Best 3-Year CD Rates of June 2024: Secure Higher Returns (2024)

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The average CD rate on a 3-year term is 1.42% APY (Annual Percentage Yield). However, the best 3-year CD rate is 5.00% APY from DollarSavingsDirect.

If you're also interested in other CD term lengths, check out our overall best CD rates guide.

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

• DollarSavingsDirect 3 Year CD: 5.00% APY
• Dow Credit Union 3 Year Simple CD: 4.81% APY
• Crescent Bank 3 Year CD: 4.80% APY
• MYSB Direct 3 Year CD: 4.70% APY
• Credit Human 3 Year Share Certificate: 4.65% APY
• First Internet Bank of Indiana 3 Year CD: 4.61% APY
• First National Bank of America 3 Year CD: 4.60% APY
• BMO Alto 3 Year High Yield CD: 4.60% APY
• Popular Direct 3 Year CD: 4.55% APY
• Lafayette Federal Credit Union 3 Year Certificate: 4.52% APY
• Newtek Bank 3 Year CD: 4.50% APY

Compare the Best 3-Year CDs

Our top 3-year CDs list the best banksfor 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.

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.

DollarSavingsDirect 3 Year CD

DollarSavingsDirect, an online division of Emigrant Bank, offers a 3-year term with a competitive interest rate.

You must have a Dollar Savings Account to get a CD. If you are only looking for CDs, you may prefer one of the other institutions on our list.

APY for 3-year CD:5.00% APY

3-year CD early withdrawal penalty:180 days of interest

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: 4.81% APY

3-year CD early withdrawal penalty: 365 days of interest

Crescent Bank 3 Year CD

Crescent Bank offers a strong rate on its 3-year CDs. Crescent Bank also has one of the best 2-year CD rates, so if you're interested in opening both a 2-year and 3-year CD, Crescent Bank might be a good choice for you.

Crescent Bank doesn't have any CDs with term lengths under 1 year. If you're interested in opening a short-term CD, you might want to go with another bank.

Interest for a 3-year CD: 4.80% APY

3-year CD early withdrawal penalty: 180 days of interest

Crescent CD Review

MYSB Direct 3 Year CD

MYSB Direct pays a high interest rate on its 3-year CDs. It also has a minimum opening deposit of $500, which is low for CDs.

The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.

APY for a 3-year term:4.70% APY

3-year CD early withdrawal penalty: the greater of 90 days of interest or all of the interest you've earned to that point

Credit Human 3 Year Share Certificate

Credit Human Federal Credit Union has a high 3-year CD rate and one of the best 18-month CD rates.

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:4.65% APY

3-year CD early withdrawal penalty:$50 or 365 days of interest (whichever is greater)

First Internet Bank of Indiana 3 Year CD

A 3-year First Internet Bank of Indiana CD pays a higher interest rate than most brick-and-mortar and online banks. First Internet Bank of Indiana also has one of the best money market accounts.

First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 3-year CD.

APY for 3-year CD: 4.61% APY

3-year CD early withdrawal penalty: 360 days of interest

First Internet Bank of Indiana Review

First National Bank of America 3 Year CD

First National Bank of America offers online CDs nationwide for terms ranging from 12 months to 84 months. First National Bank of America has one of the best 5-year CD rates. The 3-year term also stands out for its high interest rate.

You also might like First National Bank of America if you live in Lansing, Grand Rapids, or Traverse City, Michigan. It has branches in these cities.

First National Bank of America has steep CD early withdrawal penalties. You might prefer one of the other options on our list if you would prefer to open an account that has lower early withdrawal penalties.

APY for 3-year CD: 4.60% APY

3-year CD early withdrawal penalty:360 days of interest

First National Bank of America Review

BMO Alto 3 Year High Yield CD

BMO Alto, the online division of BMO Bank, is featured in our best CD rates guide for 4-year and 5-year terms. It also pays great rates on other terms.

BMO Alto lets you open an account with $0. You'll need to deposit funds in the first 10 days, or your account will be closed, though.

You might prefer another bank if you're also looking to open a checking or money market account. BMO Alto only offers a high-yield savings account and CDs.

APY for 3-year CD: 4.60% APY

3-year CD early withdrawal penalty: 180 days of interest

BMO Alto Savings and CD Accounts

Popular Direct 3 Year CD

Popular Direct CDs pay competitive rates and compound interest daily.

You'll need at least $10,000 to open a Popular Direct CD, though. The bank also charges high early withdrawal penalties.

APY for 3-year CD: 4.55% APY

3-year CD early withdrawal penalty: 365 days of simple interest

Popular Direct Review

Lafayette Federal Credit Union 3 Year Certificate

Lafayette Federal Credit Union offers a high 3-year certificate rate. It also pays competitive rates for other terms. You only need $500 to open an account. Many financial institutions require at least a $1,000 minimum deposit for CDs.

You may join Lafayette Federal Credit Union regardless of where you live in the United States by becoming a member of the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC, or have a family member with credit union membership.

APY for 3-year CD:4.52% APY

3-year CD early withdrawal penalty:360 days of interest

Newtek Bank 3 Year CD

Newtek Bank pays high CD rates overall, and it charges low-to-standard early withdrawal penalties. However, you'll need at least $2,500 to open a CD with Newtek.

APY for 3-year CD: 4.50% APY

3-year CD early withdrawal penalty: 180 days of simple interest

Newtek Bank Savings Review

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:

Emigrant Bank, the parent company of DollarSavingsDirect, received an NR ("No Rating") grade because the BBB doesn't have enough information to provide a business rating. DollarSavingsDirect also has a separate NR grade with the same reasoning listed by the BBB.

Credit Human received an A rating from the BBB because it has a few customer complaints that haven't been resolved.

MYSB Direct's parent bank, M.Y.Safra Bank, currently has an NR rating from the BBB because the BBB does not have sufficient information about the bank to issue a rating.

Several of the banks listed have been involved in recent public settlements or received a high volume of customer complaints on federal agency websites.

In 2022, a Minnesota jury ordered BMO Bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO Harris didn't buy M&I Bank until 2011.

In 2023, the U.S. Department of the Treasury's Office of Foreign Assets Control required Emigrant Bank to remit $31,867 in a settlement that accused the bank of opening a CD for two Iranian residents and violating sanctions against Iran.

In 2023, the Federal Reserve Board required Popular Bank to pay a $2.3 million fine, claiming it processed Payment Protection Program loans even though potential instances of fraud were detected and not reporting the potential fraud in a timely manner.

In 2022, the US Department of Treasury's Office of Foreign Assets Control also required Banco Popular de Puerto Rico — the Popular Bank's Puerto Rico locations — to pay over $255,000 in a settlement that accused the bank of violating Venezuela Sanctions Regulations when processing transactions with two Venezuelan government employees.

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 goalsmight 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.

3-Year CD FAQs

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, vice president of coaching strategy at OfColor
• Sophia Acevedo, banking editor, Business Insider
• Roger Ma, certified financial planner with lifelaidout® 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

At Business Insider, our goal is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.

First, we researched to find over 20 banks and credit unions that offered 3-year CDs. Then, we reviewed each institution using our CD rates methodology to find the most-well rounded banking options. 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.