
To open a bank account at the credit union, you must become a member. You may join USALLIANCE Financial if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services.
APY for a 3-year CD: 4.00% APY
3-year CD early withdrawal penalty: 360 days of interest
NASA Federal Credit Union 3 Year Share Certificate
NASA Federal Credit Union has a strong rate for its 3-year certificate. It also has good rates on its 9-month and 2-year certificates, which could make it a good choice if you want to open multiple CDs at the same financial institution.
NASA Federal Credit Union limits who can join it. That being said, it's easier to join than many credit unions. When you fill out an application, you'll receive a free one-year membership to the National Space Society which will let you join the credit union. You can also join by being an employee of NASA or another select employer group or by having a relative who's a member of the credit union.
APY for a 3-year term: 4.00% APY
3-year CD early withdrawal penalty: 365 days of interest
The Federal Savings Bank Promotional 3 Year CD
Federal Savings Bank has good rates on several of its CDs, including its 3-year CD. If you're hoping to open multiple CDs with the same bank, Federal Savings Bank might be a good choice.
Federal Savings Bank requires a $5,000 minimum opening deposit, which is higher than average. If you're hoping to open a CD with less money, you might want to go with another of our top picks.
APY for a 3-year CD: 3.95% APY
3-year CD early withdrawal penalty: 365 days of interest
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 |
| Dow Credit Union | A+ |
| America First Credit Union | A+ |
| Signature Federal Credit Union | B- |
| Credit Human Federal Credit Union | A |
| Securityplus Credit Union | A+ |
| USALLIANCE Financial | D- |
| Federal Savings Bank | A+ |
| NASA Federal Credit Union | A |
Signature Federal Credit Union has a B- rating from the BBB because it has failed to respond to two customer complaints.
Credit Human has an A rating from the BBB because of a few unresolved complaints.
USALLIANCE Financial has a D- rating from the BBB because it hasn't responded to several complaints filed against the business.
NASA Federal Credit Union has an A rating because a few complaints filed against the business have not been resolved.
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 goals might 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.
When you're selecting a bank to open a 5-year CD, make sure to review various financial institutions in order to truly get the best CD rates. Factoring in your overall banking experience and whether you plan to open any bank accounts in the future may also help with your decision.
If you're worried you won't qualify for a CD because you don't meet the requirements at one bank, know that all banks aren't the same. Some banks let you open CDs with low minimum opening deposit requirements. You can also find banks that let you open bank accounts without a U.S. ID. The top banks for immigrants and non-U.S. Citizens allow you to provide a foreign passport or Matricula Consular to open a bank account.
3-Year CD FAQs
The highest 3-year CD rate is 4.00% APY from Dow Credit Union.
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.
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.
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.
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 account or 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.
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 our bank account rating methodology to learn more about how we rate bank accounts.
